Correct Answer: Statement 1 correct, Statement 2 incorrect.

Solution : The correct answer is (c) Statement 1 correct, Statement 2 incorrect.

Statement 1 is correct. Effective controlling, when done in a constructive and supportive manner, can lead to increased employee motivation. Clear performance standards and feedback are important components of effective controlling and can help employees understand their roles and expectations, leading to greater motivation.

Statement 2 is incorrect. Clear performance standards and feedback, when provided constructively and fairly, do not demotivate employees. In fact, they can have the opposite effect by helping employees understand what is expected of them, offering a sense of achievement, and providing a basis for improvement. It is ineffective or harsh feedback that may demotivate employees, not clear and constructive feedback.