This could have come from Ayn Rand - rule of the mediocre over the competent.
Such an old trope ought to be boring, except that it's being taken far too seriously by segment-the-electorate politicians in India - actually turning the crazy premise into laws. Search for "reservations in education & government jobs" on news.google.co.in for some real-life sampling.
Mediocre-mongering boss in this story is way too dumb. Wish they were like that in real life!
Fact sheet.First published: AntipodeanSF, #109 (June/July 2007).
Download full text.