Secondly a human power structure a created thing needn't follow any such law. Success in society often depends more on perception than any objective measure of success. While bad decision making can put one out of business eventually there is no guarantee that the ones that follow will be more rational.
At the lower rungs this is because of how little influence there is on the big picture. On the higher rungs this is because everything has been completely de-risked through outsourcing of responsibility, depersonalizing potential blame in case of failure while at the same time allowing full credit basking when things didn't fail.
I would argue that "bad" managers would generally have higher turnover than "good" managers. And I would further argue that companies have repeatedly demonstrated that high turnover isn't bad when the company is obscenely profitable despite that high turnover.
This issue is not about traits, but outcome. If you delegate a task, you want that task to get done as you expect it to get done. The manager is your single point of contact wrt how that task is being executed, and thus the person who is held accountable for the outcome of that task. You hired someone to handle that task because you want it done but you can't spare your time doing it yourself. The manager keeps you in the loop and briefed about the major sticking points, and works with you to adjust your expectations. Obviously it's important that engineers approve their manager but the primary goal is obviously delivering projects that meet requirements and expectations, not pampering subordinates.
The reason I ask is that it would seem that natural selection would take over, and if a management style that employees feel good about actually helps the company thrive, then those companies that promote "bad" managers would go out of business and be replaced by ones that promote "good" management style.