Earlier quoted context omitted.
There is systemic fault. It starts with hierarchical structuring. It doesn't mean that hierarchies are inherently bad, but there are consequences from that and the additional things that people usually imply that come with it. This can seriously hamper productivity, for example, even in the small scale. Once you start to think that through you will also see how far reaching the agile manifesto truly is and that the c…
If you have no explicit hierarchy then an implicit hierarchy will start to form in most cases, which can be even worse. In many cases you have both.
I'd say "in evey case". And I'd say this happens whether or not there's an explicit hierarchy. Being articulate, or having knowledge or contacts, will get you more attention. The only way to mitigate this is through explicit processes, which have to be regularly reviewed. Meetings have to be chaired strictly. Everybody has to sign-up to the agreed processes.
These processes are time-consuming, and decisions can be slow. It becomes worse the bigger the organisation. I don't know how non-hierarchical decision-making can work in an enterprise where there are significant assets at stake; I've only ever seen it work in voluntary political associations in which non-hierarchical organisation is one of the prime objectives.