I agree that your boss can fake he or she is competent. I believe the leader need to fake in different situations to make something happen. Take as an example, the self-confidence is nothing but a confidence to yourself. The leader can even not give any goods or benefits but make other people believe he can lead. However, this personal property makes he become the manager and get more $$ than you!
But I just wonder, in the other side, how the boss's boss consider if he or she is competent? Does the boss' boss believe he makes a good job to lead the team well? My point is if the leader probably fakes and you believe he is a boob, how can you become a better leader than he and get the trust of your boss's boss.
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