Much in the same way that Ludwig Von Mises showed the distribution of scarce resources via a price system that ignores the nature of human action, and instead favors central planning cannot overcome the economic calculation problem so too will artificial hierarchies be unable to overcome the distribution of human capital, or what I shall dub as the hierarchical calculation problem. From this we can surmise that artificial hierarchies will inevitably result in the same problems as artificial price systems, with the misallocation of human capital. This seems to be indisputable then that if you accept the idea that scarce resources can and will be misallocated through central planning that human beings will also be misallocated to positions of power that they should not inhabit, often to disastrous results.

I've written elsewhere about precisely this phenomenon in the corporation, and its corrosive results. Synthetic hierarchies are fundamentally what produce all the bizarre pathology described in "Moral Mazes" (the single-elimination ass-kissing tournament).