Critical Reasoning — Assumptions Statement: “The higher echelons of any organization should be models of observational learning and not be treated merely as sources of reward and punishment.” Which assumptions are implicit here?

Introduction / Context:
The statement is a managerial guideline: leaders should model behaviors employees can learn from, rather than being viewed only as dispensers of carrot and stick. Identify the assumptions that make this recommendation meaningful.

Given Data / Assumptions:

• I: Employees are likely to learn by observing the behaviour of their bosses (observational learning happens).
• II: Normally bosses are considered as sources of reward and punishment (a prevailing perception exists).

Concept / Approach:
Prescriptive statements often assume both the feasibility of the prescription (I) and the existence of a suboptimal status quo the prescription seeks to change (II).

Step-by-Step Solution:
1) If employees do not learn by observing leaders, asking leaders to be “models” is pointless. Hence I is necessary.2) The clause “not merely sources of reward and punishment” presumes that this limited perception commonly exists. Otherwise, the caution would be unnecessary. Thus II is also assumed.3) Negate I or II and the advice loses force or context.

Verification / Alternative check:
Leadership-by-example and social learning theory support the premise that observed behavior shapes norms—validating I. Widespread transactional views of bosses (rewards/punishments) motivate the corrective—validating II.

Why Other Options Are Wrong:

• Only I or only II: The guidance relies on both the mechanism of learning and the existing perception it seeks to counterbalance.
• Either / Neither: Incompatible with the text’s logic.

Common Pitfalls:
Confusing “not merely” with “never.” The statement recognizes rewards/punishments exist but urges an expanded role-model function.

Final Answer:
Both I and II are implicit