The document discusses two different assumptions about human nature and the role of management. The first assumes that people are inherently lazy and must be coerced into working through threats of punishment. The second assumes that people have potential and creativity, and will be motivated to work if given proper conditions where they can accept responsibility and have their potential developed and directed towards common objectives. This second approach depends on leadership rather than power or economic resources, and views management's role as providing a supportive climate where employees can grow and accomplish things in the interest of the organization.