The document summarizes Dr. Laurence Peter's Peter Principle, which states that in a hierarchy, employees tend to rise to their "level of incompetence". It explains that competent employees will continually be promoted until they reach a level where they can no longer perform competently. This causes bungling of jobs, frustration among coworkers, and erosion of the organization's effectiveness. The document also discusses corollaries of the Peter Principle, such as useful work only being done by those who have not reached incompetence and accomplishment being inversely proportional to hierarchical height.