How Money Works Why is Company Management Always Terrible? - How Money Works | How Money Works
Nov 21, 2025
Exploring the roots of poor management, workers frequently cite toxic leadership as a top reason for job changes. Enter the Dilbert Principle, where incompetent employees are promoted to sidestep disruption. Meanwhile, the Peter Principle illustrates how workers rise until they fail in roles they're unsuited for. Founder's Syndrome shows that even successful founders can stifle a company's culture. But hope lies in good management practices, emphasizing self-awareness and motivation over micromanagement. Tune in for insights on improving workplace dynamics!
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Management And Culture Drive Turnover
- MIT found workers cite management and culture as the top reason they look for new jobs, far above pay increases.
- Poor management and toxic leadership persist even at top firms like Google and Apple.
Dilbert Principle Explains Bad Promotions
- The Dilbert Principle explains firms move incompetent but non-firable workers into supervisory roles to reduce disruption.
- Those lateral moves make them look promotable and perpetuate poor managers higher up.
Peter Principle Creates Permanent Plateaus
- The Peter Principle says good employees get promoted until they reach a role they can't perform well.
- This creates permanent layers of incompetence when people plateau in unsuitable positions.
