The “Peter principle” is the observation that in hierarchical organizations, people tend to be promoted until they reach their personal level of incompetence, where they remain until fired or until they quit. This is a poor way to do business, and to be avoided. Rehiring is costly and inefficient, as is paying people who are incompetent at their jobs. So how can managers and leaders sidestep this tendency?Peter Principle: A concept in management developed by Laurence J. Peter which predicts th...