TOPIC: Free PMP® Exam Sample Question of the Week

Recently, you promoted your star programmer, Sam, to lead the development team. Sam was a fantastic software coder, and you thought the promotion would mean that he could now share his expertise with the other development team members. However, you are surprised to learn that the performance of Sam in his new role is not meeting your expectations. Which empirical rule did you forget while considering the promotion of Sam?

A. Expectancy theory
B. Peter principle
C. Pareto concept
D. Murphy's law

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HINT: This management theory is also known as the 'halo effect.'

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Answer and Explanation:
The correct answer is B.

The Peter Principle states "In a hierarchy, every employee tends to rise to his/her level of incompetence." Most project team members are motivated by an opportunity to grow, accomplish, and apply their professional skills to meet new challenges. Their achievements continuously promote them within an organization to a certain level until they are unable to perform. Sam might have risen to his incompetency level. While the topic of this question is not included in the PMBOK® Guide, the Project Management Professional (PMP)® Examination Content Outline, June 2015, covers cross-cutting knowledge and skills with which PMP aspirants are expected to be familiar.

Note, the PMBOK® Guide is provided as a reference to indicate the Acquire Resources process described in the scenario.

Details for each option:

A. Expectancy theory
Incorrect. Expectancy theory is based on the concept that rewards should be given to workers (and is expected by workers) in relation to their performance, and that the recipients deserve and want the rewards. Expectancy theory does not apply to this scenario.

B. Peter principle
Correct. The Peter principle (also known as the 'Halo Effect') is a management theory that posits a candidate's successful performance in their current position is not a true indicator of how they will perform in a new role. That is, the skill set required for the intended role needs to be considered because being a strong performer in one role, does not necessarily transfer to being a strong performer in another role.

C. Pareto concept
Incorrect. The 'Pareto concept' is a made-up term. There is, however, a Pareto principle or diagram used in project management based on the 80/20 rule. This principle has little to do with the scenario described.

D. Murphy's law
Incorrect. The Murphy's law states "anything that can go wrong will go wrong." It has nothing to do with the scenario described.

Reference: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017, Page(s) 328; see also www.projectmanagement.com/articles/223915/The-Peter-Principle