Yeah, I used to make the same mistake.
The way I now think about it is the for organizations, the purpose of the hierarchy is not to directly control work, but to create supportive contexts with enough formal structure so that emergent organization gets the work done flexibly and humanely.
This isn't an unknown model; it's basically how western democracies relate to families. Nobody tells families what to do. We mostly trust they work it out on their own. But when things go wrong, we have a variety of interventions (from public service announcements to police to disaster response) to get things back in the good zone. To varying degrees, it's also how states relate to cities, counties, companies, non-profits, and a bunch of other entities.
For work, I think of that unit as the team. If I'm putting together a software team, I will make sure the team has all the needed skills for the work (e.g., front end, back end, ops, design, user research, product management, data science). But I don't want to design a micromanagement structure for how work flows between roles; I want to help the team self-organize in a respectful and collaborative way. If they are happy and getting shit done, my role as manager should be supportive. It's only if they get in trouble that I'll need to shift to controlling interventions.