Planning principle

Definition of planning principle

The planning principle is a principle for solving planning problems that relates to the various management levels of the company. A distinction must be made between:

Top-down principle

The top-down principle, according to which planning is carried out retrograde from top to bottom. This is based on a holistic formulation of objectives from which strategic, tactical and operational measures are derived. The company management informs the subordinate authorities about the measures to be implemented.

Bottom-up principle

The bottom-up principle, in which planning is progressive from the bottom up. is carried out. It focuses less on the goals than on the feasibility of the subordinate sub-plans. An integrated master plan is created by merging the partial plans step-by-step on the respective higher-level planning levels. The necessary data or information can e.g. B. can be obtained through employee appraisals, surveys and the company suggestion scheme.

In practice, there are often mixed forms between top-down planning and bottom-up planning. If both retrograde and progressive planning is used, it is called the countercurrent process. Here the executives at the upper level draw up a preliminary master plan from which the preliminary partial plans are derived. Starting from the lower level, the planning specifications are then checked up to the upper level.

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