promotion-strategies

This chapter explores the practical application and empirical investigation of the Peter Principle through a computational study by Pluchino, Rapisarda, and Garofalo, who simulated hierarchical promotions under different hypotheses of competence change. The study reveals counterintuitive results suggesting that promoting the least competent employees can improve overall organizational performance under the Peter hypothesis, challenging conventional promotion strategies. The chapter concludes with a discussion on the implications for human resource management, emphasizing the need for effective performance measurement, training, and flexible promotion systems.