Most people readily understand the negative effects of micromanagement. However, the reality is that too many leaders, on appointment, find the temptation to interfere at a detailed level with their teams irresistible.
This excellent article by Gallup gives the signs, causes and solutions to this damaging behaviour: http://bit.ly/AspireMCL062
It also highlights the benefits of adopting more of a coaching approach.
To truly resist the danger of micromanagement, it is necessary to have trust in one's teams and colleagues. Although not covered by the article, effective recruitment and promotion are key success factors. The most common mistake I have observed is that firms tend to be blinded by sales figures or technical skills when recruiting, and by current performance alone when promoting. It is vital to understand not just the technical requirements of the new role, but the behavioural traits that will engender success.