A division manager whispered to his peer as they left the monthly executive meeting, "Our new CEO is going to play hardball. Any of us whose division is performing with significant negative deviation from the established budget is going to get a lot of her concentrated attention." "What do you expect?" countered Randy. "She told us in our meeting that she would be using ________ as part of her control system."
A) the balance sheet
B) management myopia
C) our employment relationship
D) the principle of exception
E) the balance scorecard

Question

Quizplus · Accepted Answer

The mention of "significant negative deviation from the established budget" indicates that the CEO will likely use the principle of exception as part of her control system, which involves focusing on and addressing areas where actual performance deviates significantly from expectations or standards.

A Division Manager Whispered to His Peer as They Left