The paper examined issues and challenges facing Malaysian organizations in implementing a form of employee involvement that is employee share option scheme. The findings of this study showed that there are some similarities and differences compare to the study conducted in other countries as mentioned in literatures. Issues for similarities, differences and challenges to make the scheme as one of the management tools in Malaysia setting are discussed.  Publication: 4th International Malaysian Studies Conference; 3-5 August 2004, Universiti Kebangsaan Malaysia, Bangi.  Authors: Mohmad Adnan Alias & Nik Mutasim Abd Rahman.