“But the point, as I argued with Caplan, is not that managers are inherently less intelligent or capable as individuals. Rather, it’s that hierarchical organizations are—to borrow that wonderful phrase from Feldman and March—systematically stupid. For all the same Hayekian reasons that make a planned economy unsustainable, no individual is “smart” enough to manage a large, hierarchical organization. Nobody–not Einstein, not John Galt–possesses the qualities to make a bureaucratic hierarchy function rationally. Nobody’s that smart, any more than anybody’s smart enough to run Gosplan efficiently–that’s the whole point. No matter how insightful and resourceful they are, no matter how prudent, as human beings in dealing with actual reality, nevertheless by their very nature hierarchies insulate those at the top from the reality of what’s going on below, and force them to operate in imaginary worlds where all their intelligence becomes useless. No matter how intelligent managers are as individuals, a bureaucratic hierarchy makes their intelligence less usable.”

— Kevin Carson

Homebrew Industrial Revolution (2010), Chapter 7.
Homebrew Industrial Revolution (2010)

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American academic 1963

Philip B. Crosby (1926–2001) Quality guru

Source: Quality Is Free, 1977, p. 22

“It is probable that one day we shall begin to draw organization charts as a series of linked groups rather than as a hierarchical structure of individual "reporting" relationships.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 175

“The typical organization is hierarchical, with workers answering to a manager, and that manager answering to a still-higher manager, and so on. The value of such hierarchies is obvious-it vastly simplifies communication among the employees. New employees need only one connection, to their boss, to get started. That's much simpler than trying to have everyone talk to everyone.”

Clay Shirky (1964) American technology writer

Source: Here Comes Everybody: The Power of Organizing Without Organizations (2008), p. 29

“It was variety-increasing for both the individual and the organization rather than variety-decreasing in the bureaucratic mode.”

Eric Trist (1909–1993) British scientist

Source: The evolution of socio-technical systems, (1981), p. 9

“Today we have great laboratories and individual research projects employing thousands of scientists, but the interrelation between these giant laboratories, and between them and the myriad of individual investigators, is still one of voluntary, and almost unconscious, co-operation. It is not based on central planning or hierarchic organization. But as any economist knows, the fact that there is no one who can give commands does not mean that there is no social organization.”

Gordon Tullock (1922–2014) American economist

The Organization of Inquiry (1966) Ch 1. The Social Organization of Science

“Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc.”

Douglas McGregor (1906–1964) American professor

comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior.
Source: The Human Side of Enterprise (1960), p. 15 (p. 21 in 2006 edition)

“Management of many is the same as management of few. It is a matter of organization.”

Sun Tzu (-543–-495 BC) ancient Chinese military general, strategist and philosopher from the Zhou Dynasty

Source: The Art of War, Chapter V · Forces

“Your values have to be hierarchically organized with something absolute at the top, because otherwise they do nothing but war. You have to organize your values hierarchically or else you stay confused. This is true if you're an individual and it's true if you're a state. If you don't know what the next thing you should do is, then there are fifty things you should do. Then, how are you doing to do any of them. You can't. You have to prioritize. Something has to be above something else. It has to be arranged in a hierarchy for it not to be chaotic. So there is some principle at the top of the hierarchy.”

Jordan Peterson (1962) Canadian clinical psychologist, cultural critic, and professor of psychology

Concepts

“First, most producers are employees of firms, not owners. Viewed from the vantage point of classical [economic] theory, they have no reason to maximize the profits of firms, except to the extent that they can be controlled by owners. Moreover, profit-making firms, nonprofit organizations, and bureaucratic organizations all have exactly the same problem of inducing their employees to work toward organizational goals. There is no reason, a priori, why it should be easier (or harder) to produce this motivation in organizations aimed at maximizing profits than in organizations with different goals. If it is true in an organizational economy that organizations motivated by profits will be more efficient than other organizations, additional postulates will have to be introduced to account for it.”

Herbert A. Simon (1916–2001) American political scientist, economist, sociologist, and psychologist

Simon (1991) "Organizations and Markets:" in: Journal of Economic Perspectives. 5 (2 Spring 1991): p. 28.
1980s and later

“Project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives. Furthermore, project management utilises the systems approach to management by having functional personnel (the vertical hierarchy) assigned to a specific project”

Harold Kerzner (1940) American engineer, management consultant

the horizontal hierarchy
Source: Project management for executives (1982), p. 3

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