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