A former PHB of ours had boiled his strategy down to a similar, simplified model:
The reward for doing a good job was more work. "You've been doing so well, I thought you would appreciate a few new challenges and responsibilities. Give you an opportunity to spread your wings. And since you will have more to do, I've moved your deadlines up so I could fit them into the Gantt chart."
The punishment for doing a poor job was more work. "You need to bring up your performance. Complete your current assignments to my satisfaction and, in the mean time, you will continue to take on new assignments. Now, tell me, what is it that you do here?"
Carrot and stick condensed into one pointy, morale puncturing management tool.
Since when were people skills EVER required for management? I think many mangers acquired their version of "people skills" from watching the scenes aboard the Roman galley in Ben-Hur where they whip the chained slaves who pull the oars. Which in itself is bogus -- the oarsmen on Roman galleys were not slaves. But that's all right, since "bogus" and "management" go together like peas and carrots.
Sadly, its true. Employees are often promoted into the management ranks without any supervisory training or effective interaction skills. Its like taking the airplane mechanic who, because he does a great job, promoting him to pilot without any training.