The hidden expense of private sector bueaucrats

Hershel Hardin. The New Bureaucracy (1991) A thorough account of the state of bureaucracy in the private sector, where its malign and expensive effects are well hidden. The private sector strenuously denies the existence of its bureaucracy, successfully diverting attention and anger to government, which actually costs us a lot less. Chapter 1 reviews the escalation of CEO and other senior management pay. Nowadays, almost 30 years later, Hardin’s figures would water eyes even more. The rest of the book surveys the structure and operation of the bureaucracy piece by piece. By turns amusing and appalling.
     I encountered the private bureaucracy in one of my first summer jobs, but I didn’t realise it at the time. I worked for Linde Gases, then a subsidiary of Union Carbide (which was done in by the release of poisonous gases from its plant in Bhopal, India). I discovered that each invoice or “gas shipping order” cost the company about $8 from placing an order for a new batch until its eventual destruction. Every day, I wrote up several of these GSOs for customers buying about $6 worth of oxygen and acetylene. I suppose the company thought that the information was worth $2. I began to wonder about the cost of moving information within a corporation, and concluded that beyond a rather small size, an organisation spent more of its resources moving information than providing goods and services for its customers.
     A worthwhile book. Read it. ***