Generally, it is seen that people hesitate to do work when they are forced to do something. However, on the part of oraganisation that work may be very important to be done in the stipulated time. What can be the best way out to get it done?
It seems to me that fear of punishment is a very short-sighted view. It might possibly produce results in the short term, whether faster than more positive treatment will likely vary by circumstances. Then what? Not only is such treatment reprehensible, it is also doomed to long-term failure. I think it is also far too common, and a standard of small-minded managers who are all too common. My thinking is that most organizations perform inadequately because those in 'authority' arrived at such a position for the wrong reasons: because organizational climates do not encourage those with the know-how and who emphasize accomplishment as much as those who play the power game.
So, many may try to bully to get what they want, but they likely do not know what is best to do in the first place. So even if fear of punishment may occasionally be the fastest way to handle a given task, it may be a task that is not in support of a good strategy anyway.
It also seems a 'good' way to drive away talented people.
So, even on the occasions where fear of punishment may provide the fastest results, that, I think, is unfortunately, a frequently used, losing position to take.
What is comparatively more important in an organisation to get a work done in a stipulated time? Is it fear of punishment or recognition and reward?
Depending on the people involved are subscribing McGregor's Theory X or Theory Y. Theory X's people are more reactive i.e. the need closed supervision & punishment to get their works done. Theory Y's people are more proactive, creative and able to complete their works meeting / exceeding their manager's expectation.
What can be the best way out to get it done?
Suggesting you first identify those people involved whether they are Theory X or Theory Y's people then treat them accordingly e.g. strict supervision / micro manage the Theory X's people and share the goals / benefits with Theory Y's people & exercise less supervision.
There are may be multiple reasons for this, e.g., fear of being punished and the need to demonstrate personal ability at the same time. Maybe the ideal way to get work done in a stipulated time is team work/cooperation, i.e. many people participate and get benifit from it. This is good both for the staff and for the company/institution as a whole.
The most important motivation for work would be people's own feeling of joy coming from their accomplishment. As the first step to foster this feeling, recognition and reward might be useful.
A bit of both actually is necessary. But it mostly depends on the individual's perception for getting motivated. In my opinion, more than punishment...reward/recognition for getting work done in specific time, works better. It also teaches how to respect "time" eventually. Isn't it?
There are several ways to deal with the situation. In English there is a phrase "correct and stick". You can use awards/certificate/mementos etc for boost the integrity of the individual. So also you can give a memo or seek an explanation for not following the guidelines. The gravity of the mistake has to be measured.