In my point of view, that's how you lose solutions to stay in the comfort zone, and I'm not saying the people whom actually "just obey orders" but those who make them.
As I gain more experience, with age and some wisdom (I hope), I see that most top-down decisions are actually the worst way to decide things, people who are "at the bottom" maybe not understand how a entire system works however they do really knows (and suffer) on how their work is sub-optimal.
https://en.wikipedia.org/wiki/Toyota_Production_System
But somehow, management never accepts this reality. Even the Japanese auto industry is regressing into Taylorism.
I've worked the line twice - first time as a teen looking for any work, the second time as an undercover analyst hired to examine why Lean was failing at a plant, both doing the same type of job: electrical component assembly. I got physical injuries (minor) both times. The majority of the assembly line workers had repetitive stress injuries, including losing fine motor skills and wrist control due to use of impact wrenches and exposure to bad ergonomics. If a human delaminates, you can't glue them back.
Although rational (Taylorism, Management by Objectives, MBO, OKR, Milestones, management by goals ) vs. normative (Lean / Toyoda, human-centric, Agile, humanist, culture ) division of management styles/rhetoric has been proposed, they should perhaps be seen through the prism of Creative Destriction (not disruption, and surprisingly, CD comes from Marx).
In a vulgar approximation, imagine capital-backed entities served by the manager class, which are stressed by short deadlines and performance-tied bonuses and careers. They are constantly shifting basic approximations of solutions and perspectives, without challenging the system.
Give employees more autonomy, and output and managerial control suffer. Instill more rigid control, and risk losing the ability to innovate and "knowledge producing" (Drucker of MBO fame) talent such as programmers.
In an antagonistic system, whatever you come up with has its own roots of destruction on top of built-in conflict (Marx again). Hence the back-and-forth re-framing between "rational" (Taylorism) and normative "culture, baybe, Holocracy!" so fast that today it is a zombie that has both and neither.
You end up with projectification, corporate "culture" that demands the soul and meeting arbitrary "milestones" from employees, but the corporation itself can only guarantee arbitrary termination.
There is a great and influential analysis "Design and Devotion: Surges of Rational and Normative Ideologies of Control in Managerial Discourse" by Barley and Kunda. I would suggest reading "Management fashion" by Abrahamson as well. Both can be found through G.scholar, including no-registration copies.
https://www.jstor.org/stable/2393449 https://journals.aom.org/doi/abs/10.5465/amr.1996.9602161572
(I don't know about worker health problems, and I imagine that poor as Japan was at the time, any empiric data on it would be useless. But, anyway, I don't think the management structure is the correct place to fix that one problem.)
And I'll have to break into your Marxist narrative, but all that was once incredibly successful in a fully capitalist framework. It never became non-competitive, it was only replaced by order of top-down command structures.
Trying to solve every problem top-down manifests as micro-management that beats the morale and initiative out of strong ICs. But on the other hand, trying to address everything bottoms-up leads to local maxima, no standardization across tech or product, and warring factions within the company.
There is real art to this. Being able to grok the incentives and structures of a vertical slice through the org (C-level, VP, Director, Mgr, IC) as well as the tech (Brand, Product, Pages, Components, APIs, Middleware, Storage, Infra) is a rare and extremely valuable talent that allows solving problems that are impenetrable by any traditionally defined role.
That's an unbalanced state of affairs that completely loses very valuable feedback everywhere along the chain.
Part of the job of a manager is to find this perfect balance on the level they are working at. And most don't. They just pass the pressure put on them, down below to their underlings.
