Link: ftp://ftp.iza.org/dps/dp1203.pdf

...from this study done in Europe at the University of Bonn. It is written in research-speak, so it may be a bit difficult to wade through. It is about the results of game experiments where differing modes of motivation were tried on work teams.
In a study of 144 Swiss students asked to a play a game that mimics the manager-employee relationship, the researchers found that the "employees" acted more selfishly when given a quota by their "bosses" than when given free rein to work as they please. When the employees were asked about their behavior afterward, many said they resented the feeling of distrust that the quota suggested, and rebelled accordingly, suggesting that managers who try to exert control by enforcing performance targets may, in fact, end up being punished with poorer performance levels.
Here is the succinct summary:

"The game shows the traits of a self-fulfilling prophecy," wrote lead researcher Armin Falk, an economist at the university, in a summary of the study. "Anyone who is suspicious of the willingness to work of their employees is in fact punished by poor work levels; whoever is optimistic and gives them free rein is rewarded."

Another way of putting it: if you treat your team members as if they are untrustworthy shysters, they will start to behave like untrustworthy shysters.
I have plenty of anecdotal evidence of my own to back up what this study demonstrates. The best anecdote is that in my first I.T. job in the UK, I once saw a manager chew out a subordinate for being 30 minutes late one morning (he missed the train), while overlooking the fact that the subordinate habitually stayed way past normal going-home time. You know the rest of the story...the subordinate thereafter made sure that he came into work at 09.00 on the dot, and he left at 17.00 on the dot. He also started looking for another job...
I suspect that this basic trait of human behaviour shown in the study is widely applicable. This begs all sorts of questions in a wider societal context (example: how do we expect to reform prisoners if we treat them as untrustworthy morons by locking them up and making them do menial tasks?), but I think that's enough for this post before I trip into dangerous territory...