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Peter principle

💼 Business By CampusDown Wiki Editorial Team Last updated
The Peter principle holds that in a hierarchy people tend to be promoted to their level of incompetence.
Contents
  1. 1. Peter principle
  2. 2. Frequently asked questions
  3. 3. References

Peter principle

Laurence Peter and Raymond Hull (1969) satirically argued that employees rise to their level of incompetence: people are promoted for doing their current job well until they reach a job they do poorly. The flaw is using current performance to predict ability in a different role. Benson, Li and Shue (2019) found top salespeople were more likely to be promoted yet their teams performed worse. Remedies include dual career ladders and competency-based promotion.

Frequently asked questions

Is it true?
It began as satire, but some evidence supports it.
How can it be avoided?
Assess skills for the next role and offer expert career paths.

References

  1. Peter, L. J., & Hull, R. (1969). The Peter principle: Why things always go wrong. William Morrow.
  2. Benson, A., Li, D., & Shue, K. (2019). Promotions and the Peter principle. Quarterly Journal of Economics, 134(4), 2085–2134.

Reports and materials that use this theory (Korean)

There are no materials dedicated to this theory yet, but you can search related reports in the CampusDown library (Korean).

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This article was last updated on October 24, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.