management by exception


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management by exception

a system whereby only the important variations from plan are brought to management attention. This avoids managers becoming too bogged down with paperwork containing unimportant detail. See VARIANCE ANALYSIS.
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There are two behaviors of passive avoidant leadership: Management by Exception Passive and Liaises Faire leadership behaviors (Bass, 1987).
The questionnaire results are linked with the constructs associated with the transformational leadership styles (individualized consideration (items 15, 19, 29, 31), intellectual stimulation (items 2, 8, 30, 32), inspirational motivation (items 9, 13, 26, 36), and idealized influence (Attributes items 10, 18, 21, 25; Behaviors items 6, 14, 23, 34) as well as additional leadership styles such as transactional (contingent reward (items 1, 11, 16, 35), management by exception (MBE) active (items 4, 22, 24, 27), MBE-passive (items 3, 12, 17, 20) and laissez-faire (items5, 7, 28, 33).
This study measured the following transactional leadership behaviors: (1) contingent reward and (2) active management by exception.
contingent reward leadership and management by exception leadership.
The model results showed that the subdimensions labeled as management by exception (active) and management by exception (passive) made no significant contribution to the leadership scale, and that these two subdimensions disturbed the harmony of the model.
Punishment is also used in conjunction with management by exception.
The results of the study show that there exists a positive and significant relationship between Transactional Leadership and Motivation and there is positive and significant relationship between 'Contingent Reward' and Motivation while a positive and significant relationship between Management by Exception (Active) and Motivation is also observed.
88 explaining 56 percent of the variation; Passive Management by Exception, KMO was 0.
The transformational leadership model includes three different styles of leadership, each one with its own corresponding types: Laissez Faire leadership, transactional leadership (with three different types: management by exception passive/active, and contingent reward), and transformational leadership (with four types: individual consideration, intellectual stimulation, inspirational motivation, and idealized influence).
Hence, this study expects to see a positive relationship between transactional leadership--contingent reward with insurance salespersons' job satisfaction, and negative relationship between transactional leadership--management by exception (active), and management by exception (passive) with insurance salespersons' job satisfaction.
Concepts such as contribution margin and management by exception had new meaning to me.
In the middle of the continuum is transactional leadership, represented by the factors of contingent reward and management by exception.

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