“If a manager, however, is controlled by the objective requirements of his job and measured by his results, there is no need for the kind of supervision that consists of telling a subordinate what to do and then making sure that he does it. There is no span of control. A superior could theoretically have any number of subordinates reporting to him.”
Business results arise from a union of top-down and bottom-up responsibility. Top management defines business goals that function to direct the activities of lower management. Lower management–fighting in the trenches–determine what needs to be done to achieve the goals.
Both top-down and bottom-up management practice forms of deduction, induction, and abduction. They define reality and test whether or not they defined reality well. They practice careful observation. And they make decisions with incomplete information, testing along the way. They cannot afford to under-define, under-test, or under-observe.
Drucker believed that top management’s authority should be enumerated and specific. He believed that top management should not make decisions that are more wisely and effectively made at lower levels. He believed that lower managers should have the freedom to set objectives and work out solutions to achieve the objectives of their superiors.
(The Practice of Management, chapter 12)