What is the 'manage by exception' technique in management control?

The 'manage by exception' technique in management control focuses on identifying and addressing significant deviations from planned performance. This method allows managers to concentrate their attention and resources on areas where performance falls short of established standards or where there are unexpected outcomes. By only checking stages where deviations occur, managers can streamline their decision-making process, ensuring that they spend their time on critical issues that require intervention rather than monitoring every aspect of a project uniformly.

This approach promotes efficiency and effectiveness in management, as it minimizes unnecessary oversight on routine processes that are functioning as expected. It enables quicker responses to issues that could potentially derail project objectives, allowing managers to allocate their attention where it is most needed and improving overall project accountability.