Give Honest and Sincere Appreciation

Part 1: Fundamental Techniques in Handling People — Principle 2

“The deepest principle in human nature is the craving to be appreciated.” — William James, philosopher and psychologist

The Hunger to Be Appreciated

William James, the great Harvard psychologist, made a striking observation: the deepest principle in human nature is the craving to be appreciated. Carnegie took this insight and built an entire philosophy of human relations around it.

Most people go through life starved of genuine appreciation. Managers notice mistakes but rarely acknowledge excellent work. Parents correct their children far more often than they praise them. Friends and spouses take each other for granted. We are surrounded by people who are quietly—sometimes desperately—hungry for recognition, and we walk past them every day without noticing.

This is not because people are unkind. It is because we are all consumed by our own concerns, our own need for recognition, our own worries and ambitions. We forget that the person standing in front of us carries the same need.

The Crucial Difference: Appreciation vs. Flattery

Carnegie is careful to distinguish between genuine appreciation and flattery, because the confusion between the two causes many people to avoid expressing positive things about others altogether. They fear sounding sycophantic. They worry about being seen as a “yes person.” So they say nothing.

Why Flattery Fails

Flattery is insincere. It is saying what people want to hear—not what you actually believe. And people can almost always tell the difference. Flattery creates discomfort because the recipient knows, somewhere, that it isn’t real. It can also create distrust: if someone flatters you excessively, you wonder what they want from you.

Most importantly, flattery focuses on the flatterer, not the recipient. The flatterer is trying to get something—approval, a favor, a sale. Even when the flattery is skillfully done, there is a hollow quality to it.

Flattery: “You are absolutely brilliant—the smartest person I’ve ever met!” (vague, excessive, motivated by self-interest)

Appreciation: “The way you explained that process made it crystal clear. I finally understood something I’d been confused about for months.” (specific, sincere, motivated by genuine gratitude)

The difference is specificity and sincerity. Appreciation identifies something real and names it precisely.

The Key to Genuine Appreciation

Genuine appreciation has three qualities:

  1. It is specific: Not “good job” but “the way you handled that difficult customer call showed real patience and creativity”
  2. It is sincere: You actually mean it—it reflects something you genuinely noticed and valued
  3. It focuses on the other person: You are thinking about them and what they have contributed, not about what you want from them

Charles Schwab and the Steel Industry

Carnegie tells the story of Charles Schwab, who became one of the first men to be paid a million dollars a year by Andrew Carnegie (no relation to Dale) to manage his steel mills. Schwab was not a technical genius—there were plenty of men who knew more about steel than he did. What made him extraordinary was his ability to deal with people.

“I consider my ability to arouse enthusiasm among the people the greatest asset I possess,” Schwab said, “and the way to develop the best that is in a person is by appreciation and encouragement. There is nothing else that so kills the ambitions of a person as criticisms from superiors. I never criticize anyone. I believe in giving a person incentive to work. So I am anxious to praise but loath to find fault. If I like anything, I am hearty in my approbation and lavish in my praise.”

Schwab practiced what he preached. He walked through his mills and made a point of noticing and praising specific things workers did well. The result was that people worked harder for him, were more loyal to him, and achieved more under his leadership than under managers who never noticed their contributions.

The Schwab Principle in Practice

Schwab once visited a mill and found that the day shift had fallen short of its quota while the night manager had reported an excellent shift. When the night crew came in, Schwab simply asked them: “How many heats did the day shift make?” The answer was six. Without another word, Schwab chalked the number “6” on the floor. When the morning shift arrived, they saw the “6” and asked what it meant. “The big boss was in last night,” someone said, “and he chalked the number of heats we made on the floor.” The day shift determined to beat the number. By the time Schwab came through again, the floor read “10.”

This is appreciation in action—not just praise for past performance, but a gentle, creative way of inspiring competition and improvement.

The Principle of the Hungry Soul

Carnegie borrows the concept of “the hungry soul” from Charles Dickens’s novels and applies it to everyday life. People are hungry for recognition the same way they are hungry for food. When they receive genuine appreciation, something in them comes alive. When they are starved of it, they become resentful, disengaged, or desperate.

This has enormous practical implications for leadership, parenting, friendship, and even sales. In every human relationship, there is an opportunity to notice what is good and name it. Every time you do, you create a deposit in what Carnegie implicitly describes as an emotional bank account—a reservoir of goodwill that makes future interactions smoother.

Building Goodwill Through Appreciation

Make a habit of appreciating people in your daily life:

The Test of Sincerity

Before you offer appreciation, ask yourself: “Do I actually mean this? Is this something I genuinely noticed and valued?” If the answer is yes, say it. If you are trying to get something or manage someone’s emotions, stay silent. Appreciation only works when it is real.

Key Takeaways

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