Q.What is Management by Exception (MBE)? Explain the principle on which it is based.

MBE is built on a simple resource-allocation insight about a manager's time, applied specifically to what gets reported upward and what does not.

Management by Exception (MBE) is a management control technique under which a manager's time and attention are reserved for significant deviations from a plan or standard, while performance within a normal, pre-defined acceptable range is left to be handled at the appropriate lower level, without being reported upward at all.

The underlying principle: a manager's time is a scarce and valuable resource. If every small, routine variation from a standard is escalated to them, they end up spending most of their limited time on trivial matters, leaving too little time for the small number of genuinely serious problems that actually threaten the achievement of objectives. MBE builds a deliberate filter into the organisation's reporting/control system: a tolerance band is set in advance around each key standard, and only results falling OUTSI …

Assuming MBE means management IGNORES routine matters altogether, rather than that routine matters are handled and resolved at the appropr …