From Click Opera:

‘The other day I came across another such idea, one I hadn’t heard before. It’s called The Peter Principle, was first described by Dr Laurence Peter in 1969, and states that in a hierarchy every employee tends to rise to his level of incompetence. Basically, the principle states that people get rewarded for things they can do well by being promoted to the point at which they’re doing something they can’t do well. At that point the promotion stops, and there they stay.’:

http://imomus.livejournal.com/503455.html

http://en.wikipedia.org/wiki/Peter_Principle