The Peter Principle

"Employees in hierarchical organizations are promoted to their level of incompetence"

Of course you've heard of Murphy's Law:  "Whatever can go wrong will go wrong"...

Business author Laurence Peters proposed in his 1969 book "The Peter Principle: Why Things Always Go Wrong" that there is such pressure in American business to move "upward" that employees continue to win promotions until they reach a level where they simply cannot do the work required of that position. 

These employees end up desperately unhappy, struggling to survive and at the same time costing the company money in lost productivity, lowered morale, and less innovation.

Someone who has been very successful in their job probably enjoys the work. However, their success in the position makes them a candidate for promotion to a new, "higher" position, the duties of which they may not completely understand.  Many times, when they accept the promotion, they struggle a little at first as they learn new things, but then they begin to master the new job. Soon they are ready to be promoted again.

Eventually, they accept a position only to discover that they are not capable of doing what needs to be done in the new job. They get negative performance feedback for the first time in their career. Their supervisor offers them coaching or additional training. These help some, but ultimately are not enough. The employee begins doing some parts of the job, but not necessarily the most important ones. They make incorrect decisions, because they just don't know any better. They stifle the people in their group so that none of them can become a threat. They temporize and procrastinate because they lack confidence. They are unhappy in the job and the company is unhappy with their performance.

Refusal by the individual to step down and reluctance by the company to adequately facilitate "inverse promotions" cost many companies dearly.

Such is the state of American business

The Peter Principle: Why Things Always Go Wrong

"Employees in hierarchical organizations are promoted to their level of incompetence"


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