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In a bulb manufacturing unit, the range of defective bulb is decided at 5%. Any deviation that goes beyond the permissible limit of defect is to be brought to the notice of supervisor.

Identify the concept of one of the functions of management highlighted here.

Solution

Correct Option: 1

Setting a permissible limit of 5% and only reporting deviations beyond that limit to the supervisor is the principle of Control by Exception, also known as management by exception. It means only significant deviations beyond acceptable limits should be brought to the manager's attention.

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