in an organization that large, the 10 managers in your scenario would have to be some of the most selfless and honest humans, all able to communicate freely and openly without envy or ulterior motives.
What I'm talking about is different, it's not just 10 managers that "have to talk", it's 10 managers in the same team with the same goal. They just happen to each coordinate another 10 person team. I haven't really seen that done anywhere, but I've seen some chair shuffling that approximated it. Would love to see it taken to the logical conclusion.