MBE - Management By Exception - for LDCE
Concept by Frederick W. Taylor ( 1856 – 1915) – An American Mechanical Engineer and one of the first Management Consultants.
He was instrumental in the creation and development of branch of engineering that is now known as “Industrial Engineering”. “The Principles of Scientific Management” authored by him was voted as the Most influential Management book of the 20th Century by the Fellows of the Academy of Management.
Key feature: Attention only to material deviations, which requiring investigation.
Routine decisions making should be handled by Lower Level Managers, who report only exceptional cases to Higher Management.
A policy by which Management devotes it’s time to investigate only those situations which actual results differ significantly from the planned results. Creating the Right conditions /Benchmarks in the first place, then only intervening when things are not going as per Bench marks.
Use of MBE in Project Management: The Project Board should meet when key decisions about the Project should be taken, and not on regular intervals. For this, the Manager should produce “Exception Reports” (like RAR – Revenue Allocation Registers and Price Ledgers in Indian Railways) to summon the Board for such meetings.
MBE gives Management more opportunity to evaluate the administrative ability of their lower level Managers.