There is a problem , which exists at all levels of management but becomes severely accentuated at the top level - that is the problem of power. The first aspect of the problem is how much power to share with the people below.This is not a very easy decision because sharing power excessively can create a situation where the top man is rendered virtually powerless. At the other end of the pendulum there can be a situation where everybody else feels totally powerless and every decision has to go to the chief executive. To find the balance between the two is a very important skill the top manager has to develop.
The second is the problem of information. Whenever a person has power , the power creates the problem of information. Everybody wants to tell the person in power what he feels the person in power would like to hear. This means very often the information is doctored. Again , many people approaching the top manager have their viewpoints and their axes to grind. That also causes distortion. This means that the top is very rarely acquainted with the real information about what is happening around him.