Yes and no.

There is a huge difference depending on culture. Your username gives it away (and you confirmed it in the update that provides extra information), the context is "China".

The "positive" effect that is to be expected is described in "Sun Tzu and the Concubines".

Now, in Europe, the effect would probably be such that the more qualified individuals secretly and quickly look for a different employer and leave soon whereas only those that do not have that option will remain (and these will join a union, found a work council, and/or develop burnout, either for real or fake, and go on sick leave).

In the USA, I'd say it's a 50/50 chance between "similar to or same as Europe" and "same as in Asia", depending on how desperate they are.

In China (or east Asia in general) I wouldn't be so sure. Humans are worth a lot less, and it is much more realistic to figuratively shout: "On your knees you worthless dog, work harder or you will feel my stick!" at someone, and the person may answer: "Yes. Yessss! I must work harder!".
Sure enough, fear as well as a desperate situation with no way out can be a strong motivator. That's also the idea behind 破釜沉舟, you either win, or die.

Things that are "WTF?!" in some places are pretty normal in other places. Sampo saede or Satori generation is de-facto "normal" in Korea and Japan. Young people with good education work off their ass all day long, literally to the point of dying, and still fail to earn enough to afford what we would consider a normal life. And all they're told is "work harder". Guess what, those that don't commit suicide actually do work harder.

So... yes, that actually works. But it really depends on the culture.

Yes and no.

There is a huge difference depending on culture. Your username gives it away (and you confirmed it in the update that provides extra information), the context is "China".

The "positive" effect that is to be expected is described in "Sun Tzu and the Concubines".

Now, in Europe, the effect would probably be such that the more qualified individuals secretly and quickly look for a different employer and leave soon whereas only those that do not have that option will remain (and these will join a union, found a work council, and/or develop burnout, either for real or fake, and go on sick leave).

In the USA, I'd say it's a 50/50 chance between "similar to or same as Europe" and "same as in Asia", depending on how desperate they are.

In China (or east Asia in general) I wouldn't be so sure. Humans are worth a lot less, and it is much more realistic to figuratively shout: "On your knees you worthless dog, work harder or you will feel my stick!" at someone, and the person may answer: "Yes. Yessss! I must work harder!".
Sure enough, fear as well as a desperate situation with no way out can be a strong motivator. That's also the idea behind 破釜沉舟, you either win, or die.

Things that are "WTF?!" in some places are pretty normal in other places. Sampo sedae or Satori generation is de-facto "normal" in Korea and Japan. Young people with good education work off their ass all day long, literally to the point of dying, and still fail to earn enough to afford what we would consider a normal life. And all they're told is "work harder". Guess what, those that don't commit suicide actually do work harder.

So... yes, that actually works. But it really depends on the culture.