Then they will remain in those positions because they do not demonstrate any further ability to receive additional boost recognition.Īfter reviewing this article, you will understand the following content:
The employees will continue to be promoted, but at some point, they will be promoted to positions where they are incompetent. Peter's Principle is based on a paradoxical idea. Promoting an employee to a position where he cannot exert his talents well is not only not a reward for himself but also makes him unable to exert his talents well and brings losses to the organization. The concept is ubiquitous in real life, a world-class football player retires, and the club he holds dear offers him a position in management, resulting in inaction a competent director in a private equity firm is promoted to incompetent managing director.įor an organization, once a considerable number of workers are promoted to incompetent levels, it will cause the organization to be overstaffed and inefficient, resulting in mediocre people getting ahead and stagnant development.Ī recent example, Google recently announced that there would be fewer promotions into senior roles "to ensure that the number of Googlers in more senior and leadership roles grows in proportion to the growth of the company." The principle is also referred to as the "climbing up" theory. Peter concluded that employees tend to be promoted from a position they are competent in into a position they are incompetent. Peter and Raymond Hull in 1969.Īfter researching how companies promote employees, Dr.
The Peter principle is a concept based on the book "The Peter Principle: Why Things Always Go Wrong" written by Dr.
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