2min chapter

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Why Are There So Many Bad Bosses? (Ep. 495 Replay)

Freakonomics Radio

CHAPTER

The Age Old Peter Principle

Among promoted managers, those with low sales prior to their promotion are actually better at managing their subordinates. In other words, the Peter principle is as real as Lawrence Peter said it was. If the firm's only goal were to have the best possible managers, then the firm could by putting more weight on collaboration experience and less weight on sales numbers. That would seem to be a no brainer.

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