I've done minor management and I've worked for people who knew more than I did and some that didn't.

Working for:

One manager I worked for had much less experience than I had in terms of programming, but knew more of the business needs. She would tell me what the customer wanted, I'd give back a technical answer and if she didn't understand, she'd have me explain again until she did. We also had some arguments that would get one written up in other companies. All in all a good working relationship.

Another one didn't have a clue about people, the technical aspects, or anything that related to the job. I suspect she had been hired to axe most of the staff (which happened). All in all, the worst management I ever had

One of my first jobs was with a technically brilliant programmer who was a good manager and mentor, but he didn't have time to do any managing.

When I managed, I preferred hiring people who knew more than I did technically. I was trying to hunt down people to fill some knowledge gaps in the team. That worked well since I spent half my time fighting upper management and shielding my team from bullshit. Though myself and one other person spent a lot of time doing the work that another member should of been doing. ( Long story, I wanted him gone, but I stuck at the time )

My views after all this: People need to be able to work together. I think the manager needs enough tech to know the basics, but they need to be more socially knowledgeable the more people they have to manage. Like most things in life, it's a balance.

Update: Thanks to dws for pointing out spelling mistakes.