Daniel Pink’s book Drive provides some key insights on the flaws related to the “Carrot and Stick” method which has been so successfully adopted in the Industrial Era.
When applied to left brain oriented work for e.g. development of algorithm or mundane routine bound work done in a factory shop floor this method gives great results.
But when applied in the modern Knowledge Worker Conceptual age where heuristics and Right Brain thinking matter , adoption of this method can lead to very detrimental effects by killing intrinsic motivation.
Having understood this would help us adopt this approach with caution on a case to case basis.