In any system that teaches morality systems for both punishment and reward are necessary for growth of the individual. Without the possibility of self benefit, i.e. reward, many people are simply unmotivated to pursue correct action. However, people are also interested in self preservation. This is why punishment is an effective means of regulation for those not goaded into action by reward.
I believe most humans only act out of selfishness and self interest. If everyone behaved like this, society could not function as it does now. People need the reward of something pleasurable, and the pain of punishment in order to do the things that are beneficial to society as a whole.
Systems of punishment and reward are absolutely needed in order to keep society functioning. Rewards are needed to motivate people to work hard. Punishments are also needed to make sure that people obey laws and that order is maintained. If either of these were taken away, civilized society would cease to exist.
As human beings, most of us do not just do good for the sheer pleasure of it. Most of us need a carrot and a stick approach. That means they need to know there is a reward for the hard work they do and punishment for wrongs they might be tempted to do.
Yes, I think that this is the way that people are pushed to go and do a lot of things that they do. If you do this system, then you can get a lot more out of your kids, or the people that you might that do work for you.