Basic Premise: People have an inate desire to achieve at Maslow's higher levels and will do so if managers let them be the best they can be.

Motivational Plan: Reward employees for excess hours worked or product/service produced by involving them in decision-making and generally treating them like an owner.

McGregor found that most people respond well when treated with respect. This is especially important when employees are expected to convey a positive organizational culture to paying customers.