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While i agree this comes about for 2 reasons.

Managers who do not really know how to manage people.

Workers who lack the work ethic to be left unsupervised feeding back into the first item.

If the workers lack the work ethic, you let go of them. Either that their output is valuable enough that work ethic (aka being present 9-5) does not matter that much, or they just don't care about the job to actually do it. I've been under that kind of supervision (not so extreme) and the only result was feeling dread about actually working.

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