THE PETER PRINCIPLE

[Nishank]

THE PETER PRINCIPLE

(Source: http://www.envisionsoftware.com/Management/Peter_Principle.html )

Bureaucracy at Work

The Peter Principle concept was introduced by Canadian sociologist Dr. Laurence Johnston Peter in his humorous and witty book going by same name. In this book, he explains the dangers and maladies of the bureaucratic organization witnessed during his extensive research into business organization and its management.

The Peter Principle book has attained such renown that The American Heritage Dictionary defines it as "The theory that employees within an organization will advance to their highest level of competence and then be promoted to and remain at a level at which they are incompetent."

Peter Principle Management is the concept that in bureaucratic organizations, new employees generally start off in the bottom ranks of the company, such as the mailroom.  As the workers prove their competence in the the lower level ranks, they are then promoted up the ladder, generally management. The process of working one's way up the hierarchy can continue ad nauseum, until the worker attains a position at which point they cease to be competent. Once there, the promotion process generally stops, as the bureaucratic system and policies make it very difficult to reduce someone's rank, once so attained, even if that person would be a much better fit and happier in a non-management role. The end impact of this principle is that most of the management positions within a bureaucracy are filled by those who are incompetent, who attained that superior positions by being rather good at very different work (and frequently easier) than the tasks currently expected of them.

Real World Application

According to Laurence Johnston Peter: Work is accomplished by those employees who have not reached their level of incompetence. Thus we can see why organizations still function even as Peter Principled employees accept one too many promotions. Laurence Peter provides an insightful analysis of why so many positions in so many organizations seem to be populated by employees who seem incompetent. This concept is likely to be ignored by most senior managers since to admit one's organization is suffering from this bureaucratic malady is admission that people have been improperly promoted. This, in turn, suggests that senior management might have attained their own level incompetence, and the problem is easily ignored, lest it become suggested that senior management be more closely examined for their incompetence.

Let me illustrate: Imagine that you're a proficient and effective software programmer. You're probably operating at peak competence in your role right now. Due to this exemplary performance, your  contributions result in your being promoted to management. Now, in this advanced position, you do little of the original work which earned you your well-deserved respect. In reality, very little of your new job is your favorite kind of work.  As a result, you're no longer as thrilled with your job, and it becomes obvious to everyone. As such, promotions stop, and you're stuck there, until you choose to retire or your company goes belly-up due to incompetent and detached management.

Companies will attract and expand on a certain level of incompetence. Once a company forms a culture of incompetence, only the incompetent staff will remain, and the competent ones will tire of trying to soar with eagles while surrounded by turkeys, and therefore leave.

In the end, stagnant companies end up with incompetent staff throughout the organization.  On the other hand, growing businesses constantly add new positions and employees at a rate that the eventual results of the Peter Principle may be delayed for as long as their growth continues.

When management consultants recognize that their clients' company is falling prey to the Peter Principle frequently suggest politically savvy reassigments for upper level staff, to allow newer employees a chance to make a difference.  Since newer employees have not attained their maximum level of incompetence, they can generally perform the work for which they were hired, increasing the overall output of the company.

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Regards,
Nishank