Distinguish between Management by Objectives and Management by Exception on any four points.

Question

Accepted Answer

| Basis | Management by Objectives (MBO) | Management by Exception (MBE) |
|---|---|---|
| Core idea | Jointly setting specific, measurable objectives at every level, and managing towards achieving them | Escalating only significant deviations from a standard; routine matters stay at the lower level |
| Primary purpose | Improve planning, employee motivation, and the objectivity of performance appraisal | Save managerial time by filtering out routine, within-tolerance information |
| Scope within management | Cuts across planning, organising, staffing, directing and controlling as a broad management philosophy | Mainly a refinement/technique used within the controlling function |
| Role of participation | Central — objectives are set jointly by superior and subordinate | Not central — the tolerance range/standard is typically set by the manager alone |
| What reaches the manager | Overall progress reviewed periodically against agreed objectives | Only the specific deviations that fall outside the pre-set tolerance range | …

Q.Distinguish between Management by Objectives and Management by Exception on any four points.

Concept understanding — Advantages, Limitations and MBO vs MBE

Basis	Management by Objectives (MBO)	Management by Exception (MBE)
Core idea	Jointly setting specific, measurable objectives at every level, and managing towards achieving them	Escalating only significant deviations from a standard; routine matters stay at the lower level
Primary purpose	Improve planning, employee motivation, and the objectivity of performance appraisal	Save managerial time by filtering out routine, within-tolerance information
Scope within management	Cuts across planning, organising, staffing, directing and controlling as a broad management philosophy	Mainly a refinement/technique used within the controlling function
Role of participation	Central — objectives are set jointly by superior and subordinate	Not central — the tolerance range/standard is typically set by the manager alone
What reaches the manager	Overall progress reviewed periodically against agreed objectives	Only the specific deviations that fall outside the pre-set tolerance range

Q.Distinguish between Management by Objectives and Management by Exception on any four points.

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