Rakesh is working in a blue pottery industry. His job is to paint the pots. He daily paints 30 pots out of which two or three get spoilt due to mishandling of the pots. His foreman, Mr. Mohan knows about the damages made by Rakesh, but does not tell him anything. One day Mohan scolds Rakesh as he had spoilt 5 pots out of 30. Identify the method of analysing deviations used by Mohan.

The correct option is Management by Exception.

Explanation:
Management by Exception (MBE) is a key technique of managerial control. It is based on the belief that an attempt to control everything results in controlling nothing. Therefore, only significant deviations or "exceptions" that go beyond the permissible limit or tolerance range should be brought to the attention of management or lead to corrective actions.

In the given scenario:
1. Rakesh daily paints 30 pots, and normally two or three pots get spoilt due to mishandling. This minor damage (2 to 3 pots) is within the acceptable or normal limit of deviation.
2. The foreman, Mr. Mohan, is aware of these routine damages but does not intervene or say anything to Rakesh because they fall under the acceptable range of deviation.
3. However, when the number of spoilt pots rises to 5 out of 30, it exceeds the normal acceptable limit (which was 2 or 3). This is a significant deviation or an "exception."
4. Consequently, Mohan takes action and scolds Rakesh for this exceptional deviation.

By ignoring the minor, routine deviations and only acting when the deviation becomes significant (spoiling 5 pots), Mohan is applying the principle of Management by Exception.