Not knowing your feelings about the job and the company you work for, plus no idea of the company culture, it is hard to suggest to you what your best approach might be in talking to management.
Another thing that I don't know is whether there was an application and interview process, or was it strictly management choice.
In any case, if I wanted to continue in the company I would want to talk at least one level above the boss who hinted you would be in line for the job. I would explain that I was serious about a career with the company, that based on the accolades I had received thought I was on the right track, and would like to know what shortcomings kept me from getting the promotion so that I could work opn those aspects of my professional competence.
If I had'nt envisioned a long-term career with the company, I'd just keep my yap shut and leave, minimum notice, but be classy until the end of your tenure.
I had a good friend who was a detective, she got passed over because she was kind of housewife looking and the other gal competing for the job wasn't afraid to put her assets forward, but strategic yawning and stretching.
Sometimes that is the way things happen. Let them know in a nice way you are disappointed, then rock on, or keep quiet, be a good employee worth every penny they pay you then leave.
Patriotism means to stand by the country. It does not mean to stand by the President... - Theodore Roosevelt, Lincoln and Free Speech, Metropolitan Magazine, Volume 47, Number 6, May 1918.
Every Communist must grasp the truth. Political power grows out of the barrel of a gun. Our principle is that the Party commands the gun, and the gun must never be allowed to command the Party Mao Zedong, 6 November, 1938 - speech to the Communist Patry of China's sixth Central Committee
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