Morale:

• It’s a state of mind

• Indicates an attitude of satisfaction , willingness and enthusiasm
among employees
• It also suggests job satisfaction among employees working in an
organization
• Subjective feeling of employees about work, management and about
organization
Advantages of high morale of employees

• Employees take active interest in the work assigned and work with full
devotion and enthusiasm
• Productivity of labor high, gives more production, better quality
• Labor management relations are cordial due o high morale of workers
• Strikes and disputes are absent
• Absenteeism and late coming on the part of employees are at the minimum
level
• Accidents in the industrial unit are less frequent
• The rate of labor turnover is low
• Grievances of employees are at minimum level
 Individual Morale
An individuals state of mind with respect to the tasks that he or she is expe ted to
perform
It is indicative of the attitude, satisfaction, and overall outlook of an employee
during their time in their workplace environment
Employee morale has a direct effect on:
 productivity
 Attendance
 Retention
 Team work
 Feedback
 Representation
Raising individual morale DISCUSS
• Recognize
• Help them grow
• Team building activities
• Collect their feedback
• Transparency
• Comfortable workplace
• Do not micromanage
• Autonomy
• etc
How to motivate yourself
• DISCUSS
Team morale

The attitudes and feelings of groups towards work, environment,

supervisors, top level mngt, organization
Why work in teams first:
• Companionship and identification
• Problem solving
• protection
Raising team morale
• Commit to goals-team
• Participate actively
• Follow team rules, guidelines
• Value all members
• Include all members in problem solving and decision making
• Give honest feedback
• Team training
• Peer helping
• Continually evaluate team performance
• Pride in team accomplishments
Demotivated and demoralized employees
causes
• Poor communication
• Lack of training
• Unfair use of policies
• Lack of planning
• Lack of discipline and accountability
• Poor hiring practices
• Lack of recognition and praise
• Supply shortages
• Poor leadership
• Limited opportunity for advancement
• Unmotivated leadership-politics, competition for power
• Unclear expectactions
• Internal competition eg manipulating mngt to gain favour
• Unfairness in the workplace eg imbalanced compensation, biased promotions,
• Capacity underutilized- not using them to their areas of expertise
Raising morale of workers
• Provision of attractive wages and other monetary incentives eg bonuses,
allowances, incentives payment
• Sound promotion policy for fair and equal opportunity
• Provision of security of employment
• Introduction of effective grievance procedure-remove grievances quickly
• Workers participation in management e.g suggestion scheme for joint
consultation
• Delegation of authority at different levels in the organization
• Introduction of small, cohesion work groups in all departments
Cont….
• Introduction of employee oriented supervision system which is useful for establishing cordial
relations between employees and their supervisors
• Provision of job enrichment, job rotation, job transfers in order to reduce monotony in work and
making work interesting
• Fair treatment of employees
• Effective communication system,
• Employee counselling
• Welfare schemes for providing better life and welfare to employees
• Study problems and difficulties of employees in order to solve them through suitable remedial
measures. study causes of dissatisfaction of employees and efforts
• Work environment attractive and agreeable to workers. Employees should feel at home at the
workplace
• Morale attitude surveys conducted periodically for valuble information
 Reward as a motivating factor
• Reward ; Anything given in recognition of service, effort or achievement.
• Providing an effective reward system
A good reward system should have the following characteristics:
• Simplicity; easily understood by everyone in the organization. People must understand
why they are getting what they are getting from employment relationship
• Fairness and equitability; every component of the system must be justifiable and
consistently applied
• Perceived fairness and equitability; sometimes having a fair and equitable reward
management system is not enough. It must be understood as being fair and equitable.
• Participatory: an effective system must be negotiated and agreed between
management and employees
 PROVIDING AN EFFECTIVE REWARD SYSTEM
Maintain competitive rates of pay
Recognize the values of everyone who is making an effective contribution
not just exceptional performers
Reward people according to their contribution
Allow reasonable degree of flexibility in the operation of reward processes
and in the choice of benefits by employees.
Develop reward policies and practices which support the achievement of
business goals
Provide rewards which attract retain, and motivate staff and help develop
performance culture
 OBJECTIVES OF REWARD/ COMPENSATION
• Reward people for the value they create
• Convey right message of what is important in terms of
behavior & outcomes
• Develop performance culture
• Maintain & retain high quality people
• Develop positive psychological contract
• Achieve equity & equal pay for work of equal value
• Manage pay cost & operate more flexibly
 OBJECTIVES OF COMPENSATION
– Encouraging workers to move up the organizational structure
– Complying with legislations
– Maintaining cost effectiveness
– Improving efficiency and effectiveness
– Improving employee retention
– Encouraging people centered management approach
– Adapting to change
Reward and motivation/OBJECTIVES OF COMPENSATION

– Attracting quality and skilled staff hence motivational

– Retaining well qualified and skilled staff which is motivational
– Promoting better qualified staff
– Ensuring consistency and equity
– Emphasizing performance
– Rewarding good performance and motivating staff
– Encouraging workers to be productive
– Encouraging initiative, creativity and innovation
 REWARD AND MOTIVATION
• Reward creates job satisfaction which is motivational
• Reward brings high performance which brings motivation
• A good reward Creates cordial relation hence this is motivational
• Employees must know that hard work and a high level of achievement wil be rewarded
• Uniting the team: a reward emphasizes your respect for your employee and encourages
fellow employees
• Retention: An employee who is rewarded is often more motivated to remain with the
company
• Self motivation: a good manager can encourage an employee to work harder and better
from time to time but a reward can go along way toward building employees self
motivation
 Types of rewards
A)Extrinsic: Concrete rewards an employee receives. Focus on
performance
 bonuses, eg annually,
 salary raises after a hard work and effort
 Gifts: short term given a token of appreciation for achievement
eg cards,
 Promotion: elevating an employee to higher stage and giving a
title
 etc
• B) Intrinsic Rewards: tend to give personal satisfaction to
individual. makes employees feel better in the organization
 Information/feedback: offers guidance to employees whether
positive or negative also creates bond and adds value to the
relationship
 Recognition: an employees performance by verbal appreciation
e.g pat on back to boost self esteem and happiness
 Trust/ empowerment: when managers delegate they trust
 Other Rewards
EMPLOYEE BENEFITS
 These are elements of remuneration given in addition to the various forms of cash
pay.
 Also Include items that are not strictly remuneration such as annual holidays

 OBJECTIVES :
 Provide competitive total remuneration package that both attracts and retains high
quality employees
 Provide for the personal needs of employees
 Increase commitment of employees to organization
 Provide for some people a tax efficient method remuneration
 TYPES OF BENEFITS
[Link] schemes : provide income to employees when they retire , surviving
dependants deferred benefits to employees who leave .
[Link] security / Health care benefits
 in regard to illness, accident, or life insurance
 Pay for basic medical services with no direct fee to patients, and their families
 standard ward hospital accommodation
o Drugs and medication administered in hospital
o Laboratory and diagnostic procedure
o Hospital facilities e.g. operating rooms
o SERVICES NOT COVERED UNDER MEDICAL SCHEMES
o i) private duty nursing ii) cosmetic surgery Services paid:
[Link] compensation
 Provides income and medical benefit to victims of work
related accidents or illness and or other dependants regardless
of fault
 The law imposes compulsory collective liability for workplace
accidents and work related illnesses
 For an injury to be covered by workers compensation, one
must only prove that it arose while employer was on job
 4. Financial assistance:
 Loans, house purchase schemes, relocation assistance, discount on company goods and
services .
 5. Personal needs
 Holidays
 Leaves
 Child care
 Career breaks
 Retirement counseling
 Financial counseling
 Personal counseling in times of crisis
 Fitness and recreational facilities-gyms
 Incentives
• Incentives are extra pay provided for extra performance in
addition to regular pay.
• They are managerial devices aimed at increasing productivity
of employees
• Consists of both monetary and non monetary elements
• Monetary; e.g. bonuses
 NON-MONETARY INCENTIVES
• Status
• Extra time off
• Allow time to do volunteer work
• Well being workshops
• Recognising your employees on social media
• Thank you letter
• Mentorship program
• Birthday off
• Promotion
• Responsibility
• Recognition of work
• Job security
• Fringe benefits-paid vacation, pension, health, insurance plans, low cost meals low rent housing
 Importance of good reward system

• Having a good reward system helps keep employees happy.

• Loyal to company and eager to move up the ladder
• Rewards like public recognition, additional pay motivates
• Helps attract and retain highly skilled people
• Promotes fairness and equity by rewarding employees
• Helps achieve integration in the organization
• Helps motivate employees to achieve high quality performance
• Helps raise competence
• Encourages personal development
• Helps achieve high quality performance
• Improves cooperation and effective team working at all levels
 How to manage reward for motivational purposes
• Find different ways to motivate employees
• Manage employees performance including underperformance
• Manage conflict and disputes
• Manage conflict and disputes
• Manage employees out of business
• Reward performance through financial n non financial and
recognition
 REWARD STRATEGIES/ METHODS
PRACTICAL REWARD STRATEGIES

(i) Individual performance-oriented pay/Indiv. Performance- related pay/new pay

-tailor pay what the individuals really contribute

(ii) Competence-related pay-people receive financial rewards in the shape of increases to their base pay by reference to the
level of competence they demonstrate in carrying out their roles
It is a method of paying people for the ability to perform now and in the future
(iii) Contribution-related pay

-a process of making pay decisions that are based on assessment of both the outcomes of the work carried out by individuals
and the inputs in terms of levels of competence and competence that have influenced these outcomes

(iv) Skill-based pay/knowledge-based pay

-rewards are related to the employees ability to apply a wider range or a higher level of skills to different jobs or tasks