Types of Planning

Types of Planning

There are mainly two types of planning

1. Bottom up Planning
2. Top-down Planning

1.Bottom up Planning :- 

The decision making process start from the bottom the decision making information collected and process at lower level and the top management is provided with the available solution . 


The main advantages of bottom up planning is

1.Participation :- 

The everyone is involved in planning so it is self motivating factor to achieve the target of planning. because the plan were made by you then you are more committed to achieve the target set by yourself. This is also a good feeling gesture for employee that they are important for organization.

2.Better understanding of Organization 

This planing also help management to better understand the organization. All section provides a details analyses of problems and solutions. it is very helpful for the management to identify the key issues or critical areas within organization.

3.Many Solution and Option available 

This type of planing is a kind of collective wisdom and provide the management with many solution and options for planning and decision making. The management function to plan effectively depends on useful information and this planing serve the purpose.

The disadvantages of bottom up planning

1. Difficult to achieve overall objective organization
2. Coordination and communication is lacking
3. Overall direction of the organization is not set

1.Difficult to achieve overall Corporate Objective

The main disadvantage of bottom planning is that overall objective is lost in the process. Every department and section bringing the solution and ideas to improve their performance. The lower tier of management takes little care of the overall objective of the organization.

2.Difficult to set Overall Direction

Different people will come with different solution and mainly those solution would be related to their problems and for example a machine supervision may suggest that if the new machinery is installed the repair will reduce substantially. The machine will not consider the financial possibility of the option . Therefore it is difficult to set a overall direction of the organization under bottom up planning