An insight into a regular occurrence gained through long observation (empirical law). In a graduated, hierarchically structured social structure such as a bank, there is a tendency for an employee to rise to his or her level of incompetence. Because – whoever achieves above-average performance in his field of work stands out, and – as a rule, he is promoted to the top. This happens, of course, until he finally reaches a position for whose field of activity he has neither the necessary expertise nor the required experience. – He therefore easily loses the overview and makes costly decisions for the company. Since this could have a devastating effect on depositors, especially in the case of a bank, a supervisory authority is needed for this reason as well. – However, the Peter Rule does not also apply to the higher positions at state authorities and at the central bank! Because there for the ascent and/or entrance into the point is decisive usually the membership in a political party. – See all-rounder, assertion strategy, high flyer, high potential, hot spot, infighting, intangibles, job hopper, lemons problem, low performer, risk, personnel, whiz kid, underperformer, merit.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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