Question

List the advantages of Critical Point Control and Management by Exception.

Answer 1

When a manager sets critical points and focuses attention on significant deviations which cross the permissible limit, the following advantages accrue:
1. It saves the time and efforts of managers as they deal with only significant deviations.
2. It focuses managerial attention on important areas. Thus, there is a better utilization of managerial talent.
3. The routine problems are left to the subordinates. Management by exception, thus, facilitates delegation of authority and increases the morale of the employees.
4. It identifies critical problems which need timely action to keep the organization on the right track.