I definitely would agree that a lot of people in large orgs are unfortunately like that. I can corroborate that from having been in many of those. I can also attest to the fact that most managers don't deal with this. There is a lot of moving people around or simply ignoring the problem.
Now like my earlier sibling mentions, just because someone isn't a top performer at their current job at the current time doesn't mean they can't be great in another area or can learn. I have (and had) a bunch of people on my teams that were/are not senior people but they have a smart brain on their shoulders, are inquisitive and learn. Sure they don't know our stack fully, they don't have the exact same opinion on how to write code etc. but they are able to learn and adjust and maybe teach us where our customs aren't the best as well. And we teach them too.
I'm speaking of practices like at large banks where people have been hiding doing nothing but being on Facebook all day for 10 years and all that has happened is that every project manager tries to avoid getting these people assigned to their projects.
