The Peter Principle resuscitated: are promotion systems useless?

Abstract

The challenge of developing and maintaining an effective organisation is intimately linked with HR activities that include selecting and motivating employees. Many organisations engage in an internal selection process designed to fill upper level positions with employees who have proven their worth at a lower level in the organisation. However, some observers have questioned whether this approach actually results in optimal individual and organisational performance. Using the Peter Principle as a starting point, this article examines the evidence for problems with merit-based promotions, as well as various explanations that have been advanced for why these problems occur. This article then proposes a new model, based on contemporary management theory and evidence, which addresses the question of why promotions fail.

‘It’s not all it’s cracked up to be’: Narratives of promotions in elite professional careers

“…Extant literature argues that through promotion systems, organizations create and communicate idealized images of successful candidates with the aim to motivate people and reduce the risk of appointing the ‘wrong’ person (Peter and Hull, 1969; Romaine, 2014). On one level, we may argue that the partner promotion system we investigated worked as a selection mechanism because it differentiated those who were ‘right’ and ready for promotion, that is, who fitted with the prescribed promotion criteria, from those who still needed to work on their promotional selves.…”

“…On one level, we may argue that the partner promotion system we investigated worked as a selection mechanism because it differentiated those who were ‘right’ and ready for promotion, that is, who fitted with the prescribed promotion criteria, from those who still needed to work on their promotional selves. As such, the promotion system was not ‘useless’ (Romaine, 2014: 410), but worked effectively. However, we cannot ignore the harmful effects, particularly for those who have internalized promotion criteria and expectations and feel a continued sense of not being able to live up to them.…”

“…Attending to people's subjective experiences of promotions is important because it can provide insight into the underlying complexities of promotion processes which have been acknowledged, but not sufficiently explored (e.g. Peter & Hull, 1969; see also Romaine, 2014).…”