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Sunday, 26 July 2015


PRINCIPLES OF MANAGEMENT: Importance of Management by Exceptions

Large Scale Business & Industrial units are having complex as well as complicated activities where decision making & supervision is needed at each step within a short notice. So the technique of Management by Exceptions has gained grounds and is popular in nature. As it has given more freedom in decision making & job performances to different Levels of Management, its utility level has increased many folds.
Some of the importances of Management by Exceptions are given as such:-

Easy Determination of Responsibility:
The predetermined objectives, standard of job performances, duties and rights are defined and specified in details for all the different Levels of Management, it is easy to ascertain and justify the responsibilities any time in the process of whole operation.

Saves Time:
The Top Levels of Management saves a lot of time after delegating the Authority to perform daily routine jobs and other decisions as per the requirement of the situation or needs. Hereafter, are able to concentrate upon the key issues & policy matter of the organization.

Optimum Utilization of Abilities:
The techniques involved in the Management by Exceptions highlights the total decision making pattern at the different Levels of Management, whereby each respective individual in his capacity according to his managerial level is independent to take decision and is totally responsible for its outcome or action. Hence, the manpower available in the business or industrial unit is expected to utilize all his abilities to the optimum level. In other words the organization is prepared to utilize the abilities of its man power to the maximum extent. 

Increases Productivity:
The application of Management by Exceptions techniques, provide Middle & Lower Levels of Management with Authority and Responsibility. This helps them in job performances and makes them feel to be part of the business or industrial unit. The above factor raises their esteem and respective managers or supervisor in turn give their whole hearted efforts for the success of organizations objectives. Ultimately the Productivity & Efficiency of the whole team increases many fold.

Enhances Research & Developments:
Management by Exceptions gives emphasis to timely consistent supervision and assessment of activities as well as analyzing the total job performances. Constant supervision facilitates in taking decisions and drawing logical conclusion. This systematic approach supports Research & Developments, thereby helping in reaching to required conclusion and enhancing the overall performances and results.

Develops Subordinates:
This technique of Management by Exceptions supports the development of subordinates, as the authority given and also the freedom to take independent decisions or take initiatives to proceed to solve upcoming issues or problems. This unique opportunity of taking independent decisions helps in developing dedicated and efficient individuals or subordinates, capable of giving desired results.


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