One big problem is org charts that say once you reach a certain level you can't be given more money without becoming a manager.

For example, and I am not making this up, I know somebody who was made a manager, given one employee to supervise...and then that position was just casually kept unfilled, because the Rules said he couldn't be promoted further otherwise.

Who made those rules and why can't they be tossed out so that people don't become managers because they are "too good" not to be?