It also has to do with span of control. An individual leader can only control a finite number of subordinates. Depending on the situation and leadership philosophy somewhere between 4 and 10 so you end up with ten men squads led by squad leaders 4 of whom report to the platoon leaders. 5 of them report to a company commander. 6 of them report to and so on
Arranging formations of these groups hasn’t changed a great deal since armies were invented.
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