Thurner says that companies typically start with a flat hierarchy, perhaps two engineers. As the company grows, they hire assistants, who then get promoted and hire their own subordinates. “A pyramid starts to grow. One might add artificial layers that serve no purpose other than introducing hierarchy, that help you to promote people to please them and keep them motivated. When the pyramid gets very large and expensive it might eat up all the company’s profits. If the bureaucratic body is not drastically reduced at this stage the company will die.”
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A British historian famously wrote that work expands to fill available time – but what was he actually saying about inefficiency?
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