Management by Exception

We know that Management plays an important role in the development, growth, and goal achievement process of the organization. There are many models of Management. These models are Participative Management, Database Management, Management by Objectives, Management by Exception, and so on. Every model is important and plays an important role in the growth, development, and goal achievement process. Among all Management by exception is also an important model that plays an important role to remove variance and improve the performance of the organization and ensure the goal achieving process. 

In other words, we can say that the process in which variance is forecasted and remove by policy, rules, regulation, law and improve the function of the organization. This process is called management by exception. 

In other words, we can say that the process in which actual performance is compared with predefined performance and variance is removed by planning, organizing, staffing, directing, and controlling and improve the performance of the organization this process is called Management by Exception.

Step of Management by Exception-

There are many steps of Management by Exception. These steps are as below-

1. To set goals- It is the first step of Management by Exception. There are many goals before an organization. In the process of Management by Exception, we choose one of the goals that we want to achieve so set the goals is the first step.

2. To assess the performance- It is the second step of Management by Exception. It is done after setting the goal of the organization. In this process, we assess the performance of the organization.

3. To find out deviations- After assessing the performance we find out deviations. These deviations belong to any function of the organization. These functions may be production, sales, supply, and warehousing.

4. To remove deviations- It is the last and more important step. In this step, we make a new policy, plan, rules, regulations, and laws to control deviations and achieve the goal of the organization.