Exercises · Q6
Q.Explain any three advantages and any two limitations of Management by Exception.
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Start your 14-day free trial to unlock the full solution →Advantages:
- Saves managerial time — routine matters within the tolerance range never reach senior management, freeing their time for genuinely important issues.
- Focuses attention on critical problems — because only significant deviations are escalated, a manager's analytical effort is concentrated exactly where it is needed most.
- Encourages delegation — leaving routine decisions to lower levels naturally builds delegation of authority and the decision-making capability of subordinates.
Limitations:
- Depends heavily on the reporting system — if the underlying reporting is slow, inaccurate, or incomplete, genuine exceptions may not be flagged in time, defeating the whole purpose of the technique.
- Setting the right tolerance range is difficult — too narrow a band floods management with trivial reports; too wide a band may let a genuinely serious problem go unnoticed for far too long. …
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