That's a lovely article with a wincingly bad headline. The author does a very good job of describing what happens when managers give instructions and then discover that they have instructed people to act counter to the managers' desires. That is not 'misinterpreting'. That is essentially a compiler error; the manager told the employees to do the wrong thing, and the employees trusted that they knew what they were talking about.

In a normal business environment, human cognitive biases about authority act very strongly. I think that a big part of what causes 'bad management' is that managers may tend to think of themselves as buddy-buddy with their subordinates, and rationalize that surely someone will tell them if they make a mistake, issue instructions that seem counterproductive, make bad tradeoffs like the ones in the article, et cetera, et cetera. That's almost always wrong. The incentive structure for normal employees means that you go along with the boss' idiot idea in almost every case, or alternatively that you take it on good faith that your wise and benevolent manager knows what they're doing, and in both cases employees do not critique managers in ways that the managers can hear (by which I mean, both covert conversations and social cues that managers miss).