Advantages of MBE
Management by exception provides the following benefits:
1. It saves the time of managers because they deal only with exceptional matters. Routine problems are left to subordinates.
2. It focuses managerial attention on major problems. As a result, there is better utilisation of managerial talents and energy.
3. It facilitates delegation of authority. Top management concentrates on strategic decisions and operational decisions are left to the lower levels. There is increase in span of control. This leads to motivation and development of subordinates.
4. It is a technique of separating important information from unimportant one. It forces managers to review past history and study related business data for identifying deviations. There is better use of knowledge of trends, history and available business data.
5. MBE keeps management alert to opportunities and threats by identifying critical problems. It can avoid uninformed and impulsive action.
6. Management by exception provides better yardsticks for judging results. It is helpful in objective performance appraisal.