Been meaning to post a link to a really great article about motivation and employee morale. Here's a small excerpt.
More Power = Less Feedback
The greater the power people have, the less feedback they receive from others about how their behavior affects those around them. Thus, most CEOs get less honest feedback, less reality-testing, than most supervisors. This makes it even more important for higher level managers to learn how to encourage feedback.
No News Is Not Good News
If employees don’t feel safe enough to speak up about how management’s decisions make it hard for them to do their jobs well, or what management does that makes them believe they’re not valued and respected, it’s easy for management to believe that all is well. If no one says “It really bugs me that you never consulted us about this change” or “I hate it when you talk down to us” the manager, or management as a whole, can mistakenly believe that everything is fine or that missteps went unnoticed.