Editing Peter principle (section)

==Response by organizations==
Companies and organizations shaped their policies to contend with the Peter principle. Lazear stated that some companies expect that productivity will "regress to the mean" following promotion in their hiring and promotion practices.<ref name=Lazear/> Other companies have adopted "[[up or out]]" strategies, such as the [[Cravath System]], in which employees who do not advance are periodically fired. The Cravath System was developed at the law firm [[Cravath, Swaine & Moore]], which made a practice of hiring chiefly recent law graduates, promoting internally and firing employees who do not perform at the required level.<ref>{{cite web |title=Cravath, Swaine & Moore LLP |url=https://www.cravath.com/the-cravath-system/the-system-s-history.html |website=Cravath - The System’s History |access-date=5 September 2023 |language=en}}</ref> [[Brian Christian]] and [[Tom Griffiths (cognitive scientist)|Tom Griffiths]] have suggested the additive increase/multiplicative decrease algorithm as a solution to the Peter principle less severe than firing employees who fail to advance. They propose a dynamic hierarchy in which employees are regularly either promoted or reassigned to a lower level so that any worker who is promoted to their point of failure is soon moved to an area where they are productive.<ref>{{cite book |last1=Christian |first1=Brian |last2=Griffiths|first2=Tom |year=2016 |title=Algorithms to Live By |url=https://books.google.com/books?id=yvaLCgAAQBAJ&q=%22peter+principle%22&pg=PA219 |publisher=Henry Holt and Company|pages=219–220 |isbn=978-1627790376}}</ref>