That's gross, but the overall organization is still efficient (or it has some sort of monopoly or huge moat). Otherwise it would be completely out of business by now.
It's efficient at it's stated tasks. Usually this is tied to stock prices.
I'm working at a Fortune 500 currently that does a lot of chemical manufacturing. Outside of delivering boatloads of chems, everything in the company is a constant clusterfuck. Stock price stays alright so nothing changes.
I think this is some kind of law: Every company is good at only those things where external pressure is high, and usually those are sales and whatever they are selling. Everything else has little external pressure to work well, and because the natural state of things is suckage and stagnation, everything else sucks and is stagnant.
