Employee morale is one of the predictors of organizational efficiency and effectiveness. Organizational effectiveness considerably depends on the morale of its work force. Morale is the enthusiasm with which workers as individuals and as groups respond to their work situation and requirements. It is a state of healthy balance in the organization in which people make their respective contributions to achieve their set goals, maintain their sense of worth besides developing their abilities, knowledge and skills. Every organization should have personnel policies in order to accomplish the objectives of the personnel as well as the organization. Periodic updating of personnel policies is essential to keep pace with the changing times to avoid managerial stagnation of personnel policy. It is found that to attain goals, factors like men, money, materials and machines are involved, out of which man power is the most important. The relationship between the employer and employee is an integral part for success of any organization. Various interactive behaviors such as inter personal behavior, group behavior, use of power and authority, leadership, communication, conflict and control are the significant factors which affect the climate in an organization, thus, influencing productivity.
Although several factors are related to employee morale in organizational settings, the single most influential factor in enhancing job satisfaction and group cohesiveness is superior-subordinate communication. Yet, while a great deal of speculation exists concerning the sorts of communication behaviors most conducive to employee satisfaction, no empirical test has been conducted to assess specifically the relationship between communication and morale. This study undertakes such an investigation.