<P> The Peter principle is a concept in management theory formulated by educator Laurence J. Peter and published in 1969 . It states that the selection of a candidate for a position is based on the candidate's performance in their current role, rather than on abilities relevant to the intended role . Thus, employees only stop being promoted once they can no longer perform effectively, and "managers rise to the level of their incompetence". </P> <P> The Peter principle is a special case of a ubiquitous observation: Anything that works will be used in progressively more challenging applications until it fails . This is the "generalized Peter principle". Peter noted that there is a strong temptation for people to use what has worked before, even when this might not be appropriate for the current situation . </P>

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