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Home/Practice questions/Business Studies
Business StudiesDirecting

Preeti fixes targets for her subordinates without discussing them and…

Read the following passage and answer the question.

ABC Ltd. is a reputed company in Noida. Preeti is the Chief Operating Officer of the company. Besides the salary, the company gives its employees a rent-free house, free medical treatment and a canteen. Preeti fixes targets for her subordinates without discussing them and warns that strict action will be taken if a task is not finished on time. Her sales staff often fail to close deals because they do not know enough words to describe the products and leave out needed details, so customers do not understand what they mean. When the director came to know that the office surroundings were dirty, he issued a written order to the administration manager to get them cleaned.

Preeti fixes targets for her subordinates without discussing them and warns that strict action will be taken if a task is not finished on time.

Which type of motivation does Preeti use through this warning?

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → Negative motivation

Option (1) Positive motivation — Incorrect. Positive motivation uses positive rewards such as a pay rise, promotion or recognition. Preeti offers no reward.

Option (2) Negative motivation — Correct. Negative motivation uses negative means such as punishment, stopping increments or threatening. Preeti’s warning of strict action is a threat, used to make staff finish tasks on time.

Option (3) Financial incentive — Incorrect. Financial incentives are in money form, such as pay, bonus or profit sharing. A warning gives no money.

Option (4) Non-financial incentive — Incorrect. Non-financial incentives such as status and recognition give psychological and emotional satisfaction. A warning works through fear.

NCERT (2026-27 Edition): “Features of Motivation: … (ii) Motivation produces goal directed behaviour. For example, the promotion in the job may be given to employee with the objective of improving his performance. If the employee is interested in promotion, it helps to produce a behaviour to improve performance.
(iii) Motivation can be either positive or negative. Positive motivation provides positive rewards like increase in pay, promotion, recognition etc., Negative motivation uses negative means like punishment, stopping increments, threatening etc. which also may induce a person to act in the desired way.”

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