We contend that a democratically-operated organization is normally una
ble to sustain a meritocracy (i.e., organization with a reward structu
re based on academic and/or professional achievement) because of ratio
nal behavior on the part of organization members. Briefly, rewards in
democratic meritocracies tend to be based on the preferences of the me
dian member rather than the best employees. As a result, these highly
productive members either reduce their level of output (''shirk'') - t
rading work for leisure - or exit the organization. This dynamic proce
ss mediocratizes the meritocracy by reducing the supply of highly prod
uctive employees, and the incentives to be productive within the confi
nes of the organization.