Question

Explain 'Management by exception' as discussed in the controlling process. 

Answer 1

The foundation of management by exception, also known as control by exception, is the idea that trying to control everything frequently results in controlling nothing. Instead of concentrating on little deviations that have no effect on the company, managers should pay attention to major ones that go beyond acceptable limits.

This rule makes sure that routine deviations are dealt with at lower levels and that only serious problems are brought to the attention of management. For example, a 5% rise in labor costs should be notified for prompt action if a 2% increase is acceptable. Managers may concentrate on important issues and make effective decisions with this time and resource-saving method.