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So now they have to adjudicate the technical opinions of their engineers. Engineer #1 says they should hire person X for various technical reasons. Engineer #2 says they should hire person Y for various other technical reasons. How does a non-technical manager decide which opinion is 'better'?

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they don't. you ask the team to come to a consensus on their own and if they don't just pick someone to make the decision and then pick someone else the next time you have to pick

managers thinking they know better than their reports is the source of basically all team dysfunction in tech

This always sounds good in theory but in practice is a disaster. At least in my experience.

And a technical manager is either one of engineer #1 and #2 and can hire X or Y depending on their own biases without consulting anyone else. Is this 'better'?

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