Statement: The higher echelons of any organization are expected to be models of observational learning and should not be considered as merely sources of reward and punishments.
Assumptions:
1. Employees are likely to be sensitive enough to learn by observing the behaviour of their bosses.
2. Normally bosses are considered as sources of reward and punishment.
Answer: E
The statement advises people not to consider their bosses as mere 'supervisors' to control and assess their acts, but as 'models' to imitate in their working. So, both I and II are implicit.