Certainly a motivator of sorts, but not a good one.  It creates a negative atmosphere which will hurt productivity more than it will increase it.  In my experience, employees motivated by respect, encouragement and praise are much happier and inclined to work harder and more effectively.

When all else fails, this may the only method and is the only method for some people.

As a very occasional thing, this might work.  Done too often and it risks becoming a "The beatings will continue until morale improves" sort of deal.

This is a motivator- for sure - if you really need the job.  It can be a way to weed out a lot of the people who don't want to be there.  Ie, everyone who doesn't reach their activity goals by the end of the week will be out of a job.  Well, anyone a boss would want to keep on the staff would get their stuff done, for sure and anyone who is kind of a slacker either would not and walk out the door, or realize they need to get their ish in gear and start working.  But...if these threats are done often and morale drops, good employees may start walking...it's walking a tightrope.

You'll motivate them to find another job.

When you have them by the balls, their hearts and minds will follow.  The opposite end of the continuum from "Great Leadership", but it has its place in some circustances.

All that this does is make an insecure employee even more insecure. Finding out what the problem may be is a much better solution.

Threatening to fire employees is not a good way to motivate.

Intimidation never worked on me.Unless someone has very low self esteem,and believes they can't get anything else,this is probably a bad move.

This doesn't motivate me, it scares me!

If you wamt to unmotivate some one this will do it. Being nervous and depressed does nothing to improve performance.

Nope as far as working, it made me walk out when I was threatened because the person wanted to get out of work early and wanted me to rush things in order so he could. The next day, the REAL bosses begged me back, but I told them I would not come back unless they got rid of the guy whom I walked out on.

Sounds like US Postal Service talk to me.

This is nothing. In the Marines we couldn't fire anyone, so we had to resort to threats of violence and crappy work details. (cpl numbah makes pvt screwup clean stuff)

This will un-motivate the employee. It's better to have a manager sit with that employee and discuss goals of what needs to happen and what will be rewarded by doing so.

Depending on the employee it may be necessary to terminate the individual's employment to motivate them to perform to a level expected. If that is the case the person is probably not very self motivated and this tactic will only be a short fix. If this is the motivational tool you have to employ you will probably have to replace that employee soon anyhow. In the long term it's a counterproductive tactic. Either A) you're not properly cultivating your employees and training them to succeed. This increases your turn over rates and operational costs. B) You're crying wolf and then the tool will fall on deaf ears; but more importantly you'll lose the credibility necessary to run the business.

Dell does this very often!!!!

Some of you people are weak. . .I personally have worked in a company that did a good job of giving me incentives (Stocks, personal days, et.al.) But I personally have no problem with threating a stupid employee who isn't pulling his or her weight. How many of you out there have an anchor in the office that won't get fired although it should happen? Hey, the economy sucks- there are 10 people in line for my job so I better take it seriously. If more people worked just a little bit harder, perhaps they wouldn't have to be threatened in such a manner. I would try to be nice first. . .then fire their bitch-ass if the person doesn't improve. Capitalism is tough. . .

Sure, it motivates me . . . to look for another job.

This is so counter productive in the long run. But you can bet there are a million middle management Napoleons who think it works and who, if the truth were known, get off on it. Power freaks are so predictable.

Nah, I wouldn't consider this a 'way to motivate your employee', rather a 'way to make your employee think twice about working under you'. Sadly, some mis-guided bosses do practice this unacceptable ploy. If my employer threatened to fire me, I'd certainly re-consider my position there.

No one wants to work for a mean, vengeful boss.

I've known some executives who've made a career on managing by fear. Work harder, or I'll find someone else who will - that kind of stuff. Depending on the employee, and the job market, this can actually work pretty well. The problem with this approach, however, is that it depends on your employee not having any other options. Maybe the economy sucks and there just aren't any other jobs out there. Maybe the employee sucks and can't find a job anywhere else anyway. Manager beware, however, this approach is extremely effective in driving away star talent, and filling your company with cringing (though hard working) sheep.