Objectives of MBE:
1. To make the management concentrate on significant and difficult things.
2. Major deviations (standards - actuals) should be brought up for the managers attention.
3. Non deviations from standards should not be brought to his notice.
4. Fixation of targets of different individuals in the management.
5. To enable management thorough consideration of objectives of management.
Benefits of MBE:
1. With the use of standard costing, the targets of different individuals are fixed.
2. The attention of management is drawn only when actual performance is less than the budgeted
performance.
3. No need of supervison of each and every thing.
4. Every body tries to achieve his targets.
5. Since things are going as per targets, management need not bother about each and every
thing.
6. Management can devote its time to other important things.
20.11 KEY WORDS
Forward looking - Planning for future
20.12 SELF ASSESSMENT QUESTIONS
1. What is controlling? Discuss its nature.
2. What are requisities of a good controlling system.
3. Explain the process of controlling
4. Describe the concept management by exception.
20.13 REFERENCE BOOKS
Management
-
Koontz & O’ Donnell
Principles of Management
-
P.C.Tripathi & P.N. Reddy
Principles and Practice of Management
-
L.M. Prasad
Dr. K.Kanaka Durga
Reader in commerce,
Hindu College,Guntur
