Having been in both micro-managed and non-managed-at-all environments, I've come to apply the following definition (which is not Webster's, Miriam's, or Oxford's):
Micro-managed: when you're not only given a job to do, but are given a job to do, told exactly how to do each step of the job, and acquire a peeping tom on your shoulder to ensure you do it exactly the way the real owner of the job wants it done.
Usually comes from someone who's moved into a more senior position and doesn't know how to let go of his/her old one, especially if they're now responsible to supervise tasks they used to do themselves in a certain way, and in their opinion, a superior, faster, and more efficient way than you do.
Being asked to document how I spend my time doesn't really get my gander up, as long as no one's standing over my shoulder watching me do it. But that's just me.... :) I've seen it happen more often in industries where billing can occur by the time slot, such as lawyers and architects. My bf is an architect and she has to do her timesheets in 15min increments. It's a pain in the arse, but it's also saved her a lot of grief when a client argues about the final bill, and it's helped her (and her company) more accurately give estimates for jobs when they can accurately break down the time required for each phase of the job.
However....it does sound like your VP is a micro-manager as per my definition. Very annoying....