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Method of Planning – Introduction to Management (ITM)

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method of planningMethod of Planning
Principles of Management (POM)
Third Semester | Second year
BSc.CSIT | Tribhuvan University (TU)

Method of Planning
Organizations adopt different methods of planning for the proper management and to achieve the organizational goal. Methods of planning vary from one organization to another. The different methods of planning are:

  1. Top- down method:In Top-down method of planning, only top managers are involved in all aspects of planning. This method assumes that only top level managers have sufficient knowledge, skill and authority to formulate effective plan and policies. Middle and first line manager do not play any role in plan formulation in this method. Their only role is to follow the direction given by top level managers. This method is not commonly used in all organization.
  2. Bottom – up method:This Bottom-up method is just opposite to top- down method of planning. Plan proposals are initiated and developed at the first line management. After the opinion of the bottom line come up to the top management, these are consolidated, discussed, analyzed and compared with the mission of the organization. Finally it is compromises and adjustment are made and the organizations plan is finalized.
  3. Composite method:Composite method of planning is the combination of top-down and bottom up methods of planning. Both top level management and first line management play equal role in plan formulation. Top level managers review, modify and finalize the corporate plan in consultation with appropriate managers at middle and first line. Involvement of every level managers and employees increases their motivation and commitment to their work.
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