We Shouldn’t Promote People Based on Merit
Posted by Alex Drexel on December 23, 2009
Researchers have recently done some modeling around various approaches to determining promotions – they have discovered that randomly promoting people v.s. those who perform well in their current jobs results in a more effective organization. They say this is due to the Peter Principal, where people who add considerable value in the organization are promoted out of the jobs they excel at and into those they can’t handle – performance in their previous job wasn’t a good predictor for performance at the next level.
So I’m ready to put my employee number in a hat, how about you?
All kidding aside, I think this preferable state of randomness reveals an opportunity for software vendors – the challenge is to dig deeper into HRMS data so that true indicators for future performance can be established and surfaced when the time comes to decide who should move up.
You can check out the NYT article here: