When they enjoy their work!
I’ve lived under both styles of management.
One uses coercion, control and intimidation to motivate.
One uses encouragement, incentives and cheers to motivate.
I prefer the latter.
In fact, I would go as far as to say the long-term success of the orginization is directly proportional to the contentment of the people in the organization. That doesn’t mean work is always fun. Work is work. But, when people feel they are making a difference and believe in the work they are doing, when they work in an environment conducive to enjoyment, the overall potential for success of the organization increases.