![]() ![]() ![]() One example would be giving a management position to the highest performing salesperson. Several studies have looked at promotions in dozens or even hundreds of sales organizations and found evidence of the Peter Principle in action. Specifically, the studies conclude that sales leadership tends to consider performance and not supervisory experience or other relevant skills. The Peter Principle in a sales organization Eventually, says the Peter Principle, all shift supervisor positions will be held by those who aren’t competent and this same story will play out at higher levels. Meanwhile, those shift supervisors who are able to perform well may eventually move up to store management positions. Some of those individuals will remain at shift supervisor positions, probably struggling to succeed, because they don’t have the skills or knowledge to do the job properly. Someone who excels at one of these positions because they are good at customer service or simply have a strong work ethic might eventually be singled out and promoted to shift supervisor-even if they have no leadership experience or relevant skills. Individuals are hired to work entry-level positions, such as front-counter, drive-thru or grill. The Peter Principle in a fast-food restaurant Here are three examples of how the principle might play out in various types of organizations. Real-life situations are some of the best way for many people to truly understand the Peter Principle. Peter wrote a book about the principle that was published in the late 1960s. The theoretical result of the Peter Principle in organizations is that, eventually, every position is held by someone who was not competent to hold it. The overall concept of his theory is that people within an organization are promoted until they reach a level at which they are incompetent.Īs a result of incompetence in their latest position, the person is not promoted further. The Peter Principle is a human resource theory. ![]()
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