The operation manager set a limit of 5% deviation in production and (1) decided to take corrective action only if deviation occurred beyond 5%. Identify and explain the principle of controlling mentioned in the above statement.
Solution:
The principle of controlling used is called 'Management by Exception'.
Management by exception states that 'an effort to control everything may result in controlling nothing'. Thus, only significant deviations which go beyond the permissible limit must be reported up the hierarchy for managerial action.
The principle of controlling used is called 'Management by Exception'.
Management by exception states that 'an effort to control everything may result in controlling nothing'. Thus, only significant deviations which go beyond the permissible limit must be reported up the hierarchy for managerial action.