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.
- Analyze 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.