The Peter Principle Tested | Alex Tabarrok - Deepstash
The Peter Principle

It refers to an observation wherein people who perform well in their job gets promoted until eventually, they will reach a stage where they are incompetent for that job.

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The Peter Principle Tested | Alex Tabarrok

fee.org

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The Evidence for the Peter Principle

A study looked at promotions and performance of some 40,000 sales workers across 131 firms.

It showed that the best salespeople as measured by sales revenue are more likely to be promo...

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  • To assign the suitable person to the managerial role.
  • To motivate workers excel in their current roles.

However, If firms promoted workers on the basis of managerial p...

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Workers can be rewarded through incentive pays without the need of promoting them. Firms will be able to promote a more competent worker suitable for the managerial role that could...

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