Management by Exception (MBE)
Management by exception is the practice of examining the financial and
operational results of a business, and only bringing issues to the attention of
management if results represent substantial differences from the budgeted or
expected amount.
Management by exception principle asserts that every subordinate should be
authorized to manage or perform his routine jobs without any intervention from
his superior manager.
Definition of MBE
Acc. To Lister Bitter
“Management by exception is an information and control technique that
provides management with signals that tell when a condition or operation is
within its prescribed standard and when it is not.”
Acc. To Thomas Divining
“Exception principle of management states that only significant deviations from
policies and procedures should be brought to the attention of managers.”
Characteristics of Management by Exception
Following are the main characteristics of management by exception:
1. Management by exception is a system under which only those matters and
problems are brought to the notice of high level managers which are of great
importance.
2. Matters of routine nature or problems related to day to day working are
resolved by subordinates on their own.
3. In this system, there is stress on decentralization of authority.
4. High management officials have competed trust on their subordinates and
they delegate authority to them.
5. This management technique lays stress on improving skills and working
capabilities of the subordinates.
6. High level managers concentrate their attention only on important matters in
system f management by exceptions.
Management by exception is the practice of examining the financial and
operational results of a business, and only bringing issues to the attention of
management if results represent substantial differences from the budgeted or
expected amount.
Management by exception principle asserts that every subordinate should be
authorized to manage or perform his routine jobs without any intervention from
his superior manager.
Definition of MBE
Acc. To Lister Bitter
“Management by exception is an information and control technique that
provides management with signals that tell when a condition or operation is
within its prescribed standard and when it is not.”
Acc. To Thomas Divining
“Exception principle of management states that only significant deviations from
policies and procedures should be brought to the attention of managers.”
Characteristics of Management by Exception
Following are the main characteristics of management by exception:
1. Management by exception is a system under which only those matters and
problems are brought to the notice of high level managers which are of great
importance.
2. Matters of routine nature or problems related to day to day working are
resolved by subordinates on their own.
3. In this system, there is stress on decentralization of authority.
4. High management officials have competed trust on their subordinates and
they delegate authority to them.
5. This management technique lays stress on improving skills and working
capabilities of the subordinates.
6. High level managers concentrate their attention only on important matters in
system f management by exceptions.
