Productivity and quantifiable results are, in many companies, among the key parameters used to decide whether an employee will be promoted to a higher position. Typically, for example, the head of a sales department may become a team member with the best sales results. However, this approach has several pitfalls, which we will introduce in the following article, including the feared “Peter principle”.
An excellent specialist does not automatically make a good manager
As stated in an article on the website HR Director, one of the most common problems is the confusion of expertise in a certain field with managerial competencies. The ability to achieve excellent individual results does not necessarily mean the ability to lead people, motivate them, provide feedback, or resolve conflicts. A managerial role requires a completely different set of skills than the role of a specialist. Candidates for managerial positions should therefore preferably be selected primarily on the basis of their soft skills, such as communication abilities, popularity within the team, or resilience to stress.
Loss of top performance in the original position
Another risk is the so called double loss. By promoting an employee, the company may lose a top level specialist who stops performing their original work, while at the same time gaining a manager with limited effectiveness. Instead of multiplying performance through team leadership, performance is weakened. This effect is particularly evident in sales, IT, or technical roles, where individual performance is easily measurable and at the same time crucial for the company’s results.
Negative impact on team dynamics
The promotion of the best team member can disrupt relationships and workplace atmosphere. The new manager often finds themselves in a role where they lead former colleagues with whom they previously had an equal relationship. If they are not prepared for this change, they may struggle with setting boundaries, establishing authority, or objectively evaluating performance.
The risk of demotivation and the “Peter principle”
This approach is closely linked to the so called “Peter principle”. This phenomenon can be observed in many companies. It describes a practice in which people are repeatedly promoted based on excellent results in their original role, until they inevitably reach a position for which they are no longer suited and which lies beyond their competencies. The “Peter principle” has many negative consequences. An employee who was previously successful and confident may feel insecure, overburdened, and under constant pressure in the new role. This leads to a decrease in motivation, frustration, and in extreme cases even to departure from the company.
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