Great 4 minute video of Stanford professor and author Bob Sutton discussing the proper level of involvement of a manager:
http://venturebeat.com/2010/11/26/the-hallmarks-of-a-great-boss/
A key point is that the level of involvement and the approach has to be appropriate for the task and the people involved (their level of experience, preferences regarding work environment, etc.)
The entire 58 minute talk is here: http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2564
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