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If you pick the right people, they can learn the front line job and offer an outside perspective to improve processes or overall deliverables. Have to pick the right people!!
It's just an odd cultural norm.
As a manager, you spend far more of your time managing politics or people. You become far more valuable as a manager with people skills as opposed to a manager with process skills. Poor performers will expose themselves, or the new manager will be given a heads up on people as they step into role.
Still doesn't make sense for a front line manager. Majority of the ones I've dealt with understood the job function they oversaw. I could see that skills wouldn't matter for department heads though
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Sometimes it's more about managing the people and customers than it is actually performing the job function but i think this is industry dependent