Improving Company Morale?

Undaar asks: "I work as a developer for a web development company. We were pretty hard hit (as were many companies that do what we do) by the "economic down-turn". The company went from over 500 people to under 200 in under two years. It's more stable now, but people are consistently laid-off. Consequently people feel like they always have to look over their shoulder to avoid getting fired. Most lunches are spent complaining about lack of enjoyment/challenge from the job and the fact that upper-management seems not to understand what we do. Employers: what have you done to improve employee morale in your company? As an employee, what can I do to improve the morale in the people I work with? How can I make my work environment more enjoyable? What kind of constructive suggestions can I take to management so that they can help improve the situation?"