What is the Peter Principle about?

The Peter Principle posits that in a hierarchical organization, individuals are promoted based on their performance in their current roles rather than their ability to perform in more advanced positions. As a result, employees tend to rise to their level of incompetence, which means they may eventually be promoted to a role for which they lack the necessary skills or capabilities. This principle highlights the disconnect that can occur between an employee's success in one position and their effectiveness in another, particularly at higher levels of responsibility. The concept suggests that rather than continuous success, promotions may lead individuals to positions where they are not suited, ultimately affecting productivity and organizational efficiency.