Will micro management help in organization's success?
There are many situations where a manager of company has to micromanage the workers. But the excess of micro management leads to its negative effects.
Effects of Micromanagement:
1) It lows the morale of employee.
2) It highs employee turnover.
3) Employees will be more dependent on manager.
4) Decreases productivity.
5) Job dissatisfaction among employees.
6) Low scope of learning for employee.
In each and every effect the employees are suffering and I don't think any company can get benefits if the employees are not happy with the work.
Micromanagement has very limited advantages with greater number of disadvantages.
Every organisation goes through phases of growth. A startup would function very differently from a MNC. Having worked extensively in Startups and currently working in a MNC, I've seen the sheer amount of micro management that often gets into the way of growth for the startup.
Once a startup is up and running it is important to have makers and checkers in the systems, and introduce departments and departmental processes being overseen by departmental heads. This sets in place a vision for growth.
On the contrary, reality could be startups finding it 'unnecessary' to follow processes and have everything managed under one person. This will work only upto a limit. The business outcome for such startups in case of an influx of projects would be sure short manpower and not having the necessary amount of 'decision makers' at mid level and lower level management thereby leading to final decisions getting prolonged before deployments as often the finalization is often left to one man (CTO/CEO).
Answer depends upon several factors. It totally depends on the team being managed. There are teams that need micro-management all the time; either because they are totally new to the project or need hand-holding in every aspect. Such teams mostly are not as productive as the managers would like them to be.
There are some high-performance teams that figure out the best way to do the job; and deliver it within time.
Startups, in general have high performance teams that do not need micro management. But it depends a lot upon the leaders as well - how they want their organization to grow.