Peter Principle

What is Peter Principle?

 

‘Peter Principle’ is a principle related to the merit-based style of promoting employees. It states that organizations promoting their staff based solely on their merit will eventually lead to them being promoted beyond their competencies.

 

The principle is named after Laurence J Peter and Raymond Hull who developed and discussed this concept in their book titled ‘The Peter Principle’, which was published in 1969.

 

Once the employee reaches this stage where they are handling a designation beyond their abilities, they are essentially stuck in a kind of void career-wise. They cannot proceed further due to their lack of skills, however, they will not be able to leave the designation as they will not be able to pass an interview for the same designation elsewhere due to them lacking the required abilities.

More HR Terms

Intangible Rewards

What is Intangible Rewards ?    ‘Intangible Rewards’ refers to those rewards that are provided to an employee which doesn’t have a monetary value. These

Human Capital

What is Human Capital ? ‘Human Capital’ refers to the intangible economic value of the employee which is the direct result of their experience and

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