My previous company had excactly the same missing herarchy. This is one of the reasons for my leave.
In that company nepotism was the hiring method. Ture, after one was hired, nobody cared whos man you are. But the picture was the following: Everybody got the same sallary and everybody worked as they wanted.
This sucks a lot. One can quickly loose any motivation.
I agree, than hiring workers with higher motivation and skills could lead to different results, but still, in time, everything will fuck up.
My previous company does still all right. It is pulled forward by the same 3 guys. They still get the same money as the other 50.
I'm happy I'm not there. .