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Bad boss

My boss comes across as a complete idiot. Although she is a lovely person outside of work I'm getting more and more frustrated by some of the decisions she makes. Although a lot of them affect me directly, the majority impact more on the company. I love my job and enjoy going to work, but I don't know if or how I can compromise what is very bad management with my own love of the job I do.
Although in every job I can appreciate that there is a degree of inadvertant favouritism, but sometimes it's just so obvious here that it's laughable. People are promoted without any prior experience, and those that have experience are overlooked. I was promised a pay rise with extra responsibilities and this never came, yet I'm doing everything that those who get paid more than me do.
Just looking for a bit of advice really. Should this be something I tackle directly with management, or should I just see if it gets better by itself?
Although in every job I can appreciate that there is a degree of inadvertant favouritism, but sometimes it's just so obvious here that it's laughable. People are promoted without any prior experience, and those that have experience are overlooked. I was promised a pay rise with extra responsibilities and this never came, yet I'm doing everything that those who get paid more than me do.
Just looking for a bit of advice really. Should this be something I tackle directly with management, or should I just see if it gets better by itself?
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Comments
It also wouldn't mean you get the promotion or more money you have been promised.
When you say you were promised this when and where was it promised? Is there anything in writing?
No. It was just a verbal promise, which I realise doesn't really give me a leg to stand on, but it is frustrating never the less. It was a month ago when I told my boss I was going to hand in my notice, and so it was used as an incentive to make me stay.
Sadly I don't think there is much you can do about perceived favouritism, other than to try and address the issue of promotion or better pay for the work you are doing in a formal setting eg at an appraisal.