Explain “management by exception” with respect to analyzing deviations, a step in the process of controlling. give a suitable example. Skip to main content

Explain “management by exception” with respect to analyzing deviations, a step in the process of controlling. give a suitable example.


Question: Explain “management by exception” with respect to analyzing deviations, a step in the process of controlling. give a suitable example. 

"Management by exception" is a technique used in controlling whereby managers focus on analyzing deviations from the expected or desired outcomes, rather than trying to monitor every detail of the process. Instead of regularly monitoring every activity, managers only pay attention to significant variances from the expected performance levels, and only intervene when necessary. For example, if a company sets a target of producing 1000 units per day and the actual output falls below 900 units, management will investigate and take corrective action to bring the performance back in line. This approach helps managers to identify and address problems quickly and effectively, without wasting resources on areas that are performing satisfactorily.


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