Correct Answer: The manager told his staff not to be late for work, or their salary would be deducted.

Solution : The first option is the correct choice.

Narration Conversion:

• The verb said is changed to the verb told in the indirect form.
• The imperative (don't) is changed to the infinitive form (not to be late) in the indirect form.
• The second-person pronoun your is changed to the third-person pronoun their in the indirect form.

Therefore, the correct sentence is: The manager told his staff not to be late for work, or their salary would be deducted.