Management by exception is a management technique that involves automating standard processes and empowering teams to handle routine business conditions. When exceptions arise, such as errors, performance issues, or unusual circumstances, managers step in to resolve them. This approach is based on the idea that most core business processes can be automated or handled by properly trained employees, while human intervention is often the most effective solution for exceptional circumstances. By relying on automation and empowering teams to handle routine tasks, management by exception can help organizations increase efficiency and productivity while still being able to effectively address exceptional situations.