Morale and Reactions
I am not sure if I have covered how I do Reaction and Morale in my games. Newer editions have pretty much done away with these for a more 'story telling' approach where encounters are pre-planned and scaled for maximum predictability while in our older style gaming we have mechanics for randomness. Wandering monsters roll a reaction adjustment meaning they are not always aggressive and sometimes want to be allies. Which means as a DM you have to figure out why on the fly pretty fast. Tied similarly to this is Morale. I'll go over basic uses of Reaction in my Games and how I have extended Morale to other uses as well.
Encounters with wandering monsters are always rolled for reaction. Some minor adjustment to the roll based on characters current condition, appearance and reputation. As an example after my current party got a reputation for being pretty generous with bribery several smaller weaker factions in my current campaign took to selling out neighbors and rivals for coin and free unmolested passage through their territories to richer pastures deeper down. An extension of the living dungeon mindset which newer DMs struggle with as their main experience with RPG are video games. This can set up the players with unexpected allies in the depths but sometimes shifty backstabbers just waiting for the perfect time to betray their new 'friends', they are Chaotic after-all. Orcs and other humanoids will accept coinage quickly and follow a strong martial character or powerful wizard while other factions such as scheming were-rats may seek to exploit their new allies reputation and eventually give them a 'gift' of new abilities. Corpse eating intelligent Ghouls may offer arcane or ancient knowledge for gifts of defeated foes corpses creating a bonus to reactions to allies of them. Everybody loves it when you bring BBQ, just saying.
Retainer reaction are similar but you can toss these depending on how well your players negotiate. I typically take their light role play interaction and make a roll on reaction. Charisma is very important for the minor bonus to these rolls. It influences how much merchants are willing to give you for your loot you know. You're not giving full GP value for loot are you? I'll give FULL XP for recovered loot but how much coin they actually get depends on a few rolls and negotiations. The end of session stuff that a few players look forward to and others dread. Depending upon how you set up your NPC to begin with as either a fair good-natur'd fellow or an opportunistic douche bag. 35-45% is typical on the first offer and then the DM and Players can haggle and use our reaction and retainer charts. I cap at 85% period since the merchants have to make a profit after-all. I would recommend a few episodes of Pawn Stars for inspiration.
AS a side note, the most opportunistic merchants tend to be the most memorable. When they finally get a tidy sum of coin for their grave goods and spoils it seems as just as great victory as the adventure. Ezekial sure is a hard bargainer but I think we got allot of solid coin this time .... ;-). Keep in mind the dice cannot over ride reason and some things will not be purchased. Not everyone wants your junk and rusty swords....
Morale in earlier editions tested how willing the creatures are to fight. Natural animals can flee easier and cowardly humanoids cower at the presence of more powerful foes. A simple morale check after an intimidation attempt by your gore splattered Fighter may make some lesser foes rout if timed properly. After the leaders fall an immediate check to see if the rest scurry back to their holes and dens. Crafty Magic-Users could push a morale check and avoid protracted combat with illusions and shows of magical prowess on superstitious opponents as well.
Player Character Henchmen are an interesting feature where Morale is concerned as their Base Morale is determined by the Player Character's Charisma score. I ;of course adjust, for alignment as Chaotic forces are innately more prone to disorganization and self preservation over their Lawful counter parts. Same goes for Hirelings so those Men-at-Arms given a pretty much suicidal order? Make a Morale Check the beefy charming Paladin would not send them into certain death while the skulking thief hiding in the back shouting for them to charge may actually be ignored. "Sorry gov'ner I did'n 'ear 'im over them Orcs hollering at me" could be a frequent after combat response to the Thief. Morale as Command Value for Hireling Men-at-Arms also means a division in responsibility amongst your group. Something that might have a mechanic in later editions as an archetype but in older games just playing your position and character well.
Treating your employees and hirelings well would result in bonuses to their Morale scores. Long term service as a life time ally would be more prone to serve diligently as opposed to some jerk you found at the bar that afternoon. Make your personalized chart as I do not think that BX has much of one for extenuating factors. Tinker and Experiment with your game, worlds of imagination and all that.
Keeping it short and more of a ramble... Open Table game invites in the comments and Discord as well where there are other Old School gamers hanging out.
Game Well, Game Often
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