Tom Klein is the controller of Watson Manufacturing, Inc. He estimates that the company's break-even point is $2 million in sales dollars. However, he recently told all of the regional sales managers that sales of $3 million were needed to break even. He also told them that if the company failed to break even, the sales force would be reduced in size by 40 percent. Klein believes that his tactics will motivate the sales force to generate record profits for the upcoming year.

Is his approach to motivating employees ethical? Please explain why or why not?