Various factors that influence the staff morale: 

(i) to use his talent and work with full enthusiasm. Morale tends to be low when the job provides no challenge and satisfaction and job standards are considered very high. 

(ii) Interpersonal relations: Confidence in fellow worker builds high morale. An employee would get more confidence in his fellow workers when he finds that his fellow workers are providing the right advice. This will increase the morale among the employee. 

 (iii) Working conditions : A physical work environment exerts significant influence on the morale of employees, job security, medical benefits, wages, welfare facilities etc. have a great impact on the employees’ morale. When the wages are fair, job is secure and there are opportunities for promotion, job satisfaction and morale are likely to be high. 

(iv) Organisational efficiency : The line of authority and responsibility should be clearly defined so that each employee may be able to know the person to whom he is responsible. So, there should be proper system of communication to promote organisational efficiency which is the key to degree of morale.