Employee Morale and Its Effects on the Workplace

Employee Morale

Changes in working conditions have led to a rethinking of employee morale.

Company’s effectiveness depends on how consciously all stakeholders participate in activities.

The high morale of employees plays a significant role in the company’s sustainable operation (Chapman & Sisodia, 2015).

The effectiveness of employees implies not only their expertise in professional activities, but also the awareness of corporate culture, the understanding of processes that take place in the organization, and the compliance with corporate requirements.

If organizations ensure high employee morale, they will be able to keep their workforce motivated, encouraged, will achieve greater sustainability, and will not experience the issue of high employee turnover.

In crisis or complex situations, employees often experience negative emotions, they become more passive, and experience increased levels of stress, which is directly related to the essential psychology of people. The decreasing activeness of employees is a consequence of the accumulating stress that arises from the lack of willingness of employees to cope with the changes and risks that are taking place at the company (Chapman & Sisodia, 2015). Such inertia and the desire to avoid active participation in alterations are the manifestations of a weakening in morale, and company management should strive to anticipate such situations or respond to them in a timely manner.

Situations and Organizational Variables

Importantly, employing effective management practices has the potential to stimulate employee morale in a positive way while poor management and ineffective leadership, as a rule, produce the reverse result. Apart from that, when employees feel appreciated, and their achievements are recognized at the unit or company level, they receive greater impetus to contribute themselves to the company’s productivity to a greater extent (Manson, 2014). In that matter, if the company offers its employees the opportunities for both professional and personal growth, it also influences the morale in a positive way.

An effective organizational structure presupposes the existence of a corporate culture that stimulates employees. In particular, it determines the appropriate behavior of people in the sphere of labor activity and outlines the company’s values accepted by all employees (Manson, 2014). The impact of an effective organizational culture on the morale of employees can be reflected in the achievement of the main company goal, which is to ensure self-organization of the socio-economic system through personnel.

Another important factor is the two-way communication. Positive relations between the team members encourage employees for the more productive performance; it forms a favorable work environment, promotes team unity and, thereby, strengthens the company from within, which, in turn, enhances the morale of all employees (Manson, 2014). In addition, communication is related to the company’s internal culture and is aimed at the formation of a unified team, in which each employee clearly understands his or her functions and tasks of the company, and assumes responsibility for the performance of duties.

Individual Perception

Notably, the worker’s awareness of the duties and organizational culture contribute greatly to the enhancement of morale. If the employee comprehends his or her responsibility and accepts it, it will encourage him or her to be more productive. In addition, if the workers can observe the colleagues and the leadership and have a possibility to communicate with them and receive feedback, it will positively influence the morale levels. However, importantly, the responsiveness should be two-way so that the employee can provide his or her feedback to the co-workers and the employer as well (Chapman & Sisodia, 2015).

The presence of efficient management is attributed a significant role in stimulating employee morale. In that matter, it is the role of leadership to ensure that employees have a possibility to pursue both their professional and personal goals.

Thus, company’s corporate culture and the way management envisions it has the potential to influence employee morale in a number of ways. Corporate culture helps the employees to understand the economic and social role of the company, determine its position regarding the rivalry, and consolidate the obligations that the company has to consumers and the workforce (Chapman & Sisodia, 2015). Moreover, it promotes the cohesion of the team and the identification of collective and personal interests. Therefore, organizational culture shapes the corporate image in the minds of employees in which they identify themselves with the organization, which affects their morale.

Employee Empowerment and Decision-Making Autonomy

Many experts in the industry emphasize that empowerment of workers is a means of increasing their effectiveness. This approach makes the atmosphere more positive, and employees are eager to do their work more qualitatively and achieve results through internal motivation. It is crucial to delegate authority to the employees so that they can set their own goals and plan their work independently, which will give them the opportunity to think in perspective, rather than fulfill their duties in a mechanic way. Raising motivation and interest positively affects uplifting of morale (Manson, 2014). When employees feel their value and have the resources to fulfill their plans, they understand the company’s needs and requirements, and it stimulates them to be more productive. This approach to the development of morale encourages the emergence of self-confidence and promotes awareness. In turn, awareness provokes workers to overcome obstacles and achieve the goals of business.

Thus, the system of raising or maintaining the morale of employees should not be built around material incentives and key performance indicators (Manson, 2014). The aim of the leadership is to promote career and personal growth of employees through the delegation of responsibility. This setting will make it possible to create a productive atmosphere instead of rigid discipline in which there is no room for liability.


In order to influence the morale of employees, management should establish a system of both financial and intangible incentives. Intangible motivation will satisfy the needs of employees based on their psychological personality traits. In addition to the fact that employees should be delegated the authority to increase their liability, recognizing their role in the company will stimulate their commitment and increase their productivity as well.

Satisfying the person’s essential needs in enhancing self-expression and self-esteem will also boost their motivation and level of contribution (Chapman & Sisodia, 2015). In this regard, it is necessary to allow workers to translate their personal projects and praise their achievements. A careful attitude to the workforce from the part of management will be a confirmation that the work enthusiasm of employees is significant and it is appreciated by the company.

Thus, it can be concluded that the formation of a conductive atmosphere is one of the most crucial aspects of boosting employee morale. Notably, the quality of the working atmosphere, to the same extent as the salary, affects the morale of employees, their readiness to work and exhibit results (Chapman & Sisodia, 2015). Nevertheless, constant increases in employee’s salary are not always feasible or rational, while managers always have the tools for intangible influencing on the motivation of workers. In this regard, the psychological climate, effective communication, and delegation of authority are effective ways to achieve the goals of the organization and increase the morale of employees.


Chapman, B., & Sisodia, R. (2015). Everybody matters. London, UK: Penguin.

Manson, B. (2014). Downsizing issues. New York, NY: Routledge.

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