The textbook refers to how employees respond to "The Human Touch" - feeling that they matter and are bringing something valuable to the organization. If the employees feel that they are important in the management's eyes, they are more motivated to do their job and the organization benefits as whole. The example given in the book is that of a hospital that greatly improved after the CEO treated people with a more human touch.
Treating people as valuable is an important part of leadership, and it stretches beyond only the employees to one's customers and colleagues - and in fact any human being (!). I remember reading about the patient who left everything in his will to only one doctor among many who treated him - because that doctor not only treated and cured his patients, but he also comforted them with compassionate words.
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