This study focuses on Causes Identification of Employee's Politics and its Impact on Performance of Banking Industry in Pakistan. Researcher emphasized on language and caste, experience and position, cultural animosity, religious lobbies, gender discrimination and referral employment. Employees' politics exists in every organization and is playing an essential role. This study is important for employee's performance. Employees are our prime assets who can make the organization better and if they are not satisfied with their jobs there is no productivity in the workforce. Power is a major factor that cannot be rejected and it is key force of any industry. Power and politics exist in each organization although it is simpler to converse about gender or money than about power almost certainly due to disagreement or due to penalty that can be born of the two. The focus should be on Standardized Human Resource Management (best person should be posted to best job, bracing courses, conducting orientation on emerging banking and problem solving. Administration should conduct the meetings with employees and resolve their problems. There should be transparency and merit system in all matters.