[ashok@sandbox workspace]$ oozie job -oozie http://sandbox:11000/oozie -config /home/ashok/workspace/job.properties -run
job: 0000000-160708173729940-oozie-oozi-W
[ashok@sandbox workspace]$ oozie job -oozie http://sandbox:11000/oozie -log 0000000-160708173729940-oozie-oozi-W

2016-07-08 18:40:34,914  INFO ActionStartXCommand:520 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@:start:] Start action [0000000-160708173729940-oozie-oozi-W@:start:] with user-retry state : userRetryCount [0], userRetryMax [0], userRetryInterval [10]
    2016-07-08 18:40:34,919  INFO ActionStartXCommand:520 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@:start:] [***0000000-160708173729940-oozie-oozi-W@:start:***]Action status=DONE
    2016-07-08 18:40:34,919  INFO ActionStartXCommand:520 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@:start:] [***0000000-160708173729940-oozie-oozi-W@:start:***]Action updated in DB!
    2016-07-08 18:40:35,028  INFO WorkflowNotificationXCommand:520 - SERVER[sandbox] USER[-] GROUP[-] TOKEN[-] APP[-] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[] No Notification URL is defined. Therefore nothing to notify for job 0000000-160708173729940-oozie-oozi-W
    2016-07-08 18:40:35,028  INFO WorkflowNotificationXCommand:520 - SERVER[sandbox] USER[-] GROUP[-] TOKEN[-] APP[-] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@:start:] No Notification URL is defined. Therefore nothing to notify for job 0000000-160708173729940-oozie-oozi-W@:start:
    2016-07-08 18:40:35,064  INFO ActionStartXCommand:520 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@UploadFiles] Start action [0000000-160708173729940-oozie-oozi-W@UploadFiles] with user-retry state : userRetryCount [0], userRetryMax [0], userRetryInterval [10]
    2016-07-08 18:40:35,069  INFO SshActionExecutor:520 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@UploadFiles] start() begins
    2016-07-08 18:40:35,071  INFO SshActionExecutor:520 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@UploadFiles] Attempting to copy ssh base scripts to remote host [ashok@sandbox]
    2016-07-08 18:40:35,426  WARN SshActionExecutor:523 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@UploadFiles] Error while executing ssh EXECUTION

2016-07-08 18:40:35,427  WARN ActionStartXCommand:523 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@UploadFiles] Error starting action [UploadFiles]. ErrorType [NON_TRANSIENT], ErrorCode [AUTH_FAILED], Message [AUTH_FAILED: Not able to perform operation [ssh -o PasswordAuthentication=no -o KbdInteractiveDevices=no -o StrictHostKeyChecking=no -o ConnectTimeout=20 ashok@sandbox  mkdir -p oozie-oozi/0000000-160708173729940-oozie-oozi-W/UploadFiles--ssh/ ] | ErrorStream: This is a corporate computer facility. Access must be specifically authorized. Unless you are so authorized, your continued access and any other use may expose you to criminal and/or civil proceedings. Usage may be monitored! Permission denied (publickey,gssapi-keyex,gssapi-with-mic,password).
]
org.apache.oozie.action.ActionExecutorException: AUTH_FAILED: Not able to perform operation [ssh -o PasswordAuthentication=no -o KbdInteractiveDevices=no -o StrictHostKeyChecking=no -o ConnectTimeout=20 ashok@sandbox  mkdir -p oozie-oozi/0000000-160708173729940-oozie-oozi-W/UploadFiles--ssh/ ] | ErrorStream: This is a corporate computer facility. Access must be specifically
authorized for business purposes. Unless you are so authorized, your continued access and any other use may expose you to criminal and/or civil proceedings. Usage may be monitored!
Permission denied (publickey,gssapi-keyex,gssapi-with-mic,password).
        at org.apache.oozie.action.ssh.SshActionExecutor.execute(SshActionExecutor.java:592)
        at org.apache.oozie.action.ssh.SshActionExecutor.start(SshActionExecutor.java:206)
        at org.apache.oozie.command.wf.ActionStartXCommand.execute(ActionStartXCommand.java:250)
        at org.apache.oozie.command.wf.ActionStartXCommand.execute(ActionStartXCommand.java:64)
        at org.apache.oozie.command.XCommand.call(XCommand.java:286)
        at org.apache.oozie.service.CallableQueueService$CompositeCallable.call(CallableQueueService.java:321)
        at org.apache.oozie.service.CallableQueueService$CompositeCallable.call(CallableQueueService.java:250)
        at org.apache.oozie.service.CallableQueueService$CallableWrapper.run(CallableQueueService.java:175)
        at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1142)
        at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:617)
        at java.lang.Thread.run(Thread.java:745)
Caused by: java.io.IOException: Not able to perform operation [ssh -o PasswordAuthentication=no -o KbdInteractiveDevices=no -o StrictHostKeyChecking=no -o ConnectTimeout=20 ashok@sandbox  mkdir -p oozie-oozi/0000000-160708173729940-oozie-oozi-W/UploadFiles--ssh/ ] | ErrorStream: This is a corporate computer facility. Access must be specifically
authorized for business purposes. Unless you are so authorized, your continued access and any other use may expose you to criminal and/or civil proceedings. Usage may be monitored!
Permission denied (publickey,gssapi-keyex,gssapi-with-mic,password).
        at org.apache.oozie.action.ssh.SshActionExecutor.executeCommand(SshActionExecutor.java:342)
        at org.apache.oozie.action.ssh.SshActionExecutor.setupRemote(SshActionExecutor.java:375)
        at org.apache.oozie.action.ssh.SshActionExecutor$1.call(SshActionExecutor.java:208)
        at org.apache.oozie.action.ssh.SshActionExecutor$1.call(SshActionExecutor.java:206)
        at org.apache.oozie.action.ssh.SshActionExecutor.execute(SshActionExecutor.java:550)
        ... 10 more

2016-07-08 18:40:35,430  WARN ActionStartXCommand:523 - SERVER[sandbox] USER[ashok] GROUP[-] TOKEN[-] APP[PerformanceMetric] JOB[0000000-160708173729940-oozie-oozi-W] ACTION[0000000-160708173729940-oozie-oozi-W@UploadFiles] Suspending Workflow Job id=0000000-160708173729940-oozie-oozi-W

[ashok@sandbox workspace]$ ssh -o PasswordAuthentication=no -o KbdInteractiveDevices=no -o StrictHostKeyChecking=no -o ConnectTimeout=20 ashok@sandbox

    This is a corporate computer facility. Access must be specifically authorized for business purposes. Unless you are so authorized, your continued access and any other use may expose
you to criminal and/or civil proceedings. Usage may be monitored! 
    Last login: Fri Jul  8 17:42:37 2016 from 10.11.95.69
    ##################################################
    # --- sandbox -  ---
    #
    ##################################################
    ################################################################################
    #                            SANDBOX SERVER                             #
    ################################################################################

    [ashok@sandbox workspace]$

To confirm that the issue is not with the public/private key setup, you can see from the above that I have been able to execute the below without any issues.
     ssh -o PasswordAuthentication=no -o KbdInteractiveDevices=no -o StrictHostKeyChecking=no -o ConnectTimeout=20 ashok@sandbox 
    Also, it is under the same user the Oozie workflow request being submitted.  
    However, the workflow is getting to SUSPENDED state due to the password prompting issue.  Any suggestions?