Despite unanimous agreement in the existing literature that morale influences employee performance, no well‐defined measure of morale exists. In Russia, identifying the factors that contribute to employee morale is particularly important since firms face difficult financial challenges imposed by the decade‐long economic and political transition that began in January 1992. The study aims to develop a robust measure of morale and focuses on the factors that influence morale among Russian workers.
Survey data were collected from Russian employees at two different points in time, 1995 and 2002, in five Russian cities (Moscow, St. Petersburg, Taganrog, Rostov and Azov). The study used regression analysis to assess the influence of expected rewards on employee morale.
The paper finds that among the workers participating in the study, expectation of receiving a desired reward contributes to high morale, with expected monetary rewards having a higher influence that expected non‐monetary rewards, but praise for a job well done and a feeling of accomplishment also contribute positively to employee morale. There is a significant correlation between positive attitudes toward work and morale, and a positive correlation between performance assessment and morale. Demographic characteristics (age and gender) have no discernable influence on morale when controls are included for work experience.
Data are cross‐sectional rather than longitudinal and sampling is purposive rather than random.
The research suggests that if companies are not financially able to provide monetary rewards, managers can focus on developing a work environment that is friendly and fosters mutual respect. Managers have control over praise and it costs nothing to praise employees for a “job well done.”
No study to date has examined Russian worker morale nor tested morale measures developed in developed market economies on Russian workers. The study develops three reliable measures of morale.
