Wednesday, May 13, 2009

The Peter Principle

The Peter Principle says, "In a Hierarchy Every Employee Tends to Rise to His Level of Incompetence." Members are promoted so long as they work competently; Sooner or later they are promoted to a position at which they are no longer competent (their "level of incompetence"), and there they remain, being unable to earn further promotions. Peter's Corollary states that "in time, every post tends to be occupied by an employee who is incompetent to carry out his duties" and adds that "work is accomplished by those employees who have not yet reached their level of incompetence".

An example:

If you're a proficient and effective accountant, you're most likely demonstrating peak competence in your job right now. As a result of your performance, your valuable contribution results in a promotion to a management position. In this new position, you now do few of the original tasks which gained you acclaim. Given this, promotions stop, and there you stay, until you retire.

A dramatic example of the Peter Principle at work is Michael Scott from the Office. Michael is frequently shown to be an impressive salesman but an utterly inept manager. He has been promoted to his level of incompetence, where he will now remain.

1 comment:

  1. Yessssss

    People get promoted for doing what they're good at until they are promoted into a position where they suck at doing the job. Then they are stuck there.

    It's surprising that this hasn't been realized as a standard business principle. I know that there are at least some companies that have implemented regular rotations, but it is to my understanding that this has yet to be common practice.

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