Question

What are the advantages of MBE?

Answer 1

Management by exception provides the following advantages:

1. It saves the time of managers because they deal only with exceptional matters. Routine problems are left to subordinates.
2. It focuses managerial attention on major problems. As a result, there is better utilization of managerial talents and energy.
3. It facilitates delegation of authority. Top management concentrates on strategic decisions
   and operational decisions are left to the lower levels. There is an increase in span of control. This leads to motivation and development of subordinates.
4. It is a technique of separating important information from unimportant one. It forces managers to review past history and study-related business data for identifying deviations. There is a better use of knowledge of trends, history, and available business data.
5. MBE keeps management alert to opportunities and threats by identifying critical problems. It can avoid uninformed and impulsive action.
6. Management by exception provides better yardsticks for judging results. It is helpful in objective performance appraisal.