Peter Principle

Definition

The theory that employees are promoted based on current performance until they reach a level of incompetence where they stop being promoted. Explains why so many managers seem terrible at their jobs.

Example Usage

The brilliant engineer became a mediocre manager, a perfect example of the Peter Principle in action, yet the company kept him in leadership for five miserable years.

Origin

Coined by educator Laurence J. Peter in his 1969 book 'The Peter Principle'

Fun Fact

A 2018 study confirmed the Peter Principle empirically, finding that the best salespeople, when promoted to management, often became the worst managers.

Source: Management theory and organizational behavior

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foxhole buddy

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salary banding

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