assighnment
Management by Exception: A Critical Review
Prepared To:
Dr.Mohiuddin Ahmed
Professor
Department of Management Studies
University of Dhaka
Prepared By:
Md.Sumsul Arifin
Batch-16th Sec-A
Roll-042
Department of Management Studies
University of Dhaka
Submission Date:
13.12.2013
Management by Exception
Perhaps the most fundamental of all control techniques is management by exception (MBE), a control principle which suggests that managers should be informed of situation only if control data show a significant deviation from standards.
What is Management by Exception?
A style of business management that focuses on identifying and handling cases that deviate from the norm.
Practice whereby only the information that indicates a significant deviation of actual results from the budgeted or planned results is brought to the management's notice.
Its objective is to facilitate management's focus on really important tactical and strategic tasks.
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.
For example, the company controller may be required to notify management of those expenses that are the greater of $10,000 or 20% higher than expected.
The purpose of the management by exception concept is to only bother management with the most important variances from the planned direction or results of the business.
The concept can be fine-tuned, so that smaller variances are brought to the attention of lower-level managers, while a massive variance is reported straight to senior management.
Management by Exception (MBE) is a practice where only significant deviations from a budget or plan are brought to the attention of management.
Advantages of Management by Exception
The process focuses management time and attention on the
Prepared To:
Dr.Mohiuddin Ahmed
Professor
Department of Management Studies
University of Dhaka
Prepared By:
Md.Sumsul Arifin
Batch-16th Sec-A
Roll-042
Department of Management Studies
University of Dhaka
Submission Date:
13.12.2013
Management by Exception
Perhaps the most fundamental of all control techniques is management by exception (MBE), a control principle which suggests that managers should be informed of situation only if control data show a significant deviation from standards.
What is Management by Exception?
A style of business management that focuses on identifying and handling cases that deviate from the norm.
Practice whereby only the information that indicates a significant deviation of actual results from the budgeted or planned results is brought to the management's notice.
Its objective is to facilitate management's focus on really important tactical and strategic tasks.
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.
For example, the company controller may be required to notify management of those expenses that are the greater of $10,000 or 20% higher than expected.
The purpose of the management by exception concept is to only bother management with the most important variances from the planned direction or results of the business.
The concept can be fine-tuned, so that smaller variances are brought to the attention of lower-level managers, while a massive variance is reported straight to senior management.
Management by Exception (MBE) is a practice where only significant deviations from a budget or plan are brought to the attention of management.
Advantages of Management by Exception
The process focuses management time and attention on the