Carrots and Sticks: The Seven Deadly Flaws

1. They can extinguish intrinsic motivation.
2. They can diminish performance.
3. They can crush creativity.
4. They can crowd out good behavior.
5. They can encourage cheating, shortcuts, and unethical behavior.
6. They can become addictive.
7. They can foster short-term thinking.

The carrot and stick method does work, but it was created for a very different era and totally different circumstances.