Consider the following statements:
(A) Management by exception is often referred to as control by objectives.
(B) Management by exception is an important principle of management control.
(C) Under management by exception, routine problems are brought to the notice of top management.
(D) Under management by exception, only significant deviations which go beyond the permissible limit are brought to the notice of management.
(E) Management by exception facilitates delegation of authority.
How many of the above statements are correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
(A) Management by exception is often referred to as control by objectives. — Incorrect. Management by exception is often called control by exception.
(B) Management by exception is an important principle of management control. — Correct. It is an important principle of management control. It rests on the belief that an attempt to control everything results in controlling nothing.
(C) Under management by exception, routine problems are brought to the notice of top management. — Incorrect. Under management by exception, routine problems are left to the subordinates. Only significant deviations reach the management.
(D) Under management by exception, only significant deviations which go beyond the permissible limit are brought to the notice of management. — Correct. Deviations within the permissible limit are not reported. Only significant deviations beyond the limit go to the management.
(E) Management by exception facilitates delegation of authority. — Correct. Subordinates handle the routine problems themselves. So management by exception facilitates delegation of authority.
NCERT (2026-27 Edition): “2. Management by Exception: Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations which go beyond the permissible limit should be brought to the notice of management. …”
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