From the words of Sun Tzu-

How the Boss or Owner can bring down a Company
12. There are three ways in which a ruler can bring misfortune upon his army:-- 13. (1) By commanding the army to advance or to retreat, being ignorant of the fact that it cannot obey. This is called hobbling the army. 14. (2) By attempting to govern an army in the same way as he administers a kingdom, being ignorant of the conditions which obtain in an army. This causes restlessness in the soldier's minds. 15. (3) By employing the officers of his army without discrimination, through ignorance of the military principle of adaptation to circumstances. This shakes the confidence of the soldiers. Chapter III. ATTACK BY STRATAGEM verse 12 -15
What this verses means is that the boss or CEO should leave the running of the operations to the managers that is closer to the operations. This is because these people know how bad or good the situation is. They know whether they can win or lose. If the CEO insists of his orders being followed without knowing the outcome than his company might fail. One example is when I was working as a waiter in a hotel that has just been taken over by an international chain. The Group General Manager insisted that we serve the local dishes in woks. We tried to explain to him that the local taboo is that its bad manners to eat from the wok. He didn't want to listen. The result of this came in the form of bad publicity and lose of business from the local community due to the fact that they didn't want to eat from the wok and that the hotel was not sensitive to the local culture. In some companies, there are times when the bosses or owners insist on put personnel even though the person is not experienced. This will then make the experienced staff there feel very frustrated working for a boss that doesn't know their job.
Sun Tzu has verse for that to. 33. If there disturbance in the camp, the general's authority is weak. If the banners and flags are shifted about, sedition is afoot. If the officers are angry, it means that the men are weary. Chapter IX. THE ARMY ON THE MARCH verse 33