A common tactic found on athletic teams (and in the military) is ''motivation by greater difficulty''.  If a team or squad fails at some exercise (has a poor practice, etc.); the sargeant/coach/person-in-charge rewards them for their efforts (or lack thereof) by ''making their task difficult next time''.  A sports team which loafs in practice often finds itself running windsprints or "stadiums" the next day, for a good long time--''followed'' by the regular practice.  The windsprints are often conducted to the point of physical exhaustion; far in excess of what would normally be necessary to adequately condition the athletes.

A classic example of this in US sporting lore is the brutal training camp that Paul "Bear" Bryant ran at Junction, TX when he was head football coach at Texas A&M University.

In other words, negative reinforcement (punishment) is the primary motivation for this activity; not increased productivity (in the athletic context, increased level of conditioning).

In the military context; this probably doesn't do much long-term harm; as this sort of technique is primarily used on troops in basic training; it's uncommon to subject frontline troops to this sort of activity.  Likewise in sports; most coaches are smart enough not to "run 'em 'til they puke" on game day.  

'''However'''

This tactic occasionally finds its way into corporations, where the drill sargeant is replaced by the PointyHairedBoss; and rather than a squad full of raw recruits being fashioned into soldiers; this tactic is employed on seasoned professionals who '''are''' (effectively) on the front line.  Failure to meet some deliverable is often met with new rules which make the workplace ''less'' pleasant and/or productive; requiring even ''greater'' effort from the workers to make up lost time than would be needed if well enough were left alone.

Examples:

* Removal of priveleges for the duration of a project (such as the ability to manage one's own time--MandatoryOvertime)
* Mandatory status meetings, the purpose of which is often to browbeat the employees for their (alledged) underperformance.

Often times, punishment isn't the primary intent (even if it is an ulterior motive)--it is believed that by placing additional burdens on the employees, it will "focus" them and increase their productivity.  It is highly questionable whether this actually works.  

In many cases, it causes burnout and other problems.