The traditional organizational structure of a company with its units and departments resulted from a wrong concept dominated in the 19th century.

As Drucker once noted, when large industrial companies emerged (and the number of employees at the world's largest plant in mid-19th century amounted to 300 people) they required some form of organization.

Great minds of that time did not bother themselves with such trifles.

So they took as a model what was available — the army. At that time, the military organization was the only known tool to manage a great number of people. If there is some digging to do, the army establishes a unit of "sappers". If it needs someone to shoot, a battalion of musketeers is formed and so on.

Likewise, when a company needs to sell, it organizes a sales department, if its products require servicing, a tech service is created.

The problem is that the traditional army being the system of SUPPRESSING individual instincts, wills and minds is the worst possible form of organization for a competitive market.

This is a reason why traditional bureaucratic organizations (the ERP paradigm) are extremely ineffective in modern highly competitive markets.

An efficient IEM Paradigm company is created based on a totally different vision and approach. It brings the maximum possible profit in the easiest way.

P.S. Remarkably, that Friedrich Engels was a co-owner of that largest mid-19th century cotton mill mentioned above. He financed then needy Marx to whom we oblige for his surplus value concept.