When a person is promoted, they usually turn to different responsibilities and roles which requires completely different skills and insights.
Later on, the company will notice that they made a mistake in choosing the right person but will not want to admit it. As a result, the position will be maintained but will either end up unfilled due to voluntary resignation or imminent dismissal of the person.
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Experience is a good thing, but this does not automatically make an employee the best person to be promoted to a more responsible job.
Before promoting an employee, the company should know the employee's level of knowledge, skills and ambitions. They should know if that person really deserves that spot.
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 where she is incompetent.
Peter J. Lawrence, whose 1969 bestseller “The Peter Principle” satirically provided many insights on the hows and the whys of incompetents working among us, is now being taken more seriously.
People are promoted to a job they are incapable of doing, based on their previous performance. This makes most employees rise to their level of incompetence.