Developing Policy and Strategy
Should you
The approach to developing policies
and strategies may come in any following
forms:
1. Top-Bottom Approach – also called
as autocratic leadership. In this
approach, initiatives in developing
policies and strategies come from
the top management with rank and
file tasked to implementing or
following the policies and strategies.
2. Bottom-Top Approach – believes in
the statement, “Two is better than
one.” In this approach, policy and
strategy initiatives emanates from
the bottom or rank and file which top
management develops concrete
policies and strategies for the lower-
ranked employees to observe or to
follow.
3. Top-Bottom-Top Approach – policy
and strategy initiatives are taken by
the top management then filtered
down to lower-ranked personnel for
consultations then returned back to
the top management for
refinements.
Pros and Cons of Top-Bottom Approach
The benefits include the following:
1. Decreased Risk: Since the highest
level of management is also usually
the most informed and most
knowledgeable about the business,
there is a decreased risk involved in
the decision-making process when
lower level employees are taken out
of the equation.
2. Strong Management: The upper
authorities in a company will be able
to determine best practices and
reach goals easier with decisions
created and enforced at the highest
ranks of a business.
need to make immediate changes, a
top-down change (also known as an
executive-driven change) can come
into play to resolve any problems
within an organization, bypassing a
slower decision-making process
involving lower level employees.
3. Good Organization: Tasks are
determined and filtered down
company lines without any confusion
because business goals are set by
upper management and will not be
affected by outside opinions.
4. Minimized Cost: Lower level
employees are free to complete their
own tasks unique to their role in the
company and aren’t saddled with the
responsibility of setting company-
wide goals.
There are also some downfalls to
the top-down approach:
1. Limited Creativity: Employees are
soloed in their responsibilities and
are unable to contribute to the
overall goals of the company —
sometimes leading to frustration and
a lack of motivation to perform.
2. Dictatorial: The approach can seem
oppressive to the employees who
aren’t a part of the process.
3. Slow Response to Challenges:
When a challenge arises as a result
of a decision, it can take time for
upper management to establish a
solution because there are limited
minds contributing to decisions.
Pros and Cons of Bottom-Top Approach
These pros of practicing bottom-up
communication include the following:
 1. Increased Company-Wide Commu-
nication: When every employee
actively participates in the decision-
making process, the overall
communication among members of
the organization will increase
significantly.
2. Build Morale: All members of the
business community will feel
included and valued, which fosters a
supportive and communicative
environment where employees can
thrive and grow together.
3. Share Solutions: A wide hearth of
brain power goes into the problems
of the company as they arise, which
will result in quicker problem solving
and more efficient solutions.
4. Increased Collaboration: Employees
of all levels are granted the
opportunity to discuss problems,
bounce ideas off of one another, and
build trust across departments.
Despite the benefits of the bottom-
up communication style, however, there are
some potential pitfalls:
1. Bogging Down of Employees: When
all employees participate in larger
decisions (that are typically saved
for upper management), they can
get bogged down by the sheer
responsibility. Employees can be
taken away from their own tasks and
pulled into larger projects, causing
them to lose precious time.
2. Slowed Time Creating Plans and
Reaching Goals: When many people
with varying ideas contribute to the
company’s decision-making process,
conflicts and disagreements can
arise. This can lead to delays in
making plans and reaching goals.
3. Inaccurate Reflections of Data: A
variety of people working on the
same projects simultaneously can
cause skewed results and
inaccurate decisions in the long
term.
Strategic Decisions
These are decisions that are
concerned with whole environment in which
the firm operates, the entire resources, and
the people who form the company and the
interface between the two.
According to Wheelen and Hunger
(2004), a decision is considered strategic
when it is:
1. Rare. Strategic decisions are
unusual and typically have no
precedent to follow.
2. Consequential. Strategic decisions
should commit substantial resources
and demand a great deal of
commitment from people at all
levels.
3. Directive. Strategic decisions set
precedents for lesser decisions and
future actions throughout the
organization.
References:
Orcullo Jr., N. A. (2007). Fundamentals of
Strategic Management.
Eby, K. (2018). Which Management Style Is
Right for You: Top-Down or Bottom-Up
Approach? Retrieved the article from:
https://www.smartsheet.com/top-down-
bottom-up-approach