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      Question

      According to the findings of industrial psychologists,

      which of the following statements most accurately describes the relationship between morale and productivity?
      A There is always a direct, linear relationship where high morale automatically results in high productivity. Correct Answer Incorrect Answer
      B High morale with low organization-goal alignment can lead to high social satisfaction but low productivity. Correct Answer Incorrect Answer
      C Low morale always results in low productivity because unhappy employees cannot physically work fast. Correct Answer Incorrect Answer
      D Productivity is solely an engineering function and is not influenced by the psychological state of morale. Correct Answer Incorrect Answer
      E High morale only affects productivity in manufacturing sectors, not in service industries Correct Answer Incorrect Answer

      Solution

      Management experts (notably Keith Davis) have highlighted that morale and productivity do not always move in the same direction. The relationship depends on Goal Alignment:

      • High Morale + High Alignment: This is the ideal state. Employees are happy and their efforts are directed toward company goals, resulting in High Productivity.
      • High Morale + Low Alignment: Employees are very happy and have high group cohesiveness, but they may spend their time socializing or restricting output together. This results in Low Productivity.
      • Low Morale + High Alignment: This can occur under strict autocratic leadership. Employees are unhappy, but fear of punishment or strict systems drive High Productivity (usually only in the short term).
      • Low Morale + Low Alignment: The worst state. Employees are unhappy and disinterested in work, leading to Low Productivity

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