Morale & Productivity

Unit 5
Definition
Morale represents the attitude of individuals and
groups towards their work environment and towards
their voluntary co-operation to the full extent of their
ability in the best interest of the organisation.
Keith Davis
Morale is different from Motivation
Morale is a group phenomenon.
Morale indicates predisposition towards all aspects of
work but Motivation is basically predisposition
towards the job itself.
Morale is directly related to productivity.
Morale refers to someone's emotional and mental
state. ... Several studies indicate that morale can be
directly tied to productivity.
 Results also show that employee engagement directly
impacts productivity, and morale is a significant factor
in an employee's level of engagement
What causes low employee morale?

 If you discover employee morale is low or seems to be decreasing, it’s

important you find out why. After all, if a specific problem is killing
morale, any solutions that don’t address that problem are unlikely to
help.
 Some common causes of Low Employee Morale :
 Poor leadership. While it’s difficult to accept that you might be the
problem, often, issues start at the top. Nearly 1/3rd of employees t hink
their current boss is a lousy manager, and roughly half have left a job
because of a bad boss.
 Unclear expectations. If employees aren’t sure that they’re doing
what is expected of them, it will hurt morale.
 Lack of rewards. Employees want to be rewarded for their work.
When there are no rewards or incentives, they can feel their effort isn’t
being recognized, which will kill their morale.
Criticisms and punishments. If employees are punished
for mistakes, or even if they fear retribution for potential
errors, it can ruin their confidence
Negative coworkers. Unfortunately, one negative team
member can quickly drag down the rest. If someone is
frequently worrying or complaining, their low morale can
rub off on the other employees.
Fear of the unknown. Morale encompasses an employee’s
outlook of the future. If they have reason to worry that their
future isn’t secure, it will erode their morale. For instance,
office gossip about the company losing money or potential
layoffs will often damage morale.
Improving Employee Morale
Touch base regularly. Showing you care about your
employee’s mental state can help improve morale.
Regular one-on-ones can not only help you assess
morale, but they can also help your employees feel like
you’re interested in their well-being and development.
Be transparent.
Celebrate. Celebrating big and small accomplishments
helps your team feel recognized and appreciated for their
hard work. Celebrating non-work events like birthdays can
also help promote team bonding and make employees
happier.
Emphasize work-life balance. Less time spent at work
can make employees feel happier and more relaxed. It can
also boost their productivity.
Include your team in decisions. If employees don’t feel that
they’re being considered in the decision-making process, it
will make them feel undervalued and powerless.
Reward employees. Teams and individuals should be rewarded
for their hard work and commitment. Whether the reward is
public recognition of work well done or a gift card to their
favorite restaurant, regularly rewarding employees helps increase
morale.
Encourage feedback. Asking for honest feedback, responding
positively, and addressing issues will increase your team’s
happiness and their faith that you’re in their corner and want to
help them succeed.
Promote team bonding. Planning team events outside of work
hours can help build a sense of belonging and unity that can, in
turn, boost morale. Even remote teams can use tools like Zoom
to participate in virtual team building activities.
 4 Outcomes of Morale & Productivity
Outcome # 1. High Morale – High Productivity:
This is the ideal combination of morale and
productivity and occurs when right motivational
policies are adopted by managers.
Workers know their jobs, they are trained to manage
various aspects of the job and feel committed towards
the organisational goals.
Outcome # 2. High Morale – Low Productivity:
In this situation, though workers are satisfied with the
jobs, they are not committed to the work.
This may be because of the nature of task, the nature
of superiors, kind of technology used, work methods
or inadequate training facilities that restrict efforts to
perform their jobs well.
People work for their individual/group goals rather
than organisational goals.
Outcome # 3. Low Morale – Low Productivity:

It represents the other extreme of morale- productivity

continuum.
Lack of motivation, unclear jobs and lack of harmonious superior
– subordinate relationships reflect low morale and, therefore,
frustrations, tensions, discontentment and grievances develop
against managers which results in low productivity.
High labour turnover
Rate of Absenteeism increases
Wastage of resources
Creating resistance groups
Unnecessary disputes
Failure to cooperate with the management.
Outcome # 4. Low Morale – High Productivity:
Low morale results in high productivity when negative
motivation is used by managers.
Punishments, threats and penalties for non-
conformity to organisational plans and policies directs
workers towards high productivity.
 Such a situation does not last for long as negative
motivation can increase production only for a short
span of time.
Conclusion
Workers’ behaviour will soon be reverted to low job
performance and low output.
Behavioural management, thus, requires that work
environment should be able to achieve high morale-
high productivity combination.
Though morale and productivity are not perfectly
related, a positive correlation between them creates a
healthy work environment.
 Factors determining Morale
1. Moral Stimulants:
Worthwhile Objectives
Good Leadership
Homogeneity of group characteristics and interests.
Symbolism and a degree of identity of organisation.
Decentralisation and Delegation of Authority and
Responsibility.
Satisfactory physical work environment.
Morale Depressants
1. Salary :
Low salaries
Disproportionate Salaries
2. Promotion Prospects
3. Supervisory Problems.
4.The Job.
5. Working Conditions
6. Management and the worker
7. Personal Factors.