In reply to Alkis:
For the benefit of anyone who hasn't read the mythical man month, one of the many problems is that as you add people the number of possible communication channels increases quadratically, while the theoretical amount of work done only increases linearly.
You rapidly reach a point where increased communication overhead overwhelms increased productivity.
Many management approaches involving sub teams etc. aim to reduce this overhead. This works to a point, but instead results in Conway's Law, which states that large systems end up resembling the structure of the organisations that created them.
These are basically unavoidable problems and have nothing to do with gold plating, obfuscation or laziness. All of those are real problems too of course, but nothing to do with giant mutant man moths.
Post edited at 19:09