You've probably heard of the Peter Principle:
The Peter Principle is a colloquial principle of hierarchiology, stated as "In a hierarchy every employee tends to rise to his level of incompetence." Formulated by Dr. Laurence J. Peter in his 1968 book The Peter Principle, the principle pertains to the level of competence of the human resources in a hierarchical organisation. The principle explains the upward, downward, and lateral movement of personnel within a hierarchically organised system of ranks.
I'd like to propose the Clarke Principle:
In most organizations most employees are not allowed to rise to their level of competence.
It is sad, but it's true.
Is there another name for this?