Question

what is meant by the term “Management by exception”? If employees are chronically unable to meet a standard, what effect would you expect this to have on their productivity?

Answer 1

Management by exception:-

Management by exception is a style of business management that focuses on identifying and handling cases that deviate from the norm, recommended as best practice by the project management method.Management by exception when applied to business is a style of management that gives employees the responsibility to take decisions and to fulfill their work or projects by themselves.It consists of focus and analysis of statistically relevant anomalies in the data. If an unusual situation or deviation in the recorded data appears, which could cause difficulties for the business and can't be managed by the employee at his level, the employee should pass the decision on to the next higher level. Management by exception is intended to reduce the managerial load and enable managers to spend their time more effectively in areas where it will have the most impact.

Process of management by exception :-

Primarily, it is necessary to set objectives or norms with predictable or estimated results. These performances are assessed and get equated to the actual performance.Next, the deviation gets analysed. With an insignificant or no deviation, no action is required and senior managers can concentrate on other matters. If actual performances deviate significantly, the concern needs to be passed to the senior managers, as an “exception has occurred”. Finally, the aim is to solve this “exception” immediately

Employees are chronically unable to meet a standard, following effect would you expect this to have on their productivity :-

If employees are not able to meet a standard, we should analyze the deviation form standard. If deviate significantly ,it will definitely affect the production . For example:- if my standard is to produce 100 product in a day , but we able to produce only 55 product , so we not able to meet demand of our customer. This will significantly affect our business