You are a middle manager. Do you say "bob in the other department hired 5 people, so I guess I'll stick with the three I have"? Nope. You go straight to your VP and say a rival VP just got five guys, where's mine. If hiring is decentralized and no one is concerned about costs you end up growing exponential.
That sounds like what would happen at Strawman, Inc. I've worked at a bunch of companies, big and small, and have never seen hiring justified like that.
Now, getting people and teams transferred once they are hired? That's a whole different story.
Then the VP is not doing his/her job correctly. Someone needs to be aware of the budget for salaries and be responsible for ensuring it isn't exceeded (and held accountable if it is).
It's also very backwards (government-level!) thinking to be playing the hiring quota game like that. I'd much rather hire a few members in a kick-ass team than participate in a headcount battle.
