Re: Misalignment
"It follows that you need at least six layers of management in a company of 5000"
Granted, but given it increases exponentially, 7 levels is already more than enough. 10 levels with a branching factor of 2.5 (ie each manager managing 2 or 3 direct reports) goes to over 6k total headcount.
Also, regarding managers only being able to competently handle X direct reports, I am a strongbeliever that managers should spend no more than 40-50% of their time managing direct reports, and still need to have actual productive work that theyare doing. This also keeps the managerial class in touch with the actual work being done.