CMA Foundation · Fundamentals of Business Economics and Management · Communication, Co-ordination, Collaboration, Monitoring and Control
Under the principle of 'management by exception', a manager of a Chennai retail chain should give attention mainly to which of the following?
Management by exception directs a manager's attention only to significant deviations that fall outside the accepted tolerance limits. Minor, routine variations are handled by subordinates, which saves managerial time and focuses effort on matters needing corrective decisions.
- AEvery deviation from the standard, however small
- BOnly significant deviations beyond the accepted tolerance limitsCorrect
- COnly favourable deviations
- DOnly deviations in the final year-end accounts
Explanation
Management by exception focuses managerial time on significant deviations outside set tolerance limits, while routine, minor variations are left to subordinates. Reviewing every small deviation defeats the purpose and wastes time. Limiting attention to year-end results ignores timely control.
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