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Peter Principle

According to Kevin Kelly, 

a person in an organization will be promoted to the level of their incompetence. At which point their past achievements will prevent them from being fired, but their incompetence at this new level will prevent them from being promoted again, so they stagnate in their incompetence. 

Actually, a strong effect at work here is that it’s psychologically impossible to demote someone, which is what should happen in this scenario.