Middle management promotion/hiring decisions based on politics instead of moving the business forward
Pros
Benefits in general -- including health care, employee discounts, bonus, above average vacation accrual per years served, 15 year sabbatical, casual attire.
Cons
Say you were the owner of a professional football team and had an opportunity to obtain the best quarterback in the league that gives you a better than 50% shot to win the Superbowl. Everything else being equal (e.g. salaries), would you (a) acquire/promote the super-star quarterback, or (b) make your buddy who once played pop-warner football as a kid, your franchise player in the key position as quarterback? Sadly, the answer is (b) in significant areas at corporate REI. Who, what suffers? The rest of the "team" who become demoralized and demotivated -- and more importantly, the business.