When a company is small, informal systems work. The founder knows everything. Decisions get made in hallways.Then the company grows. The hallway stops reaching everyone. Decisions stall because it’s unclear who owns them. Information gets filtered on the way up. A few people absorb everything the system can’t handle.
Nobody designed it this way. It just never got redesigned. And the same thing happens — for different reasons — in a restructuring, a merger, a downsizing.