The "Peter Principle" is a concept in management and organizational theory that suggests that people in a hierarchy tend to rise to their "level of incompetence." In other words, employees who perform well in their current roles are often promoted to higher positions within the organization, even if those positions require skills or competencies that are different from the ones that made them successful in their previous roles. As a result, they may eventually find themselves in a position where they are not as effective or competent as they were in their previous roles.

The Peter Principle was formulated by Dr. Laurence J. Peter and Raymond Hull in their 1969 book titled "The Peter Principle: Why Things Always Go Wrong." The book humorously explores how organizations can inadvertently promote individuals until they reach a point where they are no longer performing effectively due to a lack of necessary skills or competencies for the new role.

The concept of the Peter Principle has been widely discussed and debated in the field of management. Some argue that it highlights the importance of proper training, development, and selection of employees for higher positions to avoid the negative effects of the principle. Others emphasize the need for ongoing assessment and support to help individuals adapt to new roles successfully.