A bit of competition in the workplace has been known to be good for business, keeping workers alert, creative and self-reflective – as long as the competitive spirit doesn’t go too far.

Competition in the workplace is a delicate matter. Too much or the wrong kind of competition can cause worker stress and create alienation. In an uncertain economy, people grow more concerned about job security and proving their worth to their superiors. This pressure to perform may result in rivalries between employees and can damage team performance.

“Too much intramural competition creates tension and stands in the way of collaboration,” according to OfficeTeam.

However, while too much competition among coworkers can bring out the worst in people, a healthy dose of competition can be a successful motivator.

“Research on social facilitation seems to back up the idea that having an ‘audience’ competing with you or simply observing your work may boost performance,” WebWorkerDaily explains. “This effect appears to be more pronounced in smaller groups and if performance is tracked individually.”

For competition to work among team members, it’s important to position it in the context of collaboration.

“If you find a way to work together, you can help compensate each others’ weaknesses and build on both your strengths,” WebWorkerDaily explains.

Cooperative competition can engender a sense of teamwork among workers when they are placed in groups and tasked with competing with one another.

“In cooperative competition, a group or team sets a goal and pursues it together,” Dummies.com explains. “Working together and helping each other releases brain chemicals that enhance motivation, pleasure and bonding. The brain strongly desires these feel-good chemicals, and so the team is intrinsically motivated.”

This can have a number of positive results. For example, cooperative competition can highlight each employee’s strengths and weaknesses and lead everyone to surpass their usual capabilities to achieve a goal they might not attain otherwise.

Indeed, if viewed and executed correctly, healthy competition in the workplace can keep individual employees on their toes, ratcheting up their game and inspiring growth. It can challenge them to “be all they can be.” This, in turn, typically boosts the team’s overall performance.

“Working toward a personal best is a healthy cooperative type of competition. The collaborative groups support each person’s quest to excel,” Dummies.com continues. “Post a team chart that shows each individual’s current production rate. Together the team brainstorms ideas that work for each individual. Individual workers implement strategies; results are tracked on the chart. The whole team celebrates a person’s increases.”

Where to start, then? The Business Finance Store offers these three recommendations for managers:

1. Help colleagues understand the benefits of both competition and teamwork. Define the actions and behaviors that are acceptable, and provide continual reinforcement through your own words and actions.
2. Anticipate conflict. People have disagreements, but don’t let them fester and ripple through the rest of the team or even the entire organization. Encourage employees to address their problem with the person directly involved.
3. Create a blame-free environment. Encourage employees to help each other be successful by holding each other accountable for carrying their weight, asking for help when needed and pointing out ways to improve their own and the team’s performance.

“When we think about competition, we shouldn’t associate it with things like playing dirty or focusing too much on the work of other people,” WebWorkerDaily concludes. “If approached in the right way, a competition — no matter how informal — can help us work better.”

Earlier

When Competition Goes Too Far

Mediating Employee Conflict

Don’t Let Squabbling Ruin Your Team’s Performance

Workplace Finger-Pointing is Contagious

Resources

The Team’s the Thing
OfficeTeam, Aug. 13, 2008

Work Better by Seeking Out Competition
by Celine Roque
WebWorkerDaily, May 31, 2010

Social Facilitation: How and When Audiences Improve Performance
PsyBlog, June 2009

Does Having More Competitors Lower the Motivation to Compete?
by Ed Yong
ScienceBlogs, June 28, 2009

How to Use Competition in the Workplace
by Marilee B. Sprenger
Dummies.com

The Advantages and Disadvantages of a Competitive Workplace
by Jared Lewis
The Houston Chronicle: Small Business

Balancing the Dynamics of Teamwork and Competition
by Deborah S. Hildebrand
The Business Finance Store, Sept. 2, 2011