This case outlines the problems in the shipping and distribution area of a local dairy. The Dairy Manager, Jerry Jones sets all rules and policies personally. He sees it as his job to criticize drivers and punish them for mistakes made. He does not provide positive feedback. He checks up on drivers after hours. Drivers circumvent some of his policies and engage in other negative behaviors in response to the punitive atmosphere that Jerry has created.

Use Theory X and Y to explain the way Jerry tries to motivate his drivers.