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Ten Absolute Necessary Principles of Corporation Management
1) Peter Theory
Each structure is made up of different position, grade, or estate, and everyone in it is one part of certain hierarchy. Peter theory is concluded by American scholar Laurence J. Peter & Raymond Hul through study the promotion phenomenon of some organizations. In various organizations, because employees who have excellent performance in their work are usually been promoted, some employees are promoted to positions unsuitable to them. Peter theory is also described as "upwards climbing" theory.
This phenomenon is ubiquitous in current society. A qualified professor can not do an official in charge. An outstanding athlete attempt and accomplish nothing since his raised to be a superintendent of gymnastic.
For an organization, when some unqualified staffs are promoted to the positions which are not suitable to them, the situation will be created of overstaff, low efficiency, unqualified managerial staff and stagnant development.
Therefore, the promotion method based on the contribution should be reformed. It cannot be concluded that a person can fulfill his duty successfully in higher position when he has an excellent performance in lower position. It is not a reward by promoting an employee to an incompetent position, but restrict his talent, also it damnify the company.
2) Wine and Waste Water Theory
If a spoonful wine is poured into a barrel of dirty water, you get a barrel of dirty water; if spoonful dirty water is poured into a barrel of wine, you also can get a barrel of dirty water.
In any organizations exist several trouble makers; it seems that the purpose of their existence is only to foul up the matters. More worse is that like putrid apple in a fruit box, if not treated in time, they will spread and corrupt the other apples. £ £ 
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