The success of an organization depends on how effective and proactive its management is. Companies need to pick and practice suitable managerial approaches. Bottom-up and top-down are the two most prominent leadership solutions.
When counting the limitations, benefits, features, and other elements of bottom-up and top-down leadership, the idea is to create strategies that can help develop leadership for a better world.
It’s essential to consider every aspect to adopt and apply the approaches rightly.
Over the years, many changes have occurred in the leadership development approaches of organizations. Annual Leadership Development Survey Report, 2021, conducted by Wilson Learning Worldwide Inc. and Training magazine, highlighted some significant changes in the past five years.
The report stated a significant rise in training and development expenses per employee in 2020. Organizations spent around $176 for every employee, which is a higher figure than the expenditure in 2019, which accounted for $147 on average. (Note – Companies were asked to share details of their spending over the past 12 months. Hence, the 2021 survey highlighted facts for investments made in 2020.)1
If you wonder how to get better at leadership, then here is your answer. The article features a comparative study of the two management styles, which will help you make an informed decision.
Top-down management – Definition
In this management style, the goals, tasks, and projects are determined by the company’s senior leaders. These tasks, goals, and projects are then forwarded to the concerned departments and teams of the organization.
- Low risk of poor decision-making – The top management team of any firm includes some of the finest professionals and knowledgeable individuals. They, being the decision-maker, reduce the chances of faulty decisions and wrong strategies.
- Quicker implementation of organizational changes – It’s comparatively easy for top management to implement organizational changes as the central decision-making lies in their hands. Low or mid-level employees are guided on how the changes need to be implemented. Also, the executive managers filter down the priority tasks to ensure better working in the organization.
- Better project management – A company’s highest authority, such as the executives, make sure the practices that are followed by the teams align with organizational goals and result in better project management.
- Reduced employee assistance cost – With top-down leadership, employees can better focus on their daily tasks. They are free from setting organizational goals and building strategies for the same, which means more use of their productive time.
- Employees may feel disconnected – Top-down leadership may not give the employees a sense of belonging or ownership as they aren’t involved in the decision-making process. Resultantly, they may not be able to connect themselves with the organization’s goals.
- No creative solutions from employees – As the top management guides employees at every step of the work, they may not put in the effort to explore their creative side. Organizations can’t expect any creative solutions from their end in goal-setting and decision-making.
- Slow response to new challenges – In the case of top-down leadership, only a small group or a single person takes crucial decisions. Hence, the response to new challenges could be slow, which impacts the overall efficiency and productivity of the organization.
Bottom-up management – Definition
Bottom-up management is a leadership and management approach where the tasks, goals, and projects are primarily based on the employees’ feedback. They are invited to share their thoughts and participate in setting goals for the organization. The management seeks employee feedback or gives them opportunities to make decisions. The team members communicate these tasks, projects, and goals to their senior leaders.
- Organized communication and decision-making – With the entire workforce participating in the decision-making process, there are high chances of improved communication at all levels of an organization. It results in an improvement in the productivity and performance of employees as everyone gets the chance to discuss and share their ideas.
- Gives employees opportunities to use their creativity – Bottom-up leadership approach helps foster a different perspective of the Company and its vision. It also encourages innovative solutions from employees.
- Helps in building trust between departments and teams. Employees are encouraged to discuss new and innovative ideas with other team members at the organizations where adopt bottom-up leadership style is followed. It helps in building trust between different departments and teams. It further improves the morale of employees as they feel valued and included.
- Chances of conflicts between the employees or teams – Bottom-up leadership slows down goal achievement and decision-making. In the case of bottom-up leadership, the Company considers all solutions and ideas. It may result in conflicts and disagreements of interest, which eventually impact overall.
- Employees may get distracted from other work responsibilities – The sense of responsibility and decision-making may distract the employees from their day-to-day professional tasks.
- High possibility of mistakes – A high number of people working on a project may result in the use of incorrect data, and the possibilities of mistakes also increase to a great extent.
As an organization evolves, its leadership and management approach should also change accordingly. The growth and expansion of organizations into different fields and industries require new and evolved solutions to meet the leadership challenges. The company’s goal-setting process needs to be highly flexible according to the changes.
Of course, bottom-up and top-down leadership styles are not mutually exclusive. Some decisions are better if filtered down by the top management, whereas in some areas, the management needs to rely on feedback given by the team before reaching the final decision.
Weigh the pros and cons of both approaches if you are looking forward to adopting one of them for your company’s goals. However, you may consider combining elements of both bottom-up and top-down approaches to create a unique mix aligning with your leadership style, team, and company goals.