Max Weber pretty much defined the modern conceit of bureaucracy. [1]
W.E Deming wrote extensively on the "American Disease". [2]
In a few words management and measurement are both inescapable beyond a certain organisational size, and they are the problem, because in almost all scenarios they will expand to displace/strangle the actual work.
It is a recognised general structural problem in systems.
Of course there is much more to it than the above simplification which may sound like an extreme philosophy - but I have yet to encounter good refutations or counterexamples to this tendency.
The answer, perhaps, is that small and many is beautiful.