strategic management should choose the top-down process
I think strategic management should choose the top-down process in the firm instead of a bottom-up process. Proper maintenance of the smooth flow of information is mostly required for an organization. The top-down approach plays a significant role in maintaining a sequential flow of order and knowledge — goals set by the executive team flow sequentially according to the task, responsibility, and hierarchy.
Reasons are as follows:
- It maintains a sequential chain of command
- It provides proper direction to the employees in their workplaces
- Experienced and knowledgeable employees get the chance to participate in the organizational decision-making
- Situational decisions can be made quickly
- It helps both the employees and managers to relate the aims and objectives of the project
On the other hand, the bottom-up approach is not efficient enough to make quick decisions. There are possibilities of directional confusion in the bottom-up approach as all the employees get the chance to participate in the organizational decision-making. It becomes crucial to sort out different kinds of ideas in a single frame. Thus the disadvantages of bottom-up approach are as follows:
- It is not correctly directional
- The flow of information and order is not correctly sequential
- Difficulty in sorting out different kinds of ideas
- The morale of workers may suffer if their opinions are rejected from the top management