Something I learned - A promotion should not come with a default provision of becoming a manager. More often than not, becoming a manager is a responsibility enhancement. However, we're all conditioned to believe that becoming a manager is a promotion (..which isn't always wrong).
A few ways that we've experimented with in such scenario -
a) Identify gap areas and provide necessary coaching to this member
b) Understand from them if they're even comfortable taking a managerial role
c) Like Vijay mentioned above it is also very personality-related. So, we've even had cases where we moved the manager back to an IC role. The manager and IC career path should be created in parallel keeping in mind the talent's interest and competence.