5 main Limitations of Management by Exception

(1) There is no single or set rule for separating routine matters from exceptional cases. This task of separation may waste the time and energy of managers.

(2) It puts a kind of constraint on management development by keeping difficult problems out of bounds for junior executives.

(3) It breeds ‘organisation man’ thinking and suggests that the subordinate managers are incapable of dealing with even problems of lesser complexity.


(4) It may degenerate into a system of management by crisis. But if a crisis is not handled at the source, it may ultimately by too late for remedial action. This is particularly true of labour problems.

(5) It generates a false sense of security leaving complex matters for the senior manager.