Management by Exception is like when your mom only steps in to help or set rules when you are doing something wrong or not following the rules.
When parents see their children obeying rules and behaving well, they usually don't intervene or give instructions because they trust they are doing the right thing. But if they see their children not obeying, breaking the rules or misbehaving, they will step in to help and make sure everything is done properly.
Similarly, management by exception is a management style where supervisors and managers only step in or intervene when something falls outside of the usual standards or things are not going according to plan.
For example, if an employee's performance is below expectations or if there is a problem with a project, the manager will become more involved and give guidance or take corrective action. But if things are going fine, the manager will let the employees continue to work on their own without interfering too much.
This approach helps managers focus on problem areas or exceptional situations, giving more time and attention to issues that really matter without wasting resources on micromanaging everything.