The Peter Incompetence Principle: The “Useless Boss” Theory
Very often, salaried or low-profile employees wonder how the one who was a direct colleague and is eventually promoted to a higher position or boss, ends up becoming so incompetent or inefficient. This curious but common phenomenon is called Peter’s incompetence, a concept that was born in the United States at the end of the 20th century.
Laurence J. Peter (1919 – 1990), was an educator, professor and writer of the famous Peter principle, or Peter incompetence , whose conceptual basis resides explicitly in administrative hierarchies in the world of work. That is, the author analyzed the meritocratic structures and methods that promote promotions in a company or economic organization.
As we have pointed out in the introduction, the Peter principle (formally called the theory of the useless boss) affirms and denounces the malpractice that commercial companies have in their system of promotion and promotions of the most competent employees. He categorically rejects this idea since, according to his study, this implies the inability and lack of problem-solving skills for a worker who assumes the position of top manager or a senior position with many parts of the organizational chart below their position of power.
That is to say, Peter’s principle of incompetence poses a paradoxical situation in which the organization functions despite the incapacity of senior officials.
So far everything sounds familiar, right? There is a problem that extends in all societies and in all business areas, where the business is governed by a pyramidal structure that ends up failing in its attempted completion. Qualified workers are mistakenly placed in positions that do not correspond, that do not end up being to their liking, or that are simply too difficult.
According to Laurence, it is inevitable that we will reach that peak point in our professional career that ends itself. No matter how excellent and privileged an employee is, the limit will come for one reason or another, but above all, because the time comes when our abilities no longer have the capacity to develop.
Peter himself stated: “in a hierarchy, Every employee tends to rise until he or she reaches his or her level of incompetence The cream rises until it is cut.” It is the best way to reflect the useless boss principle. We all have a limit of capabilities, of withstanding pressure, of assuming responsibilities and obligations. Often, this model employee becomes overwhelmed when he is moved from his area of activity.
Another very obvious reason is the simple fear of rejecting change. In these cases, it is when a worker refuses to accept that he is not cut out for that position and accepts the offer of his superiors so as not to disappoint them – quite a contradiction, yes – or not to miss an opportunity that, a priori, will take a long time to come. arrive.
Is Peter syndrome applicable today?
We cannot ignore the obvious, nor deny the greatest. According to a study by the EAE Business School, there is a worrying number of cases that occur in many highly prestigious companies, especially in multinationals, where The bad decision of a manager or executive can lead to large economic losses
However, it seems that this trend is changing, especially thanks to the inclusion of a new department that is increasingly essential in a company, Human Resources (HR). Nowadays, the opinion of economic experts and theorists is almost unanimous in including this department in their ranks to ensure long-term success.
Perhaps forty years ago Peter’s theory of incompetence had little response at an academic or scientific level, but nothing could be further from the truth. As usually happens with any type of refutable theory, this one in particular has become somewhat obsolete. To begin with, Lawrence forgot a basic premise in life, both personally and professionally, and that is that everything in this life can be learned at least in theory.
Returning to the previous point, companies invest great efforts in including a human resources team that avoids including less competent people in the workforce. A task that previously fell to the boss or manager, who, at a general level, can extract little from a person’s psychology to know if they are committed, if they are really motivated or if they want to promote themselves in the company.
That said, those responsible for the HR department can and should reduce the symptom described by the Peter principle even resorting to the demotion of a promoted employee to his initial position (a fact that was previously practically a chimera) without having to sanction or fire him, which has greatly facilitated the dynamics of internal promotion.
To consolidate promotional success, firms include very attractive training packages, motivate employees with a more direct involvement in important decisions within the company, reward commitment with language or interest courses of each employee and, in addition, They ensure that the hierarchy is horizontal and not vertical.
