Can someone break down the reason why lower level mobsters have to "kick upstairs" to their crew chief, to the capo, to the Boss?

What protection are they getting from their bosses when they are doing this? I never understood how the family/financial structure worked here. It doesn't seem logical to be a made man if you have to worry about snitches, kicking upstairs to your capo through rain, sleet or snow.

I mean really, what does all this get them?