Nir and Far. @andrewchen. Search Engine Land: Must Read News About Search Marketing & Search Engines. Learn SEO. Double Your Income and Your Time Off. 19 Things I Wish I Knew When I Started My Business. First, Let's Fire All the Managers. Management is the least efficient activity in your organization. Think of the countless hours that team leaders, department heads, and vice presidents devote to supervising the work of others. Most managers are hardworking; the problem doesn’t lie with them. The inefficiency stems from a top-heavy management model that is both cumbersome and costly. A hierarchy of managers exacts a hefty tax on any organization. This levy comes in several forms. First, managers add overhead, and as an organization grows, the costs of management rise in both absolute and relative terms.
Second, the typical management hierarchy increases the risk of large, calamitous decisions. Third, a multitiered management structure means more approval layers and slower responses. Finally, there’s the cost of tyranny. Hierarchies Versus Markets No wonder economists have long celebrated the ability of markets to coordinate human activity with little or no top-down control. That’s why we need corporations and managers.