If sales fall 5% below forecast, a sales manager takes no action. If, however, sales fall 20% below forecast, the sales manager and the district manager schedule a sales review meeting. This is an example of:
A) impoverished management.
B) management by exception.
C) intangible standards management.
D) country club management.

Question

Quizplus · Accepted Answer

This is an example of management by exception, a strategy where managers intervene only when performance deviates significantly from standards, in this case, taking action only when sales fall 20% below forecast.

If Sales Fall 5% Below Forecast, a Sales Manager Takes