Question

Three Marks Question:
Explain how 'Management by Exception' helps in the controlling process.

Answer 1

Meaning of ‘Management by Exception’:

Trying to control everything may end up in controlling nothing”. Managers cannot control every organisational activity. This is neither desirable nor possible within the frame of time, money and resource constraints.

If actual performance conforms to planned performance, the matter need not be brought to the notice of top managers. Even when the deviation is not significant (when it is within the range of control), the matter may not be reported to top managers.