Lean thinkers understand this idea as respect for people. Dr. Deming talked about joy in work. Douglas McGregor talked about theory x and theory y thinking. All of these perspectives incorporate an understanding of workplace systems and human psychology. Extrinsic motivation is easy but not effective. It is really just abdicating management and using extrinsic motivation in place of management. The alternative requires managers to actually manage. This is challenging but the correct choice to make.
As I have stated before: Alfie Kohn has some great books and articles on the problems with extrinsic motivation, and related ideas – I know it is hard for many people to believe (the link provides some online articles that can help as well as some books).