One of my kids favorite movies/books is Mobster’s Inc, so it still lives for some kids. In the movie/book, the monsters get energy from scaring kids, but later discover you get more energy from their laughs. Ah yes, a business point from a cartoon.
Chinese parents have got a lot from their kids by threatening them. Fear will push workers a long way too. However, laughter and passion will take you much farther. Innovation atrophies under too much pressure. It blooms when they can laugh more. Sure, you must have the carrot and the stick, but most companies do not see the value of energizing workers. Most companies make them fear so much more. In a bad economy, workers may not leave, but your business may lose their passion while they still collect a pay check each month.
Leadership is about getting the most out of your workers. Monsters Inc. had the same discovery I did. Make them laugh and enjoy their work, and you will get a lot more out of workers.