Bottom up advantages

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Planning plays a vital role in most companies and often determines whether a business succeeds or fails. Despite its importance, planning processes within companies are often a source of dissatisfaction for the people involved. Corporate planning is important.

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A common debate in the world of project management is that concerning the top down approach vs bottom up approach to management. While we have discussed this question before on our bloghere we will narrow the focus slightly, to investigate the benefits of bottom up approach theory and what they can bring to your project or organization. Firstly, what is the bottom up approach and how is it applied?

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The financial world is vast, and the number of investing strategies reflects that. Two broad categories for classifying investment styles is the top-down and the bottom-up approach. As the people who coin these terms are more concerned with clarity than creativity, it is easy to understand the difference between the two approaches.

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Accelerate your career and personal development with 12manage, the leading management platform. Bottom-up Approach is a democratic, involving and consultative style of Decision-MakingOrganizational ChangeLeadership and Strategy Formationin which employee participation is promoted at all levels the organization. This approach to leadership is associated with Flat Organization Structures.

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Why do we treat the employees with the most knowledge about the customer with the lowest respect and pay them just above average salaries? Do not sales people who daily interact with customers have the deepest insight into customer needs? Do not field service employees who are at the customer site every day know the customer requirements best?

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Nowadays, the bottom-up approach to management is becoming more and more popular. More and more, organisations are abandoning the top-down management style. Even the world biggest corporations, such as Toyota and IBM, are trying to implement bottom-up management style elements in some of their departments.

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Bottom-up budgeting, also known as participative budgeting, is a process that involves management from every department within a company. The collaborative effort makes use of the specialized knowledge held by departmental employees to construct a detailed and meaningful company financial budget. This directly contrasts with top-down budgeting, in which senior management creates a higher-level budget and enforces it from above the department level.

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Your employees are the eyes and ears of your company. They see first hand how your customers react to your products and services, and they endure the fallout when your systems are ineffective. Listening to their voices isn't just good for morale — it also makes good business sense.

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Top-down budgeting is a crucial method of preparing a budget for an organization or a company. The top management then allocates the amounts for the individual departments, who use those numbers to prepare their own budget. Manager of the individual departments may give suggestions to the top management before the preparation of the budget.

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Describes it as a budgeting method in which each department within an organization makes a list of things it needs and projects that it plans to embark on. The bottom-up budgeting definition describes it as a budgeting method in which each department within an organization makes a list of things it needs and projects that it plans to embark on, then proceeds to estimate the cost of each individual project. When all projects in all departments are listed, the costs are added together, and the result is the company budget.


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