What are the advantages and disadvantages of top-down budgeting?
- Can lead to micromanagement and lack of buy-in
- Ensures alignment with overall organizational goals
- Flexibility in adapting to changing circumstances
- May stifle innovation and creativity
Top-down budgeting offers the advantage of ensuring alignment with overall organizational goals but may stifle innovation and creativity as decisions are made at higher levels without input from lower-level employees. It can also lead to micromanagement and a lack of buy-in from those not involved in the budgeting process.
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