> When the system intrinsically works by producing shitty managers the problem is in the system, by definition.

Is bad management intrinsic though? Wouldn't that make the presence of good management surprising?

It seems to me that people work better when they enjoy their job and nobody likes working under a bad manager, so bad management is a sign of incompetence and degrades operations.

The presence of bad management is an opportunity to optimize operations; treating people well is generally good for the people and the business.