That is part of the problem. You will often find that the skills it takes to climb the corporate ladder are not the same as the skills it takes to be a good manager. Management in bigger companies tends to be littered with well connected but incompetent people who are really good at bullshitting and 'looking the part'. This doesn't apply to every manager, but it is common enough that you are almost guaranteed to work with plenty of them throughout your career.
So as a result, most managers practice schmoozing the management hierarchy, and not at all about making more effective teams. And then guess which one they get better at? (hint: the one they do more of)
And then which one do they do MORE of?
And the cascading spiral ruins modern corporations.
The mantra of "increase shareholder value" really means "make the investors happy", which currently means "make the quarterly number look great". Combine that with a giant primate dominance hierarchy, where the only goal is to please the bigger monkeys, and idiocy like this is basically inevitable.
This isn't the only way to run companies, but it's the only way most people have even heard of, so alternatives are literally inconceivable. From what I can tell, the infection vector for this meme is MBA programs.
Happily, there are signs that this is starting to change. E.g.: http://www.forbes.com/sites/stevedenning/2013/07/09/ft-urges...
Or the rise of the various Lean-derived methods, which have a fundamentally different theory of business.
Corporations with high P/E ratios are the counterexample to this, and Amazon in particular has a very high P/E.
Amazon is an outlier in American corporate culture. Its founder and very active CEO is somebody who double-majored in CS and EE. My explanation of them is that Bezos never was indoctrinated with MBA dogma, and instead runs his company like an engineer. He's been lucky enough (and skillful enough) that Amazon has always done well enough that his investors have never pushed for a "real" CEO.
So for me, Amazon is proof twice over for my theory that MBA dogma isn't even very good for business. Not only are they doing well in the long term by not giving a crap about quarterly numbers, but they don't have serious competitors because typical execs don't even get how they're being run over.
Any sufficiently large organisation becomes an ecosystem.
To succeed inside that ecosystem might damage the ecosystem itself in the wider world, but that doesn't matter in the short term to those inside it. At a certain size the ecosystem seems invulnerable and everlasting, and eclipses the wider world for those inside it.
This happens not just in corporations, but in any other social grouping I've seen, including governments, politics, and academia. It's very hard to avoid when any significant number of people are involved.