CONTROL BY EXCEPTION OR MANAGEMENT BY

EXCEPTION (MBE)
It is a management technique by which managers
concentrate only on exceptional deviations instead of
trying to correct each and every deviation. The
advantage of the technique of Management by Exception
is that it allows the manager to concentrate on problems
that need his attention and to avoid dealing with those
that can be well handled by the subordinates themselves.
ADVANTAGES OF MBE
(1) It allows the manager to devote more time for
important issues by letting the subordinates deal with the
issues of a routine nature.
(2) As the manager need not bother about routine
matters.
(3) Since the manager devotes more time for vital issues,
he will be able to make better decisions.
(4) The subordinates are given authority to make
decisions on certain matters without any interference by
the executives.
(5) The management is also able to utilize the available
talent at the lower levels.
LIMITATIONS OF MBE
(1) There is no parameter available by which one can
differentiate important deviations from the unimportant
ones.
(2) Only an organisation that has a perfect system of
control will be able to employ the technique of MBE.

(3) It may lead to dispersal of authority that has its own

limitations.