Which concept of controlling is referred to as 'control by exception'?

Option 1 -> Critical Point Control focuses on monitoring strategic points in operations but is not specifically termed as 'control by exception'.

Option 2 -> Management by Exception is the principle where managers focus only on significant deviations from standards, ignoring routine matters - this is specifically called 'control by exception'.

Option 3 -> Budgetary control is a technique using budgets to monitor and control organizational performance, but not specifically termed as 'control by exception'.

Option 4 -> Performance Appraisal is a systematic evaluation of employee performance and is not related to the 'control by exception' concept.

Hence, Option 2: Management by Exception -> This concept focuses management attention only on significant deviations from expected results or standards, rather than monitoring all activities. Managers intervene only when there are exceptional variations (favorable or unfavorable) beyond acceptable limits, making it synonymous with 'control by exception' -> correct