The construction industry, like any other industry, may benefit from updating its working environment by adopting advances in technology,... Show moreThe construction industry, like any other industry, may benefit from updating its working environment by adopting advances in technology, updating the qualifications of its workforce, and ensuring that the right professionals are employed at each level. Having effective career development programs, filling project management roles with competent professionals, and promoting competent professionals ensures a successful project delivery. Promotion typically ensures candidates are rewarded for their performance and motivates them towards achieving higher success. Promoting the wrong person or having an incompetent person at any management level has detrimental effects to the project’s success. However, according to the “Peter Principle” (Peter, 1969), incumbents in a hierarchy tend to rise to “a level of respective incompetence”. That is, they are promoted based on their success in their current role, rather than their ability to perform in the new one. Through a review of the literature and a critical analysis of the existing research, this study examines the strengths and weaknesses of the Peter Principle and its relevance to professionals employed by construction companies and construction management firms in contemporary management practice. It also explores the reasons why an incumbent is stuck in a position for a long time. The findings of this research suggest that while the Peter Principle may have some limitations, it remains an important concept for managers to consider when making decisions about employee promotion and development. It concludes that while the Peter Principle may have a significant effect in promotion decisions, there are also external circumstances unique to each individual that may affect their performance. Show less
