Reporting by exception aims to prevent what issue for managers?

Reporting by exception is a management strategy that focuses on highlighting any significant deviations from expected performance or standards. This approach aims to streamline the decision-making process by giving managers the critical information they need to address issues without overwhelming them with excessive data.

Information overload occurs when managers are inundated with too much information, making it difficult to identify key issues and make effective decisions. By reporting only on exceptions, which are the notable changes or discrepancies, the method ensures that managers can quickly grasp what requires their attention, enhancing their ability to respond decisively to important matters without being distracted by less relevant details.

This methodology does not inherently address the aspects of communication, misunderstanding, or false reporting in the same way. Although it may lead to clearer communication by focusing on significant results, its primary aim is to simplify the reporting process and reduce the burden of information on managers.