Question

Explain ’Critical Point Control’ and ’Management by Exception’ as discussed in the controlling process.

Hint:

Both ’Critical Point Control’ and ’Management by Exception’ help organisations prioritize key areas and avoid wasting resources on minor or non-essential issues.

Answer 1

1. Critical Point Control: Control should focus on key result areas (KRAs) that are critical to the success of an organisation. These KRAs are identified as critical points. If anything goes wrong at these critical points, the entire organisation may suffer. Focusing on KRAs ensures that the organisation’s resources are directed toward achieving the most significant objectives.

2. Management by Exception: Management by exception, also known as control by exception, is based on the belief that trying to control everything results in controlling nothing. Instead, only significant deviations that go beyond the permissible limits should be brought to the management’s notice. This approach allows managers to focus on critical issues rather than routine matters, improving efficiency and decision-making.