Home Business Why Use Management By Exception?

Why Use Management By Exception?

by gbaf mag

Management by exception is a management style of business management which focuses on identifying and managing exceptional cases, often recommended as best practice by your project management system. It enables you to create and implement change in any given circumstance with the combined knowledge of best practices and management principles. Considered by many to be the most important area of management, it helps you make the most of your resources and ensure that the process that you go through in getting things done is not only efficient, but more importantly, aligned with your company’s overall business objective. It allows you to work with people who are motivated and capable, and who share your vision. The following are just five of the advantages that management by exception can provide for your company.

* Improve productivity and efficiency. By focusing on the process that is necessary for making things happen instead of on the end result, you are more likely to get the best out of each employee. Instead of spending time arguing about how the work should be done, work with people to make it happen. This improves efficiency by reducing the number of impediments that may affect the completion of the tasks and ensures that there is no waste. A team focused on their responsibilities will be able to meet the objectives set by you much faster than an individual focused on completing only those tasks that are up to his or her own standards.

* Avoid costly mistakes. When you know what is going on at all stages of the project and have control over the process, you can avoid costly mistakes. By establishing process boundaries and eliminating non-conforming or irrelevant behaviors, you can ensure that the people you hire are performing to your standards and expectations. This, in turn, helps to build morale and increases productivity. If you don’t know what is going on within your organization, it is impossible to monitor the actions of your employees and avoid situations that could cost money and reputation.

* Reduce stress levels. One of the primary causes for employee dissatisfaction is the amount of stress they are experiencing in their daily lives. When you know what is expected of them and when they have a clear understanding of the impact of their actions, it makes their lives easier. Working in a professional environment, where everything is laid out before them, reduces stress levels and frees them to focus on the tasks at hand.

* Increase productivity. There is a direct relationship between the amount of production and the profitability of a company. When you find that there is a strong correlation between these two factors, your company can benefit greatly from utilizing management by exception. By delegating work to the best qualified people in your company, you are able to maximize the productivity of your employees while increasing the profitability of your company.

* Reinforce commitment to quality. All companies should have a commitment to quality. It doesn’t matter whether you are working with a small group of individuals or a large corporation. When you delegate responsibility for a project to your best employees, it shows that you expect quality to be a top priority. You are also showing your best individuals that you expect them to work hard and stay committed to your mission. In turn, this will help them perform better and bring your business to greater heights.

* Reduce turnover. This is yet another common reason why management by exception is used. When you have an employee who leaves a company, there is often a good chance that another will fill their shoes within a short period of time. By delegating work to the best people available, you reduce the likelihood that a great person will leave and replace them with a less capable person.

When you use a management by exception, you are empowering your people to make smart decisions. They are no longer going to worry about what is going on around them. They are going to assume responsibility for making sure that their department or division is doing well and is not in danger of being shut down due to financial reasons. The more successful your company becomes, the more your employees will feel confident in their position and work harder to keep your company profitable and viable.


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