The Peter Principle is a management concept formulated by Dr Laurence J. Peter in the late 1960S; this theory suggests that people get promoted based on their competence in their current role rather than their ability to perform in a higher position. As a result, many individuals may end up in positions where they are no longer competent,


Adam Hayes writing in Investopedia makes the following points about the Peter Principle:

  • It is outlined in the book The Peter Principle.
  • Higher positions may require different skills than the person currently possesses.
  • Many valuable skill sets do not always transfer well to higher positions.
  • Adequate training, careful assessment of job skills, and appropriate interest-based placements may overcome the Peter Principle. 


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