It seems like the smaller Tech companies do this more than the big ones when it comes to extreme micromanagement. Im not surprised that there isn't someone with a similar or even worse experience.
They didn't have anything logging our screens. (as far as I know, but I built my PC's OS image, had full admin on the systems, and was their senior AV tech. I could smell screen scraping and rootkits a mile away so I was pretty sure my pc's was clear at least.) I was Pretty positive they were logging DNS entries and Internet. They had cameras in the building but they were only watching the entry points cause just about everybody would have quit on the spot if they put cameras on us. Pretty sure the few cams they had had mic's on them. One former employee was convinced the building was Mic'd either through the cams, the phone system or both. I even called them on it and when I brought up our state's wiretapping policy (which covers listening devices and recording without being informed) we got a new employee handbook that pretty much confirmed that they were doing it.
In our state (Pennsylvania by the way), they also had laws governing overtime. you couldn't have more than two people on Salary at any one time. They had to take us all off of salary and moved us to Hourly because of it. I was averaging about 60 hours. Server admin was pushing 80+. I was trying to take stuff off of him when I could but most of his stuff towards the end was exchange migrations from SBS and he was the only guy that had any success with that and I was forced to pretty much live at the customer with the scissor lift because they had 100+ mission critical Thin clients running their industrial complex and no one on staff that could fix anything so they had us on full contract. If anything broke from the entire internet down to this machine froze we need someone to hold the power button in for 6 seconds I had to do a 20 minute onsite. They eventually had me going there every morning so they didn't have to pay me mileage. We should have never took that client and before the micromanagement when into full steam they were the #1 reason I was going to leave that place. They were #2 when I left.
Our overtime justified adding a new employee. So they tried. I say tried because in Western Pennsylvania it's pretty rural and either the North south or West CIties would suck out the talent. I came from a college with 11 Years of client administration, repair and AV removal under our belt. The Server admin came from another Tech company from the south and had a lot of experience with repair and knew what he was doing. We also had two web coders on site doing site creation. one was let go. the other eventually went west to do DBA work which freed up money for more techs. The two owners (the managers) decided to move to the Carolinas for some reason in which one did tech work so we were saddled with his work as well. Guy #1 was a guy from a CSR shop. CSR killed his brain so he was let go. Guy #2 admined for a county courthouse and was good, but slower than us. they put the Micromanagement Screw to him and he walked out. Guy #3 was another CSR but with a brain. They MM him so bad he wasn't sleeping because of the Anxiety Meds his doctor had to put him on and he Walked. Guy #4 came straight from college and was very green so they hired Guy #5 that worked for the Volunteer fire dept and knew some tech but was perfect because he was great with the front desk and would shield the customers from us that were stressed to the point that we didn't care anymore. Also Keep in mind that all this hiring was roughly over a period of 1 year.
Anyway whenever they hired someone they would put pressure on both me and the server admin about time, and our answers were always "we can't get the techs up to speed because once we do they leave." That didn't work for them. Guy #3 I pretty much had trained for the big site and even his mother worked there so it was perfect. Two weeks later he was gone and his mother told me about the stress. This is was made the MM that much more excruciating. You can do that in a big city when you have a job pool so big you can replace people in a day or two. It took us literally weeks to get a person that wasn't really ready for the job and he would leave because of the MM environment. Also in rural areas rumors spread fast that we were going through employees like water so customers were asking us what's going on. They knew the Owners moved so they asked about that and worse, potential employees saw what was going on and avoided us like the plague. We lost 5 potentials to other places due to that alone.
As for the Stockholm Syndrome. You know you have it in your company if over half of the employees will leave with you if you started your own company. I could have easily walked out of there with all of the employees, over half of the consumer clientele and at least a quarter of the business clientele but didn't want to deal with the paperwork or initial capital expense for it. That and we had a client we worked for that this exact scenario actually happened to. I was at this place for 4 years and that company was still suing the employees that left and the company they created. I wasn't going to deal with that either.