I'd say this is usually good advice, but with a caveat: larger companies with deep chains of command -- even software companies -- typically have "management culture". These types of companies put a lot of pressure on their employees to move into management, even if they're not good at it or they don't want to. These companies reward playing social power games above any other kind of achievement. There will be lots of meetings and not a lot of work being done. There will be no reward for technological innovation or productivity.

So, I'd say avoid companies with deep management hierarchies unless 1) you want to go into management or 2) are stoked by the thought of doing the bare minimum.