I understand how encouraging competition can benefit an organization. By trying to perform better than others, people increase their productivity and it helps the bottom line. While the short-term benefit for the company are obvious, I am not so sure about long-term benefits. A few years ago, one of my previous manager could not make up his mind about who to promote. He hesitated between me and my co-worker. So he decided to spit up our group of 6 people in two identical groups of 3 people. My co-worker managed one of the group and I managed the other. This was one of the worse decision I have seen. My co-worker and I started competing for the management of the entire group and the competition became very ugly. She, of course, never played fair. I remember about her spreading lies about me or taking credit for my ideas or always interrupting me when I was speaking at meeting to repeat exactly what I was saying. Eventually I decided to leave. My work environment has become to unhealthy for me. I was spending all my energy fighting her or defending myself. Neither one of us, nor our manager, was really thinking about what was best for the company. At the end, the company lost productivity and motivation and a great employee.