Maybe being the I.T. guy for this system is not a great thing even when you are personally savvy enough to avoid being part of a future "IBM and the Holocaust" book.
That's sort of the first half of it. The second half is: what does a hierarchical system *do*? Why build it in the first place?
The point of it is to empower hierarchical control. For instance, the military is not supposed to declare war (or peace) on its own.