I would argue against the informal power dynamics as they tend to be far less transparent. Informal systems can be coopted by individuals far more easily, and with far less limitations on their power. Moreover, individuals who do take control of these systems have a for more vested interest in maintaining and expanding their power as they can become very wealthy by doing so. Moreover, when they give up power even well intentioned, good rulers run the risk of reprisal for non-work related reasons. I believe that formal structures emerged as a means to prevent corruption, and ease the integration of new comers.
> Moreover, individuals who do take control of these systems have a for more vested interest in maintaining and expanding their power as they can become very wealthy by doing so.
Exactly. As we all know, these people all much making much more than the upper management at Microsoft or Google, who haven't got any real personal benefit from their position.