Management is required to make sure that purchased labor power is fully devoted to producing commodity outputs. After industrial capitalists purchase their labor power from productive laborers, they set them to work with purchased tools, equipment, and raw materials. While working, the laborers may produce more or fewer commodities. Having sold their labor power for a wage payment, they may or may not work hard to produce commodities for the industrial capitalists to sell.
If they do, well and good: industrial capitalist can then distribute surplus value elsewhere to survive competitively. However, suppose that workers cannot or do not work hard. This worries the industrial capitalist, who must fear the competition from industrial capitalists who do have hard-working laborers and so obtain more output per worker from them. As discussed previously and also in appendix C of this chapter, lowered labor productivity can threaten the continued operation of the enterprise. Managers may solve the problem by supervising laborers to ensure their maximum effort. The managing process is then a condition of existence of surplus labor appropriation. To secure that management process, the industrial capitalist has to distribute a portion of the appropriated surplus value to cover the wages or salaries of managerial personnel and purchase the means for them to perform management. Managers sell their labor power to industrial capitalists and do work, but they produce no commodity sold by their employer. They perform no surplus labor nor generate any surplus value. They are unproductive laborers receiving subsumed class distributions.