Management by Exception (MBE) is a management approach that focuses on identifying and addressing significant deviations from established performance standards rather than monitoring every detail.
Characteristics
Focus on Variances:
Managers intervene only when performance significantly deviates from targets.
Set Standards:
Establish clear benchmarks for performance comparison.
Analyse Deviations:
Investigate the causes of significant deviations to determine necessary actions.
Empower Employees:
Encourage decision-making at lower levels without micromanagement.
Efficient Use of Time:
Allows managers to concentrate on critical issues, improving decision-making efficiency.