Top-down planning involves which of the following?

Top-down planning involves which of the following?

• A. Encouraging lower-level managers to set broad objectives.
• B. Setting objectives from the top management down to the lower levels.
• C. Decentralizing decision-making to empower employees.
• D. Creating independent plans at every organization level.

Answer: (B)

Top-down planning is characterized by a hierarchical approach where the setting of objectives and strategic direction begins at the top levels of management and cascades down to lower levels. This process ensures that the overall vision and goals of the organization are clearly defined by senior management, allowing for a coherent framework for decision-making and actions throughout the company. This method often involves outlining high-level objectives and then translating those into specific targets and tasks for lower-level managers and employees, ensuring alignment with the overall company strategy. In contrast, encouraging lower-level managers to set broad objectives or creating independent plans at every organizational level may lead to a lack of coordination and may not fully align with the overarching strategic goals of the organization. Similarly, decentralizing decision-making focuses on distributing authority and may diverge from the top-down approach, which emphasizes control and direction from senior leadership. Hence, the correct understanding of top-down planning is represented by the process wherein objectives flow from the top management down to the lower levels.

Top-down planning is characterized by a hierarchical approach where the setting of objectives and strategic direction begins at the top levels of management and cascades down to lower levels. This process ensures that the overall vision and goals of the organization are clearly defined by senior management, allowing for a coherent framework for decision-making and actions throughout the company. This method often involves outlining high-level objectives and then translating those into specific targets and tasks for lower-level managers and employees, ensuring alignment with the overall company strategy.

In contrast, encouraging lower-level managers to set broad objectives or creating independent plans at every organizational level may lead to a lack of coordination and may not fully align with the overarching strategic goals of the organization. Similarly, decentralizing decision-making focuses on distributing authority and may diverge from the top-down approach, which emphasizes control and direction from senior leadership. Hence, the correct understanding of top-down planning is represented by the process wherein objectives flow from the top management down to the lower levels.