The company I work for now has very much this attitude for the last 50 years.
As a result they have 3 locations, no sops, and no accountability.
Over the last 6 months is been my job to put us back in compliance with local and federal reporting requirements and develop SOPs. The feedback from the bottom up is that it’s wonderful to have consistency, different bosses giving the same answers to questions, auditors being able to complete audits in expected and appropriate times, and in compliance with reporting regulations.
Can companies go overboard and employ people like me who do busy unnecessary work? Absolutely. But it is definitely appropriate to have a couple of administrators.