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Please when you answer take in your calculations the human factor and the company needs and the limited package you have to your section and your team as well.
You will have to use the carrot and stick policy. Do not use the stick too often as that would make you unpopular . Just mention it and it would work like a fear factor for those not motivated by incentives.
By always STand by them and MUST let them feel that you are back up of them and not try to make them fall down , Second Apply the concept As long you work hard as long you will receive in return back , Third the best motivation Always give them the chance to proof and show the capablity and the best of them.