Peter’s Principle: When Promotion Attracts Incompetence

Peter’s Principle assumes that a worker deserves a promotion does not necessarily mean that he or she is prepared for it or that the promotion is the most beneficial option for the individual or the company.. According to this theory, many promotions are actually synonymous with turning back the clock. Sometimes the worker does not have the resources to overcome challenges successfully. He also often associates the management of the challenge with high levels of anxiety.

This principle was stated over 60 years ago and it is still relevant today. In the late 1960s, Drs Laurence J. Peter and Raymond Hull wrote a humorous book called The Peter Principle .

They themselves certainly could not guess the impact their work was going to have. It was a very controversial, sharp and critical work that evoked the errors observed within companies, educational centers or the professional sphere. Situations where some promotions were in fact mistakes.

The message Drs Peter and Hull wished to convey was more serious than the tone they used to convey it. We cannot overlook the impact of positioning a person in a position for which they are not prepared. This involves testing the overall functioning of the system.

So, when this happens, it is not uncommon to perceive a deterioration of the organization, a feeling of unease, dissatisfaction, a drop in productivity and the spread of this incompetence to other areas that can also be affected by bad decisions.

What does Peter’s Principle consist of?

Peter’s principle is simple: in the hierarchical structure of any company, workers will be promoted to a position for which they are not prepared. Thus, they will find themselves blocked by this hierarchy throughout their career. This implies by deduction another aspect no less important: the leaders are not able to respond successfully to the responsibilities which correspond to them either.

As we can assume, this theory has as many detractors as there are defenders. For example, studies like those conducted by  Harvard Business School tell us that Peter’s Principle does not show up in “all” companies or as frequently as we might imagine. This principle, however, allows us to take the necessary measures to reduce the frequency or scope in which this problem occurs.

The challenge associated with occupying a position of responsibility

Some employees are very efficient at their jobs. For this reason, it is very likely that at some point, one decides to offer them a promotion. This allows them to be assigned a position that will allow the company to further exploit their capabilities and availability.

On the other hand, as the expression emphasizes: “Each office has its responsibility”. Sometimes the efficiency that we demonstrate as well as the speed of execution that defines us when it comes to carrying out certain tasks and services are sorely lacking in importance. For this reason, promotion can be a bonus, but not a smart move.

• Being promoted very often supposes the extension of the necessary skills: communication, leadership, conflict resolution, decision-making capacity, personnel management, creative vision, anticipation of risks, etc.

• We are not all suitable for this role. Regardless of the skills of individuals in certain areas, not all can assume a position of responsibility.

Peter’s Principle therefore often involves having to deal with very stressed leaders who are aware of their incompetence. Others, on the other hand, assume their position in peace. In absolute terms, the consequences of their bad decisions do not worry them.

What can we do to avoid following Peter’s Principle?

The Peter principle was integrated into the professional market several decades ago. As we well know, the corporate world is based on high competition between companies and employees. For this reason, we often promote not the one who has the most skills, but the one who seems the most aggressive, the most directive or even the most charismatic.

What is surprising, according to the authors of this theory, is that these characters are rarely fired. They are bad apples that linger in companies infecting the rest and creating a negative business climate as well as low productivity. For this, it is very important that any business manager, civil servant or worker is aware of these aspects.

What kinds of promotions promote Peter’s Principle?

Before delving into strategies for avoiding Peter’s Principle, it’s important to understand why it happens:

• Some employees are promoted for reasons of seniority, because “it’s their turn”. Others accept a higher position out of loyalty to the company. They are employees who are always accessible, dedicated and helpful.

• In many countries, promotion related to piston can be observed. We are actually talking about members of certain families, friends or people who have relationships with management.
• It is also common to offer promotions to charismatic people. They are extroverted profiles (sometimes even psychopaths) who, thanks to their incomparable charisma, give the undeniable impression that they are leaders. However, these promotions are rather dangerous in the long run.

Steps to Avoid Peter’s Principle

Successful entrepreneurs know how to avoid Peter’s Principle. To do this, they apply three strategies:

• Better allocate promotions. Automatic promotions should be avoided. Skills must be valued more adequately.
• Take better account of capacities. It is important to constantly train the person you are promoting. It is essential that this person is refreshed periodically on all of those skills, directive abilities and leadership abilities appropriate to each position.

• Reverse promotion. In this case, any organization should establish adequate oversight measures. Any employee who holds a position must be able to be dismissed from his or her duties if it is ineffective.

In conclusion, it seems obvious that Peter’s principle applies too frequently. The fact of making chronic incompetence within the whole company supposes to reduce the efficiency but also the productivity. In addition, it means “legalizing” inequality, making truly competent people invisible, and creating negative professional climates that will later drift into failure, stress and unhappiness.

Let’s think about it.

Our thoughts

Job dissatisfaction often ends up affecting our mental and physical health. How to cure it ? Answer in this article!