Management by Exception
Management by Exception
Management by Exception
BY EXCEPTION
Management by Exception is a "policy by which management devotes its time to investigate only those situations in which actual results differ significantly from planned results.
It is based around the concept or policy that states that the most effective use of a manager is not as a babysitter, but rather management should devote its time to investigate only those situations in which actual results differ significantly from planned results.
This type of management can be powerful when it is necessary to process lots of data in order to make Managerial Decision.
Its objective is to facilitate management's focus on really important tactical and strategic tasks. In MBE, the decision that cannot be made at one level of management is passed on to the next higher level.
Rather Than monitoring every move of their employees, a manager should encourage, and set a path, then only step in if there is a big deviation from the path. In the meantime, they should be planning future paths for their employees to follow.
ADVANTAGES OF MBE
Prompt decisions. Empowerment of employees. Modern and democrtive process. Quick course of action. Effective for long term planning. Enhance organisational citizenship. Distribution of responsibilities.
DISADVANTAGES OF MBE
Conflict of perceptions. Decreased administratorship. Can lead to mismanagement. Can be harmful in case of ineffective personnel. Can lead to poor decision making. No single accountability.