My company believes heavily in sanctions for the tiniest of infractions. The justification they give is that they are a large company and it is difficult to keep everyone in line without an effective sanction grid for violating company policies. Having worked for another major financial organisation prior to joining them, I believe that point of view is balderdash, but am not in a position to change things so I've accepted as they are.
One thing I can't deny though is that the looming threat of sanctions propel people into action. I've seen the 80-20 rule play out at the office sufficiently enough to know that it holds true. Just a few people carry the an entire unit with their brilliance, energy and work ethic. Meanwhile, the other 80 percent so often seem very comfortable doing the bare minimums. It is something that the threat of sanctions does improve, but doesn't change.
The unit I supervise is no different. There are people who I strongly admire their work ethic and dedication, and those who seem to merely be taking up space. We see ourselves as family so I try to demand more from the underperformers in the hope that it spurs the desired changes but so far I've come up short. Too many are comfortable with the bare minimums while some are happy not even doing anything.
The zeal to put in more effort I believe comes with a heightened sense of responsibility, or passion to succeed. Those who are naturally goal getters tend to put in more effort, and naturally get more results.