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Dan's Law of Rising Morale
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Business houses come up with innovative ways for improving the morale of its workforce so as to motivate them to improve their effectiveness. A high morale is seen as a way of ensuring excellent performance from the employees. Dan’s law of rising morale states that undue increase in the morale of the employees can reduce the productivity and performance level of the employees, thus eating up a major share of the profits.

Excessive effort on the part of the company to improve the morale of the employees might turn out to be expensive in the long run. One way of improving morale is by showing appreciation for the work done. The employees are congratulated by applauding their work in the company intranet. Another way of acknowledging the good work is by presenting monetary gifts. Both, if unchecked, can lead to employee destruction. An excessively motivated workforce becomes over confident in their abilities and this can prove to be harmful for the company in the long run. Overconfidence reduces his ability to discover new methods of doing the job making him less innovative. He starts working like an autopilot that refuse to think radically. Similarly, a highly over confident employee refuses to accept his weaknesses put forward by the peers, subordinates and the superiors. This makes it difficult for the co-workers to work with him, bringing disharmony within the organisation. Disruptive team effort has a direct impact on the effectiveness of the work to be done, leading to customer dissatisfaction. The high handiness of the employees can result in the loss of the goodwill and business to the company that can end up in the winding up of the organisation.

Globalisation has brought with it severe competition for the business and more job opportunities for the people. A highly motivated employee enjoys more bargaining power within the organisation. The rejection of his terms makes him explore newer opportunities, resulting in a high employee turnover. Employee turnover is a major cause of worry for the business enterprises as it eats up a major portion of the company’s profits while recruiting of new employees. The training and development programs spent on the employees fails to give fruits when people switch jobs. Similarly, the time taken to get a new recruit adapt to the situation and the disruption in the work resulting from such actions lead to customer dissatisfaction. A major delay can end up with penalty payment to the customer, thereby reducing the profitability of the concern.

The excessive rise in the employee morale can, thus, have a negative impact on the other workforce and the profitability of the concern. To overcome the same, the companies must motivate the employees after an analysis of the human nature. If the people are managed in understanding to the human nature, the companies can produce effective and productive workforce. Morale can have a positive or negative impact on the organisation. The success of the organisation depends on its ability to utilise the same for the well being of the company and its employees. A wrong move can uproot the very existence of the business.

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