This concept of Control Management is based on the belief that if you try to control everything, you may end up controlling nothing.

Which of the following is highlighted in the given statement.

Management by exception

The correct answer is option 3- 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.

OTHER OPTIONS

• Critical Point Control: It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points. If anything goes wrong at the critical points, the entire organisation suffers.

• Return on investment- Return on Investment (ROI) is a financial metric used to evaluate the profitability and efficiency of an investment.

• Ratio analysis- Ratio Analysis is a technique used to evaluate and interpret various financial metrics to assess a company's performance and financial health. By comparing different financial statement items through ratios, stakeholders can gain insights into aspects such as profitability, liquidity, solvency, and operational efficiency.