You can only effectively directly manage so many people. So as you hire more people you need more managers but then you get too many managers to directly manage

You can only effectively directly manage so many people. So as you hire more people you need more managers but then you get too many managers to directly manage so you need another level. Imagine you had 10,000 people working for you. Just saying hi to them would take up all your time. How many people would you say a person effectively directly manages? Some would say 5, others 15. I think the upper level of estimates might be 30-50. (Yes, someone is going to say 200.) Let’s go with 10 for even numbers. So after you hire 100 people you need a manager for the managers. When you hit 1000 you need another layer. When you hit 10,000 you need yet another layer.