"Top-down" refers to a method of thinking or organizing where decisions and plans are made by higher authorities or leaders, and then passed down to lower levels. For example, in a company, the CEO might set the overall strategy, which is then communicated to managers, who implement it with their teams. This approach ensures that everyone is aligned with the same goals, but it can sometimes overlook the insights of those on the ground.
In contrast to "bottom-up" approaches, which gather input from all levels, "top-down" can streamline decision-making. However, it may lead to a disconnect if leaders are not aware of the challenges faced by employees. Balancing both methods can create a more effective organization.