There is a big difference between motivation and stimulation. Fear is indeed one of the easiest ways to stimulate, but this is no way to motivate. Fear is something you when you want a reaction, something that triggers a fight or flight response. In a company, group or even a team you do not wish to incite fear, rather you wish to motivate the team members to go beyond what they believe is possible at their level of play or skill level.
That means you are asking them to give 110% in everything they do, and to do it for the team, for a common set of objectives and stated goals; easier said than done of course. It is true that you can make someone afraid of losing their job, and that motivates them to work harder. But you may not get their best efforts. What you are liable to get is anger, frustration, animosity, and mistakes on the job.
However, if you motivate them to give it their best, and give them a set of reasons, bonuses or awards for achievement when they succeed, you will find you will have much stronger team; a team that can work together and win together. If you make the kitchen too hot you will have people running from the kitchen.
But if you let the team smell the aroma, their mouths will start to water and they will do almost anything to partake in the great feast. Leading by example or leading by fear it’s your choice. Please consider all this.