People working under the whip are productive only when the "slavedriver" is there. If you want to have a master standing over the shoulder of workers at all time it can be a productive method. It is terribly inefficient however. There is a lot of "overhead", if you will, to relate to modern business
I understand what you are saying about a moral premis, however people do not alway following a moral imperative. If the imperative is to maximize profits, that is something that, I believe, can have a much more "religous" following because it benefits the manager.
If that can be directed and explained in the correct way, and people can understand that making logical decision furthers this end, then you should not have abuse.
How successful do you think the Roman Empire would have been had it been built on a system of captalism?
The example of China, in current day, is an excellent one. There is certainly a compenent of slave labor, but that existed when it was at 0. The introduction of quazi capitalism into the system is what has allowed it to become a world power.
When china was a strict communist country, as with the soviet union, cuba, and north korea; productivity was very low. It was only the component of reward that has allowed them to compete with the U.S. and other world powers from an economic, and power, standpoint.
So i agree that you can produce using fear, but the basis of my theory is that you will produce a lot more when you add the component of personal gain.