Disadvantages of the bottom-up approach include:
- Complexity (making a decision with just a few people is more simple).
- Time-consuming (making a decision with just a few people will typically be faster).
While bottom-up budgeting does allow for employee involvement and frontline planning, it has drawbacks relative to top-down.
- Preparation Delays. While getting frontline employees involved is empowering, this normally leads to process delays. …
- Expensive to Implement. …
- Budget Padding. …
- Less Oversight.
What is Bottomup planning?
a participative approach to planning in which there is involvement at all levels; plans are developed at the lower levels of an organisation and funnelled up through consecutive levels until they reach top management.
Bottom-Up? Not So Fast…
|Flexibility and the capacity to deal with the unexpected||Dealing with a perceived loss of planning control by developers|
|Promotes the use of historical data and productivity measurement|
|Typically less expensive than other estimating methods|
Bottom up budgeting advantages and disadvantages
A sense of ownership may be achieved, along with increased job satisfaction. The disadvantages include a tendency for department heads to over-budget, to ensure they have enough money for the year.
What are the advantages and disadvantages of zero based budgeting?
The major advantages are flexible budgets, focused operations, lower costs, and more disciplined execution. The disadvantages include the possibilities of resource intensiveness, being manipulated by savvy managers, and bias toward short-term planning.
Top-down planning traditionally involves defining organizational goals on a high level and breaking them down into specific objectives which are then addressed in phases. … Quite the opposite, bottom-up planning works toward setting a plan at the most detailed level of classification.
Top down investing strategy pays more attention to overall economic and political conditions of a country which can affect the performance of a particular industry. Disadvantage: Top down investing strategy may ignore undervalued securities. Undervalued securities are a good bet for investment.
: progressing upward from the lowest levels (as of a stratified organization or system) bottom-up management.
‘Bottom-up approach of urban planning’ generally means that local governments or committees formed by local citizens are responsible for urban planning of their own districts, solving the urban problems and planning their future development, and thus the districts link together to make the whole nation or region become …
The bottom-up approach is being utilized when off-the-shelf or existing components are selected and integrated into the product. An example would include selecting a particular fastener, such as a bolt, and designing the receiving components such that the fastener will fit properly.