Peter's principle is an idea in management developed by Dr. Laurence J. Peter, which suggests that employees tend to rise to their level of incompetence. In other words, workers are promoted based on their success in previous roles until they reach a level where they can no longer perform adequately. The principle often explains why organizations can become bogged down by bureaucracy.
The principle is named after Dr. Laurence J. Peter, who first articulated it in his 1969 book The Peter Principle: Why Things Always Go Wrong. In the book, Peter proposed that "the selection of a candidate for promotion is based on the candidate's performance in his or her current job. Once promoted, however, the candidate's performance will no longer be adequate. This is because the candidate has been promoted to a position beyond his or her level of competence."
The principle has been used to explain several phenomena in organizations, including why:
Promotions are often given to those who are already struggling in their current roles
Employees can become "stuck" in a role that is beyond their competence
Organizations can become bogged down by bureaucracy
The principle has been criticized for its cynicism and lack of evidence. However, it remains a popular idea because it offers a simple explanation for complex phenomena.
Other management theories that support Peter's principle include:
The Peter Principle is closely related to the concept of "The Dunning-Kruger Effect," which suggests that incompetent people are often unaware of their incompetence.
The "Law of Diminishing Returns" suggests that there is a point at which the benefits of promotion no longer outweigh the costs.
The "iron law of oligarchy" suggests that organizations tend to be controlled by a small number of people.
Sources:
https://www.mindtools.com/pages/article/newISS_96.htm
https://en.wikipedia.org/wiki/Peter_principle
Keywords:
Peter principle, management, Dr. Laurence J. Peter, employees, incompetence, promotions, adequate, The Peter Principle: Why Things Always Go Wrong, candidate, performance, current job, level of competence, cynicism, evidence.
