Question

what is the impact of internal politics on incentives?

Answer 1

Internal politics lead to creation of power groups which have their own agenda, often driven by vested interests. More often than not, workplace politics impacts the productivity adversely, deteriorating interpersonal relations, promoting narrow minded approach driven by self- centeredness and affecting overall work culture. It diminishes creativity and positive thinking, hampers innovation and might also lead to substandard output of work and sub-par quality of products produced by company. As a result, such politics might have negative effect on incentives which are directly related to organizational growth, competitive position, work culture and profitability. One is more likely to see absence or scarcity of performance incentives in such companies, more so because if any incentives are granted, they would most likely reach unworthy employees, something that will create even more troubles than benefits.