Office Politics and its effects on organizational growth.. Is office politics Killing your Business?

Office politics is something which an employer cannot identify easily, because a group of people will speak the same language and the same words from different mount will be acceptable to the employer also. But it will affect the organization dangerously and stop the organizational growth.

A Real Story

Mr. Kumar was an intelligent and honest Personal Secretary who sometimes gives small suggestions to his boss. But his boss had much better vision and was not impressed with his all these qualities. Once his boss said "Mr. Kumar you are a very smart secretary, but I don't want smart people". This is the story of Year 1999-2000.

And now the organization grown in a shorter period and the story twisted in this way.

According to the growth of the organization, number of employees increased and few old employees became more powerful. Interaction of junior employees with top level management reduced and the senior employees started handing the role. It caused development of office politics and now it spread as personal and regional politics. Many inefficient employees got their undue promotion, financial growth, personal favour etc and many efficient employees were sacked from the organization. Good time started for "Yes Masters" and qualified and intelligent people run away from the organization.

Effects of office politics

Growth of the organization vanished and downward growth started. The organization lost at least 60% of business and now it is like a "sinking ship". Even in this position the political leaders in the organization are able to convince the management by blaming market trend as the reason for slows down the growth.

Still there are many organizations in the market which are successfully providing similar, but, quality services and expanding their business to many segments.

Reason for failure

Top level management blankly believed in the opinion of few employees who are representing different office political groups.
Work environment is humiliating. E.g. PHDs are reporting to Post Graduates. This is de-motivating the employees.
There is no promotion strategy. Employees are continuing in the same designation for the last many years.
Every Manager has a political group and no employee can survive without cooperating with group.
Students studied in the organization are being given job in the same organization. It is a technique to show placement record with high pay package. But this is the biggest reason for damaging reputation of the organization. E.g. Fresh MBAs of the same organization become faculty for the same course just after completion of the course. This is the biggest mistake one can do in a Business school. Because MBA is not about studying theories, but abount sharing experience also. What experience a person without experience can share?.
The organization is concentrating their business only in one area. Diversification is necessary for the success of any business.
In efficient campus heads and their team who do not have guts to express their opinion
Advertisement of the organization is limited in comparison to the competitors.
Office politics lead the organization to corruption and favoritism. e.g. When one of the oldest employees, after successfully completing many important assignments, went for the appraisal interview. He was shocked to see that few members of the interview team not even asked any question and marked him as an average employee. At the same time a six month experienced secretary of the interview team member got highest mark. The reason was, two of the interview panel members were heads of different political group and they had to promote their liquor party friend.
Organisation is spending money in non-effective areas. E.g. the amount spending for staff training is of no use, because of the big groups and their influence in decision making.
Experienced and loyal employees left the organization and outsiders are not willing to join in key posts.

Remedies

Some of the above said reasons may be affecting your organization growth also. The Remedies are:-

Identify people involved in office politics and give them compulsory retirement.
Avoid appointing own students in key positions like teaching.
Restructure the organization by promoting experienced and qualified people.
Design proper advertisement strategy
Avoid wastage of ineffective training related expenses
Recruit highly qualified employees for teaching position
Spend for effective advertising
Diversify business areas
The management should not blindly believe on senior employees who have the power to damage juniors' career