At least as a software developer, you're only breaking code. But you start affecting people's lives, emotional well being, and career paths when you're a manager, and I find it rare where a manager understands this.
A lot of times early companies will go through the motions of, "needing" a VP of Engineering, or CTO, or whatever. In reality their process does not need that, and those roles are either meaningless titles at best or cause unnecessary process to crop up and hinder productivity.
This created conflict exactly as you'd expect and team morale fell apart, projects slipped, etc. Of course, management takes no responsibility for this, instead diffusing blame to employees via suck-it-up type platitudes (couched in "nicer" language but with that essential meaning).
Another way of thinking about this: Managing people really well is really hard. Most managers are not the best managers. Average managers often end up doing things that reduce the output of their group in the interest of things not going horribly wrong. The Pareto distribution rears its ugly head, once again.