Heavy bureaucracy also drives away creative highly talented individuals and also creates pockets for non-productive employees to thrive, so it's questionable whether the positives outweighs the negatives. Depends on the level of fault tolerance that a corporation must achieve for their goals.

On the other hand... if you wanted to quickly identify incompetent individuals, give them rope and let them cause damage.

Many would disagree, but having bureaucratic makes it easier to blame someone when things have gone wild.