Unfortunately that's incredibly hard to scale. I've seen many construction companies hit the growth wall thinking that they could grow using that model instead of building process.

This is one of the few voices of sanity I've seen on this thread. Your father seems wise.

With that said, I do understand why companies try and install panoptical surveillance practices in places where it's basically overkill. Competent managers, as you said, don't need to keep people on a tight leash. They do, as you said, learn to analyze the noise and intervene when something is clearly going wrong. The panopticon is put in place beyond a certain size because manager quality cannot be guaranteed. Now, whether that's a sound reason for its existence or not can be debated (I'd tend to agree it's not), but it does seem to function efficiently.

Not just because manager quality can’t be guaranteed, but because when you have 10,000+ employees, the odds that some are fired and subsequently make a false discrimination claim are high — and you need a lot to deal with that.

Look at how Amazon is treated: with nearly a million workers, a few dozen complaining is enough for major media outlets to broadcast that they’re a bad employer.

Can you point to any employer where 1 in 10,000 workers doesn’t have a bad experience?

Right, that's the other side of the equation that needs to be fielded beyond a certain size in organizational scale. Organizational processes need to be in place that protect the organization from bad actors, in a manner which is most resistant to being corrupted. As you say, even a few parts per million is essentially enough to get a large scale PR headache.

With that said, the question of whether the system could improved (and significantly, in a step-wise manner) how it handled this situation remains an open question to me. I don't know well enough what happened in the cases that caused Tim Bray to resign to comment, but it's possible that actions taken by the corporate management, HR and legal have taken backfired in a way that will be looked at as unforced errors. At a company (ostensibly THE company) that prides itself on operational excellence, I'd be surprised if this doesn't end up being the case. High profile resignations like this are sometimes the spark that sets the whole process in motion and the few externally visible signs that you can see later on as evidence. If this was attrition was truly regretted by corporate, and was something that could be prevented ahead of time, it will have been a very expensive black eye, waste of resources and loss of true executive leadership talent. For folks like Tim Bray, the difficulty of filling the organizational void they leave is very high, and potentially not guaranteed.

I guess time will tell.