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12 Key Factors that Affecting Employee Morale in Organization

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Employee morale may be described as a readiness to cooperate warmly in the task and purpose of a given organization. Morale may be defined as an attitude of satisfaction with the desire to continue in a willingness to strive for the goals of a particular group or organization.

factors affecting employee morale in an organization
factors affecting employee morale in an organization

Good morale is slow to develop and difficult to maintain.

Factors Influencing Employee Morale at the Workplace

There may factors that influence employee morale differently in an organization:

1. Group Cohesiveness

This means a “feeling of togetherness” or group cooperation.

The greater the mutual attraction among the members of a group to live and work together, the higher the group’s morale.

2. Common Goal

Promoting group cooperation is easier if the group has a common goal.

The goals industry may be more obscure than such gals as winning a war or a football game, but with proper guidance, they can be made clear.

Related: 18 Ways to Build Up Employee Morale in the Workplace.

3. Progress towards Goal

In addition to having a goal, it must be possible for employees to make observable progress towards it.

4. Meaningful Task

Each member of the group must understand clearly how his specific job contributes to the attainment of the group goal.

The determinants of employee morale are as follows:

  1. Pride in and general attitude towards the company
  2. The general attitude towards supervision.
  3. Satisfaction with job standards.
  4. Style of supervision.
  5. Workload and work pressure.
  6. Attitude towards co-workers.
  7. Satisfaction with salary.
  8. Attitude towards formal communication system in the company.
  9. Intrinsic job satisfaction.
  10. Satisfaction with progress and chances for progress.

5. The Organization

The goals of the organization influence the attitudes of employees greatly.

Likewise, a clear structure with well-defined duties and responsibilities encourages people to work with confidence.

The reputation of the company and the persons working in the firm also affect the level of employee morale.

6. Leadership

The actions of managers exert a strong influence over the morale of the workforce.

Fair treatment, equitable rewards, and recognition for good work affect morale greatly.

Workers feel comfortable when they work under a sympathetic, caring leader in place of one who is authoritarian, directional, and dominating.

What are the main functions of leadership?

7. Coworker

The poor attitude of co-workers influences others.

We can imagine working with a person who talks about the negative points of an organization all day long.

Such a person can make each workday an unpleasant experience for others. he can cause co-workers to think negatively.

8. The Nature of Work

Dull, monotonous, repetitive work affects employee morale adversely.

On the other hand, if an employee is asked to do something interesting and challenging, his morale may be high.

9. Work Environment

Employee morale is a direct function of the constitution in the workplace, clean, safe, comfortable, and pleasant work conditions are morale boosters.

10. The Employee

How the employee looks at himself (self-concept) also influences morale greatly.

factors influencing employee morale at workplace
factors influencing employee morale at the workplace

Individuals who lack self-confidence or suffer from poor physical or mental health frequently pose moral problems.

Further, how the needs of the employees are satisfied can significantly affect their morale. Salary, fringe benefits, allowances, etc, may also affect morale.

What are the most important things in the workplace?

11. Executive Attitudes

All employees encounter executive supervisory or managerial attitudes.

Some managers, attitudes are defeatist in nature.

These decrease morale. Attitudes of respect for people will motivate and raise morale.

12. Organization Size

It is often said that morale is better in the smaller company than in the large company because in the small one the employees are closer to their leaders, everyone is acquainted, communication is free and easy and the leaders can solve problems more quickly.

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18 Ways to Build Up Employee Morale in Workplace

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These are innumerable factors contributing to high morale among workers of an industrial understanding. Employee morale-building is a continuous activity and the utmost care should be taken to build it. One best way of building morale in an organization is to have successful and sound management interested in all employees at all levels.

how to boost or build up employee morale
how to boost or build up employee morale

Morale affects human behavior, performance, and discipline. It cannot be measured directly but is reflected in productivity, employee discipline, absenteeism, turnover, etc.

How to Increase or Build Up Employee Morale in the Workplace?

Following specific steps can be adopted to improve employee morale in the organization:

1. Unity of Interests

The integration of workers’ goals with organization objectives will create employees’ confidence and build up high morale.

2. Sound Wage Structure

Workers accept a just and fair wage corresponding to their qualifications and efficiency.

This should give the workers and their families a reasonable level of subsistence including entertainment and medium of savings.

A sound wage structure based upon sound and fair incentive plans coupled with bonus earnings is conducive to high morale.

3. Working Conditions

Working conditions have an important bearing on morale. Proper working conditions create an interest in the job and lead to higher employee morale.

Under the improper conditions of work, morale is likely to fall.

Proper working conditions include the provision of health, safety, and welfare measures, regulations of working hours, proper wage policy, etc.

Related: What are the signs of Low Morale in the Workplace?

4. Incentive Schemes

Fair remuneration gives compensation to the employee for performing his job.

This, on the time, may not utilize his full capacity and skill. It is but natural that an employee may feel that hs showing more skills is not going to remunerate him and more than regular wages.

Incentive, monetary or non-monetary, is a way to motivate an employee to show more skills and utilize his unused capacity. In other words, incentives may arise his morale.

5. Job Security

An employee is given a job and a sword of his extrication hangs over his head.

Such a situation creates a mental disturbance, which leads to a decrease in his interest in the job and his satisfaction.

If this sword is removed and an employee is assured of his continuance on his job, the fear of extrication will be removed.

This will boost his interest leading to satisfaction and finally a rise in his morale.

13 Good and Acceptable Reasons for Leaving Job.

6. Job Enrichment

Job enlargement and job enrichment provide the opportunity to reduce fatigue, monotony, disinterest on the part of the workers, which ultimately leads to higher morale.

7. Grievance and Conflict handling

The conflict appears in many aspects of organizational behavior and it occurs to varying degrees.

Basically, conflict refers to the clash of opposing demands. It is not necessary that conflict is always dysfunctional.

The existence of conflict can be viewed as a necessary, indeed a healthy, characteristic of organizational life.

However, excessive and sustained conflict generates the potential for lo morale. Therefore, conflict resolution is an important leadership responsibility.

8. Workers Participation

Worker’s participation in management is a democratic way of managing.

Their participation in decision making creates a feeling of pride and self-importance in the minds of employees.

Such participation is more essential when some policies affecting the workers are formulated so that they can put forth their views in their interest.

This, in turn, boosts growing satisfaction and thus high morale.

9. Praise and Recognition

Praise of good and efforts helps to infuse further enthusiasm and energy in the workers.

It further increases the morale of the employees.

Achievements of the employees should be recognized by managers with an open heart.

10. Work Freedom

If a worker is treated as a cog in a wheel in the factory and is not given free hand in working, he loses interest in the job.

In order to maintain the worker’s morale at a high level, it is essential that he should be given the maximum degree of freedom that his position allows.

But freedom should not be given a that eh cost of discipline.

Related: Top 8 Methods of Knowing About Employee Grievances.

11. Delegation of Authority

Delegation of authority to different levels in the organization gives employees a sense of importance.

how to increase employee morale without money
how to increase employee morale without money

It also makes them responsible and raises their motivation.

12. Welfare Measures

The provision of welfare amenities like healthy recreation, good housing, proper medical facilities, and so on helps in increasing the morale of the employees.

13. Effective Communication System

Communication is the means by which the required information is polarised and made to reach the appropriate person.

As far as employees working on the floor are concerned, they require timely instruction regarding jobs. Management policy is not made known to them, they may not be able to implement it.

Rather, they will be confused. Many times the instruction given by higher authorities may create problems with the workers.

It is, therefore, required that there should be upward communication to raise the morale of the employees.

14. Sound Leadership

Top management must be genuinely interested in the employees at all levels. They must undertake sound human resource practices.

They must listen to the problems of employees patiently. They must inspire subordinates.

Their attempt must be to improve the mental health of employees.

Why is leadership important in modern business?

15. Fair Promotion Policy

Every employee desire to rise and gain better.

A sound promotion policy motivates employees to show more interest and acquire better qualifications.

Promotion opportunities in the organization keep their morale up.

16. Counselling Facilities

Companies can have the services of behaviors scientist in order to tackle important customers of poor employee morale, like, absenteeism, tardiness, turnover, etc.

The counselor’s basic function is to assist, employees with their problems and complaints and put them on the right track promptly.

Thus, counselors keep employees morale high.

17. Profit-Sharing Schemes

Employee morale can be improved by effective profit-sharing schemes.

In addition to its economic aspects, profit sharing has also psychological aspects relating to friendly moves by the management to provide the workers with an opportunity to share in the profits.

Here, the effect of the scheme on morale is more pronounced than the value of money as an incentive.

18. Human Relation Approach

The human relation approach suggests that every individual should be treated as a human being in the organization.

It is assumed that HR techniques improve morale by improving job satisfaction and reducing employee unrest.

There is an urgent need to recognize the employee as a human being and not merely as an economic factor.

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11 Indicators of Low Morale in the Workplace

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Morale is a stet of mind and spirit, affecting willingness to work, which in turn affects organizational and employees’ individual objectives. Morale indicators are the factors that tend to show the attitude of employees towards the organization and its management.

signs of low morale in the workplace
signs of low morale in the workplace

All these indicators represent the end process. Often, they may be associated with factors other than those attributable to morale.

The bad effects of low morale in the workplace are not good for any organization.

What are the Signs of Low Morale in the Workplace?

These indices of low morale among employees are as follow:

1. Employee Unrest

When morale is low, unrest may appear in different forms.

Employees may be restless and dissatisfied. They may indulge in daydreams.

They come flat for work remain absent or change jobs frequently and present a disciplinary problem.

Employees of low morale indulge in crowd behavior.

They indulge in strikes, work stoppages, go-slows, and allied group actions.

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2. Absenteeism and Tardiness

Low morale is an indicator of low job satisfaction. It creates absentees and latecomers.

If morale is high, employees try to come on time and avoid absences.

But all absences are not necessarily a sign of low morale in the workplace.

There may be genuine causes such as sickness of the employee, death in the family, and so on.

3. Employee Turnover

Workers may respond to severe unrest, discontentment, and morale problems by deserting their jobs.

However, we cannot consider all turnover as resulting from low morale.

Illness, death, layoffs, and retirement are also cause of workers turnover.

Some departments like those concerned with training or having blind alley jobs will have a higher labor turnover.

Similarly, young employees have a higher turnover rate than that of the seniors. Such cases are not necessarily a case of morale.

4. Employee Grievances

Grievances lead to lower levels of morale and may cause severe forms of unrest through social contagion.

Employee grievances may be real or imaginary and may result from numerous reasons.

Both management and labor may have grievances and unrest or any side can lower morale.

Related: Key Principles of Handling Employee Grievances.

5. Accidents

When accidents take place in large numbers in spite of the best mechanical contrivances and safeguards, the management may like to probe deeper to find if low morale is the cause for it.

6. Indiscipline

In industry, discipline, which is imposed as a measure of remedy for offense, provides indicates for low morale among employees.

It should be recognized that workers cannot be disciplined at the whims of the management.

Rather, they can be taught to visualize the rationale of rules and regulations and understand their objective.

7. Disinterest, Fatigue, and Monotony

In many industries and for many workers, jobs fail to gain and hold interest.

Although rank and file employees may complain about this condition, the more common reaction is probably too loiter, malinger, wander away from the work, resulting in wide fluctuations in productivity.

Lack of interest may also be an indicator of low morale.

The rates of fatigue vary with the intensity of motivation.

Monotony may also be an outstanding feature of low morale. It should be noted that fatigue is not merely physical.

8. Separation Rate

It may be the simplest outcome of low morale.

Serrapetion includes all quits, layoffs, and discharges.

But it is not the final indicator of the low morale of employees.

Related: How to Boost Employee Morale in the Workplace?

9. Disciplinary Problems

The most frequent violations of work rules include absenteeism, abuse of rest and luncheon periods, breaking safety rules, leaving the job without permission, insubordination, drinking, fighting, horseplay, dishonesty, garnishments, and gambling.

causes of low morale in an organisation
causes of low morale in an organization

Each of these may, to some extent, be symptomatic of low morale.

Employee morale may be affected both by the rules themselves add by the manner of their enforcement.

Unfairness in discipline can be expected to have adverse effects on employee morale.

10. Work Stoppages

All work stoppages suggest the existence of serious employee dissatisfaction and criticisms.

To interpret work stoppages in terms of morale, management must probe beneath these stated issues.

Related: Different Types of Disciplinary Actions Applied by Companies.

11. Restrictions of Output

Intentional restriction of output is an indication of worker feelings that closely approximates the definition of negative morale.

In it, employees purposefully produce less than they can.

They set formal limits or bogeys, exerting pressure on members of their crews to enforce these limits.

In the most obvious of these practices, employees enforce work rules that prevent efficient operation.

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9 Effective Manager Steps in Handling Employee Grievances

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Employee grievance is indicative of discount among employees arising out of management policies, practices and procedures. Grievances are s sources of feedback to the management about managerial actions.

What are the procedure of grievance handling?
What is the procedure of grievance handling?

These provide useful diagnostic data to the management. At any one stage of the grievances machinery, the dispute must be handled by some member of management.

In the solution of a problem, the greater burden rests on management.

For this reason, many firms have specially trained their supervisors on how to handle grievances or complaints properly.

The dispute or grievances constitutes a managerial problem, and the scientific method is usually most productive in arriving at a satisfactory solution.

Steps in Handling Employee Grievances Procedure

A manager steps n handling an employee grievance are a s follows:

1. Immediacy of Action

The employee grievances of employees must be recognized and settled immediately as and when they arise.

The first-line supervisors, therefore need to be trained to handle a grievance properly.

If grievances are settled at the first stage itself and corrective action can be taken immediately, the employee’s performance will be improved.

Related: Principles of Handling Employee Grievances.

2. Acceptance of Grievance

A grievance, when presented to a supervisor, must initially be accepted as an expression of genuine feeling on the part of the employee.

Acceptance does not necessarily mean agreeing with the grievances it simply coveys the willingness of the supervisor to look into the complaint objectively.

The supervisors should show greater concern for their employees.

This creates a climate where grievances are drastically reduced.

3. Define the Nature of Dissatisfaction

The manner and attitude with which the supervisor receives the grievance is very important.

They should assume that the employee is fair in presenting the companies. Statements should not be prejudged based on experience with this or other employees.

The supervisor should not be too busy to listen and should not give an impression of condescension in doing so.

Research indicates that the supervisors basic leadership style can do much to reduce the number of grievances. He must have “Consideration for people“.

Related: Top 8 Methods of Knowing About Employee Grievances.

Instead of trying to deal with a vague feeling of discontent, the supervisor should attempt to define the problem properly. Sometimes the wrong complaint is given or received.

He or she must listen carefully and with empathy, to make sure that the true complaint or grievance is being voiced.

4. Determining the Correct Grievances

The complaint made by an aggrieved employee usually has emotional overtones and may, therefore, be a vague exaggerated statement of the problem.

The supervisor needs to listen to the complaint properly and to provide help in identifying real problems. Many grievances, after being “settled,” turn up again to plague management.

The trouble in such instances invariably is that the wrong grievances have been handled.

This could have been avoided if care had been taken at the outset to describe as accurately as possible the issue at the heart of the employee’s complaint.

As it is, superficial aspects of grievances are adjusted, while the fundamental cause trouble remains untouched.

The chances of getting at the right grievances are increased of care is sed in the initial contact with the employee.

Encouraging a person to talk is one means of getting close to the truth. A practice of asking the aggrieved to put the case in writing s also desirable.

5. Gathering Facts

Having defined employee grievances as accurately as possible, the next step is to gather all relevant facts about the issue.

It is important to know when the alleged grievances were first experienced, whether or not it has been repeated, how and where it took place, and the circumstances under which it transpired.

This does not imply that grievances should be handled like law cases. It does mean that if the confidence of employees is to be gained and held, they must be thoroughly convinced that management is completely sincere in seeing that justice is done.

Such fact gathering or sifting requires a knack for interviewing and listing to employees.

Facts must be separated from opinions and impressions.

In gathering facts, one quickly becomes aware of the importance of keeping proper records, such as performance ratings, job ratings, attendance records and suggestions.

6. Analyze and Establish Tentative Solutions

With the problem defined and the facts in hand, the manager must now analyze and evaluate them and then come to some decision. There is usually more than one possible solution.

The manager must also be aware that the decision may constitute a precedent within both the department and the company.

But how are tentative solutions determined? It requires the managers’ own experience.

He should see similar cases in the past.

Also, he should observe how other companies have handled similar grievances.

Alternative answers may be collected from technical and trade publications. A manager should make a thorough search for alternative solutions.

7. Check Tentative Solutions

For checking tentative solutions, the manager can rely on trial and error or can check by applying a decision.

steps of grievance handling procedure
steps of grievance handling procedure

The second choice is to evaluate alternatives based on personal experiences or the experiences of others.

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8. Applying Solutions

The manager must apply the solution even though the solution decided upon by the superior is adverse to the employee.

Subordinates dislike supervisors who refuse to take a definite stand, one way or the other.

The decision, having finally been reached, should then be passed along in clear, unequivocal terms.

After all, grievances cannot be handled just by listening to employees’ companies, something must be done about it. The ultimate decisions the tool of action.

9. Follow up of the Grievances

The objectives of the grievances procedure are to remove a disagreement between an employee and the organization.

The purp[ose of its follow up phase is to determine whether the clash unsatisfactorily or that the wrong grievances have been processed.

Then, redefinition of the problem, further fact-finding, analysis, solution, and follow up are required.

The manager may encounter some common errors in the processing of grievances. These are as follows:

  1. Stopping too soon in the search of facts,
  2. Expressing a management opinion before the time when all pertinent facts have been discovered.
  3. Failing to maintain proper records.
  4. Resorting to the executive flat instead of discussion and conference to change minds and,
  5. Setting the wrong grievances a mistake may in turn produce a second new grievance. Follow up is the step in the procedure that tells use when a mistake in handling has been made.

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14 Key Principles of Handling Employee Grievances

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Employee handling grievances must be based upon well-considered principles. Such principles are not absolute insurance of success in dealing with grievances because laws of human behavior are nonexistent.

principles of handling employee grievances
principles of handling employee grievances

However, principles do work most of the time. hence, it is desirable to search them out and then rely on them as guides.

What are the Principles of Handling Employee Grievances?

In the field of handling grievances, a number of principles have been distilled from the experience of many companies. Some of these discussed below:

1. Have Interview

Have In handling grievances, a considerable amount of time must be spent talking to employees, gathering data from them, and passing on various types of information.

Such talks, to be most effective, should follow definite patterns and adhere to some well-tested rules.

2. Constructive Attitude

Wise managers seek to develop an attitude towards employees that will result in gaining their confidence.

Also, avoid giving the impressions that subordinate the ignorant.

Managers should not underestimate the intelligence of employees.

The management should give the impression that the viewpoints of employees are considered to be fair unless proved otherwise.

Management should also display a sincerity in the problems of employees and a constructive willingness to help.

Related: Top 8 Methods of Knowing About Employee Grievances.

3. Be Aware of Responsibilities

In handlings grievances, all executives must have confidence in themselves, be fully aware of their responsibilities, and be willing to carry these burdens.

Such a positive attitude must be apparent to employees in order to gain their respect and cooperation. An executive should not lack self-confidence.

Employees do not like to place their grievances in insecure or incompetent hands.

In dealing with grievances, they must give the impression of serious consideration.

There must be no light-minded attitude or flippant remarks about the grievances of employees tey are no joking matter.

4. Consider Long-Run Effects

In handling grievances, it is important that consideration be given not only to effects in the present but also to the long run and sometimes far distant implications.

As a consequence grievances should be handled in terms of their total effect upon the organization and not solely their immediate or individual effect.

5. Human Nature

It is well to remember that human nature will not change much, if at all.

People will become neither much better nor much worse.

In handling grievances, people should be taken for what they are including their strengths and their weaknesses.

6. Effects of the Past

A manager should weigh decisions not only in terms of their future impact but should also give consideration to what has happed in the past.

Related: Types of Disciplinary Actions Applied by Companies.

7. It Should be Demonstrably Fair

The attitude of supervisors is important here. All supervisors should accept the employee’s right of appeal as long as no bypassing is involved.

In a unionized concern, supervisors should also accept the employee’s right to be respected, if they so desire, by a union official.

8. The Provisions should be Clear Cut

No grievances procedures can be expected to work satisfactorily unless there are definite provisions, consistently adhered to, determining what is to be done, when, and by whom.

Unless these provisions are set up, made known, and consistently adhered to, it is unrealistic to expect that employees will cooperate by expressing their dissatisfactions to the appropriate authority, in the correct form, and at a suitable time.

9. It Should be Simple

The complaint and grievances procedure should be sufficiently simple so that it can easily and quickly be explained to each new employee before he begins working for the company, and so that it can be really understood even by a person who has had relatively little formal education.

10. It Should Function Promptly

Prompt action is not only desirable from the component’s point of view, it is also in management’s interest. Undue delays can be costly in the growth and spread of employee dissatisfaction.

grievance handling procedure
grievance handling procedure

While an employee is waiting to see what, if anything management will do about his complaint, his dissatisfaction is apt to loom large in his mind.

It is more realistic to recognize the psychological fact that anything in his mind.

It is important to him. He will brood over it and magnify its significance.

Furthermore, any unnecessary delay constitutes another grievance.

9 Effective Manager Steps in Handling Employee Grievances.

11. Conformity with law

The procedures should be in conformity with the existing law. It should statutory provisions.

The procedure may be incorporated in the standing orders or collective bargaining agreement of the organization.

12. Acceptability

The employee grievances procedure must be acceptable by all and should, therefore, be developed with mutual consultation among management, workers, and the union.

13. Training

The success of the procedure also depends upon imparting training to the supervisors and union representatives in handling employee grievances.

This will help to ensure the effective working of the grievances procedure.

14. Follow Up

The working of the grievances procedure should be reviewed at periodical intervals by the HR department.

The department should periodically review the procedure and introduce the essential structural changes making it more effective.

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Top 8 Methods of Knowing About Employee Grievances

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A rational HR manager always anticipates employee grievances in advance and take the step to tackle them before they become damaging and dangerous to the organizations. An average manager redresses grievances as and when they crop up. But the right approach is to anticipate and prevent them.

methods of knowing about employee grievances
methods of knowing about employee grievances

Grievance handling can be real or imaginary, legitimate or ridiculous, stated or unvoiced, written, or oral. It finds expression in some form or the other.

An HR manager should make efforts to know about the latent grievance e before they turn into action serious dispute.

How to Identify Employee Grievances

There are various means and methods to know knowing about employee grievances. They are as follows:

1. Observations

A supervisor or a manager can usually anticipate the anticipated by their carelessness, absenteeism, wastage of materials, or damaging tools.

Supervisors work very close to the scene of actual operations.

Hence, they can easily find out the unusual behavior of workers and can take action promptly.

2. Opinion Surveys

Surveys can be conducted to know the opinions of employees about the working environment, behaviors of the supervisor’s managers, policies, and personnel matters.

Related: 10 Steps to Follow in the Disciplinary Action Process.

3. Gripe Boxes

These are boxes in which employees can drop their anonymous complaints.

They are different from the suggestion boxes in which employees drop their named suggestions with an intention to receive rewards.

These boxes do not reveal the identity of employees.

An employee can express his feelings, complaints, discontent, or injustice very freely without any fear of punishment.

4. Exit Interview

Many employees leave their present organizations due to some discontent.

By conducting “exit interview‘ managers can find out the real reason due to which the employee is leaving the organization.

Employees can be encouraged to give a correct picture of the firm so that lackings can be removed.

Employees can give fearless answers to the questions asked. He may also be given a questionnaire to fill up and answer the important questions.

Thus, exit interviews can provide valuable information about the poor side of the firm.

Related: 11 Indicators of Low Morale in the Workplace.

5. Grievances Procedure

A powerful systematic grievances procedure is the best means to highlight employee dissatisfaction at various levels.

In the absence of such procedures, grievances pile up and burst up in violent forms at a future date.

6. Work Environment

The best way to know about grievances is to know your work environment in which grievances occur in the first place.

how to identifying employee grievances
how to identifying employee grievances

Hone your ability to recognize, diagnose, and correct the causes of potential employee dissatisfaction (such as unfair appraisals, inequitable wages, or poor communications) before they become grievances.

Related: Things to Know When Designing an Employee Training Program.

7. Open Door Policy

Some organizations extend a genre invitation to their employees to informally drop in the manager’s room any time and talk over their grievances.

At first glance, this policy appears both suitable and workable.

Experiences have shown that, except in very small firms, it is rarely workable.

In large concerns, however, where there are several levels of management, it is organizationally unsound to invite employees to take complaints directly to a member of top management.

8. Other Methods

Group meetings, periodical interviews with employees, collective bargaining sessions are some other means through which one can get information about employees’ dissatisfaction.

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