Top-down and Bottom-up Design - Management and Organization

Management and Organization

In management and organizational arenas, the terms "top-down" and "bottom-up" are used to indicate how decisions are made.

A "top-down" approach is one where an executive, decision maker, or other person or body makes a decision. This approach is disseminated under their authority to lower levels in the hierarchy, who are, to a greater or lesser extent, bound by them. For example, a structure in which decisions either are approved by a manager, or approved by his or her authorized representatives based on the manager's prior guidelines, is top-down management.

A "bottom-up" approach is one that works from the grassroots—from a large number of people working together, causing a decision to arise from their joint involvement. A decision by a number of activists, students, or victims of some incident to take action is a "bottom-up" decision. Positive aspects of top-down approaches include their efficiency and superb overview of higher levels. Also, external effects can be internalized. On the negative side, if reforms are perceived to be imposed ‘from above’, it can be difficult for lower levels to accept them (e.g. Bresser Pereira, Maravall, and Przeworski 1993). Evidence suggests this to be true regardless of the content of reforms (e.g. Dubois 2002). A bottom-up approach allows for more experimentation and a better feeling for what is needed at the bottom.