LEADERSHIP,

MORALE AND
PRODUCTIVITY
Lesson 11
LEARNING GUIDE
QUESTIONS:

What is the
What is leadership, significant
morale and relationship of each
productivity? concepts with one
another?
LEADERSHIP, MORALE, AND
PRODUCTIVITY
Employee happiness affects the productivity, loyalty and
bottom line of your small business. The top management
should be conscious of keeping their workers satisfied,
because their leadership has great impact on morale. Effective
leaders who challenge, motivate, empathize and appreciate
their staff will have positive results. Ineffective managers, on
the other hand, create sullen, dissatisfied, confused and
apathetic workers
LEARNING GUIDE
QUESTIONS:

What is the
What is leadership, significant
morale and relationship of each
productivity? concepts with one
another?
 SIGNIFICANCE AND MEANING Purpose: "The
process of
OF LEADERESHIP influencing/motivati
ng others to work for
a common goal or
• Leader must have the ability to sustain the willing and efforts and direct them towards finding ways by
accomplishment. which other may
• Leadership is accomplished by changing the goals of the individual within a group. satisfy their needs.”

• Leadership is vital to the survival of a business because people's efforts need to be coordinated.
• Group Spirit needs to be built and group conflicts to be minimized.
• Companies are now aware of the fact that progress and success are dependent upon the
effectiveness and quality of leadership.
Leader's
• They train managers and spend money to find new sources of leadership. responsibility:
• Some business executives make their decision largely on predecent. Stimulate workers,
encourage them, and
• Conversion Executives- one who is uncertain of his own judgement and coerced by a higher communicate
executive. objectives and
instructions
01 02 03
Getting Keeping Building BUSINESS
things done costs
reasonable
group Spirit LEADERS

Most of them emphasize the first two and neglect the building of group spirit.
COMPONENTS OF
LEADERSHIP
1. Understanding, Analyzing, predicting, and Controlling human behavior.

2. The will to lead, and inspires confidence.

3. The theory of leadership is solely inherited must be REJECTED.

4. It is observed that any reasonably intelligent person, no matter how

inexperienced, can study, practice, cultivate and apply components of leadership.
•Leadership is situational.
•Somewhat superior in such traits as
intelligence, verbal facility, sociability,
initiative, originality, enthusiasm, self-
confidence, popularity, adaptability, and
even in physique, and appearance.
•There is no single trait that determines
successful leadership.

LEADERSHIP TRAITS NEEDED

IN BUSINESS
 1. The Authoritarian Leadership
•Dogmatic or arbitrary use of authority or power
•Distance between boss and employees increases
•Leader alone determines the organizational policies
TYPES OF •Directs the activities of the members, plans and give
instruction and information.
LEADERS •All social activities revolve around him.
HIP •Aggressive against people who don't agree with him
and has poor empathy.
• Gibb (1969) views the authoritarian leader as one that creates
in the group members feelings of fear, insecurity, and
frustration by which they were not originally stimulated. This
type of leadership makes workers hate their bosses and the
system the boss represents
 2. The Democratic Leadership
• Believes that the members should take part in decision-
TYPES OF making, specially on things that affect the group.

LEADERS
• Welcomes suggestions, listens to complaints and is prompt in
taking care of them.

HIP • People working under him are generally loyal because he is

considerate and helpful.
• They are loyal to the cause of the business he represents,
because being a model, they want to imitate him.
MORALE
• Employee morale is defined as the attitude, satisfaction and overall outlook of employees during
their association with an organization or a business. An employee that is satisfied and motivated 
at workplace usually tend to have a higher morale than their counterparts. Employee engagement
and employee satisfaction play an important role for employees to be happy in their workplace.
• On the contrary, employees who are not happy in their workplace, who constantly complain and
crib about the various attributes in an organization, like employee policies, workplace culture,
facilities at work etc. tend to have a low employee morale. This is quite evident in their behavior.
Employee morale is a complex concept because it involves a lot of factors that affect their morale.
• Employee morale is vital to organization culture- a positive collective attitude will create a
positive working environment for everyone. If your organization has a poor morale or a culture of
suffering then there is a possibility that in your organization employees have a low or negative
morale that can adversely affect the productivity of the organization. It can most certainly lead to
greater employee attrition, just to begin with.
SO HOW CAN YOU MEASURE THE MORALE OF
EMPLOYEES? IT’S EASY! HERE ARE A FEW TIPS THAT YOU
CAN USE TO CHECK IF THE EMPLOYEE MORALE IS HIGH
OR NOT:

1. Stay connected with your employees: A feedback is an effective mechanism to stay in touch with your
employees. Deploy an employee engagement survey at timely intervals to get first-hand feedback about how
engaged or motivated are your employees. The responses to the survey will help you determine their attitude and in
turn their morale.

2. Your managers must be coaches: Over the last decade or so, the definition of a manager has slightly shifted
from being a taskmaster to a coach. Your managers should be like coaches. They should be able to help employees
learn and grow within the organization. A good manager or a supervisor will not only motivate an employee to
perform better but also help them resolve problems and related issues.

3. A good workplace culture: Like you cannot simply induce employee engagement, you cannot expect that a
negative work culture will help induce a high morale. A good work culture will help employees settle in faster
especially the new employees. New employees are most susceptible to workplace gossips. One negative word can
make them doubt their decision to be in the organization thus affecting your employee Net Promoter Score.

5 FACTORS AFFECTING
EMPLOYEE MORALE:
(EMPLOYEE MORALE IS A COMPLEX
PHENOMENON AND DEPENDS ON
VARIOUS FACTORS. HERE IS THE
DIFFERENT CRITERION THAT AFFECTS
EMPLOYEE MORALE):
1. Organization Itself: While it may sound surprising, but the organization itself is one
of the biggest and most important factors that affect employee morale. An organization
influences an employee’s attitude towards his/her work. The reputation of an
organization can certainly build up for better or worse, their attitude towards it.
2. Type of work: The nature of work an employee is performing at his/her workplace
also is greatly responsible to determine the morale. If the employee is expected to
perform the same task day in and out, there is going to boredom associated with it sooner
or later. It can make situations worse for an employee. Unorganized organization
structure also affects employees, if the employee feels that he/she is just a cog machine in
a factory line, instead of a real person, this too may adversely affect their morale.
3. Personal attributes: Mental and physical health play an important role in determining
employee morale. If the employee is not physically or mentally fit, this can be a potential
obstacle in their progress and learning at their workplace. There are also other important
factors that concern their progress and in turn their morale: age, education qualification,
years of experience, occupational levels, reward perception, and similar factors.
4. Supervision and feedback: The level of supervision received by an employee is a
tremendous factor that affects the morale. If the employees feel they have no direction or
don’t understand the organizational goals and commitments, then it the job of the
superiors and the leadership in the organization to get them on the same page. But there
should not be too much interference too if the employees are given the freedom to work
their morale will be high.
5. 5. Work-Life balance: Most organization fail to recognize the importance of a healthy
work-life balance. It is important that the employees have some activities to relax while
they are at work. It’s not just about the foosball culture or an inventory stuffed with food.
It is important that proper guidance and counseling is given to the employees whenever
needed
 Employee morale is determined by how employees view their
work environment and their overall level of satisfaction in
4 SIMPLE WAYS TO BOOST their workplace. Employee morale has a direct effect on
EMPLOYEE MORALE employee retention. A disinterested or unhappy employee will
not stay for long in an organization that he/she cannot
rationalize their goals and progress with.
 1. Streamline work based on skills: It is important for the 
Human Resources to recruit and assign people based on their skillset. You
cannot hire a lawyer and expect him/her to carry out tasks that you
would expect an engineer to do. Allowing people to work based on their
competency is a win-win situation for both employees and employers.
Talent management is complex, yet necessary. If you cannot manage your
employees and assign them tasks that they are hired to carry out then it’s
4 SIMPLE WAYS TO BOOST time to rethink your strategies because clearly, they will not yield the
EMPLOYEE MORALE expected results. Therefore, make sure you invest in a competent human
resources team, so the talent that is acquired performs well and stays
(HERE ARE THE 4 SIMPLE happy.
WAYS OF BOOSTING
EMPLOYEE MORALE IN YOUR 2. 2. Train them well for professional development: Most
WORKPLACE AS MENTIONED organizations fail to understand the importance of training their staff. Be
BY HR LEADERS ACROSS THE it employee onboarding or any other formal training process, employees
GLOBE) should be well-equipped to perform their tasks at work and achieve their
goals. There should be a budget assigned at the start of the financial year
that facilitates the training and development program.
These training will help employees sharpen their skills, which will not
only benefit them but also the organization. A well organized and self-
sufficient workforce is every organization’s dream, so pay for these
courses that ignite imagination and spark curiosity, build confidence and
leads to a high morale workforce
 3. Recognize and reward employees: Employee recognition and reward keeps
your workforce motivated. When, as a leader, you create an environment where
good work is appreciated, employees feel empowered and take a personal interest
in the tasks they are assigned to them.
The purpose of employee recognition should be to reinforce what an organization
wants an employee to do more. When an employee performs well to make sure to
applaud his/her hard work and achievements. This will bring confidence to them
to align their personal goals with that of the organization’s goals.
4 SIMPLE WAYS TO BOOST
EMPLOYEE MORALE 4. Be open to feedback: Many organizations today, promote the open door policy,
where an employee is free to express what they feel to their superiors or their
(HERE ARE THE 4 SIMPLE reporting authority because they are open to feedback. If your employees know
WAYS OF BOOSTING their voice is being heard and they are considered as an integral part of the
organization, this will reflect in their confidence.
EMPLOYEE MORALE IN YOUR
WORKPLACE AS MENTIONED If the employees feel they cannot share information with you, there are greater
BY HR LEADERS ACROSS THE chances that the information will never be conveyed to you rather will just make
GLOBE) rounds within the team and you will be alienated from whatever is happening in
your own team. Instead be receptive to feedback, transparency is the need of the
hour for most organizations and so it should be.
Finally, employee morale is not just the employee’s responsibility or attitude. It is
a collective responsibility of the employees and the organization to provide a
conducive working environment and a workplace culture that exudes positivity
and goodwill. Work culture is because of the employees and they should know the
importance of values and morale. To achieve the best, it is important to first be the
best. (https://www.questionpro.com/blog/employee-morale/).
EMPLOYEE PRODUCTIVITY
Employee productivity, also called workplace productivity, is an
assessment of an employee's or a group of employees' efficiency. It is
evaluated by looking at the total workforce or employee output in a given
time. In most cases, the productivity of an individual will be assessed in
comparison to the average output of other employees doing similar work.
 WHAT IS THE
DIFFERENCE
BETWEEN
PRODUCTIVITY AND Let’s Reflect!
EFFECTIVENESS?
PRODUCTIVITY VS.
EFFECTIVENESS
A lot of people, even people who regularly discuss workplace productivity, confuse the terms productivity
and effectiveness. However, these terms are not interchangeable. Effectiveness is how much effort an
employee puts in, whereas productivity is how much work is completed. Some employees can be very
productive but not very effective, whereas some employees can be effective without being very productive.
As an example, imagine there is a spreadsheet of names that needs to be sorted alphabetically. Employee A
tediously takes over an hour copying and pasting the names until they're in order. Employee B takes on the
same task and uses Excel's sort function to alphabetize the names in a matter of minutes. She then spends
20 minutes on Facebook. Employee A was effective in that he focused on the task at hand until it was
completed, but he wasn't productive in that he didn't achieve as much in an hour as Employee B. That being
said, while Employee B was productive in that she did the work in less time, she was ineffective in that she
wasted 20 minutes doing a task that was not work related.
Just about everyone has worked for a company that refuses to streamline processes, making their
employees ineffective, but good workers will still strive to maximize their productivity even when they
cannot be as effective as they would like. Ideally, a workplace should strive to maximize both productivity
and effectiveness in order to get the best return on investment in their employees.
 IMPORTA In order for it to make financial sense for a business to hire
employees, employees must produce value for the business

NCE OF that exceeds the cost of employee wages. In this way, an

employee is an investment, and the investment should, in
theory, provide a worthwhile return to the company. This can
PRODUCT only happen if an employee is productive. Thus, the
importance of productivity in an organization lies in the

IVITY difference between an employee making the company profit

and the employee costing the company money
 Of course, when an employee is productive, it also contributes other
benefits to the company. For one thing, lazy employees who do not

OTHER get disciplined and are otherwise treated the same as hard-working
employees demotivate the others. To the same purpose, a highly
productive employee, particularly one who is rewarded for his hard

BENEFITS work, can motivate other employees, boosting morale and making a
better environment for the company as a whole.

OF When employees are productive, it can increase the company's

revenue, and in turn, a company may choose to offer incentives to its
employees. Failing to reward a productive staff can demotivate the

EMPLOYE whole team. If a company shares some of its success with employees
in the form of pay raises, bonuses and improved benefits, employees

E
can become more motivated and increase productivity. Additionally,
this increased revenue can result in the company growing and
bringing on even more employees.

PRODUCT Productive employees can also benefit customers because highly

productive employees provide speedier and higher-quality customer
service than those who are unproductive. If employees are rewarded

IVITY for their productivity and are highly motivated, this can result in
even better customer service and interactions. Naturally, great
customer service can result in customer loyalty and word-of-mouth
advertising, which can in turn bring further revenue for the business.
 Measuring the productivity of a workplace is important when
you have employees, but it can be difficult to do. After all,
simply measuring total production means nothing if the
production is shoddy. For example, if your company sells
toasters, you might want 500 toasters to be finished in the

MEASURI
factory per day, but if 25 percent of those toasters are
defective, the end result of 375 functional toasters is worse
than if the employees simply made 400 fully functional

NG toasters a day. A few popular measurements of employee

productivity are quantitative, service productivity, objectives,

EMPLOYE
time management, profit and quality of work.

E
To use quantitative measurements, you must know your
company's normal output. You can then average it over the
span of a month or year and then divide it by the number of

PRODUCT employees. At this point, you'll have an objective standard to

which you can compare each individual employee's

IVITY
productivity. When using this method, it's important to be
reasonable. Don't expect every employee to meet the average
all the time. New employees will take some time to get up to
speed. Some employees may have personal problems that slow
them down. Sometimes broken equipment or other factors
beyond an employee's control might slow her productivity.
Setting up productivity quotas that cannot be met may end up
discouraging employees more than motivating them
 A company that offers services rather than products may not
be able to measure output as easily, but it can still measure
service speed or quality by evaluating how many clients an
employee sees or through the use of customer surveys.

MEASURI To use the objectives method, set out clearly defined, well-
NG explained goals for your employees. To ensure goals are met
and employees are held accountable, set up regular meetings

EMPLOYE between the employees and their managers.

E For time management, you need to ask employees to track

how they use their work hours. By making them accountable
for their time, you can reduce wasted time spent on activities
PRODUCT like chatting, texting or using social media. You can ask
employees to track their time multiple ways. You can install

IVITY time-tracking software, ask employees to make daily reports

to their supervisors or ask your workers to check in or out of
projects while they work on them via time clocks or
computers. When using this method, it is important to ensure
your employees do not feel micromanaged, or this can result
in a loss of productivity.
 Profit and quality of work are both good ways to evaluate a
whole team if you don't want to micromanage. To use either of
MEASURI these methods, you simply need to look at the overall profits
or quality of work produced. If you're happy, then that's the

NG end of it. You can't evaluate individuals based on your overall

profits, and you can only evaluate the quality of work for an
individual if she works alone on projects, but these methods
EMPLOYE can be a good option for those who only care that their team is
helping the business overall.

E The method you use to measure your employee's productivity

PRODUCT should vary based on your specific business and the

employees being evaluated. After all, productivity measures

IVITY
for a meat-packing factory should be much different than
those used to evaluate a team of customer support agents. (
https://bizfluent.com/info-8292773-importance-employee-p
roductivity.html
).
Answer the following questions
intelligently.
1. What is leadership? Enumerate at least 3
characteristics of a good leader that is relevant in
an organization.
2. What is employee morale? How can we
increase the employee morale?
3. What is the importance of employee
productivity?

ACTIVITY
REFERENCES:
 https://study.com/academy/lesson/industrial-organizational-psychology-definition-subfields.html

 https://open.lib.umn.edu/intropsyc/chapter/1-1-psychology-as-a-science/

 https://www.simplypsychology.org/whatispsychology.html

 https://www.verywellmind.com/what-is-industrial-organizational-psychology-2795302

 http://ip2012.blogspot.com/2012/02/v-behaviorurldefaultvmlo.html

 http://psychology.iresearchnet.com/developmental-psychology/personality-development-psychology/what-is-individual-differences/

 https://www.verywellmind.com/stress-and-health-3145086

 https://www.helpguide.org/articles/stress/stress-in-the-workplace.htm

 https://www.yourarticlelibrary.com/human-resources/employment-tests-role-and-types-of-employment-test/32344

 https://www.managementstudyguide.com/employee-selection-process.htm
REFERENCES:
 https://blr.dole.gov.ph/2014/12/11/labor-management-relations/

 https://www.youtube.com/watch?v=F2k018hctZQ

 https://smallbusiness.chron.com/importance-human-relations-workplace-23061.html

 https://www.youtube.com/watch?v=Zv4HgGUQDw0

 https://www.youtube.com/watch?v=hlRjdyeYl5A

 https://www.inc.com/encyclopedia/employee-motivation.html

 https://www.questionpro.com/blog/employee-morale/

 https://bizfluent.com/info-8292773-importance-employee-productivity.html

https://startandgrowbusiness.com/effective-employee-training/