The Challenge of Bureaucracy in Large Organizations

Bureaucracy and inefficiency often plague large organizations, as seen in recent remarks about the challenges faced at JPMorgan Chase. The tendency for managers to adopt outdated growth models leads to an increase in headcount without a corresponding boost in productivity. New hires typically take time to reach their full potential, thereby slowing down overall team efficiency. This situation can create a sprawling organizational structure where roles and responsibilities become muddled, resulting in frustration among leadership as they witness wasted time and resources.