management by exception

What type of organization is best served by a policy of management by exception? It seems as if most managers would have difficulty implementing this type of policy.

All organizations can use management by exception. When routine work results in acceptable performance, no management attention is required. Managers who have properly trained their subordinates should have no problems delegating authority and allowing people to manage their own work. Managers are then able to devote their expertise and attention to nonroutine problems. Some managers have trouble allowing their subordinates to make decisions because of control issues, but this psychological barrier will hinder their careers.

Phyllis G. Holland, PhD, Professor and Head, Department of Management, Langdale College of Business, Valdosta State University, Valdosta, GA