Firing people left and right and taking away perks is a fantastic way to run morale that's probably already pretty low. I see what you are saying with regards to the need to light fires under people, but there's other, more positive and more productive ways to go about it.
Agreed. However, I'm running a business, not a social club.
If I have a few bad apples (the lazy, self-entitled employees of a previous post) and they're not responding to being held accountable, the whole staff needs to know I will use all tools available.
Frankly, if you manage properly, there's very little firing you have to do. Most bad employees, when they see you hold people accountable, will find another job. The only ones who stick around are the one's who are holding out for unemployment.