What makes a good manager in software industry?

Answer 1

Teach by example. Be known as fair, and - very important - do not "dress down" an employee in front of other employees. If a complaint arises against someone, call that person into the office and, in private, determine his/her side of the problem before making your judgment.

Answer 2

What makes a good manager in any industry is someone who knows what he/she is doing (and actually does it), and also knows how to perform the jobs of his/her employees. Bonus points for the boss if he/she is easy to get along with.