Technology Review: Blogs: arXiv blog: Why Incompetence Spreads through Big Organizations
Promoting the people most competent at one job does not mean that they'll be better at another, according to a new simulation of hierarchical organizations.
But is there a better way of choosing individuals for promotion? It turns out that there is, say Pluchino and co. Their model shows that two other strategies outperform the conventional method of promotion. The first is to alternately promote first the most competent and then the least competent individuals. And the second is to promote individuals at random. Both of these methods improve, or at least do not diminish, the efficiency of an organization.
"All new members in a hierarchical organization climb the hierarchy until they reach their level of maximum incompetence."
Person is good at job, person is promoted. Repeat until person ends up in job they're not good at.
Agent-based simulation of the Peter Principle