These are not as fearful as killing and imprisonment. But penalties short of physical violence are potent. Many people value their jobs greatly, both for the pay and for self-esteem. The stress of going against the grain and the threat of losing jobs make most people conform. There are several reasons why it is worthwhile investigating and promoting alternatives to bureaucracy.
Many bureaucracies are corrupt.
Bribes may have to be paid to get service. Cuts are taken from payments to enrich a few at the top. Appointments are made on the basis of patronage, not merit. The organisation is serving special interests rather than the public. Corruption is a potential problem with all organisations, not just bureaucracies.