Basic Difference - CiteHR
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hello can anybody help me out, what is meant by management by objective and management by exception. with regards neha
Management by Exception is the administrative policy of focusing on those events deviating from an established standard. Management by exception practices are established where it has been determined that only those events that deviate from a standard are significant.

You can say it is a concept or policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results. The idea is that management should spend its valuable time concentrating on the more important items (such as shaping the company's future strategic course). Attention is given only to material deviations requiring investigation.

However MBO :

The basic principle behind Management by Objectives (MBO) is for employees to have a clear understanding of the roles and responsibilities expected of them. They can then understand how their activities relate to the achievement of the organization's goal. MBO also places importance on fulfilling the personal goals of each employee.

Few important Points of MBO are motivation, better communication and co-ordination, clarity of Goall etc, :-

•Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment.

•Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the organization and also to solve many problems.

•Clarity of goals

•Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.

•Managers can ensure that objectives of the subordinates are linked to the organization's objectives.

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