There is a glut of managers who have been in their positions for so many years that they have totally lost touch with what their direct reports do. Their jobs are to delegate and, therefore, the managers have no intention of going anywhere.
When non-management employees leave the organization, their positions remain unfilled. The extra work is then done by co-workers.
Senior Management comes down from the ivory tower only to make appearances to hit employees up for money for United Way or other pet charities.
No chance for advancement - Managers are not permitted to fill most open positions due to the economy. Also, managers are so concerned about losing one of their direct reports (and, therefore, some of their power), that they black-ball employees lucky enough to interview for another position within the organization.
Employees are told that no pay raises allowed, said to be for economic reasons