ALTERNATIVE COURSE OF ACTION.docx - ALTERNATIVE COURSE OF ACTION ACA 1 TOP-DOWN HIERARCHAL APPROACH The company must imply the Top-down Hierarchal

ALTERNATIVE COURSE OF ACTION.docx - ALTERNATIVE COURSE OF...

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ALTERNATIVE COURSE OF ACTION ACA 1 - TOP-DOWN HIERARCHAL APPROACH The company must imply the Top-down Hierarchal Approach in which the chief executive officer and other high-level managers make all of the big management decisions that determine the overall direction of the company. The decisions the top- level managers make are passed down through layers of lower-level managers until they ultimately become orders received by average workers. Advantages: 1. Unifies a company behind one purpose, direction, command and standard, dictated from above and spread throughout the organization. Unity of command, meanwhile, allows a company to avoid confusion in a crisis. With its clear lines of authority, the top-down approach encourages obedience 2. Not using a top-down management system is that it may be more difficult for a company to react quickly and take decisive action. If the top-level managers have total control over a company, they can meet and make important decisions without taking time to consult anyone else. Disadvantages: 1. Without control, they have little room to show initiative or creativity. Because approvals must climb the chain of command. 2. The low-level managers can’t voice out their opinions when making decisions as Top-down hierarchical structure typically shows a dictator who sits at the top of the organization and literally dictates down decisions to be implemented by their minions.
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