Well, terrible inefficiency is the rule of any top-down bureaucracy. A top-down story progression system, for instance, is like a system where the government decides what you work at, what level you are to be promoted to, and soforth. Guess what? This is called "Communism", and, to no great surprise, it is HORRIBLY INEFFICIENT!
Would like to point out this is not Communism, this is dictatorial government much the same way our military is run.