1.  Statement : The higher echelon of any organization are expected to be models of observational learning and should not be considered as merely sources of reward and punishments.
Assumptions :

I. Employees are likely to be sensitive enough to learn by observing the behavior of their bosses.
II. Normally bosses are considered as sources of reward and punishment.
A. If only assumption I is implicit
B. If only assumption II is implicit
C. If either I or II is implicit
D. If neither I nor II is implicit
E. If both I and II are implicit

Answer: Option E

Explanation:

The statement advises people not to consider their bosses as more 'supervisors' to control and assess their acts, but as 'models' to imitate in their working . So, both I and II are implicit.