● An attempt to control everything results in the control of nothing. This is with regard to the principle-Management by exception.
● According to this principle, everything cannot be controlled effectively. It is not possible to control all the activities in an organisation at the same time.
● Controlling focuses only on the key result areas. It means only those areas are controlled which are the the the critical points are dependent on the organisation.
● Instead of controlling each and every deviation in the performance, a permissible limit must be set.
● Only those deviations which go beyond this limit must be brought to the notice of the management.
● For example, A management has planned to earn a 5% profit on its annual sales.
● At the end of the year, the actual performance is compared with the planned performance.
● The profit is estimated to be a total of 4.5%. This is only a small deviation and should not be brought to the consideration of the management.
● However, if the deviation is of two percent, the management must resort to taking corrective actions, as this is a huge deviation from the planned performance.
Rate this question :
Write a short notNCERT - Business Studies Part-I
Give any two stanNCERT - Business Studies Part-I
Mr.Arfaaz had beeNCERT - Business Studies Part-I
Explain how managNCERT - Business Studies Part-I
‘An effort to conNCERT - Business Studies Part-I
Name the principlNCERT - Business Studies Part-I