How Healthy Is Corporate Competition?
By Lynn Taylor© Smart HR Manager, April 12, 2010
Competition. The cornerstone of capitalism and of a company's success. True? The engine that keeps a firm running? It drives efficiency and there's a natural, subtle level of it in any organization. Look no further than sales and even "employee of the month" contests.
However, like an engine, it can also be harmful if not run correctly. When it veers into divisiveness, stifling competition and championing only solo flyers, it's no longer useful. In fact, in terms of corporate well being - it's lethal.
Take any sports team, such as the Los Angeles Lakers, with its outstanding stars Kobe Bryant and Derek Fisher. It's always the team that wins the game, encouraged by a great coaching staff.
The Perfect Storm for Office Politics
HR professionals see in high definition the cascade of effects caused by unhealthy competition. And the most pixilated result of this management style? Office politics.
Management by division results in employees trying to achieve their goals at the expense of nearly everyone and everything else. Suspicion and mistrust lurk among colleagues. Protection of one's turf rules over the larger success of the company.
Let's first take a look at the good, bad and then get to the "ugly" of corporate competition.
The Face of Healthy Competition
If there is such a thing as collaborative or healthy competition, what does that look like? Here are some scenarios to consider:
* Employees enjoy the spirit of competition, such as in a sales incentive program. The approach among team members might be, "That's great that you got the top spot. But watch out for me next month!" - followed by a genuine, congratulatory pat on the back (not a stab in the back!) See "Meet the Office Diplomats."
* Everyone has an opportunity to be successful in some specialized way, e.g., an employee can shine for displaying one of 10 different talents, such as creativity, customer service or leadership, to name a few.
* Competitive programs for charitable causes that benefit humankind. They may be by department or individually based, but they're not threatening. The fact that people are "competing" for a common goal can, in fact, foster a feeling of team building.
Unhealthy Competition: A No Sum Gain
The landscape for the converse is a "no-win" for any company, no matter how subversive:
* Employees are made to feel insecure about their positions, which engenders fear, mistrust and saps productivity.
* The employee focus is more on negativity versus growth.
* Innovation and building upon others' ideas becomes virtually impossible, because there is little opportunity or reward for such practices.
* Everyone feels that they must abide by this culture, and so it promulgates, and is modeled to more junior staff and new hires.
The stress it causes in the office is trouble in itself, but eventually, this jockeying for personal advantage also affects client retention. You see this happening front and center in a retail setting. Two sales associates not so unobtrusively clash over a commission, as the irritated customer looks on.
The Ugly: Office Politics
As an HR professional, you may see the management pendulum shift from "carrot" to "stick" from one hour or one day to the next - and where sticks abound, unhealthy politics thrive.
Growth-limiting beliefs, such as "one person's success is another person's failure," create a company of solo performers out to prove themselves as opposed to synergy and ultimately, profits.
Survey Examines Causes, Effect
The results of a national independent study commissioned by my firm, Lynn Taylor Consulting shows just how harmful office politics can be to a company's well being.
When asked, "Which of the following statements about office politics are most true?" - nearly 80 percent of employees thought that office politics created harmful stress. The survey also found:
* 71% said that office politics is one of the biggest reasons people quit their jobs.
* 65% said that office politics "is caused mostly by weak managers who want to be flattered, not challenged."
And the same percentage, (65%) thought office politics is caused mostly by favoritism.
HR, Employees Can Help Break the Cycle
According to Gary Kaplan, founder and president of Gary Kaplan and Associates, Pasadena, Calif., "Fear, insecurity, inequality of treatment and ambition often drive politics in the workplace. Through positive communication, coaching and training of management and employees, HR managers can counter office politics - with the goal being a strong team environment. These interventions help avoid unwarranted competition and individual combat warriors."
Kaplan says that HR managers can clarify the outcomes that the organization values for the greater good of the company. "Employees want more than a paycheck from their jobs. They want to feel safe, secure and appreciated at work," he adds.
Red Flags that Spell Action
HR practitioners can also turn up their radar for managers who promote divisiveness. I call these managers TOTS (Terrible Office Tyrants) - and they may be following management approaches that they have been taught at the company or in prior positions. But it's never too late to effect change for the better.
What are the warning signs?
Favoritism: Having a manager say that an employee is not working up to expectations is one thing. But rewarding sizzle over substance can demoralize an entire team, foster jealousy and create conflicts. Managers must offer praise and reward based on merit. If there are issues with an employee, they should be confronted directly, not manipulated through preferential treatment with other employees or through indirect punishment.
Backstabbing: Backstabbing or the betrayal of one's confidence will undermine trust and createpsychological conflict between individuals. Encourage your staff to get to the root of the problem and take steps to change the dynamics.
Disparaging actions: Managers and employees can have agendas where they put their own career ahead of others. They can adopt smear campaigns reminiscent of many political campaigns. Try to encourage managers to steer clear of this and focus on being their best.
HR can play an integral role in monitoring office politics and helping employees better manage their environment. If competition translates into a good-natured and engaged team, then your office will run akin to the proverbial well-oiled engine.
