Management by exception is a management style where the manager interacts with the employee only when the employee does something wrong. This could range from violating a company policy to not completing an assigned duty or missing a task deadline.

In order to effectively manage by exception, the manger must set clear goals, objectives and associated deadlines for each employee. By utilizing the principals of Management by Objectives this can be accomplished, but it is still recommended that the manger meet with each employee on a regular basis to review progress on all objectives and proactively offer help with any potential issues.

Dan Stewart
Mr. Objectives
Twitter: @MrObjectives