Management by exception

Step 5 Utilize BME (management by exception)—where a performance exceeds the established control limits, it is indicating a quality performance failure, and corrective action must be taken to correct the problem... 

Alarms are used to alert controllers to events or conditions in the process that they might not otherwise notice. They are particularly important for low-probability events. The overuse of alarms, however, can lead to management by exception, overload and the incredulity response. 

Designing a system that encourages or forces an operator to adopt a management-by-exception strategy, where the operator waits for alarm signals before taking... 

Working smarter. This level sees greater use of electronic transaction tools plus more sophisticated decision support and management by exception practices. The Stage 2 procurement function will undertake work simplification efforts to reduce manually processed transactions. There are attempts to better balance the requirements of suppliers and customer service with procurement playing a central role. 

Management by exception (MBE) enables managers to quickly make conunon day-to-day decisions. MBE would prove inappropriate for decisions reqniring significant deviation from established practices, standards, or expectations. Managers of today can easily nse MBE decision-making principles because of their immediate access to electronically provided sources of information. Provide busy managers only with sufficient information about a situation for them to make a decision. 

Amy Azzam notes, Event management gets away from screaming on the phone at your supplier and gets down to managing by exception and trying to minimize the number of exceptions. ... 

The final barrier to effective leadership is an overemphasis on incident rates. Again, this is in essence a variation on management by exception, as it places leadership in a reactive mode. The problem is that emphasizing safety in terms of the rate of injuries creates a perception that the company is more concerned with statistics than with the safety and well-being of the employees. Management surely needs to be concerned about results and incident rates related to safety, but it has to balance this concern with attention to safety on the job. (The problem of overemphasizing results is discussed in more detail in Chapter 4.)... 

Management by exception A manager makes a decision by reviewing key information and not all available information on a subject. 

Transactional leadership can be active or passive. In the active form, the leader takes the initiative to communicate expectations and then monitors and reinforces performance. The research literature calls this constructive transactional leadership. In the passive version, the leader waits until something goes wrong and then responds with the appropriate consequence. This is called corrective transactional leadership or management by exception. The literature is very clear about the superiority of constructive to corrective transactional leadership. Unfortunately, few leaders avail themselves of the power of active transactional leadership, opting instead for the relatively weak, passive version. ... 

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