Management by exception focuses on which of the following?

Management by exception is a management strategy that prioritizes attention and resources to areas that significantly deviate from expected performance, commonly referred to as "out of control" situations. This approach allows managers to focus their efforts where there are significant variances from budgets, forecasts, or operational plans, thereby enabling them to address issues that could potentially hinder the organization's performance.

When a company's operations are running smoothly with minimal variations, routine oversight can often suffice. However, management by exception is predicated on the assumption that not all operations require the same level of scrutiny. Identifying and focusing on discrepancies allows for more effective resource allocation and timely interventions where necessary, ultimately leading to better overall management of the organization.

In summary, the emphasis on pinpointing areas that are not performing as expected means that management can proactively address problems, mitigate risks, and reinforce areas that may require additional support or adjustment.