Earlier quoted context omitted.
Sounds like something that happened at Sun around 1990, which I described earlier: https://news.ycombinator.com/item?id=15660759 At Sun, during the dark days of Solaris, when everyone was depressed and wanted to quit, our manager sat down with each of us and asked: "I want to know your happiness index, a number from 1 to 10. You can use any algorithm you want to come up with it, just use the same algorithm each time…
I don't get why this is viewed as beyond the pale? Sounds like your manager cared about how you all were doing, and wanted a way to observe trends in how you were doing in order to help you, which is the same exact thing a manager does implicitly every time she talks to you. Obviously this isn't reproduceable psychological science, but is there more to the story to explain why you found this to be objectionable?
I often find kpi is implemented with the messaging that it is to help managers understand the staff but once implemented this messaging is quickly replaced with the manager bitching that his staff have not met their happiness quota.