MORALE BUILDING

HOW TO MOTIVATE EMPLOYEES

NON-FINANCIAL INCENTIVES
MORALE AND PRODUCTIVITY
FACTORS THAT AFFECTING
MORALE
MORALE AND PRODUCTIVITY
RELATIONSHIP
MORALE BUILDING
 HOW TO MOTIVATE
EMPLOYEES
 Recognize individual differences
- Attitude, Personalities…
 Match people to jobs - people with
high growth needs perform better on
challenging jobs. Achievers will do
best when the job provides
opportunities to participatively set
goals and when there is autonomy
and feedback.
 Use Goals – provide specific goals, so that the
employee knows what he is doing.
 Individualise rewards – use rewards
selectively, keeping the individual requirements
in mind.
 Link Rewards to Performance – employee
should be rewarded immediately after attaining
the goals.
 Check the system for equity – the inputs for
each job in the form of experience, abilities,
effort, special skills, must be weighted carefully
before arriving at the compensation package for
employees.
 Don’t Ignore Money – money is
not only a means of satisfying the
economic needs, but also a measure
of one’s power, prestige,
independence, happiness so on…
 Non –Financial Incentives
 Incentives which cannot be offered in
terms of money .
 People working at higher levels do
not always work for money. They
expect a challenging job, interesting
work that grants them enough power
to control environments, work that
allows them to use their talents fully.
 Types of Non-Financial
Incentives
 IndividualIncentives
 Group Incentives

 Organisational Incentives
 1.Individual Incentives
 Status – it is the ranking of positions,
rights and duties in the organisation.
 Promotion – vertical movement of a
person in the organisation.
 Responsibility – more responsible and
challenging jobs.
 Recognition of work – 1. show
appreciation when an individual does an
outstanding job. 2. compliment individuals
in front of others. 3. compliment
individuals when the incidents is still fresh
in their mind.
 Cont…
 Interesting work – jobs that are
varied, pleasant and enjoyable
motivate people thoroughly.
 Job Security – secure about their
future income and job continuity.
 2. Group Incentives
 Social importance of work- high
status jobs enhance the social status
of an individual in the society.
 Team spirit – those organizations
that encourage their employees to do
the jobs in a cooperative manner,
attract people automatically.
 Healthy Compensation –
promoting healthy compensation
among employees through carefully
chosen reward schemes .
 3. Organisational Incentives
 Participation – offer employees good
opportunities to participate in the decision
making process.
 Sound Human Relations – a positive
work climate where people are treated as
human beings is an important reward.
 Morale – the atmosphere created by the
attitudes of the members of an
organization.
 Communication and Discipline – proper
communication and good disciplinary
procedures enable people to work with
confident and along the prescribed routes.
 MORALE AND PRODUCTIVITY
 Mayo – “ the maintenance of
cooperative living”.
 Dr.Leighton – “Morale is the capacity
of the group of people to pull
together persistently and
consistently in pursuit of a common
purpose”.
 Individual Morale
 Involves knowing one’s own
expectations and living up to them.
 Morale refers to the feelings of an
employee toward his work.
 It is a matter of work satisfaction.
 Group Morale
 Reflectsthe general tone of a group
of people.
 Emphasises social reactions and
concentrates on attitudes towards
group values.
 COMPONENTS OF A GOOD
MORALE
 IntrinsicJob Satisfaction
 Satisfaction with Company

 Satisfaction with Supervision

 Satisfaction with Rewards

 Satisfaction with Co-workers.

 Factors Affecting Morale
 The Organisation
 Leadership

 Co-Workers

 The Nature of Work

 Work Environment

 The Employee
 Factors Affecting Morale
1.The organisation :- the goals of
the organisation influence the
attitudes of employees greatly.
 A clear structure with well-defined
duties and responsibilities
encourages people to work with
confidence.
2. Leadership :- The actions of
managers exert a strong influence
over the morale of the work force.
 Fair treatment, equitable rewards
and recognition for good work affect
morale greatly.
3. Co-Workers :- Poor attitudes of
co-workers influence others.
4. The Nature of Work :- Dull,
Monotonous, Repetitive work affects
employee morale adversely.
If an employee is asked to do
something interesting and
challenging, his morale may be high.
5.Work Environment :- Morale is a
direct function of the conditions in
the work place.
Clean, safe, comfortable and pleasant
work conditions are morale boosters.
6. The Employee :- the employees
self concept also influence morale.
 MORALE AND PRODUCTIVITY
RELATIONSHIP
 High Morale will lead to High
Productivity.
 A Manager can push for high
productivity by using scientific
management, time studies and close
supervision.
Morale and Productivity
Relationship
High Morale High Morale
Low Productivity High Productivity

Low Morale Low Morale

Low Productivity High Productivity
 Final Analysis- a manager has to work for
improving the morale of his employees.
 High morale makes the work more
pleasant and will go a long way in
improving the work climate.
 It helps the work group to attain goals
easily, smoothly and more importantly, in
a highly cooperative manner.
 MORALE BUILDING
 Maintaining a reasonable level of a
morale is not an easy job.
 Some of the important steps that
need to taken up by management,
that too on a continuous scale are :-
 Steps for Morale Building
 Remuneration
 Job security
 Participation
 Job Enrichment
 Organisation Structure
 Grievance Redressal
 Employee Counselors
 Sound Leadership
 Remuneration :- must be fair and
equitable. It should be fair in relation
to employees skills and abilities and
equitable in relation to the wages
prevailing in the industry.
 Job Security :- the employee must
be sure of his job and its continuity.
 Participation :- employee must be
treated as ‘resources’; not as tools.
 Cont…
 Job Enrichment :- Enrichment is a
process of making jobs more
responsible, challenging and
interesting .
 Organisation Structure :- flat
structures permits the employees to
move closer to the manager and
discuss the implications of
commands on a face to face basis.
 Cont..
 Grievance Redressal :- grievance
are the cause of low employee
morale. The use of a well-established
procedure helps in redressing
employee grievances promptly.
 Employee Counselors :-basic
function is to assist employees with
their problems and complaints, and
put them on the right track.
 Cont…
 Sound Leadership :- top management
must be genuinely interested in the
employees at all levels.
They must undertake sound human
resource practices for building good
employee relations.
They must listen to the problems of the
employees patiently and sympathetically.
They must inspire their subordinates
through their actions.
 Techniques for Designing Jobs
 Job Simplification
 Job Enlargement
 Job Rotation
 Job Enrichment
 Job Simplification :- it is a job design
the purpose of which is, to improve
task efficiency by reducing the
number of tasks (simple, repetitive
and standardized) that a single
person must perform.
 Job Enlargement :- it increase task
variety by adding new tasks of
similar difficulty to a job.
 Job Rotation :- it involves
systematically shifting employees
among jobs involving tasks of similar
difficulty.
 JOB ENRICHMENT
 Inorder to motivate personnel, the
job itself must provide opportunities
for achievement, recognition,
responsibility, advancement and
growth.
Unique aspects of Job Enrichment
 It changes the basic relationship between
employees and their work. Interesting and
challenging work, can be a source of
employee satisfaction.
 It changes employee behaviors in ways
that gradually lead to more positive
attitudes about the organisation and a
better self image. Feelings of autonomy
and personal freedom help employees
view their jobs in a favourable way.
 Cont…
 It helps the employer bring about
organizational changes easily, securing
employee cooperation and commitment.
 Job enrichment can humanise an
organisation. ‘individuals can experience
the psychological lift that comes from
developing new competencies and doing a
job well. Individuals are encouraged to
grow and push themselves’.
 Criticism
 Job enrichment is not a social cure
for workers discontent.
 Some jobs cannot be enriched
beyond a certain point. “the
prospects for humanizing work are
constrained by the realities of the
work to be done-realities which are
beyond the power of planners to
control.
 Cont…
 Many workers do not feel alienated from
their jobs and do not desire more
responsibility or involvement at their
workplace.
 Labour union thrive on conflict with
management.
 Increasing job scope does not
automatically motivate workers and in
many jobs it is impractical because they
are not structured so that elements can be
added.
 How to make job enrichment
effective
 Use job enrichment selectively after taking
in to account situational variables- job
characteristics, personal characteristics of
employees, organisation level etc.
 Provide a supportive climate for innovation
and change.
 Job Enrichment demands a development
effort. Managers must have a better
understanding of what people want.
 Cont…
 Develop the skills of the participants first,
in a job enrichment programme.
 The basic purpose of job enrichment is to
create jobs that employees will enjoy
doing.
 People who really enjoy the tasks they
perform may not need the extra
motivation of high pay and impressive
designations.