Knowledge of Psychology (continued)
Individuals in an organization must have an understanding of human motivation that drives their basic philosophy of how people behave in an organization. This is one's basic philosophy of human nature.
Individuals, particularly the leaders in an organization must believe that people are intrinsically motivated to perform well, and that they will perform to the best of their ability given the working conditions that are present.
A "Knowledge of Psychology" is realized in an organization when individuals truly implement Theory Y of Douglas McGregor.