The Peter Principle: Truth or Fiction?

the office at Medtronic( Rheya Bushan/ staff writer)

By: Rheya Bushan, staff writer

A new job. Working hard to progress to the next level, to get promoted. Again, and again. Until one day, no more promotions. The worker has reached the highest level they can. They simply can’t do it: get that one last promotion. They’re stuck.

This is the idea presented by the Peter Principle. The Peter Principle suggests that a person who excels in their job is typically promoted to a position that demands different, more difficult skills. If the individual lacks the necessary skills for this new role, they will struggle to perform effectively and will not receive further promotions. 

However, if they are competent in their new position, they will continue to be promoted, advancing through the ranks until they reach a level where their skills no longer match the role's demands. At this point, they will become incompetent and unable to progress further, thus remaining at this level, which is referred to as Peter’s Plateau.

A Canadian professor, Dr. Laurence J. Peter first recognized the theory, which he referred to in his book as The Peter Principle. The theory was originally intended to be satire and make people laugh at the oddly relatable situation many office workers face. However, it also made people wonder whether this was happening in society.

When this theory was introduced to the world in 1974, it wasn’t quite a big blowup. But lately, as companies have gotten more clogged up with people, it has resurfaced. Many YouTube videos have been posted about it, calling it the absolute truth of managerial positions.

A Senior Principal Research and Development (R&D) engineer working locally at Medtronic, Kevin Mauch, seems to be in between. The Peter Principle is challenging, but he commented, “To some extent, I agree with it, but I do not think it is universally an absolute.” Mauch thinks people can get promoted based on their current ability or potential to succeed in a newer, more highly ranked position. However, the further you travel up a hierarchy, the fewer opportunities you will have to move up the ladder. “That is, there is only one CEO, a few VPs, more Directors, and even more managers. So, people may move laterally across an organization to increase their skills and broaden their business knowledge, but not necessarily get promoted,” he explained, tapping the table.

A lot of other factors limit the opportunity for continual promotion. 

Oftentimes, managers, directors, and VPs leave their current organizations to move to another one because there is more opportunity, not because they were “incompetent” in their previous roles. 

Mauch revealed that, even though the overall structure of the Peter Principle is true, he believes “mature organizations [base] their decisions on promoting people on the following: a proven track record, ability, desire/initiative, and opportunity.”

However, there are a lot of flaws to this way of thinking, and those flaws have effects. To believe that one will only succeed if they are competent means that one has no ability for growth. It implies that once somebody cannot accomplish the requirements of that position, they will be stuck, forever wallowing in it.

There are so many ideas opposing that, such as the fact that sometimes an organization has a role that needs to be filled, urgently, and it’s easier to fill from within than to try to find a candidate on the outside. Mauch says that happens very often, as workers tend to “be promoted to a role out of convenience rather than true ability.”

That is, the hiring manager may be desperate to fill a role because the manager has too many direct reports and wants to “offload” these to another manager. Therefore, they could promote someone interested in the role but lacking all the skills. So it’s a “stretch” for them to succeed.

This way of thinking directly points to a fixed mindset. In psychology, there are two different mindsets a person could have: a growth mindset and a fixed mindset. The Peter Principle directly corresponds to the latter.

So, this concept, the idea of the Peter Principle can pertain to students here at MCHS. Lorna McBade from the Restorative Center says that this “applies to humans in general, not just in the corporate sector.”

For many students, it’s taking a more challenging class, and theories like the Peter Principle and a fixed mindset that can really set them off on a track for believing that they aren’t good enough, which leads to the opposite of persevering—apathy.

But she also believes that “every student and every staff member on this campus has the potential to embrace a growth mindset. For some it comes naturally, for others like me, I need to work on it.” And during these challenging times many students revert to fear and lack rather than limitless possibilities. “Fear and lack leads to complacency, which leads to stagnation, which then leads to lack of productivity and low morale.”

Companies have also begun to address it through better organizational and career development. However, this tends to make many feel frustrated, stagnant, and have a sense of impostor syndrome. In turn, this causes organizations to experience reduced productivity, low morale, and a decline in innovation.

For example, Medtronic has many initiatives that boost morale and a worker’s skill set in communicating and working with others. By focusing on employee development, fostering a growth mindset, and creating opportunities for lateral moves or skill-building, organizations can prevent their workers from feeling stuck at Peter’s Plateau. 

In a rapidly evolving job market, organizations that invest in their employees' growth and adaptability are better positioned to retain top talent and ensure long-term success. By recognizing the limitations of the Peter Principle and working to counteract them, companies can create more sustainable career paths for employees, leading to improved job satisfaction, higher morale, and ultimately, more incredible innovation and productivity.

And students, any other people in working environments can have the courage to try new things coupled with an optimistic outlook—a growth mindset. Even if they fail, there is something to be learned from the experience.

The Peter Principle may offer a thought-provoking view of organizational dynamics.  But it shouldn't be thought of as anything more than a principle, a theory. If one does they get stuck in the endless circle of dread when in reality one could be doing so much more right at that moment.