The current study aims to examine the effect of low morale and motivation on employees’ productivity and competitiveness. Low productivity and loss of competitiveness are outcomes of low morale and low motivation and may sometimes lead to further undesired symptoms such as absenteeism and sabotage. A questionnaire was designed to achieve the purpose of this purpose, and it was distributed to selected accounting and management employees working in different Jordanian business environments. The number of questionnaires analyzed were (276) questionnaires. Resolution data were analyzed using the statistical program Smart PLS (Partial Least Square). The study concluded that low morale and low motivation affect productivity and competitiveness, and it also recommends that management should work on increasing productivity by increasing employees’ satisfaction through re-engineering systems and processes and providing incentives, education and training.