The Effects of Organizational Politics on Organization Performance, A Case of Diamond Trust Bank (DTB)
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirements for Award
of the Degree of Master of Public Administration (MPA) of
Mzumbe University
This study explored the effects of organization politics on organization performance deploying Diamond Trust Bank Tanzania (DTB) in Dar es Salaam as a case. Specifically, the study attempted to examine the causes of organization politics, the main factors that lead the organization to practice politics in all aspects of the organization namely recruitment and appraisals, to determine the manner in which the organization politics improves the performance; and lastly to assess strategies that the organization use in managing the organization politics so as to ensure good performance of the organization. The study used a sample size of 50 respondents who were randomly purposively selected. Data were collected using questionnaires and interview methods. The findings of the study revealed that there is a strong relationship between organization politics and performance. The findings show that the performance of the organization is highly influenced by the practice of politics in the organization. The findings of the study revealed that the causes of organization politics include unclear performance evaluation systems, reallocation of resources, promotion activities and internal locus of control. The findings also revealed some strategies adopted to manage organization politics such as job satisfaction, fostering organization support, maintaining collegial organizational climate and allowing for employee control. The findings inform us that the practice of politics will persist since the employees perceive it as appropriate for achieving an organization performance. Therefore, the study implies that the country’s employment policies acknowledge that, employees need to be given allowances to cover their basic needs since relying on the salaries alone can be demotivating and thus, DTB should reconsider formalizing all sorts of work incentives which are necessary for enhancing productivity, contentedness, and commitment and conclusively job satisfaction.
This study explored the effects of organization politics on organization performance deploying Diamond Trust Bank Tanzania (DTB) in Dar es Salaam as a case. Specifically, the study attempted to examine the causes of organization politics, the main factors that lead the organization to practice politics in all aspects of the organization namely recruitment and appraisals, to determine the manner in which the organization politics improves the performance; and lastly to assess strategies that the organization use in managing the organization politics so as to ensure good performance of the organization. The study used a sample size of 50 respondents who were randomly purposively selected. Data were collected using questionnaires and interview methods. The findings of the study revealed that there is a strong relationship between organization politics and performance. The findings show that the performance of the organization is highly influenced by the practice of politics in the organization. The findings of the study revealed that the causes of organization politics include unclear performance evaluation systems, reallocation of resources, promotion activities and internal locus of control. The findings also revealed some strategies adopted to manage organization politics such as job satisfaction, fostering organization support, maintaining collegial organizational climate and allowing for employee control. The findings inform us that the practice of politics will persist since the employees perceive it as appropriate for achieving an organization performance. Therefore, the study implies that the country’s employment policies acknowledge that, employees need to be given allowances to cover their basic needs since relying on the salaries alone can be demotivating and thus, DTB should reconsider formalizing all sorts of work incentives which are necessary for enhancing productivity, contentedness, and commitment and conclusively job satisfaction.
Keywords
organization politics, organization performance, Diamond Trust Bank Tanzania (DTB), recruitment and appraisals