Research Project - Company Morale & Its Impact

Investigating Two Dominant Reasons for low staff morale & its impact on the company

Background – According to the Wikipedia World Encyclopedia, Morale describes a state of individual psychological well being based upon a sense of confidence and usefulness and purpose. This among employees in an organization is referred to as Staff Morale. Staff Morale is critical in any business today as it ensures productivity and effectiveness.

It is no secret that employee morale is an omnipresent issue right now. According to statistics, last year companies laid off 10percent of employees, up by 3 percent from the last year. Those cuts have forced survivors to shoulder more responsibilities even as their salaries and benefits decrease. These critical issues affect Staff Morale and if they are not dealt with in most cases can lead to damaging effects and overall, objectives are not met.

Also, according to Ford’s (2003) new survey, which claims that employee morale is a big issue - but the same study's figures suggest most don't have a clue about how to deal with it. The survey found that 90 per cent of executives said managing and monitoring employee morale was important for business and profitability, with 74 per cent even telling the researchers it was a "core business concern".

But not sufficiently important, the figures suggest, for them to make it more of a priority.

The consequence of low employee morale affects quality and productivity in a big way. This low productivity can cause increase in costs resulting in further cost cutting measures. Low staff morale also increases staff turnover, which decreases intra-organization knowledge about production process and quality of production process.

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Problem Statement - This research will examine the two most dominant causes of low Staff Morale and its impacts among the hourly paid employees at ACS Jamaica Limited.

Statement of Problem - In this research, the writer focuses on the two most dominant...