10 important Factors Contributing towards Morale in an organisation are as follows:

Organisation morale depends upon a variety of factors. Since morale is indicated by the degree of satisfaction of the various motives of employees at work, an organisation can handle morale, by manipulating the level of satisfaction.

The organisation should be able to identify the basic motives and provide for their realisation by organisation members. The most important factors which lead to high morale are as follows:-

(1) The type of Organisation Structure:


An organisation structure which has many supervisory levels with rigid control systems will not allow the employees to develop their full potentialities. This implies that their needs for self-fulfillment will never be realised.

This structure should be, so far as possible, decentralised in character so that the employees get enough liberty to exercise their own initiative and drive. Self-satisfaction so derived will definitely contribute to better morale.

2) Resolving Organisation Goals and Personal Goals:

Employees will always have a high morale if their own goals get the chance of being fulfilled in the organisation. Indeed, this is a basic pre-condition. But the organisation is not a welfare or philanthropic institution – it has its own objectives too.


This apparent tug-of-war between the two sets of goals has to be effectively resolved. Both have to be proved to be capable of being achieved through the same means. This will ensure the concurrent achievement of productivity as well as morale.

3) Creation of Job -Interest:

Argyris puts the idea very precisely: The employee should be helped to feel that his job, no matter how small a part of the total process, is tremendously important if the whole; to be produced”. Without such a conviction that his part of the job is significant to the organisation, the employee is not likely to have a good amount of interest in his job.

Job enlargement is anew movement intended to boost one’s interest in jobs. Instead of reducing jobs to mechanical repetitive actions, a job is today attempted to be given an integrated, whole entity. This helps employees to derive the satisfaction having accomplished by themselves something in its totality. Besides, both intrinsic and extrinsic worth of the jobs should be tried to be proved.


(4) Encouraging and Harnessing of Informal Groups:

Employee, always feel the need for belonging to a group, and team-work is a natural desire on their part. These informal work-groups which they build within the plant have a high potential for effective work if they are properly handled.

Management should be able to make a correct diagnosis about all informal groups; and without disrupting their cohesion it should try to integrate them into the formal organisation structure. This will maintain and improve group-morale in the organisation.

(5) Adoption of Participative and Consultative type of Supervision:


Employees have a general tendency to resist changes towards new policies and methods in the organisation. Participative and consultative approaches have a democratic flavour about them, and are able to wear off resistance by making changes appear as their own decisions.

Supervisors would be able to get necessary co-operation from employees who have been consulted in matters pertaining to their area of actions. Employees will have a better morale, and the implementation of changes would be easier.

(6) Well-Devised Promotion Policies:

Promotions are a good device for encouraging employees to shoulder high responsibility. That employees are responsibility – seeking is the basic assumption underlying all promotions. Judicious promotions even if they do not carry any monetary incentives-may also be appropriate as incentives to workers.


(7) Dynamic Leadership Approach:

The climate of leadership is likely to have a good deal of influence on the level of organisation morale. Good leadership will be able to mould the attitude and approach of workers to work. Productivity will be encouraged through leading the workers along the path of organisational goal. Morale will be improved if leaders themselves set an example of hard work and of allegiance to company goals.

(8) Good Communication System:

Morale depends upon proper understanding between the workers and management. Communication is intended to create this climate of understanding between all parts of the organisation. Two-way communication between all points must be encouraged so that employees can voice their ideas, suggestions, and responses to the upper levels of the organisations.


(9) Decentralised Control System:

Control is an all pervasive activity within the business. There should be enough autonomy, consistent with coordination, in each section for controlling its own activities. This will allow the employees to be self – reliant and always conscious of their duty towards conforming to organisation targets or goals.

The basic assumption should be that employees are self-directing and self-controlling. If this confidence is reposed in employees, they are likely to have greater morale.

(10) Good Human Relations:

Since morale concerns human beings. Human relations have to be remodeled along up-to-date assumptions. All previous points said would lead to an overall approach towards human relations on lines of modern concepts.

Human, relations imply having a contended and satisfied group of employees. Paying attention towards productivity. The contributory factors towards morale aim at having a satisfied body of employees coupled with progress towards company goals and objectives.