ORGANIZATIONAL

POLITICS
Introduction

 Organiztional Politics are informal, unofficial,an sometimes behin

efforts to sell ideas, influence an organiztion, increase power or to
achieve other targeted objectives.
 Use of power and influence to achieve personal or group objectives.
 It is self-serving behaviour, not approved by organization.
Common Examples

 Building Alliances- to gain support or to counter the influence.

 Strategic Information Sharing- to protect own interests.
 Playing Favourites- based on personal relationships.
 Blocking Initiatives- that are not in their best interests.
Features of Organizational Politics

 Purpose is personal gain not organizational gain.

 Deliberate attempt to broaden its power base.
 Not part of a person’s job requirement, used to benefit a person.
 May be legitimate or illegalmate political behaviour.
Why politics occurs?

 Competition for Resources- To gain advantage over others for limited

resources like funding, staff, and promotions.
 Ambiguity- Unsure about org. goals, roles and responsibilities.
 Power imbalances- Certain individuals or groups have more power or
influence than others.
 Personal differences- like personality conflicts, trust issues etc.
 Organizational Culture- Org. rewarding individualism rather than
collaboration and teamwork.
Cont…

 Pyramid Shaped Structure- The competition for power becomes more

intense.
 Emotional insecurity- Ingratiating with superiors due to lack of talent or skill.
 Manipulative tendencies- Manipualtive nature to gain personal benefit.
Types of Organizational Politics:

 Coalitions- Involves formation of groups or alliances to achieve a shared

objective or common interest.
 Backstabbing- Using deceitful tactics to advance one’s own agenda like
rumours or gossips.
 Lobbying- Influence decision making by gaining support from influential
people within.
 Image building- Creating a positive public image or reputation, often at the
expense of achieving tangible goals or outcomes.
Cont..

 Information hoarding- Withholding important information to influence

over others.
 Scapegoating- Blaming others for failures or mistakes to deflect attention.
 Divide and Conquer- Ancient military and governmental strategy.
 Play territorial games- Involves protecting and hoarding resources that
give one power.
Strategies to exercise control:

 Build strong relationships- can foster trust, collaboration and open

communication.
 Shared goals and objectives- helps to align interests and reduce the potential for
political behaviour.
 Encourage transparency and openness- Helps reduce the perception of hidden
agendas or power imbalances and promote more trusting.
 Address negative behaviour- Involve providing feedback or coaching to
individuals who gets engaged in negative behaviour.
Cont..

 Foster a positive culture- Promote a more productive and fulfilling work

environment.
 Develop negotiation skills- Can help individuals or groups to find mutually
beneficial solutions to conflicts or disagreements, and can help to promote
positive political behaviour.
 Avoiding Favouritism- Try impressing by work related activities rather than by
manipulation.
Consequences of Organizational Politics:

 Low job satisfaction- People who dont recive promotions or rewards may have lower job
satisfaction.
 High tension- As others are overtaken by political behaviour, it increses his job stress.
 Organizational Conflicts- Occurs from the fact that they must share scarce resources or
work activities.
 Goal displacement- Power base broadens and leads to target displacement.
 Low performance- Reuces people’s motivation to work which negatively affects
performance.
 High Absenteeism and turnover- Due to above effects absenteeism increases.
Effect of Organizational Politics:

 Jealousy-This is largely common among peers and colleagues in same

departments or different departments of the same organization
 Struggle for Power- It is here that the mentality of comparison, as a basis of
measuring his self esteem.
 Limited resources- Like pay rise and promotion opportunities being not freely
available creates pressures and feeling of competition among the fellow
members of an organization
 Subjectivity of Evaluation-. A major part of performance evaluation that in turn
determines compensation is subjective that leads to the same cycle of
impression management in the eyes of one's superior. 
Causes of Organizational politics:

 Individual Level:
 High Self Monitors 
 Internal Locus of Control
 Organizational Investment 
 Perceived Job Alternatives 
 Expected of Success
 Organizational Level
 Promotion opportunities 
 Low Trust 
 Reallocation of Resources 
 Role of Ambiguity 
 Unclear Performance Evaluation system 
 Democratic Decision Making
 Self serving senior Managers
Case Study-1:

 One case study that illustrates the impact of organizational politics on a workplace is the
Enron scandal. Enron was a major energy company that was found to have engaged in
widespread financial fraud and accounting irregularities, ultimately leading to its
bankruptcy in 2001.
 At the heart of the Enron scandal was a corporate culture that valued political maneuvering
and individual interests over ethical behavior and organizational goals. Executives at
Enron were encouraged to focus on their own financial gain, often at the expense of the
company and its shareholders.
 Enron's corporate culture was characterized by a focus on short-term profits, aggressive
accounting practices, and a lack of transparency and accountability. Executives were
rewarded for finding creative ways to inflate the company's financial results, often through
the use of complex financial instruments and off-balance sheet transactions.
 Despite warnings from whistleblowers and others about the company's unethical practices, Enron's
executives continued to engage in financial fraud and accounting irregularities, ultimately leading
to the company's collapse.
 The impact of Enron's corporate culture was far-reaching, with many employees losing their jobs
and investors losing millions of dollars. The scandal also had broader implications for the financial
industry and led to increased scrutiny and regulation of corporate governance and accounting
practices.
 The Enron scandal is a stark example of the impact that organizational politics can have on a
workplace. When individuals and groups focus on their own interests and engage in unethical
behavior, it can lead to significant negative consequences for the organization and its stakeholders.
It is important for leaders to be aware of the potential for political behavior within their
organizations and to take steps to promote a positive and ethical corporate culture.
Case Study-2:

 One case study that illustrates the impact of organizational politics in the workplace is the Wells
Fargo account scandal. In 2016, it was discovered that Wells Fargo employees had opened
millions of unauthorized accounts and credit cards for their customers without their knowledge or
consent, in an effort to meet aggressive sales targets and earn bonuses.
 The account scandal was found to be the result of a highly competitive and political work
environment, in which employees were incentivized to meet sales targets at all costs. Employees
reported feeling pressure to meet unrealistic targets, and were threatened with termination if they
did not meet their sales goals.
 The organizational politics at Wells Fargo were characterized by a focus on short-term gains and a
lack of accountability. Executives and managers were more concerned with meeting sales targets
and earning bonuses than with ethical behavior or the well-being of their customers.
 The impact of the account scandal was significant, with Wells Fargo paying out millions of
dollars in fines and restitution to affected customers. The scandal also had broader
implications for the financial industry and led to increased scrutiny of sales practices and
regulatory oversight.
 The Wells Fargo account scandal is a stark example of the impact that organizational
politics can have in the workplace. When individuals and groups focus on their own
interests and engage in unethical behavior, it can have significant negative consequences
for the organization and its stakeholders. It is important for leaders to be aware of the
potential for political behavior within their organizations and to take steps to promote a
positive and ethical corporate culture. This can include creating clear values and goals,
providing training on ethical behavior, and holding individuals accountable for their
actions.