Management By Exception (MBE) - Disadvantages of MBE | 12th Commerce : Chapter 3 : Management Process : Management By Objectives (MBO) Management By Exception (MBE)

Chapter: 12th Commerce : Chapter 3 : Management Process : Management By Objectives (MBO) Management By Exception (MBE)

Disadvantages of MBE

The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level.

Disadvantages of MBE

1. The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level.

2. Furthermore, it takes time to pass the issues to managers. Managing employees who deviate from the normal procedures. Because of compliance failures are considered difficult to manage and typically find themselves with limited job duties and ultimately dismissed/terminated.

Key words

Harmonise Appraisal Terminated

For Own Thinking

1. Discussion on the various functions of management, how it helps to MBE?

2. State your own view about MBO and MBE need to the management.

3. Make your own project about MBO and MBE with some examples.

Case Study

1. The company gets 30% of marginal profit for every year, but not increasing the salary of the employees for last three years. The employees conduct the indefinite strike against the company. Assume you are the manager of the company. How to solve the problem with using MBO or MBE?

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12th Commerce : Chapter 3 : Management Process : Management By Objectives (MBO) Management By Exception (MBE) : Disadvantages of MBE | Management By Exception (MBE)