Identify the advantage of Critical Point Control and Management by Exception.

It identifies critical problems which need timely action

The correct answer is option 3- It identifies critical problems which need timely action.

It identifies critical problems which need timely action is the advantage of Critical Point Control and Management by Exception. All others are importance of controlling.

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.

OTHER OPTIONS

• Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.

• Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are well coordinated with one another. This ensures that overall organisational objectives are accomplished. 

• Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance.