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Since this is thought to be best for customers, it seems natural to think that competition between employees, or internal competition, will benefit companies.
Promoting internal competition is the idea behind having sales contests, commissions, bonuses, and other systems that reward a few top performers. At face value, the idea seems good. If you have people pushing themselves to win an award, then you will get better performance. In reality, such systems rarely work as planned. With a sales contest for example, it is usually clear early on who will be the winner. That person may then relax and do just enough to stay ahead of everyone else, and the others will quit trying so hard since they don't have a chance...
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