Decision-making – Labour relations and strike notice Statement: The employees’ union of the Municipal Corporation has decided to strike work for an indefinite period to protest the management’s refusal to grant bonus. Courses of Action: I. The government should immediately pay an ex-gratia grant to the Municipal Corporation so it can grant bonus to its employees. II. The striking employees should be persuaded to defer the strike notice.

Introduction / Context:
Industrial relations problems call for negotiation, conciliation, and structured dialogue. The central question is which action logically follows from the situation and is institutionally appropriate.

Given Data / Assumptions:

• Employees plan an indefinite strike over bonus refusal.
• Municipal finances and policy frameworks govern bonus decisions.
• Government ex-gratia support is not implied by the statement.

Concept / Approach:
Valid courses of action should encourage resolution through talks, mediation, or statutory mechanisms (conciliation, arbitration) rather than fiscal bailouts that may set poor precedents and distort local accountability.

Step-by-Step Solution:

Verification / Alternative check:
Labour disputes are often handled by dialogue, fact-finding, and phased escalation protocols. Immediate subsidies are rare and problematic.

Why Other Options Are Wrong:

• I follows / Either / Both: I is not warranted by the given statement.
• Neither: Ignores the pragmatic step of de-escalation and dialogue.

Common Pitfalls:
Assuming higher-level government will or should finance local HR obligations; ignoring standard conciliation steps.

Final Answer:
Only II follows