Management by exception involves:

Management by exception is a performance management approach where managers focus their attention on significant deviations from expected outcomes or standards. This methodology allows managers to concentrate their efforts on areas that require corrective action rather than micro-managing all aspects of performance.

By emphasizing the identification and correction of problems only when they arise, this approach helps in resource optimization and enables managers to address issues effectively without becoming encumbered by everyday operations that are running smoothly. This focus on addressing exceptions—where performance does not meet established standards—enhances overall efficiency and effectiveness within an organization.

In contrast, offering guidance and support to all employees reflects a more hands-on management style that does not align with the principle of focusing on exceptions. Similarly, providing automatic rewards for all performance levels does not fit the intent of this management style, as it lacks the critical analysis of performance standards. Focusing on long-term strategies rather than daily operations may overlook the immediate operational issues that could be causing deviations in performance, which is specifically what management by exception aims to address.