To effectively manage by exception (i.e., use exception reports), the company must first create:
A) performance standards
B) best practices
C) user information requirements
D) a database
E) employee evaluation guides

Question

Quizplus · Accepted Answer

To manage by exception, a company must first establish performance standards against which to measure exceptions. These standards define the acceptable range of performance and thus allow managers to identify deviations from that range as exceptions. Exception reports are then generated that highlight those deviations from the standard, allowing managers to take corrective action.

To Effectively Manage by Exception (I