Employees can be said to be alienated when their morale is very low. In such a situation, they do not feel as if they are an important part of the company. They feel, in other words, alienated from the company.
Employee alienation can be caused by a number of factors. Managers can alienate their employees when they do not talk to them in positive ways. When your boss only talks to you to be demanding or critical, you will not feel like a valued part of the firm. Even the structure of the firm can cause alienation. A very hierarchical firm that does not allow people in the lower echelons to have any serious input into company affairs can be alienating. It can cause employees to feel as though they are not important.