When you have too many people working somewhere, it becomes impossible for one person to oversee everything. So you get multiple managers managing more specific groups, and then managers who manage the entire segment without knowing all the details or people. When a company gets even larger you'll need even more layers. There's only so much time and mental capacity that humans have, so at some point you need some multi-threading by involving multiple people.

To me it kinda makes sense, and I don't really know how I'd do it differently if given the chance, but the higher level management does always seem to feel like some people making decisions high up in their ivory tower without knowing what is actually going on.