What is the primary goal of applying the 'manage by exception' principle in the project?

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Prepare effectively for the PRINCE2 Agile Foundation Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The primary goal of applying the 'manage by exception' principle is to ensure high-level oversight with minimal intervention. This principle is designed to empower project teams by allowing them to manage their day-to-day operations and make decisions within the defined limits of authority.

When 'manage by exception' is in place, project managers set clear tolerances for key aspects such as time, cost, and quality. The teams are then given the autonomy to operate within those tolerances without needing to consult management for every decision. If something deviates beyond those set limits, then escalation is necessary. This process allows upper management to focus on strategic issues without getting bogged down in the operational details, fostering a culture of trust and responsibility among team members.

While the other options also relate to project management practices, they do not capture the essence of the 'manage by exception' principle. For instance, although encouraging team members to self-manage their tasks is beneficial, it is a byproduct of the principle rather than its main goal. Similarly, while continuous communication among teams and facilitating more frequent progress updates are important aspects of project management, they do not specifically align with the principle's intent of minimizing intervention in routine operations.

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