How Company Politics Can Affect Projects & the Selection of Projects by Jonathan Lister , Demand Media

Company politics can have a vast influence on the project proposal process of a business and which projects the company chooses to undertake. These influences can encourage and discourage competition and innovation, depending on the nature of the company's political climate. Employees and managers at a small business must work together to manage company politics and not allow these maneuvers to overshadow the formal hierarchy.
Loudest Voices Win
Those who show no fear in participating in company politics are able to establish the relationships necessary to gain a powerful voice in the decision-making process. This can provide employees with an opportunity to display important job skills, which can turn political influence in the company into very real promotions. According to CNN Money's website, those who attempt to remain above the fray miss out on chances to establish a leadership presence and influence the progress of company projects, including deciding which projects get endorsed.
Circumventing Formal Hierarchy
Company politics circumvents normally established hierarchy within a business. This means a lower-level employee can establish a connection with an executive and gain a voice in decisions she may not otherwise have an opportunity to participate in. She can influence the decision-making process informally to gain approval for projects that benefit her department and work to kill others that may not provide as great an opportunity to shine. This can lead to unrest within the formal managerial hierarchy if other executives and managers notice a lower-level employee exerting undue influence over project development.
Politics Breeds Competition
The informal power structure that company politics creates breeds competition within the business's