Objections raised by the applicant are valid. In the internal job placements, why did you ask irrelevant questions?
Manager's job is to meet deliverable of his/her department. To meet the deliverables, he has to get the work done from his/her subordinates. To get the work done from subordinates, managers require job knowledge and people handling skills. People handling skills require conflict handling skills, negotiations skills, interpersonal skills etc.
For a managerial position, whether the job candidate is internal or external, he/she is expected to add value. Value addition comes from industry knowledge, competitors' knowledge, innovative mindset etc. Instead of asking questions on all this, your style was as if you were in some government organisation. In the "Maths and Business knowledge", what questions did you ask? Would you have asked the same questions to the external job candidate also?
What was the need to conduct test on Maths and Business? Is usage of those mathematical or statistical tools absolutely necessary in that department? This position is in which department? Did you ask questions related to KPIs and KRAs of that department?
There are few companies whose recruitment standards are very high. They do not take candidates with score below 70%. Does your company fall in this category? Does your company has that kind of culture where most of the decisions are based on the analytical tools? Does your company uses Operations Research (OR) techniques in day to day life?
By the way, you work in what department? What kind of mathematical tools, statistical tools do you use in your job? What quantitative technique do you use in your job? If you are from HR then have you done time and motion studies in your company? To decide the optimum manpower, did you use models of Linear Programming (LP)? It would be interesting to know this.
I have analysed the case dispassionately. There is nothing personal against you.
29th September 2016 From India, Bangalore
29th September 2016 From India, Salem