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Explain the importance of morale.
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(1) Increase in productivity—Management is genuinely interested in high production and higher productivity of workers to achieve the desired results, it should know the impact of its policies and practices on the attitude of the workers about work, i.e., high morale will yield more production and better quality at lower cost and is an index of good feelings about the fellow-workers and the organisation.
(2) Promotion of Good Relations—If workers appear to feel enthusiastic optimistic about the group activities and mission, friendly to each other, they are described as having good or high morale. If they seem dissatisfied, irritated, crank, critical, restless and pessimistic, these reactions are described as evidence of poor or low morale. Therefore, from the viewpoint of the management, the problem of employee morale is always at the top priority. They consistently and persistently make the efforts for stimulating a feeling of togetherness, a sense of identification with the elements of one's job, working conditions, fellow workers, supervisors and the company which is conducive to the achievement of the company's goals. It is essentially a responsibility of the management to maintain high morale.
(3) Solution of various of labour Problems—High morale assists the management to overcome several labour problems such as labour turnover, absenteeism, indiscipline, grievances etc. It also helps seek cooperation of the workers in the running of the organisation and thus getting higher production at minimum possible cost by reducing the wastage of time, man, machines and materials. It is, in other sense, an index of good industrial relations..
In modern times the psychological researches have increased the importance of the morale in the industrial field. They showed remarkable progress in industrial output by improving morale among the industrial workers. The government is also taking interest in this direction and have introduced several labour welfare and social security measures to improve the morale of the industrial workers. The management has also recognised that low morale has long-range effects which are even more damaging to the organisation.