“In a hierarchy, every employee tends to rise to his level of incompetence.”- [Ref: https://www.forbes.com/sites/roddwagner/2018/04/10/new-evidence-the-peter-principle-is-real-and-what-to-do-about-it/?sh=16d23a461809]
The Peter’s Principle has gained quite a fame for its roots being deeply trenched into reality. Let’s showcase this through an example:
For the past two years, Sameer had been employed as a website developer in a leading MNC. Being a software engineer, this is what he had been aiming to do in his life. His productivity got recognition and his feats helped him to rise in the corporate hierarchy. He was promoted to be the manager of the development team. The new position had its own perks; a hike in salary and other bonuses and benefits. Sameer was surely elated.
Six months later…
The managerial role did earn him respect and honour, but at the same time, Sameer missed his old role of just being a developer. His dissatisfaction had often peaked out as errors in his day to day operations. The errors were making him feel more miserable. He knew that humans are not perfect. But the problem was more than committing errors. He did not enjoy his present position. The combined conundrum of job dissatisfaction and errors had stagnated his career growth.
On the personal front, he felt gnaws of being burnt out. Nothing excited him anymore. The stress at the job gave rise to stress at home. The irritability had given rise to frequent meltdowns and that took a toll on his family life. Sameer realised that if things continued in this manner, the day won’t be far when either he or one of the family members will have a health crisis.
Sameer realised that he needs to take the matter up with his immediate supervisor and give up on his role of being a manager.
The managerial role was taken away from him and he was asked to settle as a senior developer with a pay cut. This, of course, was unacceptable and Sameer took up a job with a leading software developing company with better pay and suitable work responsibilities.
Meanwhile, the company lost one of the best web developers and had to launch on a headhunt to fill into the empty position. This took months and a loss of resources.
From the above picture, one thing is surely visible. If the employee is not being rewarded as per aspirations, the loss is borne by the employer.
So, if the candidates are not matched with the right awards, chances are that their aspirations will take a detour to find a place where it does.
The same process and outcome of appraisal cannot be for all.