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In: Operations Management

What are the arguments in favour and against policies conducted by rule and policies conducted by...

What are the arguments in favour and against policies conducted by rule and policies conducted by discretion?

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Expert Solution

Arguments in favour and against policies conducted by rule and policies conducted by discretion?

Policies conducted by rule

Arguments in Favour

  1. Rules are the standard norms that are made by the government/judiciary for the conduct of the policies to be more clear and transparent
  2. When the standard norms are available, everyone is aware what is to do and how it is to be done, what all need to be follow and what all are allowed and not allowed
  3. Rules provide the platforms for business and individuals to operate in their dimension which is well organised and advanced.
  4. These are predicted and predetermined for the future course of actions to be taken in any situation
  5. Bank around the world follows the policy of rules than the discretion

Arguments against

  1. Rules bifurcate itself in rules and standard and therefore rules itself is subject to some discretion on the part of officials while standard is specific norm to follow up to some level.
  2. Rules can’t cover the future uncertainties that may follow. Therefore, strictly adhering to the rules is not feasible in dynamic environment that we today have.
  3. Rules are subject to logic in the sense that when the case is decided it is not based on entirely on the rules and standard fixed rather the judges check each rule and if there is any ambiguity in the same, judges themselves take those rules as unconstitutional and made their own ruling.

Policies conducted by discretion

Arguments in Favour

  1. Discretion allows taking of decision as and when needed that is on the spot which allows taking into consideration all the factors existing as the time of cause of action.
  2. They are more flexible and undertaking any information which is available.
  3. Every rule has some part of discretion in it that is whether and up to what quantity and manner this rule shall be applicable which made the discretionary power stronger.
  4. Discretionary power carry itself the sense of taking decision in good faith and not in arbitrarily manner or based on some fixed rules applicable in indifferent cases.

Arguments against

  1. Discretion sometimes based on one’s personal whims and fancies
  2. Discretion doesn’t allow the people to be pre-informed of the requisite rules and regulations and penalties that may be imposed in case one thing not done as discretion leaves them hopeless and surprise.
  3. It doesn’t give commitment to any future course of actions.

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