As employees confront scarce resources, increasingly competitive work environment, and an unstable economy, they must find ways to increase their perceived value to the organization. To do this, an individual may engage in political behaviors with the aim of positioning himself or herself as a powerful and crucial person. Organizational politics is a prevalent element of virtually all work environments, and its influence has been substantiated across a variety of domains. It is also acknowledged that the presence of political activity at work is largely perceptual. Specifically, individuals react to what is observed in the absence of subjective measures of political activity. The fact remains that perceptions of organizational politics represent an important scientific construct in their own right. These perceptions have been found to consistently relate to employee attitudes and behavior that will reflect views toward political behavior. A work environment that is political in nature can engender negative reactions on the behavior and attitudes of employees, such as diminished job satisfaction and lower organizational commitment, and such an environment can lead to greater turnover rates if employees are unable to tolerate the situation. This study investigated the relationship of perception of organizational politics to Organizational Effectiveness among Chinese company units with a sample of 176 participants. The results showed that perception of organizational politics was negatively related to job satisfaction and organizational commitment. In addition it was positively related to stress. Organization-based self-esteem moderated the relationship between perceived politics and Organizational Effectiveness. Implications of these findings are discussed, and recommendations for future research are provided.