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Also, many companies are loathe to demote to the highest competency job or to do a lateral move to where the person would then again become very competent at his job. Lateral transfers sometimes have a bad odor about them.
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Yup the Peter principle
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Yes, I am a bit surprised someone outside of management and business knows the name of the Peter principle. Sometimes it is just easier to say the principle than just the name.
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That's what happens when the protection is too heavy. Also, not having merit based promotions hurts. A lot of administrators get promoted beyond their competency level.