During my Management Training at WAPDA Staff College Islamabad,Pakistan

2. REVIEWED BY
ENGR. MAZHAR ALI
MANAGER DESIGN NTDCL
E-MAIL:(ELECTRICAL_NTDC@YAHOO.COM)
THE PETER PRINCIPLE
Why things always go wrong
AUTHORS: Dr. Laurence J. Peter
& Raymond Hull.
BOOK REVIEW

3. SEQUENCE OF PRESENTATION
 ABOUT THE AUTHORS.
 INTRODUCTION.
 CHAPTER WISE REVIEW OF “ THE PETER
PRINCIPLE”
 COMMENTS/CONCLUSION.

4. ABOUT THE AUTHORS
 Dr.Laurence J. Peter
(September 16, 1919 - January 12, 1990)
 A Canadian educator and author.
 He was University professor.
 He received the degree of Doctor of
Education from Washington State University in 1963.
 He has written more than 30 articles in
professional journals and books including
Prospective Teaching.
 He is best known for the formulation of ( The
Peter Principle.)

5. ABOUT THE AUTHORS
 Raymond Hull (Feb 27,1919, June
6,1985)
 A co-author of Peter Principle
 He has written more than 30 TV/Stage
plays.
 He also wrote many non-fiction books,
numerous magazine articles, short stories,
and poetry.

6. Introduction
 Introduction has been written by Raymond Hull wherein
he quotes different observations of incompetent people.
 He narrates his meeting with Dr. Laurence J. Peter who
explained incompetence to him which led to writing of
this book.
 He mentions some characteristics of Peter Principle:
 The Peter Principle once heard cannot be
forgotten.
 It can help to understand incompetence in
yourself, and in others.
 By understanding incompetence in others, you can
do more work and can avoid painful illnesses.
(Raymond Hull)

7. Chapter I
The Peter Principle
 In a Hierarchy Every Employee Tends to
Rise His Level of Incompetence.
 Laurence J. Peter formulated the principal
from analysis of hundred of cases of
occupational incompetence. Few examples he
quoted:
 E. Tinker was a competent mechanic and
when promoted as foreman, became
incompetent.
 A. Goodwin was a competent General. When
promoted as a Field martial, he became
incompetent.

8. Chapter I
The Peter Principle (CNTD)
 So he observed that all cases had a common
feature. The employee had been promoted
from a position of competence to a position of
incompetence.

9. Chapter I
The Peter Principle (CNTD)
 He discovered that he has inadvertently
founded a new science, Hierarchiology, the
study of hierarchies.
 He saw that, sooner or later, this could happen
to every employee in every hierarchy.
 Who Turns the Wheels?
 Work is accomplished by those employees
who have not yet reached their level of
incompetence.

10. Chapter II
The Principle in Action
 In order to explain the Principle in Action, the
author quoted a Distribution Theory where he
saw that the teachers were distributed
unevenly in three classes:
 Competent Class.
 Moderately Competent Class (majority lies in this class)
 Incompetent Class.

11. Chapter II
The Principle in Action (CNTD)
 Examples (Line & Staff Promotions) The
author further described the individual cases of
the teachers to conclude his theory:
 B.Lunt had been a competent student,
teacher and departmental head but reached
his level of incompetence when promoted as
principal.
 Miss Totland had been a Competent Student
and primary teacher but reached his level of
incompetence as primary supervisor.

12. Chapter III
APPARENT EXCEPTIONS
 In this chapter the author explained that
sometimes someone see that there are some
exceptions to his Principle, so he made it clear
that:
“Do Not be fooled by Apparent Exceptions”
 The apparent exceptions are not exceptions.
The Peter Principle applies to all employees
in all hierarchies.

13. Chapter III
APPARENT EXCEPTIONS (CNTD)
 Some scenarios the author quoted:
 The percussive Sublimation:
 Some employees actually get promotion on other
post just to vacate the post for suitable and
relevant person. In this case promotion is
awarded:
 To keep the hierarchy intact as the person has
got some deep roots in the hierarchy.
 To keep the lower staff motivated.
 The Lateral Arabesque:
 Some new irrelevant post is created and incompetent
employee transferred to it.

14. Chapter III
APPARENT EXCEPTIONS (CNTD)
 Peter’s Inversion:
 The person is simply follow organizational rules
but not performing efficient work.Always obeys,
never decides.
 Hierarchal Exfoliation:
 The super-competent and super-incompetent
employees are not considered suitable for
organization.
They win no promotion, but even dismissed from
post.
They are usually fired because they tend to

15. Chapter III
APPARENT EXCEPTIONS (CNTD)

16. Chapter III
APPARENT EXCEPTIONS (CNTD)
 The Paternal In-Step:
 Step into his father’s shoes.
 Dismissal or removal of an existing employee
or a new position with impressive title is
created for his kid.

17. Chapter IV
PULL & PROMOTION
 PULL :
 An employee’s relationship−by blood,
marriage or Patron (known with a person
above him in the hierarchy) who can help you
to rise.
 Winning promotion through Pull usually
considered as incompetence in Co-workers
due to seniority factor.

18. Chapter V
PUSH & PROMOTION
PUSH:
 Abnormal Interest in study, vocational trainings
and self-improvement courses to get
accelerated promotion.
 However the same is unnoticeable in large
hierarchies where Seniority Factor is Stronger.
 Due to above, sometimes happen that a
person thinks that he has achieved his final
promotion. However, in fact he has several
ranks and years of promotion ahead of him.

19. Chapter VI
FOLLOWERS AND LEADERS
“Good Followers may not become good leaders
although they can win many promotions”
 Captain N. Chatters competently worked on
all ranks on army base and obeyed orders
cheerfully and exactly but when promoted to
Major Rank that is an authority post, he failed
to take leadership decisions. He was very
good as follower but proved incompetent as
leader.

20. Chapter VII
HIERARCHIOLOGY & POLITICS
 Political Party:
 Political party is a group of like minded
people cooperating for their common
interests, there are many lobbies and they
have special interests.
 The selected candidate may win an election
but may be proved as incompetent as a
legislator.

21. Chapter VIII
HINTS & FORESHADOWINGS
 Poets and intellectuals reflect the present and
upcoming status of people. The level of
incompetency of society is particularly foreseen
and quoted by their sayings:
 Omar Khayyam(in his Rubaiyat) says:
“The words of so-called intellectuals cannot
make me wise. I am the same as was
before hearing their comments.”

22. Chapter IX
THE PSYCHOLOGY OF HIERARCHIOLOGY
 Some persons who were exceptionally
competent in their field, become incompetents
when they change their field.
 Macbeth, a successful military commander,
became an incompetent king.
 Socrates was an incomparable teacher, but
found his level of incompetence as defense
attorney.

23. Chapter X
PETER’S SPIRAL
“Incompetence + incompetence =
incompetence”
Peter’s Spiral:
The non-progressive course followed by
organizations suffering from high-level
incompetence, usually produce multi-level
incompetence.

24. Chapter XI
THE PATHOLOGY OF SUCCESS
Pathology associated with placement at the level
of incompetence is called Final Placement
Syndrome:
 T. Throbmore Vice president, in charge of sales
at Clacklow office Machine Co. is frequently
prevented from attending company’s weekly
executive meeting by a migraine headache
that occurs regularly on Monday.
 The final placement syndrome victim can not
win any further promotion due to his level of
incompetency, the only solution to give him
distraction therapy for relief. i.e. to distract him
in a direction that he forget about his
incompetence.

25. Chapter XII
NON-MEDICAL INDICES OF FINAL
PLACEMENT
An incompetent employee who has achieved
final placement in hierarchy is can be recognized
from its unusual behavior or habits. e.g.
I. keeping the desk clean to show that he
completed his all work assigned to him. or
II. By keeping his desk busy with lot of files,
documents to show an impression that he
has lots of work to do.

26. Chapter XIII
HEALTH & HAPPINESS AT ZERO PQ(Promotion
Quotient)
How different employees react when they
reached their level of incompetence(called at
PQ zero level)
 The employee who realizes that they reach
their level of incompetence, they try to compete
the situation and rapidly falls victim to the
Final Placement Syndrome.
 The employee who does not realize keep
themselves perpetually busy, never loses his
expectation of further promotion and so
remains healthy and happy.

27. Chapter XIV
CREATIVE INCOMPETENCE
Peter’s Parry:The refusal of an offered
promotion is called Peter’s Parry. e.g.
 T.Sawyer a carpenter was very competent but
refused to accept post of foreman as
promotion because he knows the
responsibilities as a foreman.
 Creative Incompetence is better than Peter’s
parry.
 This is the way to avoid ultimate promotion
not by refusing promotion but do
activities that the promotion never offered to

28. Chapter XV
THE DARWINIAN EXTENSION
Two Ominous Signs:
 Hierarchal Regression
The examination system these days just
passes everybody that results in educational
incompetency.
 Computerized Incompetence
Humans are being very much dependent on
unintelligent computers rather than using
their own brains.

29. Chapter XV
THE DARWINIAN EXTENSION
Peter’s Remedies:
If you wish to survive and to have better condition
then:.
 Peter’s Prophylactics
 The promotion should be refused to avoid to
reach to the level of incompetency. Avoid the
useless and potentially dangerous promotion.
 Peter’s Palliatives
 The employees already incompetent should be
kept on the same posts by giving them some
other incentives.

30. Chapter XV
THE DARWINIAN EXTENSION(CNTD)
 Peter’s Placebos( an ounce of image is worth
a pound of performance)
 Mrs. Vender at her level of incompetence did not
spend her time in teaching Mathematics but in
extolling the value of mathematics.(She has an
image hence covers her performance)
 Peter’s Prescription
 Peter’s Prescriptions offers life-quality
improvement in place of mindless promotion that
leads to disregard.
 Cures for world ills(Develop rapid transit system
instead of going on moon i.e. very less cost as to
go on moon), avoid life-incompetence.

31. COMMENTS/ CONCLUSION
 In my opinion, it is a generalized principle and
not a law or management theory. But I believe
that it holds important lesson for us and
everyone should at least read and think about
the Peter Principle. In the last chapter, Peter
has prescribed to choose life-quality-
improvement in place of mindless promotion.
 His research work is providing and will provide
the awareness to people to recognize the
incompetency in themselves and others.

32. COMMENTS/ CONCLUSION
 The latest developments of Promotion policies,
Management Science, Information Technology
and latest training techniques has almost
overcome the Peter Principle in the developed
countries.

33. THANK YOU