Definition:
Management by Exception (MBE) focuses on identifying and handling exceptional situations that needs management’s attention, typically human intervention. MBE concept was propounded by Frederick Winslow Taylor an American Mechanical Engineer and one of the first management consultant who sought to improve industrial efficiency.
MBE is a “policy by which management devotes time in investigating only those situations in which actual results differ significantly from planned results”.
It’s objective is to facilitate management’s focus on really important tactical and strategic decision making. Exceptional cases can be an opportunity which needs to be identified and tapped or a problem which needs to be solved in time with a strategy. This benefits organisation, with efficient utilization of management’s time for business to grow and improve it’s services rather than using valuable resources on routine tasks.
Further Reading:
https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor
https://en.wikipedia.org/wiki/Management_by_exception#cite_note-CAMBRIDGE-1