Above a certain pay grade it's impossible to understand all of the responsibilities of your direct reports, so you have no choice but to use metrics. For example, a CEO may not have a good understanding of marketing, but simple metrics like 'impressions' and 'conversion rate' give reasonable and easily understood approximations of how a marketing effort is working over time. Ideally towards the bottom of an organization you'd have a closer relationship between manager and employee, since the roles are much more similar, but **** rolls downhill so all employees in an organization are ultimately evaluated by metrics to which, frankly, a single employee at a large business is unlikely to have a statistically significant effect over. A particularly transparent example of this, for example, is the MBO process as it is popularly used. Originally the process was designed for planning the personal goals of senior managers, but in practice it's extended to all employees, with their boss's boss's personal goals whimsically rebranded "organizational" or "departmental".
Believe it or not, these are usually still the good kinds of metrics. Hours worked is a bad one, but quite often optimized for. Things like lines of code written, bugs filed, bugs fixed, or number of support tickets closed, are all so obviously bad that I don't think I even need to explain them. Unfortunately if you're working under these sorts of 'in the small' metrics it probably means your boss has absolutely no idea what you're doing. Pro dev is a huge responsibility of any manager, and one who can't/won't take the time to understand your contribution also can't/won't help you advance your career. Also, small metrics are trivial to game, so unless you're the Team Sociopath you're probably not going to look that great on your review. Find a new job now.
Anyway, back to open concept offices
Basically every business has office management / facilities siloed off from product development and sales. The metrics the two are optimizing are fundamentally opposed: the facilities people are generally tasked with reducing employment costs, while the product development people are tasked with increasing employee productivity. You end up in this tug-o-war where product dev wants bigger quieter workspaces, and the facilities people want to tear down all walls and pack people in like cordwood. Unfortunately the facilities people have won the debate. The reason? Not to save money, but because of the metric CEOs optimize for. The sole business operations role of a CEO is to establish the communications infrastructure that allows so many people in so many different roles to collaborate. The argument is that open concept offices allow people to overhear conversations and jump in with their own ideas. This is an easy sell to a CEO, whose main concern is maximizing exactly this behavior. It's mainly become ingrained in business culture now because, although they're clearly terrible if you've ever worked in one, CEOs 1.) don't, and 2.) haven't been given any hard evidence that they damage productivity more than the increased collaboration benefits it. And they'll never be given that evidence, because the people in organizations with a vested interest don't have access to the capital budget to conduct their own experiment.