The author seems to confuse dignity with bureaucracy.

If you don't have dignity, you are a joke. You'll know it, your customers will know it, your competitors will know it.

Bureaucracy on the other will (slowly) kill any business. Unless you have a legal monopoly.

Yes. You can be a dignified person and not be entirely stiff and formal and boring. Dignity doesn't mean you can't be rude at times or have a sense of humor. It means that you know when to be what, and you treat things you deal with with respect.