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.
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