The achievement of organizational objectives depends on employee performance. The performance of employees is dependent on many factors. While organization takes utmost efforts in motivating employees to make them achieve desired performance, a significant factor which impacts employee both physically and mentally is power and politics. The political behavior of organization and even employees themselves can hinder the growth of the organization. Power and politics can create an unhealthy work environment. An unhappy work environment can demotivate employees to perform their job and affect employee’s productivity. While positive political behavior can bring in good results, often organizations face adverse consequences due to political behavior among its employees. Power and politics make it difficult for organization to achieve employee retention. This research study seeks to study the impact of work place politics on employee performance and arrives at a meaningful conclusion which can be used as basis for further research in these areas.