Step 1: Understanding the question.
The statement talks about announcing incentives for better performance. We need to identify which assumptions are implicit in this statement.
Step 2: Analyzing the assumptions.
- Assumption I: "Performance can be improved" is implicit because the purpose of announcing incentives is to improve performance. Without this assumption, the need for incentives wouldn't make sense.
- Assumption II: "Incentive schemes are successful" is also implicit because the announcement of incentives suggests an underlying belief that they will work to improve performance.
Step 3: Conclusion.
Both assumptions I and II are necessary to support the statement. Therefore, the correct answer is (A) Both I and II are implicit.