Consider the following statements about the advantages of critical point control and management by exception:
(A) Management by exception increases the morale of the employees.
(B) Critical point control and management by exception identify critical problems which need timely action.
(C) Management by exception facilitates centralisation of authority.
(D) Critical point control and management by exception save the time and efforts of subordinates.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) and (B) only
(A) Management by exception increases the morale of the employees. — Correct. Routine problems are left to the subordinates. This increases the morale of the employees.
(B) Critical point control and management by exception identify critical problems which need timely action. — Correct. Both identify critical problems that need timely action to keep the organisation on the right track.
(C) Management by exception facilitates centralisation of authority. — Incorrect. Leaving routine problems to subordinates passes authority down the line. So management by exception facilitates delegation of authority.
(D) Critical point control and management by exception save the time and efforts of subordinates. — Incorrect. They save the time and efforts of managers, who deal with only significant deviations. The subordinates take up the routine problems.
NCERT (2026-27 Edition):
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