The Peter principle, also called the Peter effect, is a concept that originated from the work of Lawrence J. Peter and Raymond Hull in 1969. It stipulates that workers are promoted based on their productivity, resulting in employees being promoted until they reach their level of incompetence. Incompetence is not something that workers are aware of and thus struggle to rectify. This principle implies that a person can be competent at their current position but incompetent for a higher one.

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