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Argues that hierarchical level is frequently not given enough consideration in analysing managerial jobs. Describes the qualitative differences existing at the various hierarchical levels in terms of time‐span, task complexity, and mental capabilities required. Specifically argues that the cognitive complexity required at senior managerial levels may be a liability at lower managerial levels where direct judgment and quick action are needed. Consequently, postulates an inverse “Peter Principle”. Elaborates on the implications of this inverse “Peter Principle” for management selection promotion and development of these hierarchical differences.

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