This office is overcome by what is characterized as "groupthink" meaning that everyone just goes with the flow and doesn't stand up for their opinions or challenge anyone else. They conform and become almost mechanical in their day to day work.
This office as previously stated is using group think which is unhealthy and leads to a lower level of productivity. The term "group think" was coined by Irving Janis who felt that "each member of the group attempts to conform his or her opinions to what they believe to be the consensus of the group" (Wikipedia). These employees are not given clear direction; they are just told to come up with ideas and given a timeframe. They have no inspiration to be creative and tend to lean on others and agree much easier. The CEO of this company is also creating group polarization by exaggerating what is happening in the office and making it seem as if his employees are sitting in their chairs all day not being productive. According to changing minds.org if a person makes a statement like the CEO has, "The problem then is that having taken a position you feel obliged to support it, even if you think it actually is a bit extreme" (Changingminds.org).
This CEO needs to recognize he is dealing with a human who has feelings and want to be recognized for their achieve