Parkinson’s Law states that the bigger a company grows, the more inefficient workers it will hire while paying out more wages. The reason for this is simple: those in power like to stay in power, and the best way to ensure this is to eliminate competition.
Hiring skilled workers brings upon the chance of a strong competitor that can over throw the bureaucrats, which is undesirable. Therefore, by hiring useless people, the bureaucrats are able to keep their seat of power.
(from The Encyclopaedia of Relative and Absolute Knowledge by Bernard Werber)