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Morale and Profitability

Updated on September 13, 2019

Morale and profitability have a direct connection to the success and profitability in an organization. Morale is an element of a workplace environment which must be nurtured every day in the life of a business. A business environment which has difficulties with the overall morale of their employees will face problems which will only grow unless they are addressed. Many businesses may not understand the or at least give the impression they understand about the concept of morale and how it affects their bottom line. Many issues surface which must be addressed within an organization and sometimes difficult decisions must be made at difficult times in the life of a business. The key is to make the decisions based on accurate information which will withstand the scrutiny of the employees of an organization.

Low esteem or morale in an organization creates an environment in which people sometimes develop the opinion they are only there for the money especially in these economic times. Unhappy employees often transmit this attitude to customers with which they interact. This affects the quality and integrity of how individuals work. Connecting morale to the profitability of a business or organization is an easy thing to do in terms of attitude and how work is accomplished. The statement in the last sentence does not mean to imply that workers will not do a quality job though they feel they are just there for the money.

Employees who are happy in their positions exhibit this attitude when making a connection to customers. It is important for organizations to strive to create an atmosphere where the morale of an organization is high. In difficult times this may be hard to accomplish but companies must make the effort. Companies today often go through difficult economic times and this plays hard on the morale of an organization. During this type of environment employees often fear for their jobs and without

Morale and profitability can also be impacted by the perception a business has from the public. The concept of a business generating a profit if it is one strives to make a mark in their industry and receive the funds to stay in business. The term profitability can also be applied to non-profit companies. Profitability in an non-profit organization does not need to involve profits from sales of products but to receive the funds to keep the purpose of the organization afloat. Many non-profit organizations exist for a purpose and the morale of those individuals who are part of it can affect the funds it receives. Positive impressions are important whether you are a for profit or a not for profit organization. Customers of all types want to see employees are happy in the jobs they are doing and can turn affect them as a returning customer. Those who have involvement with an organization want to see that employees are enjoying what they do. It creates a positive impression rather than a negative e one when employees transmit a positive environment.

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    • Dennis AuBuchon profile imageAUTHOR

      Dennis AuBuchon 

      6 weeks ago

      Thanks Carolyn for your input and experience

    • Carolyn M Fields profile image

      Carolyn Fields 

      7 weeks ago from South Dakota, USA

      I once worked in an office that was suffering with low morale. There had been changes in the management staff (I would say leadership, but they weren't very good at leading). The new "higher-ups" were killing initiative by being overly controlling, and making massive changes before they figured out how things had been running.

      In response, one coworker put up a sign in his cubicle, "The beatings will continue until morale improves." We (the workers) all got a good laugh out of it. Management was furious, and made him take down the sign. No, they didn't ask why he felt that way. Just take down the sign and don't be so disrespectful.

      I've always wondered how much more we would have accomplished in those days had management addressed the morale issue. We'll never know.

      The bright side of the story? When I was promoted up the ranks, I never treated my direct reports this way. I learned by bad example.

      Great article. Thanks!

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