I think we can all agree from personal experience that it is possible to survive as a manager without being good at it. Just because somebody carries a manager title and is expected to manage people doesn't mean he or she is actually competent at doing it. Sure, they might do everything a manager does (writing reports, submitting forms, giving performance reviews, scheduling, budgeting), but they aren't actually managing their personnel.
Likewise, incompetent engineers are common. It is often difficult for supervisors to know who is competent and who is not, because there are many aspects of engineering which do not fall under the "real engineering" category, such as administrative tasks, making powerpoints, and politicking. (Not surprisingly, incompetent engineers are usually the best at politicking, as it is their only hope for survival so they'd better be good at it.) Most incompetent engineers look pretty good on paper.
Am I going to say that an engineer who doesn't understand control theory is incompetent? You bet I am. Does this mean that >50% of all engineers are incompetent? Probably. But that doesn't mean they're evil, or that they don't do work. They just happen not to do real engineering, that's all.