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Is friendly workplace competition good?

I wonder if you agree with the statement that ‘competing with co-workers can improve the overall performance of the work/project and by having someone to compare yourself against, it can highlight your strengths and weaknesses’?

Based on my experience a bit of friendly competition can bring the best out of the team and benefits. On the other hand a competitive nature can cause inner conflicts leading to internal tension and disruption at work which could lower the overall productivity at work? I also found that some people don’t like to compete because it makes them to work harder but as a result they usually stay behind the rest of the team.