Employee morale is defined by the employee's outlook, optimism, self-concept, and assured belief in themselves and their organization, its mission, goals, defined path, daily decisions, and employee appreciation. Faith in self and faith in their organization are both important factors in positive employee morale. Individual’s morale is related with knowing one’s own expectations and living up to them. If one is clear of his own needs and how to satisfy them most of the time, his morale is height. Individual’s morale is single person’s attitude towards life. While group morale reflects the general expert de corps of a collective group of personalities. Spinning mills in Tamil Nadu were running round the clock, and were busy expanding their operational capacities. Now, with the export market hit the economic crisis, coupled with a few other factors, the declining foreign orders has pushed the textile industry of South India is centered into a crisis.