The relationship between Morale & Productivity

 What is employee morale?

        Employee morale is a mental condition or attitude of individuals and groups that determines their willingness to cooperate. Good morale is evidenced by employee enthusiasm, voluntary confirmation of regulations and orders, and a willingness to cooperate with others in the accomplishment of an organization’s objectives. Poor morale is evidenced by surliness, insubordination, a feeling of discouragement, and dislike of the job, company, and associates. Employees’ morale may be defined as an intangible concept that refers to how positive and supportive a group feels toward the organization to which it belongs and the special feelings members of the group share with others, such as trust, self-worth, purpose, pride in one’s achievement, and faith in the leadership and organizational success.  defines employee morale as the general level of confidence or optimism experienced by a person or a group of people, especially if it affects discipline and willingness.  morale is more influenced from the top down (that is by leadership) than from the bottom up. High or low morale is not just made up of a single factor; it is a combination of related factors. In addition, morale may be thought of not only as a group phenomenon but also as an individual matter. Group morale depends on the morale of each individual in a group. Teamwork:  that teams offer greater participation, challenges, and feelings of accomplishment. Organizations with teams will attract and retain the best people. This in turn will create a high-performance organization that is flexible, efficient, and most importantly, profitable.

A person's level of happiness at work, or in their work group, is referred to as their "morale." His employer, his company, and his surroundings. Morale is crucial in a wide range of scenarios, from combat to product manufacture, demonstrating its value. Several factors affect an organization's long-term viability, such as the level of morale, which includes things like excitement, personal satisfaction, and readiness to work together. The word "morale" appears a lot in organizational literature. Although it is a difficult and contentious subject to pin down, it is one of the most controversial and elusive issues that has yet to be resolved. Despite its significance, morale is generally ignored and misunderstood by business leaders. Others refer to it as "group emotion" since they believe that morale may be an individual or a collective experience. Almost all experts agree on the significance of good morale as a sign of a healthy atmosphere of behavior. An in-depth explanation of morale is thus required. The attitudes and feelings that an individual or group has toward the organization's goals are reflected in its morale, which is a critical component of its success. Individuals' productivity and contentment are directly impacted by their internal state of mind. They tend to refer to those with "high morale" as having "high morale" in the workplace. Morale refers to a person's enthusiasm for their job or lack thereof. Self-confidence, confidence in others, and confidence in one's future are all characteristics of a person with good morale. A person with high self-esteem believes that the work he or she is doing is important and that he or she is doing it effectively. (Bhat, 2023)

Various definitions of morale-

Tiwari (2014) stated that morale is an employee’s attitude toward his or her job, employer, and colleagues. Employee morale is the psychological state with esteem to satisfaction, confidence, and resolution; the attitude of an individual or group of employees. Employee morale within an organization has a through impact on the satisfaction level of its customers and the company's ultimate success

Bacon and Blyton (2006) highlighted the two important factors i.e. self-management team and interpersonal team skills. These factors enhance the communication as well as interpersonal relationships between team members and also boost employee performance.

 

Mulika (2010) explained teamwork is a significant tool for new types of work organizations. Teamwork is a precise organizational measure that shows many different features in all types of organizations including nonprofit

Yoder, “morale is a feeling, somewhat related to esprit de corps, enthusiasm or zeal. For a group of workers, morale, according to popular usage of the word, refers to the overall tone, climate, or atmosphere of work, perhaps vaguely sensed by the members.’

William Spiegel, “Morale is the co-operative attitude or mental health of several people who are related to each other on some basis”.

Leighton, “Morale is the capacity of a group of people to pull together persistently and consistently in pursuit of a common purpose”.

Basic Characteristics of Morale-

·       Morale is basically a psychological concept.

·       Morale is intangible therefore it is very difficult to measure the degree of morale accurately.

·       Morale is contagious in the sense that people learn from each other.

·       Morale is dynamic in nature. It cannot be developed overnight. Managers have to make continuous efforts to build and maintain high morale. It is a long-term effort.

·       Morale is a group phenomenon consisting of a pattern of attitudes. It is the sum total of employees’ attitudes, feelings, and sentiments. (Arvind Mallik, 2019)

Factors Determining Morale -

Confidence in leadership:  the leader being mentioned is the immediate supervisor/superior. If the leader is systematic, fair, honest, helpful, and friendly, he may win over the confidence of his subordinates and boost their morale

Job Satisfaction: The morale of the employee would be high if he is satisfied with his job. Hence right men should be placed in the right jobs to boost their morale in their jobs.

Confidence in co-workers: Mani is a social being and he finds himself more enthusiastic in the company of others. If he finds that his companions or fellow workers are cooperating with him, his morale will be high.

Sound and efficient organization: Sound and effective organization is an important factor affecting the employee’s morale. At the same time, the chance of communication should be effective and the personal problems of the employee should be heard and redressed as quickly as possible.

Fair remuneration: Fair and reasonable remuneration is essential to secure the enthusiasm and willingness of the workers to do the job. The wages should be comparable with those paid in similar concerns. Besides, monetary incentives should be provided to them as and when necessary and possible.

Security of job: If the employee feels secure, they will be willing and cooperative to do the job allotted to them.

Opportunity to rise: The employees should also be made to realize that if they work properly, they will be promoted and adequately rewarded. This feeling of recognition will definitely boost their morale.

Working conditions: The conditions of work at which the employees are required to work also affect their morale. Providing safety measures, hygienic facilities, clean workplaces, etc. gives them satisfaction and boosts their morale.

Physical & mental health: An employee with weak health cannot be cooperative and willing to work. Similarly, his mental strain shall also reduce his motivation of morale. Both physical and mental illness are detrimental to an individual’s work and thereby the organizational output.  (Martinez, 2019)

There are two types of morale:

• Individual Morale: It means a person's attitudes towards life.
• Group Morale: It implies the collective attitudes of a group of persons.

Measurements of Morale-

 Observation-

A keen observation of employees’ behavior and gestures should help the manager to identify any change in the level of morale. Upon identifying this, managers should immediately think of a remedial action to restore the morale at its previous level.

Attitude Surveys-      Interview method and Questionnaire method

Company Records- Certain reports from the personnel department provide information about Labor turnover, rate of absenteeism, number of workers grievances, strikers, etc...

 Factors Affecting Employee Morale and Ways to Keep Morale High

• Communication Level. Communication is key in any relationship, and the workplace is no exception. 
• Workload.
• Teamwork Mindset. 
• Overall, Trust. 
• Incentive Programs. 
• Recognition
• Turnover Rates
• 
  

What Is Productivity?

Productivity is a measure of the rate at which output of goods and services are produced per unit of input (labor, capital, raw materials, etc.). It is calculated as the ratio of the quantity of output produced to some measure of the quantity of inputs used.

Many factors can affect productivity growth. These include technological improvements, economies of scale and scope, workforce skills, management practices, changes in other inputs (such as capital), competitive pressures, and the stage of the business cycle((Furst, 2022),

                                        (www.pc.gov.au)online

Why is Productivity Important?

Increased productivity indicates greater output from the same amount of input. It means higher efficiency with which a company or economy can transform resources into goods. Thus, productivity growth is our opportunity to create more from less. 

Increased productivity drives economic growth, meaning an economy can produce and consume more and more goods and services for the same amount of work. Every section of society, viz., consumers, workers, and employers, can benefit from a productivity increase. It is vital to individuals, businesses, and analysts

Naturally, the challenges employees face with productivity ultimately reflect in the company’s overall output, too.

Increased efficiency: By being more personally productive, people can complete their work efficiently, tackle errands quicker, and enjoy more free time. 

Improved employee well-being: Productivity can help employees enforce healthy work/life boundaries and feel more in control of their circumstances. Some people may even enjoy their work more when they’re productive, and they’re likely to feel less stressed, too.

Improved individual and company performance: Traditionally, we associate productivity with performance. Each person’s productivity and performance contribute to business success, leading to lower prices, higher profitability, and potentially higher pay for employees. 

Enhanced scalability: When a business has high productivity levels, it uses its resources more efficiently and is poised for growth and expansion

What is the relationship between morale and productivity?

    Morale and productivity are closely related concepts. High morale can lead to increased productivity, while low morale can lead to decreased productivity. When individuals feel positive about their work and are motivated to succeed, they are more likely to put in extra effort and work more efficiently. In contrast, when individuals are demotivated, they may not feel as invested in their work, leading to decreased productivity

There are several ways in which morale can impact productivity:

Engagement: When individuals are engaged and invested in their work, they are more likely to be productive. High morale can lead to increased engagement, while low morale can lead to disengagement and decreased productivity.

Motivation: Motivation is a key driver of productivity. When individuals are motivated, they are more likely to put in extra effort and work more efficiently. High morale can lead to increased motivation, while low morale can lead to decreased motivation and decreased productivity.

Collaboration: Collaboration and teamwork are essential for productivity in many work environments. When morale is high, individuals are likelier to collaborate and work together towards a common goal. When morale is low, individuals may be less willing to collaborate and may work less effectively as a team.

Creativity: High morale can also lead to increased creativity and innovation. When individuals feel positive and motivated, they are more likely to think outside the box and come up with new ideas that can increase productivity.

Absenteeism: Low morale can lead to increased absenteeism and decreased productivity. When individuals are not feeling motivated or engaged at work, they may be more likely to call in sick or take time off, which can impact productivity and lead to delays.

Customer satisfaction: In industries that rely heavily on customer interactions, morale can impact customer satisfaction levels. Employees who feel positive and engaged are more likely to provide excellent customer service, leading to increased customer satisfaction and loyalty. (Kanimozhi, 2018

Morale Productivity Matrix 

This is a tool that organizations can use to assess the relationship between morale and productivity within their teams or departments. It involves plotting employee morale and productivity levels on a two-dimensional graph to identify patterns and trends. This matrix is divided into four quadrants:

                                            (Greek for Geeks )morale concept

·       High morale, high productivity: This quadrant represents the ideal situation where employees have high morale and high productivity levels. Organizations should strive to maintain this quadrant by continuing to invest in employee engagement and motivation.

·       High morale, low productivity: This quadrant represents a situation where employees have high morale but low productivity levels. This could indicate a lack of resources, unclear expectations, or other barriers that are preventing employees from being productive. Organizations should assess the reasons behind this and take steps to address any issues.

·       Low morale, high productivity: This quadrant represents a situation where employees have low morale but high productivity levels. This could indicate that employees are overworked, underappreciated, or lacking in opportunities for growth and development. Organizations should work to address these issues and improve employee morale.

·       Low morale, low productivity: This quadrant represents a situation where employees have low morale and low productivity levels. This could indicate serious issues within the organization, such as poor leadership, lack of resources, or a toxic work environment. Organizations should take urgent action to address these issues and improve the situation.

Low morale indicates the presence of mental unrest. This mental tension or unrest not only hampers production and productivity but also leads to ill-health of the working people. The other consequences of low morale are the following:

·       High rate of labor turnover

·       High rate of absenteeism

·       Excessive complaints and grievances

·       Lack of discipline

·       Antagonism towards the organization and its management

·       Low quantity and quality of output

How do you improve productivity and morale?

 Here are some additional actions you can take to increase employee morale and productivity:

Ø  Touch base regularly. Showing you care about your employee's mental state can help improve morale. 

Ø  Be transparent. 

Ø  Celebrate. 

Ø  Emphasize work-life balance. 

Ø  Reward employees. 

Ø  Encourage feedback. 

Ø  Promote team bonding.

Conclusion 

Morale is an elusive quality that involves feelings, emotions, attitudes, and perceptions 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. 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. 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. Low morale also causes employees to lose interest, especially when managers don’t appreciate their efforts and the tasks performed. 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 implications both on financial and 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 abilities that helped contribute to the goals, profit, and performance of the organization. Absenteeism is another costly indicator of low morale. Unjustified absenteeism increases costs and decreases productivity. According to an article in ‘The Leading Edge’, “dissatisfied employees who are discontented with their bosses can have a high price tag”. Management should work on controlling the effects of low morale through the understanding of their employees’ potential and their core work processes, understanding their abilities, enriching employees’ jobs, and recognizing their achievements 

Employee morale is an essential factor that directly impacts the productivity of a business. When employees feel supported and valued, they’re more likely to put forth their best effort. Companies must recognize this connection and create a workplace environment that caters to their needs. By doing so, they can increase morale and maximize productivity, leading to tremendous success and growth (Amrutha, 2022)

 

 

References

Amrutha, 2022. IMPACT OF EMPLOYEE MORALE ON ORGANISATIONAL SUCCESS. proquest, 6(2), pp. 47-62.

Arvind Mallik, L. M. K. D., 2019. Impact of Employee Morale on Organizational. (IJRTE), 4 Nov. p. 3293.

Bhat, A., 2023. Employee Morale: Definition, Affecting Factors, and How to Boost Morale. [Online]
Available at: https://www.questionpro.com/blog/employee-morale/
[Accessed 7 Oct 2023].

Furst, p., 2022. Implications of Employee Morale. [Online]
Available at: https://www.irmi.com/articles/expert-commentary/implications-of-employee-morale
[Accessed oct7 2023].

Kanimozhi, 2018. Effectiveness of employee morale and its impact on. JETIR, Volume 5(Issue 11), p. 512.

Martinez, P. H., 2019. Impact of Employee Morale and the Organizational Culture. calstate, December.p. 32.