The game should react dynamically to three different scenarios. First, if the player runs into a combat situation, doesn't really fire his weapons much, doesn't issue squad commands, and just plays ineffectually, the squad starts to freak. They go through various stages of low morale. First they complain, then they start using more conservative tactics, taking cover more often, blind-firing from behind cover, and finally just going into a purely defensive stance... Scenario two revolves around the average player, not incredibly effective, but moderately skilled. Morale fluctuates a bit and the squad helps some. The third scenario involves the skilled player, making headshots, giving commands, focusing the squad's fire on one target, and working to avoid any squad mates going down. In this (high morale) state, the squad gets much more aggressive; team members run out into the firefight and melee, they inflict more damage, etc.