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Arts and Culture

‘The Peter Principle’: Studies in the Key of Managerial Incompetence

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Posted on Dec 28, 2009
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Worst-case scenario: Jonathan Pryce’s Sam Lowry deals with the chain of command in Terry Gilliam’s 1985 corporate horror story, “Brazil.”

Could “The Peter Principle” (along with what might be called the Greed Principle) at least partially explain what’s happened to our country in recent months? We’re not naming names, but, as New Scientist magazine points out, the idea that managerial incompetence is not only common but potentially inevitable has repeatedly been referenced in academic research since its initial advancement in 1969.  —KA

New Scientist via Arts & Letters Daily:

The “Peter principle” undoubtedly appeals to the cynic in all of us. It is also quite possibly true, if subsequent academic studies are to be believed. The longer a person stays at a particular level in an organisation, the more most measures of their performance fall - including subjective evaluations and the frequency and size of pay rises and bonuses. It is a finding entirely consistent with the idea that people eventually become bogged down by their own incompetence.

Economist Edward Lazear, also of Stanford, is one person who has tried to pin down why. His suggestion is that it is down to chance. People mostly get promoted because they have performed a particular task unusually well. That could be because they are generally competent, but equally they might just by fluke have been well-suited to that one job.

Lazear postulated that every worker’s ability to do his or her job well is determined by their basic competence plus an additional transitory component determined by circumstance. There is no guarantee that this transitory component will be maintained after a promotion, especially if the new position requires different abilities. An electrician doing excellent work on the factory floor might not have the interpersonal skills needed to manage a team of electricians. A skilled and sensitive doctor might flounder when faced with the multitudinous difficulties of running a hospital. A cabinet minister prudently managing the finances of a nation might not necessarily be the best choice to step up and lead it.

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By liecatcher, January 4, 2010 at 6:10 pm Link to this comment

Hey DieDaily

“Where corruption is an option (which is generally
proportional to the government involvement) you can
add in the ruthless *sshole factor.  Either way, a
certain substance always floats to the top and I
ain’t talkin’ about cream.”

We know corruptibility is a prerequisite for
government work in general. Which specialty requires
ruthlessness connected with the anal orifice, which
as regards to politicians is hard to distinguish from
their oral cavities?
However,there is no ambiguity between good & evil
when listening to luminary & visionary Webster
G.Tarpley. His Youtube broadcasts & videos are gifts
that keep on giving because unlike folks who spend
too much time on the past, he lays a
foundation,profiles the players & provides facts to
understand exactly how we the people are being
screwed & what we can expect in the future . One bonus for me was his denunciation of the
Austrian School of Economics as well as the Chicago School. Naomi Klein did a
magnificent job of Relating the current depression to
the Chicago School of Economics & painted a picture
of Milton Friedman as a example of a person whose
evil lives after him. I couldn’t help connecting
Austria with the world’s most famous fascist,& the
Austrian Governor who married a Democrat & destroyed
California, along with the author of “END THE FED”, &
advocate of returning to the gold standard,& one who
worships at the Austrian School of Economics, Ron
Paul. Bush3 worships both Economic Schools as well as at the Jeremiah Wright pulpit.

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DieDaily's avatar

By DieDaily, January 4, 2010 at 9:30 am Link to this comment

By John Ellis, December 29, 2009 at 2:06 pm #

You said: Its like that best seller in the 1970’s titled, Up the Down Staircase, based on the theory that “Everyone rises to their highest level of incompetence.”

That’s EXACTLY what I was going to write! I think it’s a better theory than the Peter prinicaple, hands down. Where corruption is an option (which is generally proportional to the government involvement) you can add in the ruthless *sshole factor.

Either way, a certain substance always floats to the top and I ain’t talkin’ about cream.

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By I am a Man, January 3, 2010 at 6:23 pm Link to this comment
(Unregistered commenter)

I have seen it and suffered with it in multiple organizations.  The best run place I
ever worked was a GM plant in Wisconsin.  Too bad I was too young to appreciate
it.  Later I worked for people who could be considered evil in the way they treated
their workforce.  One thing I know, if you are a number to them you need a union. 
Do not expect to be promoted based on performance or qualifications.  My BS
degree has turned out to be exactly that to the people I work for now.  In fact it
seems that if you are working for these people, they think you must be worthless
BECAUSE you work for them.  I have tried to fight it but now it is affecting my
health.  I just want to escape but I have no alternative yet.  I am looking.  Thank
God for the Union.

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By LemuelG, January 2, 2010 at 3:09 pm Link to this comment

@Leefeller

“One may ask though bluntly, when in history have those in power ever been concerned with the masses? Not being well heeled in history, it would be interesting to find governments in history which were caring and benevolent.”

Napoleon is a good example, there are many many more - go read a book (and then another… rinse and repeat, ‘till dead).

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By Leefeller, January 2, 2010 at 9:15 am Link to this comment

John Ellis

“But when in the history of man has the intelligent middleclass, or our rich ruling class, ever stopped to ask a laboring man for advice?” 

Great post John Ellis. Futility is eternal, for the truth is in the pudding. History shows your premise is very strong indeed.

One may ask though bluntly, when in history have those in power ever been concerned with the masses? Not being well heeled in history, it would be interesting to find governments in history which were caring and benevolent.

Then the definition of caring turns into heaven forbid socialism and the word benevolent becomes to mean anything other than war hawk.

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By Mary Ann McNeely, December 29, 2009 at 6:47 pm Link to this comment

The place I used to work before I was finally able to retire was controlled by cardboard cut-outs straight out of The Peter Principle.  Their incompetence was both stunning and breath taking.  One was (is) an outright psychotic who should be confined to a mental institution.  They ran the place into the ground and from what I hear from people still employed there, they’re still digging.

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By liecatcher, December 29, 2009 at 5:20 pm Link to this comment

‘The Peter Principle’: Studies in the Key of
Managerial Incompetence  
Posted on Dec 28, 200
Could “The Peter Principle” (along with what might be
called the Greed Principle) at least
partially explain what’s happened to our country in
recent months?

To the casual reader this article may seem like fecal
vomiting because it’s
focusing on “...recent months? ” , when America has
been, and continues
to be enslaved for more than just the last 9 painful
years with no end in sight.
Then one might say: “well a writer needs to write” to
meet a quota, or keep
a job or whatever.
Actually, the problem is not just lack of context,
but ignorance of the enemy,
the miscreants who created the fascist Oligarchy that
we the people are
subjected to now, whether we refer to them as
banksters, or Government
Sachs. Furthermore, it doesn’t matter if we call the
current White House occupant
Bush3 or not, the important thing is that he is
continuing the destruction of
the U.S. with perpetual wars & and an escalating
defecit that can never be paid.
He pushed us into debtor’s abyss from which there is
no escape.
However, what I find very tragic & dangerous is not
recognizing the big picture,
and the geniuses pulling the strings leading us to
their
NEW WORLD ORDER:ONE WORLD GOVERNMENT.

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By Night-Gaunt, December 29, 2009 at 1:04 pm Link to this comment

Our power structures seem to promote the most ruthless and heartless to positions of power and how much they can brown nose & sweet talk the upper management not any real skills in actual managing. But then the premise of the article is correct and would be inevitable in its outcome. So how can one reach the top of our competence level without over shooting it?

In our present Great Depression we are just out sourced, in sourced and saddled with more work than ever for the least pay. If we complain we are out on the street in any right to fire state and someone else comes in to work (poorly) at a lesser price. Not conducive to competent work environments is it?

Good to see you Tony! AltNet tombstoned me but I returned under another name there. How are you?

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By tony_opmoc, December 29, 2009 at 9:38 am Link to this comment

The Peter Principle whilst sometimes obvious was never that much of a problem in companies and governments until around the time of Reagan/Thatcher and Friedman economics took serious hold. Even then the transition in power structures was gradual occuring over decades rather than years.

The transition from naturally rising to a level of incompetence to the power structures we have now, came from a deliberate fusion of greed/corruption and psychological profiling where the most important consideration was image projection, rather than content or ability.

Thus instead of someone in a position of power having a detailed understanding of all relevent issues, and a genuine desire and ability based on hard work, honesty, integrity and determination, to improve the lot of the entire structure, we end up with the equivalent of a TV showman in charge. His Presentation skills are phenomenal, but he has no detailed understanding of anything he is in control of. Not only that, his primary motivation is not the general improvement of his domain of power and all people within, together with effects beyond, it is his own selfish greed, performance and execution of power.

The effect is similar to someone who has the most wonderful skills with regards to wrapping a Christmas or Birthday Present. All the boxes look magnificent. Everyone is so pleased to open their present, until they unwrap the beautiful paper and find a human turd festering inside.

This change has spread throughout Western Culture, and the end result if not addressed will be the complete collapse of Western Civilisation. There is now some evidence that this collapse is now actually a primary objective of at least some of those who have infiltrated the power structures.

Tony

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By tony_opmoc, December 29, 2009 at 8:55 am Link to this comment
(Unregistered commenter)

The Peter Principle whilst sometimes obvious was never that much of a problem in companies and governments until around the time of Reagan/Thatcher and Friedman economics took serious hold. Even then the transition in power structures was gradual occuring over decades rather than years.

The transition from naturally rising to a level of incompetence to the power structures we have now, came from a deliberate fusion of greed/corruption and psychological profiling where the most important consideration was image projection, rather than content or ability.

Thus instead of someone in a position of power having a detailed understanding of all relevent issues, and a genuine desire and ability based on hard work, honesty, integrity and determination, to improve the lot of the entire structure, we end up with the equivalent of a TV showman in charge. His Presentation skills are phenomenal, but he has no detailed understanding of anything he is in control of. Not only that, his primary motivation is not the general improvement of his domain of power and all people within, together with effects beyond, it is his own selfish greed, performance and execution of power.

The effect is similar to someone who has the most wonderful skills with regards to wrapping a Christmas or Birthday Present. All the boxes look magnificent. Everyone is so pleased to open their present, until they unwrap the beautiful paper and find a human turd festering inside.

This culture has spread throughout Western Culture, and the end result if not addressed will be the complete collapse of Western Civilisation. There is now some evidence that this collapse is now actually a primary objective of at least some of those who have infiltrated the power structures.

Tony

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By TAO Walker, December 28, 2009 at 11:29 pm Link to this comment

What’s not being taken into account here is Peter’s original linking of his “level-of-incompetence” principle to individuals in hierarchical organizations.  For some reason the focus here is almost exclusively on “personnel” characteristics, instead, with no attention to the particular institutional “environment” in which the phenomenon can be regularly observed.

Pyramid schemes of all kinds exhibit the tendency Peter described, however, while more naturally organic social arrangements are notably free of it.  So maybe the most that can be safely asserted about the issue is that Humans embedded in hierarchical systems will generally “rise” to a level at which their abilities are insufficient to its demands.

That CONdition has hit the “global” privateering pyramid scheme with a vengeance, here in these latter days.  Everybody enmeshed in its toils is in some way or another “underwater,” and the irreversible collapse of the CONtraption itself is presenting problems which none among them has the competence to address to any genuine mutually beneficial effects.

Gotta give ‘em credit for making a helluva show of going-through-the-motions, though.

HokaHey!

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By voice of truth, December 28, 2009 at 8:21 pm Link to this comment

Is this article about Obama?  Because it sure as hell describes him.

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