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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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However, If firms promoted workers on the basis of managerial potential rather than current performance, employees may have fewer incentives to work as hard.
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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 promoted (top figure) but their value added as managers actually declines in their sales revenues (bottom...
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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 entail larger teams.
There are also leading companies who used split career ladders ...
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Also known as The Peter principle of Incompetence, it claims that people who do their job well are promoted to positions of greater responsibility, and so on, until they reach a position in which they are incompetent, so they remain stuck in that position.
It describes what can happen when an employee does well in one job and is subsequently promoted. She/he does well in the new role and is promoted again. This continues up and until the employee is put in a position where she stops performing well and is, therefore, left in a position wh...
The Dilbert Principle refers to the idea that incompetent employees are being promoted to prevent them from causing harm, since higher level positions don't need to be involved in the production of the company, while people that perform well are retained to production jobs, to keep the ...
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