We never used potty pads with both our Yorkies. They were crate trained and the surviving one has not gone inside in years now.
As for discipline, both of them got it. We never sprayed them with water. Never raised a hand to them. Never hit them or touched them. We used our voices to discipline them. Never used treats, or clickers. Just repetition, patience, and positive reinforcement.
Worked like a charm. The surviving dog is incredibly bright and well adjusted as was her deceased sister.