The effect of workers' low self-esteem on the operation of organizations is discussed, and examples of how low self-esteem hinders job performance are presented. An appropriate managerial response to the self-esteem needs of employees is outlined. The four aspects of a managerial response to the self-esteem needs of subordinates include: sensitivity to and awareness of the importance of self-esteem; responsiveness to human concerns of the workers; enhancing job-related self-esteem; and making the formal organization more supportive of positive self-esteem. (This paper was presented at the Missouri Section AWWA Annual Conference, April 13-16, 1982.) Includes 13 references, figure.