Which of the following is an advantage of Critical Point Control and Management by Exception?

A) Increase the time and efforts of managers
B) Better utilisation of managerial talent.
C) Facilitates delegation of authority and increases morale of the employees.
D) Identifies critical problems

BCD

The correct answer is option 2- BCD.

A) Increase the time and efforts of managers- This is not an advantage as time and efforts are reduced not increased.

When a manager sets critical points and focuses attention on significant deviations which cross the permissible limit, the following advantages accrue:

• It saves the time and efforts of managers as they deal with only significant deviations.
• It focuses managerial attention on important areas. Thus, there is better utilisation of managerial talent.
• The routine problems are left to the subordinates. Management by exception, thus, facilitates delegation of authority and increases morale of the employees.
• It identifies critical problems which need timely action to keep the organisation in right track.