morale

from The American Heritage® Dictionary of the English Language, 5th Edition.

• noun The state of the spirits of a person or group as exhibited by confidence, cheerfulness, discipline, and willingness to perform assigned tasks.

from The Century Dictionary.

• noun Moral or mental condition as regards courage, zeal, hope, confidence, and the like: used especially of a body of men engaged in a hazardous enterprise, as soldiers or sailors in time of war.

from the GNU version of the Collaborative International Dictionary of English.

• noun The moral condition, or the condition in other respects, so far as it is affected by, or dependent upon, moral considerations, such as zeal, spirit, hope, and confidence; mental state, as of a body of men, an army, and the like.

from Wiktionary, Creative Commons Attribution/Share-Alike License.

• noun The capacity of people to maintain belief in an institution or a goal, or even in oneself and others.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

• noun the spirit of a group that makes the members want the group to succeed
• noun a state of individual psychological well-being based upon a sense of confidence and usefulness and purpose