I got a linkedin request from the hiring manager a week after the interview..
How should I interpret this? What are the possible implications of this? Does such contact indicate a good chance at the job, or something else?
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What does this mean?
It means that he was looking at your application and decided, for whatever reason, to connect with you on LinkedIn. Nothing else.
There are any number of reasons he did so. It may be that he thinks you're a good enough candidate to look at further. It may be that he's decided to reject you but wants a connection to you or your connections. He may be a LinkedIn LION. You have no way of knowing.
Does it mean I have a good chance to land the job???
No, there is no way to tell from this.
Even though this is not an indication of you getting the job but from what I have seen, it is a good indication. If they were to decline you right off the bat, they sure wouldn't let you to snoop on them or contact them by LinkedIn messages in the future, by being a contact.
On the other side of the coin, since he/she can not see everything on your profile (unless he/she is a premium member) by accepting the request, you are opening up your profile to this person. And if there is anything that will hurt your chances of being offered this position, you are giving the employer to chance to dig it up. If your work history is spotless, I do not see any reason why this may harm your chances.