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The Peter Principle And How To Beat YTECHNOLOGYPersonal FinanceAbout.comAbout MoneyManagement & Leadership.TRAVELDoing BusinessMOREInvestingVIDEOSSmall BusinessMoreGiving FeedbackThe Peter PrincipleHow to beat the Peter PrincipleBy F. John RehAdsShare thisManagement and LeadershipMANAGEMENT &LEADERSHIPCATEGORIESLeadershipManagement SkillsLeadership DevelopmentLeadership TrainingIn the 1969 book The Peter Principle authors Dr. Laurence J. Peter and RaymondHull proposed the theory that workers in a hierarchical structure get promoted tothe level at which they are incompetent and that they remain at that level for theremainder of their career. By extrapolation, this means that almost everyone in amanagement level position is incompetent. If they weren't incompetent, theywould have been promoted. While there is ample evidence to support The PeterPrinciple theory, it does not have to be the case.TODAY'S TOP 5 PICKS IN MONEY5By F. John RehManagement & LeadershipExpertManage PeopleProject ManagementManagement Careers andDevelopmentManaging Costs and MoneyBusiness Ethics1 of 6AdsSr. Leader Program INSEADinsead.edu/Leadership-CoursesDevelop new leadership capabilitieswith INSEAD Business School.Recession Proof Yourselfwww.smartdraw.comDo More With Less, Be MoreWhat Is The Peter Principle?4In the simplest terms, The PeterPrinciple is a theory that individuals in ahierarchy who do a good job arepromoted to the next level. If they arecompetent, they are promoted again tothe next higher level. If they are notIn Defense of theMessy DeskHow Students Can GetCar InsuranceDiscountsBy Emily DelbridgeCar Insurance and LoansExpert3Should You Start aConsulting Practice?By Jay NiblickConsulting/Freelance8/28/14 3:08 PM

The Peter Principle And How To Beat ItVIEW MOREFREE EMAILNEWSLETTERLet About.com send youthe latest from ourManagement & LeadershipExpert.SIGN UPYou can opt-out at any time.Please refer to our privacy policy for GivingFeedback/a/The-Peter-Principle.htmProductive Today! Free Trial.2014 Top 20 ERP Systemsbusiness-software.com/BestERPTop 20 ERP System RankingReport. Don't Decide on a Vendorwithout It Top Leadership Skills Leadership Course Beat It Negotiation Effective Leadershipcompetent, they are not promoted andthey remain at that level. Thus, peoplestop getting promotions and remain onelevel above the last level at which theywere competent.While this phenomenon is clearly true inmany cases, it is not always accurate.The individual may not have beenpromoted because there was no openingabove. Two senior research scientistswere peers and just about equal in age,experience, and talent. One waspromoted to Department Manager. Theother had to wait a couple of years until a similar position opened. He was notincompetent - far from it - he just needed a spot to open up higher in thehierarchy.Expert2The 10 FastestGrowingWomen-OwnedBusinessesBy Lahle WolfeWomen in Business Expert1So You Just Got a BigInheritance. NowWhat?By Julie GarberWills & Estate PlanningExpertVIEW MORE IN MONEYThe individual may have been in a higher position and chose to step down alevel. Many superior sales people get promoted to Sales Manager only todiscover that they don't like management and were happier in sales. They stepback into their previous role, where they were competent and very successful.The individual was unprepared for the position into which they were promoted,but has worked hard to develop the skills need to be successful at their newlevel. They may once have been a Peter Principle example, but they are nolonger.AdsEmployee Performancewww.cornerstoneondemand.comSimplify Employee PerformanceDownload Free WhitepaperBusiness Plan Templatebusinessplantemplate.growthink.comWith My Fill-In-The-BlanksTemplate Personalize, Print and2 of 6How Can I Beat The PeterPrinciple?In the article Inverse Promotions , welearn that "There is such pressure inAmerican business to move "upward"that employees continue to winpromotions until they reach a levelwhere they simply cannot do the workrequired of that position. Theseemployees end up desperately unhappy,MONEY VIDEOSWhy is a FinancialCoach Important? Finance Over 50Shane H. Siederman About Me8/28/14 3:08 PM

The Peter Principle And How To Beat ItYou're Done!struggling to survive and at the sametime costing the company money in lostproductivity, lowered morale, and less innovation." Because of the high cost of lostproductivity, lowered morale, and less innovation smart managers look for ways tobeat The Peter Principle.There are three ways to beat The Peter Principle: promote better, demote, back/a/The-Peter-Principle.htmWhat is ImmediateGrati!ication? Finance Over 50VIEW MOREIt may be foolish to suggest that we can promote better, given the amount of timeand effort that we put into asking the right questions and choosing the rightpeople, but there is always room for improvement.Demoting people who have reached their level of incompetence may sound harsh,but it is often the only way. And it can be a win-win situation, because theindividual who is at their level of incompetence isn't happy there and wouldprobably welcome an opportunity to return to what they did well provided therewas a face saving way to do it. That face saving way, of course, is InversePromotions, as described in this article.Training is always a good choice. If you have promoted an individual and discoverthat they are not competent at that level, additional training and/or mentoringmay give them the tools they need to succeed. Marcia Reynolds, author of"Wander Woman: How High-Achieving Women Find Contentment and Direction"claims that you can't " really measure the truth of the Peter Principle withoutanalyzing the training the person has had for the position they have moved into,especially if it's a promotion. With each promotion the person has to give up someof the things they have done before and take on new tasks, responsibilities andperspectives (including work values). What they did before will not ensure theirsuccess in the present. However, if the person doesn't get good mentoring, trainingand a manager who can support the shift, they are not given the tools to succeed.They could be competent if given the chance."Bottom LineBefore you give up on someone as a walking example of the Peter Principle, makesure you've done everything you can to help them succeed at their new level.Training, mentoring, and good leadership may be all they need to once againbecome a competent, rising star in your organization.3 of 68/28/14 3:08 PM

The Peter Principle And How To Beat ItRelated ArticlesPeter back/a/The-Peter-Principle.htmOur Expert RecommendsPerformance Management Instead ofLayoffsGiving FeedbackFlatten The PyramidWho wants to be a Manager?Pareto's Principle - The 80-20 RuleMoving Up In ManagementManagement & LeadershipEssentialsThe GeorgeCostanza Approachto LeadershipDevelopmentManagement SkillsThe Top 10PerformanceAppraisal Blundersa Manager canMakeManagement Skills12 Ways for Leadersto Build a SolidFoundation ofTrust with theirEmployeesManagement Skills10 ThingsEmployees May BeHiding from YouManagement Skills10 Ways to IgniteEmployeePerformanceThe Peter Principle: Is It True?Money Slideshows10 Secrets of theRich (Shhhh!)Investing for Beginners10 Tips to Picking aWinning MutualFundInvesting for Beginners9 Ways to MakeMoney in RealEstateLandlords & PropertyInvestments3 Steps to CalculateYour SocialSecurity Bene!itsMoney Over 5510 ThingsEmployees May BeHiding from YouManagement & LeadershipManagement Skills4 of 68/28/14 3:08 PM

The Peter Principle And How To Beat The-Peter-Principle.htmReaders RecommendWhat You Need to Know About KeyPerformance Indicators10 Things Employees May Be Hidingfrom YouPareto's Principle: How This "80/20Rule" Can Help YouHow Do You De!ine a Leader?10 Powerful Ways to Develop YourEmployeesAdsMoneyTheoryLeadership MentoringAbout.comInnovation LeadershipAbout MoneyLeadership PerformanceManagement & LeadershipManage PeopleGiving FeedbackThe Peter PrincipleToday's Top Stories7 Tips for Stress-FreeEntertainingBy Michael Wurm JrEntertaining Expert5 of 6Sloppy Joes with aSouthwestern TwistBy Jessica HarlanCooking EquipmentExpert10 Links BetweenThyroid Disease andFatigueBy Mary ShomonThyroid DiseaseExpertYour Back-to-SchoolClothing ChecklistBy Whitney FerrallKids' Fashion ExpertNeed to Take a BreakAfter Graduation?Here Are Some Ideas.By Penny LorettoInternships Expert8/28/14 3:08 PM

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Personal Finance Doing Business Investing Small Business More Share this Ads Sr. Leader Program INSEAD insead.edu/Leadership-Courses Develop new leadership capabilities with INSEAD Business School. Recession Proof Yourself www.smartdraw.com Do More With Less, Be More In the 1969 book The