MBE (Management by exception)



MBE (Management by exception)Management by exception (MBE) is a style of business management that focuses on identifying and handling cases that deviate from the norm, recommended as best practice by the project management method. MBE has both a general business intelligence application.

The process of MBE


  1. Setting objectives or norms.
  2. Accessing the performance and comparing it with the norm.
  3. Analyzing the deviation.
  4. Solving the exception.
  5. A systematic approach.
  6. A comprehensive organizational policy.
  7. A good understanding of exceptions.
  8. A proper delegation of authority.
  9. Continuous development of subordinates.


Advantages of MBE


  • It saves time. Managers attend to real problems at a particular point of time.
  • It identifies crisis and critical problems.
  • The use of past trends, history, and available data can be made fully.
  • It alarms the management of good opportunities as well as difficulties.
  • This enables to increase the span of control and increase the activities for a manager.
  • It prevents management from over-managing.





Limitations of MBE


  • It requires a comprehensive observing and reporting system.
  • It increases paperwork.
  • The system is silent until the problem becomes critical.
  • Human behaviors are difficult to measure.


System of MBE


  • Measurement Phase.
  • Projection Phase.
  • Selection Phase.
  • Observation Phase.
  • Comparison Phase.
  • Action Phase.