If you throw the pebble in the pond and the rings start circulating that much wider, you've done things and created things for people that they didn't think they'd ever be able to do. That excites me.
Fear is not a motivating factor. You might be able to get a little bit more out of someone in the short term, but you will completely erode your business and your culture in the long term. You're going to lose all your good people. You're not going to have people tell you the truth, and it becomes the tradition.