Management by exception is a principle commonly applied in the retail industry. It involves focusing managerial attention on significant deviations or exceptions from expected norms or standards, rather than closely monitoring routine or expected activities. Retailers utilize this approach to streamline operations and improve efficiency.
Under management by exception, managers establish predefined benchmarks or targets for various retail functions, such as sales, inventory, or costs. They then concentrate their efforts on investigating and resolving issues that fall outside these established parameters. This approach enables managers to allocate their time and resources more effectively, addressing critical issues promptly and leaving routine tasks to be handled autonomously.