>How to understand this quote?
Exactly like it is written. Have you ever been in a 100k+ employee corporation, which has thousands of suppliers?
I have and I do believe it is a pretty good description. Again and again the simplest tasks turn into monumental disasters, again and again you see incomprehensible "reorganizations", which break up functional structures and turn them into dysfunctional ones, again and again top management forces insane decisions, which everyone at the bottom knows do not work.
>I've recently started seeing bureaucratic organisations as a simple one-/few-cellular organisms. I.e. one person is smart and intelligent with 90 billion neurones contributing to its behaviour, but bureaucratic organisation with 1000 people is like an organism with 1000 neurons (or less).
That is not a good description at all. Bureaucracy happens because every single node is infinitely complex and responds to wildly different inputs.