Fixing the SELinux policy by running the recommendation and by rerunning root.sh did not succeed.
There are other policy restrictions to sqlplus by SELinux also , so it better to Disable the SELinux or set it to 'Permissive' mode which gives a warning message in the SELinux control panel.
Metalink Document 457458.1 How to Disable SELinux can help to understand how to handle SELinux.
In my case
I cleaned up the 11g R2 setup with Oracle DeInstall utility
Set SELinux to 'Permissive' ( Server reboot is not required )
Restarted the Oracle runInstaller.
Hope this helps