3 main Morale Building Steps in an organisation formulated byDavis are:

According to Davis there are six major factors which govern and regulate the state of morale amongst the employees of an organisation:

(1) Adequacy of Immediate Supervision:

Supervisors are in immediate proximity to the work-force. They have therefore to bear the brunt of keeping up good morale amongst the workers who the bulk of employees in an industrial undertaking.


The same argument applies to office supervisors as well. If, therefore, the supervisors tend to adopt a punitive or very close style of supervision, they are likely to undermine morale. On the other hand, they are likely to boost it if they pursue a participative and consultative approach in their activities.

(2) Satisfaction with the Job Itself:

This implies something different from ‘job satisfaction’. This is a result of having achieved a task or duty to one’s satisfaction and is conditioned by other factors of which morale itself is one. On the other hand, satisfaction with the job itself is a cause an intrinsic quality in the job which leads to devoted and purposive efforts.

Extrinsic incentives like shorter hours, longer rest periods, bonuses, etc. do not cause the job itself to be satisfaction-yielding. Thus, management should make an effort towards such an allocation of job-parcels as are intrinsically satisfactory to the employees. This allocation would lead to better utilisation of the talents and abilities of the workers.


(3) Compatibility with Follow Employees:

Man has a natural inclination towards forming social links wherever he lives or works. It is this tendency which leads to the formation of what are known in management literature as ‘informal groups’. Such groups are formed around points of common aims and interest among a number of workers possessing similar bent of mind and engaged in similar or related work.

Management should see that such ‘informal groups’ are not suppressed for they will reappear anytime, anywhere. Rather, a more positive attitude should be adopted-these groups should be led towards the organisation goals by convincing them of the essential unity of their group goals with the former. The compatibility with their fellowmen, which employees have secured, must not be destroyed.