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: Management must concentrate on Key Result Areas (KRAs) essential for organizational success. These KRAs are considered critical points, as failure at these junctures can jeopardize the entire organization. By prioritizing KRAs, resources are effectively allocated to achieve paramount objectives.

2. Management by Exception: Also termed control by exception, this principle posits that attempting to manage every aspect leads to ineffective oversight. Consequently, only significant deviations exceeding acceptable tolerances warrant management attention. This strategy enables managers to concentrate on crucial matters over routine tasks, thereby enhancing both efficiency and decision-making capabilities.