We present the design and implementation of our functionality based networkmanagement prototype. The uniqueness of our prototype lies in the three-layered weakly distributed hierarchical architecture; functionalities based networkmanagement approach, and Inference Engine. Tasks such as polling, trap handling and log processing are distributed and segregated that reduces the consumption of networkband-width and processing load. The top-level manager and the middle level managers workcooperatively and provide intelligence, greater autonomy and automation. © Springer-Verlag Berlin Heidelberg 2002.