| Abstract: | The challenge of developing and maintaining an effective organisation is intimately linked with HR activities that include selecting and motivating employees. Many organisations engage in an internal selection process designed to fill upper level positions with employees who have proven their worth at a lower level in the organisation. However, some observers have questioned whether this approach actually results in optimal individual and organisational performance. Using the Peter Principle as a starting point, this article examines the evidence for problems with merit‐based promotions, as well as various explanations that have been advanced for why these problems occur. This article then proposes a new model, based on contemporary management theory and evidence, which addresses the question of why promotions fail. |
