What is referred to when individuals are promoted beyond their abilities?

The term that describes individuals being promoted beyond their abilities is known as the Peter Principle. This concept, formulated by Dr. Laurence J. Peter, suggests that in a hierarchical organization, employees are often promoted based on their performance in their current role rather than their suitability for the new position. As a result, they may find themselves in roles where they are less competent, leading to inefficiency and frustration. The principle highlights a common challenge in career advancement, where skills and expertise may not translate successfully to higher levels of responsibility.

In contrast, Ability-Based Promotion refers to promoting individuals based on demonstrated abilities and competencies, ensuring that employees are well-suited for their new roles. Over-Qualification Theory generally addresses the issue of individuals being too skilled for their job, which does not specifically align with the context of promotion beyond capacity. Performance Ceiling Effect refers to the limits that individuals reach in their performance relative to a specific task or role, which is not directly related to the concept of promotions.