My manager is a b-t-h

I have been working for a company for the past 3 years, I started as a junior in the office and through hard work and allot of enthusiasm I made it to senior level. I had a really good relationship with my manager even though she is a nasty backstabbing bit-h.I ignored her as I did not want to be part of the office politics and kept to myself.
My company employees some of the most unprofessional personnel I have ever came across, and I soon realized I had do something from my side to make my life easier. So I created a training program to train some of the personnel, to reduce the amount of errors and also save myself allot of time fixing their mistakes.
I was praised by everyone accept my direct management, they believe I was not my responsibility and I should stick with my job description.
Recently a management position opened in my department, while I was on sick leave, a fellow colleague emailed me the ad and I applied. Since then my manager has gone to all of my colleagues to advise them of how poor my work is as well as to bad mouth me to the directors.
All this just because I have been doing her job for the past 3 years and she wants her cousin to get the job,even though its against company policy to employ family...
I have complained several times before of her bad attitude, temper and management style, only to get burned by her and the fellow managers.
What would be my best option as my manager's manager is to afraid to do anything, everyone seems to be scared to stand against her. I am looking around for other companies but have not found anything in my location that would be worth the while. And I get the feeling my Manager is trying to get my out of the way ASAP.
Several of my colleagues have also said they want to resign just because of her.
frik.

POST A COMMENTprinting fool(09/13/2010)
Just remember, when it comes to office politics, DON'T run for President! You are doing good by playing it cool and everyone watching you knows it too. Hang in there!

Sphincter Detector(09/17/2010)
If you don't have the support of your direct management, or the management above her, I'm afraid your talents are being wasted and your efforts will always go ignored and unappreciated. The good news is , there are plenty of other companies thatwould greatly appreciate the kind of initiative you have shown but unfortunately you're not at one of them. So if you intend to stay there, concentrate on developing relationships with the people who have the power of the pen, who are in a position to hurt you/kill your career or develope it. Because you will only go as far as they let you. Facts o' life. So, if they don't want you to outshine them, then don't. If they want you head down and ass up, don't bother trying to be a hero with process initiatives because i's clear that being the only one with any sense of management skill, coaching ability and personal initiative is like being the red headed kid in a crowd full of brunettes. It won't get you promoted and it won't help you create a comfortable, productive working environment. Personally, I'd take your talents elsewhere where you can get a sense of satisfaction and appreciation at the end of the day.

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JobSchmobber Community Comments
Sorry (09/12/2010) That's bullcrap! Sorry, I don't have any suggestions, but I feel for you.