Which of the following is the focus point for a manager while controlling, as controlling at every step is not possible?

Both 1 and 2

The focus point for a manager while controlling is: Option 3: Both significant deviations and Critical Point Control

Here's why:

• Management by Exception (MBE): This principle emphasizes focusing on deviations from set standards or targets. Managers don't need to micromanage everything, but rather pay attention to significant exceptions that require corrective action. 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. Thus, if the plans lay down 2 per cent increase in labour cost as an acceptable range of deviation in a manufacturing organisation, only increase in labour cost beyond 2 per cent should be brought to the notice of the management. However, in case of major deviation from the standard (say, 5 per cent), the matter has to receive immediate action of management on a priority basis.
• Critical Point Control (CPC): This approach identifies specific areas or processes within the organization that are crucial for success. Managers concentrate their monitoring efforts on these critical points to ensure smooth operations.

Advantages of Critical Point Control and Management by Exception

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

1. It saves the time and efforts of managers as they deal with only significant deviations.

2. It focuses managerial attention on important areas. Thus, there is better utilisation of managerial talent.

3. The routine problems are left to the subordinates. Management by exception, thus, facilitates delegation of authority and increases morale of the employees.

4. It identifies critical problems which need timely action to keep the organisation in right track