I personally don't believe in "punishment". Find out what motivates people and play with that.
I don't think a carrot/stick approach works well in projects. (or perhaps at all :))
It also depends on the reason why people mess up. Sabotage? Ignorance? Skills? If people play political games and mess up deliberately, it's three strike out at once. All other reasons get a second and third chance, but only if the reasons are addressed. Saving Changes...
Elizabeth HarrinDirector| RebelsGuideToPM.comLondon, England, United Kingdom
I don't believe in punishment either. You can performance manage a poor-performer, but punishment? How does that fit with good project management practices and emotional intelligence for managers? We're not at school - you don't get better performance by making someone stand in the corner or stay late for detention. Saving Changes...
Punishment will achieve nothing but resentment. The approach should be coaching for performance. If an individual[s] has messed up it could be lack of understanding and lack of skill-sets. Many companies in the UK have an appraisal system in place where individuals are assessed against specific objectives, it can be harsh especially when the requirement is to meet all the objectives agreed and feedback from peers counts big time. No punishment - people have weaknesses and strengths, it is the weaknesses that need to be worked on by providing appropariate coaching and training. Saving Changes...
like what Vasoula is saying: coaching for performance. I think that is exactly the right phrase. And always set the good example: be the change you wish to see. Sort of. Saving Changes...
Simon:
I'm not sure that "many" of us in the Project Management community dream or even think about this approach. Certainly, if you take "project" out of your title; this is a very different story for managers and supervisors.