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M/s Zeman Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirements of the workers. Workers are generally granted leave on festivals and special occasions. Recently, at the Puja festival, it received a big order. Workers were keen to take Puja holidays while management was pressing hard for overtime. This matter was placed before the Personnel Manager, who called the meeting of operative manager by circulating a circular among the operative managers. Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers, without any pressure, voluntarily took limited holidays and were able to increase their earnings by working overtime and on holidays. During the Board of Directors meeting, the Personnel Manager was asked to update the management to achieve higher output, meeting timely supplies without any confrontation with workers. The personnel manager replied, "I just used a carrot with a no-sticks approach".

Which element of directing is highlighted majorly in the line, "Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays."?

Solution

✅ Correct Option: 2

The line majorly highlights the use of an incentive plan offering double and triple wages to stimulate workers to work overtime and on holidays. Using financial incentives to induce desired behaviour is motivation. The communication involved is formal, not informal, so option 1 is ruled out.

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