I think that's insane. It's the way you've done things where everything else was punished, because anything else was literally made unthinkable, but that's like the worst means of coordination with too many essential unmitigatable flaws to outline here.
Even systems that explicitly work on those terms on paper need other methods in place in reality to patch over the gaps, and, my biggest organizational pet peeve: so much effort that could be spent on administration adaptation and plain physical tasks gets repurposed to enforcing the hierarchy and a recursive internal arms race about power struggles and responses to enforcement. Those systems are not resilient, efficient, coherent, precise, or particularly durable.