Management by exception facilitates delegation of authority because _…

The correct answer is Option (3) → the routine problems are left to the subordinates

Option (1) managers deal with only significant deviations — Incorrect. This advantage saves the time and efforts of managers. It explains why managers are freed.

Option (2) managerial attention is focused on important areas — Incorrect. This advantage leads to better use of managerial talent, as managers look only at important areas. It is about where managers look.

Option (3) the routine problems are left to the subordinates — Correct. Delegation means passing some authority to subordinates. Under management by exception, the routine problems are left to the subordinates to handle. So subordinates get authority over these matters, and their morale also rises.

Option (4) critical problems are identified for timely action — Incorrect. This advantage helps to keep the organisation on the right track through timely action on critical problems. It concerns spotting problems in time.