Being a great leader is more than simply managing. It requires a combination of alignment, organization, communication, and empathy to support your team in driving results. When it comes to managerial approaches within a company, there are two commonly practiced methods; top-down and bottom-up.
When leadership determines an organization’s direction and the team executes that plan, it signifies top-down management. A top-down approach means that decisions are made at the highest level and communicated to the rest of the company.
Usually, high-level leaders start with the bigger picture - establishing goals based on the company mission and vision - and then allocate responsibilities to individuals and teams that’ll achieve those goals. The planning process is solely established by management, with little room for employee input and feedback. It’s often referred to as a command-and-control system.
Due to its straightforward structure, organizations with multiple levels of management, various teams and departments, and complex processes benefit from using a top-down strategy. These organizations are usually heavily regulated industries and institutions, including:
In these cases, top-down management is the best approach because clear lines of authority, standardized processes, and quality control are essential to the organization's success.
There are many advantages to a top-down approach to management. Since the decision-making processes are centralized at the leadership level, it reduces ambiguity surrounding goals. It is easy to provide clarity, and expectations are based on one higher input.
Tasks also tend to be implemented faster using a top-down approach. There’s little opportunity to get multiple perspectives and revisions on work, meaning that ideas are pushed directly to the execution phase.
The tradeoff of limited feedback for faster execution increases the risk that leaders make the wrong decision for the company and employees. Especially in larger organizations, high-level managers are often disconnected from changing customer needs and pain points. Without employee input, leadership may not have the most relevant information.
Another disadvantage of limited feedback is that employees may lose respect for management because their ideas and opinions feel undervalued. The divide between high-level leaders and employees creates lower engagement and decreased job satisfaction.
A bottom-up approach values collaboration across the organization to determine the steps needed to achieve the company goals. In other words, the leaders still set the goal, but the steps to get there are devised by the individuals and teams. This method gives teams greater autonomy in how they approach the work, leading to more trust, engagement, and creativity.
As a more flexible management method, a bottom-up approach is found in industries where optimization is a top priority. It uses employee skills to experiment and find innovative solutions in a given industry. Some examples include:
A bottom-up approach typically comes with greater employee satisfaction. Since the team and individuals create projects and tasks to complete the company goal, employees know that their voices are heard and contribute to the overall vision. This leads to increased motivation, better employee engagement, and more productivity.
This approach also allows employees to provide feedback, which adds value to their daily work. When leaders ask for feedback, employees know their voices have an impact, and their work holds value. Feedback also benefits the company because it brings more perspectives and ideas to the table since it comes from diverse people and different departments.
Leaders can find difficulties executing the right amount of structure and guidance in a bottom-up approach. Some employees may need more direction and supported development to overcome work-related challenges effectively.
Another possible limitation is if the company goals are not visual to the team, making informed decisions about where they should place their efforts difficult. That’s why communicating goals is critical to a productive bottom-up management approach.
If you want to choose a particular style of management, here are some factors to consider:
Every company is different, with varying levels of flexibility. You may want to see what elements from each approach best suit your organization. For example, there might be financial decisions best made by leadership and then filtered down to employees. In another case, leaders may rely heavily on employee feedback and input to make decisions on a higher level. Evaluate what your company needs and create a distinct approach tailored to you.
Think about how your culture will respond to both approaches. Are your employees connected to the company mission and values? Do you foster an environment that supports feedback? Management and culture go hand-in-hand, so it’s vital to understand the attitudes and behaviors of your organization so you can implement the best approach for you.
Typically, smaller organizations benefit from a bottom-up approach because everyone has a voice and contributes to their initial growth. Larger companies usually function well with a top-down approach. Take into account the size of your team and where it’s headed for the best managerial style.
Both management styles, or a combination of the two, bring value to an organization. What’s more important is ensuring managers are trained and aligned to implement these approaches in the most effective way possible. One way to do this is through OKRs.
OKRs can be a great strategy to bring everyone together around company goals. An acronym for “objectives and key results,” OKRs help align strategies to put everyone’s focus on a shared outcome. Employing OKRs aids management in a few significant ways:
Management style is a vital part of an organization's culture. Whether you opt for a top-down, bottom-up, or hybrid approach, you're sure to find a method that positively supports your team and employees.
