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Without a doubt, Yes. It serves various purposes:
From the manager's perspective, it allows him to grow and become more experienced and confident taking on bigger challenges.
From the company's perspective, it instills confidence, trust and a feel-good factor in the manager who having been made feel important now is more motivated and in turn more willing to perform better or to step up to bigger challanges for the company.
In my experience, YES, as this gives the Manager that much needed confidence to handle situations. What should be noted though, is that monitoring his performance and decisions once in a while doesnt hurt.
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