Statement–Assumption — “Let us announce attractive incentives for better performance.” Assumptions: I) Incentive schemes do not work in the long run. II) Performance can be improved. Choose the implicit assumption(s).

Introduction / Context:The proposal recommends incentives as a lever to raise performance. For such a recommendation to be rational, one must at least believe that performance is improvable and responsive to interventions.

Given Data / Assumptions:

• Proposed tool: “attractive incentives.”
• Target outcome: “better performance.”

Concept / Approach:Assumption II is necessary; without the belief that performance can be improved, incentives would be pointless. Assumption I directly contradicts the idea of announcing incentives (if they “do not work,” why announce them?) and is therefore not implicit.

Step-by-Step Solution:

Verification / Alternative check:If management thought improvement was impossible, it would likely focus on monitoring or restructuring rather than rewards.

Why Other Options Are Wrong:Choosing I (or either) undermines the rationale for incentives; “neither” ignores the improvement premise.

Common Pitfalls:Assuming the statement must also contain a view on long-run persistence; it only proposes launching incentives now.

Final Answer:Only Assumption II is implicit.