What are the advantages and disadvantages of management by exception?
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Meaning of Management by Exception:
It is a system of identification and communication that signals the manager as to when and where his attention is needed. The main object of this system is to enable the manager to identify and isolate the problems that call for decision and action, and avoid or ignore or pay less attention to less critical problems which better be handled by his subordinates.
Under this system the manager should receive only condensed, summarised and invariable comparative reports covering all the elements, and he should have all the exceptions to the past averages or standards pointed out, both the specially good and the specially bad exceptions.
This gives him a full view of the progress in a few minutes of time. Thus by using the experience in a systematic way (i.e., having the knowledge of past attainments), a careful analysis is made with reference to existing records and standards of performances.
Advantages of Management by Exception:
ADVERTISEMENTS:
1. It saves time. Manager attends to real problems at a particular point of time.
2. Concentrated efforts are possible, as this system enables the manager to decide when and where he should pay his attention. It identifies crisis and critical problems.
3. Lesser number of decisions is required to be taken, which enables the manager to go into detail.
4. This enables to increase span of control and increase the activities for a manager.
ADVERTISEMENTS:
5. Use of past trends, history and available data can be made fully.
6. It alarms the management about the good opportunities as well as difficulties.
7. Qualitative and quantitative yardsticks are provided for judging the current position.
8. It prevents management from over managing.
Limitations of Management by Exception:
ADVERTISEMENTS:
Management by exception is not a solution to all management problems; it has its limitations as well.
Some of them are:
1. It requires a comprehensive observing and reporting system.
2. It increases paper work.
ADVERTISEMENTS:
3. The system is silent till the problem becomes critical.
4. Some important factors, like human behaviour, are difficult to measure.
It is a system of identification and communication that signals the manager as to when and where his attention is needed. The main object of this system is to enable the manager to identify and isolate the problems that call for decision and action, and avoid or ignore or pay less attention to less critical problems which better be handled by his subordinates.
Under this system the manager should receive only condensed, summarised and invariable comparative reports covering all the elements, and he should have all the exceptions to the past averages or standards pointed out, both the specially good and the specially bad exceptions.
This gives him a full view of the progress in a few minutes of time. Thus by using the experience in a systematic way (i.e., having the knowledge of past attainments), a careful analysis is made with reference to existing records and standards of performances.
Advantages of Management by Exception:
ADVERTISEMENTS:
1. It saves time. Manager attends to real problems at a particular point of time.
2. Concentrated efforts are possible, as this system enables the manager to decide when and where he should pay his attention. It identifies crisis and critical problems.
3. Lesser number of decisions is required to be taken, which enables the manager to go into detail.
4. This enables to increase span of control and increase the activities for a manager.
ADVERTISEMENTS:
5. Use of past trends, history and available data can be made fully.
6. It alarms the management about the good opportunities as well as difficulties.
7. Qualitative and quantitative yardsticks are provided for judging the current position.
8. It prevents management from over managing.
Limitations of Management by Exception:
ADVERTISEMENTS:
Management by exception is not a solution to all management problems; it has its limitations as well.
Some of them are:
1. It requires a comprehensive observing and reporting system.
2. It increases paper work.
ADVERTISEMENTS:
3. The system is silent till the problem becomes critical.
4. Some important factors, like human behaviour, are difficult to measure.
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