Step 1: Understanding the question.
The statement proposes announcing incentives for better performance. We need to decide which assumptions are implied by this statement.
Step 2: Analyzing the assumptions.
- Assumption I: "Performance can be improved." This is implied by the statement, as the proposal for incentives suggests that there is room for improvement in performance.
- Assumption II: "Incentive schemes are successful." This is also implied by the statement, as the announcement of incentives suggests a belief that they will work to improve performance.
Step 3: Conclusion.
The correct answer is (A) Both I and II are implicit, as both assumptions are logically necessary for the statement to make sense.