A new scheme based on hierarchical information organization and situation awareness to support network manager in failure localization is proposed. This paper integrates the situation theory for the needs of fault management to model the states and events. As the result, the proposed information model includes four fault management viewpoints to support situational, functional, logical and physical analysis within the respective networks. Object-oriented analysis is applied to construct the information. The correlation of network situation is derived by description logic. The proposed classification algorithm is applied to solve the situation awareness problem. By using this proposal the correlation performance is enhanced to logarithmic order.