Sponsor Area

Controlling

Question
CBSEENBS12004188

Clarify the difference between the ‘Principle of critical-point control’ and ‘Principle of management by exception’.

Solution

'Principle of critical-point control’: It refers to that concept of management which holds only important activities instead of all activities, the management should focus its attention on.

‘Principle of management by exception’: It refers to that principle of organizational control which holds that only significant deviations (i.e., exceptions) should be brought to the top management attention.