Business and Tech Redefined

Most of us use two different approaches to define the Hierarchy of objectives: top-down approach and the bottom-up approach. Understanding of this phenomenon is essential because arises whether objectives should be set at the top and communicated lower d or it is in reverse direction.

In the top-down approach. at the extreme top of tJ is the purpose which has two dimensions. First, there is the purpose of the 1 as requiring the organisation to contribute to the welfare of the people by pro1 and services at the reasonable cost.

Second, there is the purpose of the bus may be the ultimate objectives of the business such as what an organisatior to be. For example. mission might be described as the basic philosophy of the 0 However, the distinction between purpose and mission is not very obvious ar used synonymously. At the next level of the hierarchy, overall organisationa as specified by various strategies and policies are defined. These lead to Spt objectives in terms of quantitative standards

These objectives are further ( divisional, departmental, and individual objectives. At individual level, tv objectives exist: performance of individuals which contributes to the achil organisational objectives and personal objectives of individuals which they war while working in the organisation. At each level of objectives, managers of diffl are involved. For example. overall objectives are formulated by top managem sets objectives for all key-result areas where performance is necessary organisational objectives.

Middle-level managers are involved in the setting of area objectives. divisional objectives, as well as departmental objectives. TI concern of lower-level managers is the setting of objectives on the department: level as well as the objectives of their subordinates. Although in the hierarchy of individual performance and objectives have been shown at the bottom level, m the higher levels also should set objectives for their performance and develop in top-down approach. upper-level managers determine the objectives subordinates. While in bottom-up approach, subordinates initiate the setting of for their position and present them to their superiors.

There is a controversy whether an organisation should use the top-down ap setting the objectives or it should use bottom-up approach. Proponents oftop-doW! suggest that the total organisation needs direction through organisational provided by the top management which may include owners of the organisation. P of the bottom-up approach. on the other hand, argue that top management nee I information from lower levels in the form of objectives. Subordinates are more Ii motivated and committed by the objectives which they initiate. While both aI have certain positive and negative aspects, in order to take the advantages (combination of the both is followed. To what extent both will be combined de situations such as size of the organization, organizational culture, leadership managers, etc.