The Leadership Values of Theory Z A Study of Abraham Maslow's ...

The Leadership Values of Theory Z
A Study of Abraham Maslow’s Later Works
Karlyn M. Kasperek
LEAF 513
Daemen College
January 30, 2004

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Abstract

Abraham Maslow has contributed a wealth of knowledge to the study of human potential,
motivation, and development. This paper will examine his writings about values based leadership,
systems thinking, and beliefs in transcendental leadership. Maslow’s Theory Z management model
provides the framework for the discussion of transcendental leadership. Examples from
organizations including my own will be used to illustrate these concepts. The unfinished nature of
Maslow’s work leads to a set of explorations available for future leadership thinkers, this paper will
also examine three of these opportunities.

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Executive Summary
Abraham Maslow dedicated his life’s work to the examination of human potential, motivation, and
development. His writings contribute greatly to the leadership models of many current authors on
the subject. This paper focuses on three main areas of these contributions.
• Values based leadership
• Transcendental leadership (Theory Z)
• Systems or holistic thinking

Many examples of these core issued as applied in organizations are available for study. This paper
will examine the following examples:
• Stanford University’s School of Engineering
• PeopleSoft Corporation
• My personal applications

Finally, because Maslow’s Theory Z has remained mostly unfinished, I will present the following
items as areas requiring additional exploration:
• Converting Maslow’s observations into teachable points for learning
transcendental thinking.
• Maslow’s concept of the Superior Boss
• An expansion of the Organizational levels chart to include modern theory.

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Abraham Maslow focused his life’s work on the study of human potential, development, and
motivation. Each theory as expressed through his writings, seems to evolve forward, illustrating the
authenticity of his belief in the perpetual nature of learning. The thoughts and observations flowing
through his books and journals seem well beyond the contemporary thinking of his era. Some
might say these ideas are still far from becoming a part of our current reality.


Maslow’s ideas permeate the modern leadership theories, sometimes verbatim and credited,
sometimes verbatim and not credited, and sometimes only in essence leading to a similar underlying
theme presented as the new author’s own original ideas. For example, Stephen Covey quotes “He
that is good with a hammer tends to think everything is a nail,” (Maslow as quoted by Covey, 1989)
while explaining left and right brain thinking patterns. In a less direct manner, O’Connor &
McDermott present the concept of a “Metaposition” in their work “The Art of Systems Thinking,”
(1997) clearly reflective of Maslow’s work with transcendental thinking to be presented later in this
paper as Theory Z. Maslow presents an idea of transcendening dichotomies based on meta-
motivations toward a set of higher values. This transcendence would result in O’Connor &
McDermott’s meta-position, the similarity of the language used hints at an understanding of
Maslow’s work. (Maslow 1971)

In another example, Covey in “Principle Centered Leadership” (1990) expands on Maslow’s
motivational studies through his statement “The first fundamental transformation of thinking
required…is to develop new basic attitudes towards the intrinsic dignity and value of people…”
(Covey 1990, 264) Maslow’s writings on the importance of intrinsic motivation, education, and
value could be seen as the source material for these ideas. Once again the phrasing and specificity of
the language utilized by Covey is a mirror like reflection of the earlier works of Maslow.

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Those examples and many more begin to uncover the contributions made by Abraham
Maslow to our current leadership curriculum. The areas of systems (holistic) thinking, values based
leadership, and transcendental leadership will frame the challenges faced by continuously developing
leaders as connections between the idea of what a leader “ought to be” and what most leaders “are”
is examined more closely. I put forth the idea that Maslow’s work is valid and timely for dissecting
current models to look for the deeper and higher meanings of developing one’s self and others.

In Maslow’s hierarchy of need, visible deference is given to persons who are values focused.
In fact, Maslow indicates a level of unhealthiness exists at all areas of development below self-
actualization. Maslow refers to becoming self-actualized as becoming more fully human, responding
to the inner impulses for development. He explains further indicating that stunting of human
development leaves the vast majority of the population incapable of self-actualization. (Maslow
1971) Great importance is granted to these inner impulses when they are directing an individual to
focus on values and growth. Many authors of current leadership guides, texts, and manuals also
share this belief.


The idea of inner voices is shared by Robert Quinn in “Deep Change.” (1996) Quinn states
“When individual effort disconnects from the inner voice, people begin to lose vitality.” (Quinn
1996, 204) Similarly Maslow accounts the tragedy of children losing contact with their inner
impulses, quieting them for the sake of conformity, extrinsic success, and survival. “The natural
child-respecting teacher who is not frightened by the sight of children enjoying themselves is a rare
sight in classrooms.” (Maslow 1971, 181) Teachers who do not allow the full expression of what it
means to be a child, will cause a child to lose a part of what it means to be a human being. The idea

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of discovering one’s self first is presented as an ideal goal of the educational system. This system
would allow students to self-actualize by understanding who they are and also where their own inner
impulses are directing them to go. The current model of extrinsic education over powers these
small inner voices and keeps children from becoming self-actualizing. Conversely, intrinsic
education guides self-actualizing behaviors and leads to better understanding of personal inner
impulses. Maslow (1971) indicates that self-actualized individuals seem to be more attuned to their
inner impulses and make the choice to improve and change.


Maslow places a great deal of emphasis on the importance of a set of values he has
designated as “Being Values” or “B-Values” contrasting them with “Deficit Values” or “D-Values.”
One way to delineate this idea is to think of D-values as the values of survival and B-Values as the
values of really living. In essence much of Maslow’s theory is very elitist in nature as it requires that
before one can become actualizing they must first meet all of their physiological requirements, which
for many in difficult economic times can seem impossible. Obviously if a person is lacking food,
shelter, and safety of person, they will not have the time or motivation to seek higher levels of
thought. Maslow believed however in the potential of human development to someday reach the
level where the self-actualization of some would create a chain reaction to the self-actualization of
all. Education is an area where this theory has the greatest chance at developing. If the major
purpose of education were to become the fulfillment of the B-Values, Maslow (1971) predicts a
flowering of a new kind of civilization where health, peace, and harmony are the norm.


It is more than thirty years later and we do not live in this civilization yet, some would say
perhaps it is a utopian dream of a man with too much time to ponder his own existence. The
potential for great change is still a latent slip stream of energy running through the rising leaders of

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today, sometimes quelled, primarily through indoctrination and faltering educational systems long
before it can reach the speaker box of the mature inner voice. I believe that transcendence of these
obstacles is possible, and better still can be led by those who more fully experience the break down
of traditional structures and normative demands within themselves.


Transcendence is the key idea presented in Maslow’s work with McGregor’s Theory X,
Theory Y management model. This contribution was not fully developed as it came at the end of
Maslow’s life. Theory X was clearly an indication of unhealthy people in unhealthy organizations;
conversely Theory Y pointed to a healthier way of living and was more in line with a self-actualizing
individual. There were some notable exceptions to the incremental hierarchy fulfillment type of self-
actualizing persons. It was at this point that Maslow began to gain new insight :

“In any case, it is my tentative impression that I am more likely to
find cognizing of transcendence not only in (systemically) self-actualizing but
also in highly creative or talented people, in highly intelligent people, in very
strong characters, in powerful and responsible leaders and managers, in
exceptionally good people and in “heroic” people who have overcome
adversity and who have been strengthened by it rather than weakened”
(Maslow 1971, 270)



This understanding of the different and episodic paths to transcendence led Maslow’s
research to record observations of those he believed to be transcendent, and this provides a list of
indicators of higher effectiveness. Many leadership guides offer similar formats of using
observations gathered about successful and effective leaders in order to create lists of learning points

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to teach everyone how to become a similar type of leader. It is my belief that everyone can learn the
basic tools of Theory Z, to move beyond some of the obstacles in society. The most important
areas of transcendence put forth by Maslow are reflected in the WIN/WIN paradigm presented by
Stephen Covey. (1989) Covey writes that people seeking a WIN/WIN outcome are looking for the
better, higher way. Maslow (1971) indicates in Theory Z that there is a transcendence of
dichotomies, in this case the examples are: we-they, me-you, us-them, the zero-sum game human’s
play where if someone wins it is required that someone lose. In Theory Z the persons involved
bring the decision making process up to the level of synergy. Expanding on this idea Maslow
indicates the need to transcend mutual exclusivity and hierarchical division.


Maslow also attributes a natural tendency for transcendent individuals to see organizations,
and ultimately the world in a more holistic manner.

“…what we have here is a kind of holistic thinking, or organismic thinking,
in which everything is related to everything else and in which what we have is not
like a chain of links or like a chain of causes and effects, but rather resembles a
spider web or geodesic dome in which every part is related to every other part and in
which the best way to see everything is to consider the whole darn thing one big
unit.” (Maslow reprinted in 1998)

O’Connor and McDermott (1997) describe systems thinking in a similar manner when
discussing change within an organization. This evolved sense of organismic understanding allows
for many positive outcomes. By understanding how the parts are connected and where each piece
can fit most effectively by identifying the talents and needs of the players, the transcendent leader re-

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organizes or creates the whole in a way that will meet both the basic needs and the higher needs of
all persons involved. Maslow (1971) suggests the potential where organizations evolve to a state
where this structure happens naturally. In this way, the leader themselves will defer control or
power to more superior performers in one area or another without insecurity because their primary
concern is for the performance of the whole. Only through a clear understanding of the entire
system would this transcendence of ego be as readily achieved.


Maslow kept journals throughout the final years of his life to reflect on learning gained while
observing management and leadership in practice. Because of the observational nature of the text,
examples are easily lined up against the comparative variables. The first example I would like to
share is printed in the 1998 “Maslow on Management” a re-publication by Ann R. Kaplan of
Maslow’s “Eupsychian Management” with illustrative text by Deborah Stevens, and Gary Heil. One
of these comparative illustrations explores the role of Stanford University’s School of Engineering
professor Tom Kosnik in developing students who will not only be the most technically prepared
engineers entering the workforce, but also prepared in the human skills necessary to be effective
leaders. (Kaplan 1998) The program guided by Kosnik recognizes the fact that greatness will require
a focus on integrity, core values, and contribution to society. The curriculum reflects a belief in how
personhood, character, and internal philosophical operations are equally important to the students as
their technical training.


Another example of Maslow’s theories in practice can be found at PeopleSoft Corporation.
This example focuses on system’s thinking, particularly a quote by Maslow (reprinted by Kaplan
1998) stating:

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“Those serving customers must be longer range in time and longer range in
space and wider thinking in terms of causes and effects and holistic relationships.
Why is this? It’s because the relationships…are very different when these customers
are supposed to be kept for a century or two… instead of for the short term.”


Ken Morris, one of the co-founders of PeopleSoft ascribes to this idea of long term, holistic
goals with employees and customers. The first core value is complete dedication to employees, the
avoidance of hierarchy and bureaucracy through the creation of a strong democratic workplace
where everyone shares fully in the knowledge. The second core value shared in the company’s
vision is for long term holistic relationships with their customer base. Morris believes that simply
living these core values puts everything in place for profits to take care of themselves. (Kaplan 1998)
By looking at the organization as a whole it becomes clear where the energy can be leveraged for the
greatest return on your efforts.

In my experiences with leadership roles I can see reflections of Maslow’s Theory Z as it
relates to the transcendental practices. I believe very strongly in the principles of intrinsic value
education; in my development of new afterschool enrichment and academic improvement
curriculum guides the focus was primarily on the development of the child as a person before
making them a scientist, or mathematician, or great speller. My field research indicated the positive
results of this model which puts the child as a developing person first and subject mastery later in
the process of improvement. Preliminary data suggests that 56% more students improved their
academic outcomes by participating in my programs than in traditional academic improvement
programs offered in the district. This is an application of transcendental practice because it used a
strongly held belief that remedial services needed to be intensely subject specific to proceed to

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