If you start micromanaging people, then the very best ones leave.
If the very best people leave, then the people you’ve got left actually require more micromanagement. Eventually, they get chased away, and then you’ve got to invest in a whole apparatus of micromanagement. Pretty soon, you’re running a police state. So micromanagement doesn’t scale because it spirals down, and you end up with below-average employees in terms of motivation and ability.