Question

Explain the concept of management by exception.

Answer 1

1. In a large-scale organisation, keeping a close watch over all the activities is bound to be tedious and time-consuming.
2. If control is to be effective and economical it must focus attention only on factors critical to performance.
3. Only significant deviations from the standard should be reported to top-level management and other problems should be entertained by the subordinates.
4. For example, if telephone charges increase by 10%, the deviation is too significant, and it will be brought to the notice of top-level management.