Dear Richa,
Not for just your company but micro-management is a curse that Indian businesses live with. Micro-management throttles or straight-jackets juniors. It demotivates juniors.
So what is the solution? There is no solution per se because because it is a question of belling a cat. Who will bell a cat and tell to boss that he should not micro-manage? One suggestion that you may do is to give suggestion on conducting Employee Satisfaction Survey (ESS). But in small company it is a matter of imagination. Nevertheless, when the boss is in good mood, propose it. Nevertheless, do no pursue for ESS.
Thanks,
Dinesh Divekar