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A STUDY ON IMPACT OF EMPLOYEE MORALE

ON PRODUCTIVITY OF EMPLOYEES
C. ARUN
Assistant Professor
Manakula Vinayagar Institute of Technology
Pondicherry 605107

G. AGALYA
Assistant Professor
Manakula Vinayagar Institute of Technology
Pondicherry 605107

Abstract:

Majority of the expert’s believe that customers are “God” for running a successful business or organization
because they are the main factor for revenue generation, but this revenue generation can be done with the support
and involvement of employees. For this support an employee attitude is very important. Employee’s morale is an
attitude of an employee towards his organization. If an employee had a positive morale then his involvement and
satisfaction will generate high productivity from him. In this paper clearly views the term” Employee Morale”
and the different factors used by the organization to increase the employee’s morale.

Introduction:

A group of people joined together for the achievement of the objective is called organization. The
efficiency and effectiveness of that objective achievement can be done with the proper planning and execution of
objectives, for this achievement employees are the backbone of the organization. Employees should have a
positive attitude towards his organization. So Employee morale plays a vital role. If morale is good in the
organization then it will have an impact over the productivity of employees. There is a direct and indirect relation
between these two factors.

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Employee Morale:

Mayo defined it as “ the maintenance of cooperative living” and Dr. Leignton described Morale as” capacity of a
group of people to pull together persistently and consistently in pursuit of a common purpose” Generally
Employee morale is an attitude of employees towards the organization. Morale can be divided into two different
ways. Individual Morale and Group Morale. Individual morale is one's own expectations towards the organization
where group morale is a concept that describes the level of favorable or unfavorable attitudes of employees
collectively to all aspects of their work.

Objective:

 To know the impact of employee morale on productivity

 To understand the factors which will boost or affect morale in the organization

Review of Literature:

Morale is an elusive quality which involves feelings, emotions, attitude and perception towards the organization
and its members. Positive morale is usually characterized by discipline, confidence and willingness to perform.

Low morale can be attributed to many factors such as job insecurity, lack of fair compensation policy, uncertain
business conditions, and excessive outsourcing practices. Low morale affects company income, productivity,
financial competitiveness and organizational objectives (Sauermann & Cohen, 2008). Low morale is an outcome
of managerial behavior where managers address their employees from a top-down command and refuse to
communicate directly on workplace issues (Sauermann & Cohen, 2008). This kind of communication results in a
gap between employees and managers, which in turn leads to employee distrust, disrespect, and reduction of
morale and workforce motivation (Chungsup & et al., 2012). Low morale also causes employees to lose interest,
especially when managers don’t appreciate their efforts and the tasks performed (Zeynep & Huckman, 2008). A
costly indicator of low morale is high employee turnover. This happens when employees leave their jobs because
they feel unhappy and have no incentives to stay. The negative effect of employee turnover is disconcerting
because of its great implication both on financial and on productivity levels. Financially means the company has
to hire new employees either with payment of higher salaries or by additional recruiting expenses. At the
production level, the employees who leave will take with them the knowledge, skills and ability that helped
contribute to the goals, profit and performance of the organization (Lee & Liu, 2009).

Singh, Jain (2013) states that the employee's overall presentation commonly mirrors the lesson of the
organization. In comparison with administration cheerful employees speak positively about organization and they
reinforce the workplace and increment the worker's spirit and representative's fulfillment to improve
representative execution and profitability, which at last outcomes in high benefits, consumer loyalty and also
client maintenance.
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Upadhyay, Gupta (2012) elucidate us that the satisfied educates us that Satisfied representatives are accounted for
to have high determination. Welfare measures and work encounter does not really identify with fulfillment.
Therefore, its suggested that the organization ought to accommodate sufficient welfare measures yet ought not
trouble itself by expanding the cost some portion of it in voracity to procure the aggressive edge and proclaim
itself as most wanted organization.

Carolyn ashe (2016) “CORRELATION OF MORALE, PRODUCTIVITY AND PROFIT IN

ORGANIZATIONS”, This study examined whether the level of employee morale has a direct relationship to
productivity and profit. Several studies indicated that low morale causes low productivity but have not indicated
decreased profit as a result.(to know about how to correlate , employee morale with employee production)

Jehanzeb R. Cheem(2017) “EFFECTS OF STAFF PARTICIPATION, MORALE, AND SHORTAGE ON

ORGANISATIONAL PERFORMANCE: AN INTERNATIONAL SURVEY”, In this study we looked at the link
between staff-centred organisational factors and organisational performance, within the special context of high
schools across nationally representative samples from 64 countries and economies. Our empirical results indicate
large cross-country variations in the effect of factors such as staff participation, morale and shortage, on school
performance. Implications are discussed. (Good and bad effects of employee morale and participation in
management)

Shamih (2017) “THE EFFECT OF LOW MORALE AND MOTIVATION ON EMPLOYEES’

PRODUCTIVITY & COMPETITIVENESS IN JORDANIAN INDUSTRIAL COMPANIES”. His study aims to
examine the effect of low morale and motivation on employees’ productivity and competitiveness. Low
productivity and loss of competitiveness are outcomes of low morale and low motivation and may sometimes lead
to further undesired symptoms such as absenteeism and sabotage.

Factors affecting Employee Morale: -I

1. Collaboration of Objectives:

Employees will work with full involvement when his or individual objective tuned for the organization
effectiveness

2. Organizational conduct among employees affects the nature of work, especially on the level of resolving any
disparity among them.

3. Personal elements it identifies with age preparing training and insight of the representatives, time spent by them
at work and enthusiasm for worth taken by them influence the assurance of the employees

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4. Rewards-Employees expect sufficient pay for their skills. positive arrangement of wages, pay rates,
advancements and different impetuses keep the confidence of any employees always high. 5. Work condition of
any organization and it appearance affects the states of mind

6. Compatibility with kindred employees being a social creature discovers his words additionally fulfilling on the
off chance that he feels that he has the acknowledgement and brotherhood of his kindred specialists.

7. Job Satisfaction gives an employee a fair chance to demonstrate his abilities and develop identity, he/she will
confirm like it and he will have high resolve. Opportunity to share benefit remains one of the necessities of high
spirit is plausibility and chance of advance in any worry.

Factors affecting Employee Morale: -II

1) The Organisation: The main and primary factor affecting employee morale in Indian industry is the
organisation itself. The organisation means the entire goodwill, public reputation image of the company among its
competitors. It’s one of the main factors because most of the time in a day an individual called an employee spent
his time in the office and organisation premises. His giving his work towards his job in return for something
called wages/salary he must be proud of his job and his working organisation if suppose he is not doing his job
correctly or non-effectively it’s the fault of the organisation for his mistakes too.

2) The nature of Work: Another factor that affect the employee morale is the nature of the work of the employee
what he doing in the organisation .if the employee did his routine job over and over he may tired or getting bored
,it must affecting his morale towards the organisation and job .day to day he is getting loss his interest towards the
working condition of the organisation .and another view is the employee never getting feel about he is just a small
part of the business organisation he feel proud to do the job , the condition get worse when he feels about his
profession or feel imperiority complex .when the ‘Neil Armstrong’ landed on moon at the first person he proud to
did the assigned job , even the last an landed on moon he never feels about demotivated because it’s not about the
who is first and who is last they are important to do the job because they are proud of human being.

3) The level of Satisfaction: satisfaction the word describes lots of meanings itself in this world no one can satisfy
the entire human being or no one can satisfy even they are getting lots of properties or money .even the
employees also when the company fully engaged with the employee and give him more salary compared to its
competitors and give him all welfare activities and good food and entire environment he never satisfied with his
all belongings because, human beings never been satisfied .in return company only expects them to work with full
intension and interest .the human beings wants and needs more grower day to day it never reaches the peak. And

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never gets lower .An old Indian story named “tree cutter and axes” it not possible in today’s world because
everyone wants golden axe and more than that

4) The Level of Supervision: it is the factor more than placed the important place the factors that affecting
employee morale. In India more employee turnover happened because of the supervision “follow the leader is not
just the word that describes all of his actions is focused and surveillance by his followers . and he must doing the
good things and more engaged with the coworkers and employees when he is not focused in his interest towards
the perspective employees and co-workers the situation and the relationship among employees and management
goes to end .the employee morale is more directly or indirectly connected with his superiors action .if suppose the
subordinate doing the great thing but his superior not get interest and don’t give him an motivation , he never
been a good employee and don’t do the right things next time . good supervision is a identity of good leadership
,the best example for the good supervision is ‘Sathish dhawan’ the senior most scientist in the ISRO and he is the
leader of the mission of the rocket launching under his leadership Dr.A.P.J.Abdul kalam and 6 other members
also in the team but, the mission is unfortunately fail , after that press people gathered in front of the press meet
place ,all the team members have some embarrassment and fear to face the press media .but, Dr. Sathish dhawan
took the preference to said his team mates “all of you go to your houses and take rest, thank you I’ll face the
media”, he entered to the meeting hall press people raise various questions about the mission failure he simply
said “As a leader of the mission it’s my mistake, I take full responsibility for the failure, within next 6 months
we’ll give our best to accomplish the mission” after the 6 months the mission gonna big success and it’s the great
story in the Indian space history .media people waiting outside to celebrate the great victory , In this time Sathish
sir said to his team mates “I’m very tired ,I’m going to my home you may go and celebrate the success with
media and public in this story we can come to know that how one should be a leader and good supervisor.

5) Workers Perception of Reward System: the monetary benefit like reward system of the organisation is the one
of the factor that determines the employee morale because the every employee in the organization is working for
the salary obviously. When the company can’t give the adequate salary to the people and not good monetary
motivation is directly affect his high morale towards the job and the company. The other reward systems such as
bonus, salary hike and incentive when there are not payable to honour the employees. It’s getting worse. 6)
Employee’s Educational Level: the one of the indirect factor that affects the employee morale is their educational
level. Now a days employment is the hardest things to get, most of the qualified personnel’s getting the jobs not
suitable to them, when they are entered into the another organization they may not I interested to their job because
of the educational qualification is not allow them to do the job effectively. For example in India most of the
engineering graduate students get their employment in the information technology companies in all over India but
they may not be interested in their job, it is also suitable for the automobile industry also.

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7) Employee’s Occupational level: this one factor obviously attached to the employee’s interest towards is job.
The employee must engage with the companies vision mission and values, he must try to achieve the company’s
goal along with his goals too like pursuing the highest position in the hierarchy within the stipulated period. It is
possible only if the employee understand the organization goals and values.

8) Quality of work Life: this factor is one of the debatable topics in India because of most of the Indian working
employees affected by psychological issues like hyper tension, depression is happened because of their quality of
work life is very low. Many of the Indian organization won’t give the psychological counselling how to maintain
the work life balance some of them do. When the employee involved in his work and working hours he never
thing about his family and his own problems. It may decrease the productivity and efficiency towards his job.
After the working hours he must spent his valuable time with his family, when the above format is not reach its
good level the employee morale never been earned by the organization.

Conclusion of the Study:

From the study it is found that Employee morale play a major role in the productivity of the employees. The
attitude and positive morale will increase the satisfaction of the employees towards the organization which
indirectly have impact over the productivity of employees. More over the organization, quality of worklife and
level of perception is the factors which will boost the employee morale.

References:

 Factors Affecting Employee Morale in the Indian Automobile Industry - A Literature Review Dr. M.
Ravichandran1 , A. Balakumaran2 International Journal for Research in Applied Science & Engineering
Technology (IJRASET) ISSN: 2321-9653, Mar 2019
 Impact of Employee Morale on Organizational Success Arvind Mallik, Lakshmi Mallik, Keerthi DS
International Journal of Recent Technology and Engineering (IJRTE) ISSN: 2277-3878 November 2019
 The Effect of Low Morale and Motivation on Employees’ Productivity & Competitiveness in Jordanian
Industrial Companies Osama Samih Shaban 1 , Ziad Al Zubi 1 , Nafez Ali 1 , Atalla Alqotaish
International Business Research;ISSN 1913-9004June 7 , 201 7
 A Study to Measure the Morale of Employees Working in Manufacturing Company in Coimbatore
International Journal of Science and Engineering Research (IJ0SER), Vol 3 Issue 3 March -2015

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