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Peter Principle Case Study

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Peter Principle Case Study
Peter Principle and how to avoid it in your organization
Mr. Amit Mehta who runs a manufacturing unit looked worried when I met him last week. During our meeting, he mentioned that Marathe who was recently promoted to the position of Production Manager is not performing well .I recalled Marathe who was working as Asst. Production Manger till recently was always a star performer. After becoming Production Manager only, his performance started getting deterioted .That exactly the cause of worry for Mr. Amit.
I call this as a typical case of Good soldier becoming a bad captain.
In my today’s article, I am going to explain what this phenomenon is called and how we can avoid a good soldiers becoming a bad captain.

During 1960s, Laurence Johnston
…show more content…
The principle explains that in any organization, people will keep on rising so long as they work competently. Eventually they will reach to a position at which they are no longer competent which means they have reached to their level of incompetence. There they will remain, unable to earn further promotions, but also clogg the pipeline for those who can still move …show more content…
Many organizations have a policy of giving a long rope for smooth exit .I find it as very practical approach for maintaining the general moral and avoiding resentment from those beneath them in the organization.

• Identify positions which don’t require team efforts .All those employees who are found incompetent can be shunted to these positions paving the way for the deserving ones .Start promoting to only those who have demonstrated the skills and cognitive abilities to perform at the next level.
• Identify star performers at every level in the organization, and don’t lose sight of them as they progress through the pipeline. Star performers, by their nature, disrupt the perceived natural order of most organization. Many a time’s incompetent managers resent them and withhold mentoring. If you find these stars working for an incompetent manager who resists developing or promoting them, as the senior leader, step in.
• Don’t promote for effort. While laudable, effort alone doesn’t drive the business. Results do. Promote when you see results that exceed your

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