Micromanagement has been shown over and over to have no long term benefits to a companies bottom line. It's based on the premise that all employees are as you say "stealing time" from the company. While that may be true in some individuals, the micromanager would rather cast his net over the lot rather then address the one screwing off.
But when you single out the guilty ones, they complain to their coworkers that they're being unfairly targeted for harassment. Then the coworkers get all bent out of shape and encourage the guilty ones to go to HR, which they will do. HR will (more often than not) advise the mgr that his actions could be perceived as arbitrarily targeting an employee.
Oh yeah, the guilty ones may play the EOC card. In that case, they are essentially untouchable by that manager (and his senior) forever.
But anyway, the manager has been admonished by HR that taking direct action with the guilty parties is not acceptable.
(Lazy).This is done daily with a barrage of reports and constantly changing goals to the point that neither knows what the actual goals are. Morale suffers and employee turnover is high. This is all well and good if you don't mind an unmotivated, bitter and apathetic workforce interacting with your customers. FedEx seems ok with that.
The manager can print out umpteen reports that document a guilty employee's wasting of time and the employee will still deny it. He will complain to his coworkers that the mgr is printing up "a bunch of BS" (and that's an actual quote I've heard), usually followed by "he can't do my job" and a few other non-sequiturs.
Of course, the best way to handle employees who are soaking it up on the clock is to wait until they are off. When a swing runs the route and blows the numbers out of the water, give a copy of the swing's gap report to the guilty party and ask him to explain it.