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We provide a technical report on a computer simulation of generaleffectiveness of a hierarchical organization depending on two main aspects:effects of promotion to managerial levels and efforts to self-promote ofindividual employees, reducing their actual productivity. The combination ofjudgment by appearance in the promotion to higher levels of hierarchy and thePeter Principle (which states that people are promoted to their level ofincompetence) results in fast declines in effectiveness of the organization.The model uses a few synthetic parameters aimed at reproduction of realisticconditions in typical multilayer organizations.

Dilbert-Peter model of organization effectiveness: computer simulations