Correct Answer: Both statements are incorrect.

Solution : The correct answer is (c) Both statements are incorrect.

Statement 1 is incorrect. Financial incentives, while important, are not the sole motivators for employees. In addition to financial rewards, employees are motivated by intrinsic factors such as job satisfaction, a sense of purpose, opportunities for growth, recognition, and a positive work environment.

Statement 2 is also incorrect. Intrinsic motivation, originating from within an individual and driven by factors like personal interest, a sense of achievement, and the enjoyment of the work itself, is a fundamental driver of employee performance. Intrinsic motivation significantly influences how employees approach their work, their level of engagement, and ultimately, their performance.