Which factor can significantly impact organizational effectiveness?

Employee engagement and morale play a crucial role in determining an organization's effectiveness. When employees are engaged, they are typically more productive, committed, and willing to take initiative. High morale can foster a positive workplace culture, encouraging collaboration and innovation, as employees who feel valued are more likely to contribute their best work.

Engagement also influences retention rates; organizations with high employee morale tend to experience lower turnover, which can reduce costs associated with hiring and training new staff. Conversely, low morale can lead to disengagement, absenteeism, and diminished productivity, which ultimately impacts the organization's overall performance and competitiveness.

The focus on employee engagement and morale aligns with findings in organizational behavior research, which indicates that these factors can significantly affect both individual and team performance, ultimately driving business success.