Delegation is the process by which a manager assigns responsibility and authority to subordinates for carrying out specific tasks while retaining overall accountability for the final results. It is one of the fundamental principles of management because it enables managers to distribute work efficiently, develop employee capabilities, and improve organizational effectiveness. One of the most significant outcomes of delegation is that it promotes the principle of Management by Exception (MBE). Management by Exception means that managers concentrate only on significant deviations from standards or exceptional situations, while routine matters are handled by subordinates. This approach saves managerial time and ensures that attention is directed toward critical issues affecting organizational performance. Delegation creates a clear division of responsibilities among different levels of management. When authority is delegated, employees are empowered to make decisions within defined limits. Routine operational matters, such as handling customer queries, maintaining records, supervising day-to-day activities, and solving minor problems, are managed by subordinates without requiring the constant involvement of top managers. As a result, managers need to intervene only when unusual situations arise, thereby practicing Management by Exception effectively.