What incentive does a manager have to promote someone under him to his own level? Knowing most peoples psychology what I have observed is people like to preserve their own position and power. So if a manager promotes someone under him who is better than him, then the promoted person can end up becoming the managers manager in the future. Is this something managers are afraid of? How do the top leadership of various companies handle this situation? Or do they also harbor this attitude?
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If you can successfully develop people into good managers, you will be given responsibility for developing more managers => you go up for senior manager, then director, then VP, etc
This is not something randoms can help with unless they know the specific people involved and their personalities and approach to work
The best advice I can give you is understand what your manager cares about and is motivated by, understand what your skip cares about and is motivated by, understand what you care about and are motivated by, and try to maximize satisfaction for all.
E.g. If you do something great that your skip cares about, and your manager cares about being praised by your skip, then make sure to mention the great help your manager provided to enable you to achieve that thing your skip is praising
Really depends on the culture
Most managers are too selfish and incompetent to realize this. Ymmv