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Question

Explain how 'management by exception' helps in the controlling process.

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Solution

It is an important principle of management. Control is based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations which go bey ond the permissible limit should be brought to the notice of management. For eg. If an organisation presupposes that there will be 2% defective product in the whole production then corrective action will be taken only when defective production will be more than 2%.


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