A quick post about Is Morale Irrelevant? in the Sloan Review:
“However, a lackluster economy should not give organizational leaders a “free pass” to ignore morale issues. With all of the changes that occur in any organization over time, employee morale will undoubtedly be affected. ”
Here is the take away:
While turnover associated with low morale may not be as likely during uncertain economic times, productivity and performance issues should command executives’ attention. There is still debate over whether a happy worker is always a productive worker, but researchers and businesspeople alike are likely to agree that low morale will not help boost productivity or improve performance. More generally, senior leaders should realize that low morale can be detrimental to the overall climate and culture of their organizations. Low morale stifles “going-the-extra-mile” behavior, and an “it’s-not-my-job” syndrome can become epidemic when managers are not paying attention to the organizational climate they are creating. Over time, a decline in organizational citizenship behavior can translate into an unhealthy cultural shift that erodes the business’s overall competitiveness.