Management by exception is a technique which holds that subordinates should be authorised to manage all Routine matters and superior managers should reserve the authority with themselves to take decisions only on exceptional policy matters. MBE is not only a control technique, it is also a method of finding/discovering new opportunities.
Limitations of Management by Exception
1. This approach promotes personalised decisions of an individual.
2. It requires establishment of clean and broad standards of performance. But this is very difficult in practice.
