· Amit Kothari · Project Management
Definition – What is Management by Exception?
Management by exception means competent employees handle day-to-day work without micromanagement, while managers focus on strategic goals and step in only when operational or financial performance drifts significantly from planned outcomes. Four steps require careful setup: set realistic benchmarks from historical records, monitor performance frequently with automated systems, analyze deviations for significance, then investigate and resolve exceptions freeing management time for decision-making in problem areas.