5 main process of management by exception are:

The process of MBE may be briefly outlined as follows:

1. Set norms or standard

2. Let subordinates measure performance and compare it to standard.


3. If performance does not deviate from standard, or deviates within tolerable limits from standard, no action is necessary.

4. If performance deviates appreciably from standard the matter has to be brought to the attention of the superior officer.

5. Necessary action will be taken by him.

(a) If performance is less than standard, he has to take corrective measures and even punish those responsible for the shortfall.


(b) If performance is more than standard, he should reward those who are behind it and use it as an example for others to follow.