1. In macroeconomics, there is a debate over the use of rules versus discretion. The debate involves the extent to which monetary policy should be governed by the discretion of the head of the central bank (e.g., the Chairman of the Federal Reserve) or by relatively fixed rules that cannot be altered. Using the concepts from this chapter, provide an argument for each approach. Name other situations in business where there is a similar dilemma.
2. Still other firms use 360-degrce evaluations, Under this system, the firm asks managers subordinates, colleagues, and customers for feedback on the managers performance. What advantages do you sce to such a system? Do you see any disadvantages? What other policies might make such an approach less prone to the problems that you see? What kind of culture would be necessary for such appraisals to work
