Peter Principle
en.wikipedia.org
en.wikipedia.org
In order to understand actually existing organisations, you are probably going to be much better served by the MacLeod Hierarchy/Gervais principle:
https://www.ribbonfarm.com/2009/10/07/the-gervais-principle-...
Peter is basically describing the clueless in this setup.
The hardest thing though is when the Peter principle occurs as organisations grow. The CEO of a 10 person startup might not enjoy running a 100 or 1000 person company. The skills required are very different.
Unfortunately, there are many counterexamples.