This completely kills initiative, tough, and may reduce the value added by each team member by 50% or more.
The only time to use such tactics is with someone who is acting in very bad faith and at risk of being fired. It can be done for a while to establish an example, while rewarding better behavior with more autonomy gradually.
If they still ignore the instructions, then that's proper grounds for firing them (even in Europe), and if they chose to leave because of it, well, that's ok too.
(I have no idea what your generalized statement is in relation to btw, so I could be talking out of my ass as well, lol)
So yeah, it takes a lot of works to communicate efficiency, no matter the length of the end results
1) I've been micromanaging them too much, and they stopped thinking for themselves. Possibly partly because they were lazy, or annoyed or because they thought it was ok.
2) They don't have the ability to see that my instructions did not make sense in the situation they're in. Maybe they didn't have the training, self confidence or initiative to realize that the instructions were assuming a situation that was different from the actual one.
3) There is real bad faith involved.
Most cases fall roughly under 1). In that case, the proper response is to reduce the level of micromanagement, and let the people figure more things out on their own. That means that even when I spot that they're making minor mistakes, I need to keep my mouth shut. People need to make mistakes sometime so they can learn from them. If they want to discuss those topics with me, I will try to treat them as peers not subordinates. While doing this I also try to make it clear that I expect independent thought.
Then there are the cases that fall under 2). In those cases, I try to give tasks or instructions that are either intrinsically easier, or if that is not possible, I may break the tasks down to more manageable units, while trying to actively provide training and mentoring.
The rarest case is 3) If this is the case, I will provide some push back. Luckily, as a tech lead, I don't have direct reports, so I can refer such cases to the line manager if it gets too bad.
Best way I've found to avoid this is to leave as little to assumption as is reasonable to.
A part of me thinks that some of the pitfalls in communication comes from culture, where different groups of people have different expectations of how much to leave to assumption, etc. Hard to really put it clearly, but I would love to read some research around this.