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Nepotism in the Workplace

Keywords: work area nepotism, nepotism effects


Nepotism can be defined as the practice of earning employment decisions based on relationship. It may also be defined as selecting or promoting a relative or good friend, even if there are other qualified candidates for the positioning. Nepotism at work is not uncommon, since this is a practice that will not have any universal law attached to it. However, in recent times, states have approved laws to lessen this practice, since it offers many moral issues involved in it. This paper will seek to identify nepotism and it would to the international, regional and local organizations where we've seen suspicions of nepotism. It will be difficult to confirm that nepotism does in fact appear in any group; however, based on the hyperlink between persons hired and their relationships, we've suspicions of the occurrences of nepotism. Nepotism is both seen in the private and general public sector. However, predicated on research, it is more frequent in the general public sector.

This newspaper will also show how nepotism can be detrimental the business on a whole, because there are many effects which result in nepotism. Some results which will be examined include, family discord in the work place, low staff morale, loss of skilled employees, use of the job to carry out unethical acts, use of position to serve their own interest and the detriment of the business and breach of confidentiality.

Nepotism is noticeable in family managed businesses for the obvious reasons. Families would like to pass the business from generation to generation which means that the income will stay within the family and you will be inherited by members of the family.

Consequences of Nepotism

Although there are results of nepotism an expert of this action can create balance and continuity in the organization which will refer to more family had businesses. Continuity because if it family managed, the business enterprise will continue by moving from technology to generation. Stability because, you will see succession planning which can bring about the company achieving success. On the other hand of the coin, the consequences out weigh the professionals of nepotism. It generates dissatisfaction among employees. When employees are dissatisfied they may have a sense that their effort and dedication are not accepted or identified by the business. Nepotism can also lead to the company losing proficient employees. This may in turn affect the organizations goods and services. Nepotism can also cause scam in the organization. In addition, family may bring their turmoil into the office. Employees may not be able to isolate home and work life. That is most seen in conditions where husbands and wives work together and may find it hard to work together. This might cause a decrease in the morale among staff members. A total malfunction in communication can result because of this, which will trickle down to other employees within the business.

Inequity of employees is another issue resulting from Nepotism. Because of this factor, employees tend to show their dissatisfaction by low development of work which includes attributed to issues in the work place in terms of upholding self-control among employees. Self-control is an concern because employees assume that since there is absolutely no justice in the business you don't have to check out any plan or process. Breach of confidentiality is another consequence of nepotism. This may occur due to lack of devotion among employees.

Employees may see this as an opportune time to allow them to practice unethical serves, because they consider because these were hired by a close or comparative any practice is valued in the business and they could use this with their advantage to try any type of unethical behavior.

Where nepotism is prevalent

For clear reasons nepotism is common in family possessed businesses and this can be viewed in the greater positive terms. Nepotism in family managed businesses can cause continuity in that the business enterprise will be passed on from technology to generation. There may be no honest issues mixed up in hiring family within a family managed business.

Nepotism is widespread in the government offices. For instance in america of America, Vice Chief executive Cheney's better half and his son-in-law Phillip Cheney were appointed by Leader George Bush and were given advanced position with the federal government. The positions given were Assistant Secretary of Status and Main Counsel for the Office of Management and budget respectfully (Congress, USA Today, 2007). President Bush was highly criticized because of this, because many think that were more experienced individuals who fit the work.

In Cuba Fidel Castro was Leader of Cuba for over forty years. His sibling Raul Castro is now President and has been around the positioning from since 2008 to present. Raul was presented with the positioning of President with no elections by the folks of Cuba. Due to the autocratic management style exhibited by Fidel and his sibling Raul. Many see this as an work of nepotism.

In relation to Grenada, we have seen information nepotism in the government sectors, for the reason that persons have been employed because of their affiliation and regards to government officials.

Research was conducted on some private owned companies in which we saw, a father, partner, girl and son-in-law were employed within the same corporation. Workers are of the thoughts and opinions these individuals were hired because of the family connection.

Test Violation

The regulations test

This test handles the reaction of your fellow workers, if someone determined in the occurrence of an employee, for example to employ your sister-in-law to take up the positioning of director of sales. There will be no suspicion or matter, if the business is a tiny family run business. Because the decision works and be perfectly understandable considering family possessed companies are normally handed down from era to era and the continuity depends on the mental ties within the family. However within any administration organization, if the same decision was made some fellow workers may start sensing insulted. They may start thinking if there is a fraud storyline in the making, and can surely voice their opinion and also this will create dissatisfaction.

Front site test:

What would it not appear to be if we read about it in a newspapers, blog, and twitter? What if the news read "President of Wal-Mart encourages his nephew as C. E. O. " This can no doubt create suspicion in the minds of stakeholders. Also when there is some degree of pity or awkwardness about the news headlines, one can expect there may be some level of nepotism engaged.

Exception test:

This test seeks to answer two questions.

1. What if everyone achieved it?

If every business proprietor decided to employ persons that are related to them or individuals that are friends, that could cause many implications, including the skills or requirements which may be needed at a specific time, a friend or a family may not have them, that will bring about inefficiency. Also that would mean that the primary requirement to secure a job would be on economical conditions "who you knew", as opposed to being judged on capability or merit.

2. Imagine if they achieved it to us? There is absolutely no uncertainty that if someone was denied employment because he's not a good friend of the employer's child, but had all the qualifications and skills necessary to carry out the job would be looked at to be nothing lacking ludicrous. And this would be impossible for anyone to sit and make sense of.

Ethical Approach

The utilitarian approach

This approach deals with proving the greatest good with the least possible harm. As it pertains to nepotism this approach is greatly violated, since nepotism is specifically associated with benefiting only the members of the family or to close friends of a particular specific and normally causes dissatisfaction to the majority of stakeholders. For instance, in a firm where the present Vice Leader may be contradicting the decision made by the president of that organization, the President may seek to find the Vice President terminated so that his friend could become the new Vice President so that the decisions now created by the President can get the go ahead quite easily. (this only benefits the Leader and the new Vice President)

Justice and fairness approach

This approach handles the question, "Are we knowing the rights of those affect?" There is no doubt that each staff should be treated equally; there should be no sign of favoritism in the task place. Therefore it wouldn't normally be moral for an company to grant a job to a fishing buddy rather than promoting an employee that is skilled, skilled and filled up with experience that can confidently fill up the vacant position. It's important to note in this case, there will be a chain response engaged because another worker may be looking forward for the person above him to be marketed, so he'll then fill the new vacant position. Therefore when someone on the outside is used to fill the positioning, there will be a chain result of disappointment within the business.

Types of Nepotism

Credentials nepotism: This form of nepotism may also be hidden but could be very dangerous to both an individual and a business. In this example people receive more credit for going to a category and passing but cannot apply what they have learnt. In short credential nepotism means giving someone more credit because they're accredited (Young, 2008).

"These were around through heavy and slim" nepotism: This form of nepotism is generally perverse and may create a whole lot of chaos. New performers in an organization have a tendency to realize that old performers (those people who have been with group from inception) receive preferential treatment by management. This clearly shows that old employees aren't kept to the same worker accountability benchmarks as the new ones (Young, 2008).

Referral nepotism: Recommendation is an occupation which is reported to be natural. In cases like this, management asks high performers within the business to recommend someone for employment opening that needs to be filled. Management employing someone who actually is a poor performer but is tied to a high performer through friendship may lead to chaos in that wanting to terminate that poor performer without upsetting the high performer is nearly unavoidable (Young, 2008).

Contribution nepotism: This is a situation where persons within an organization receives preferential treatment due to a one-time contribution that made the organization more successful even though their succeeding performance has been poor or unsatisfactory (Young, 2008).

Connection nepotism: is an association which comes about by virtue of a distributed experience such as going to the same institution, show up at the same chapel, from the same community, are members of the same sports activities golf club or were in the same fraternity. Connection nepotism is willing to turn a blind eye to low staff performance and poor job fit (Young, 2008).

Favoritism: The various types of nepotism mentioned previously brings about favoritism which is considered to be a killer of the morals o employees (Young, 2008).

Ethical Issues Involved

Illegal work discriminations/ inequality

Employment discrimination transpires when a worker or candidate is designated by an company or their associates based on factors such as gender, competition, age, sexual orientation, religion, disability and many other reasons. For example, an company who hires only family members of a particular gender and race oppose to employing persons who aren't relatives and are of a different races and gender (Employeeissues. com, 2010).

Wrongful termination

Illegal discharge

Constructive discharge

Wrongful termination is the termination of occupation because a worker is a certain age group, religion, nationality, gender or intimate orientation. For instance, an workplace dismisses an employee to hire his or her comparative because they share the same spiritual notion and are of the same competition. In this instance, the employer has involved in illegally discharging employees predicated on the issue of religious beliefs and competition (Employeeissues. com, 2010).

Constructive release is a kind of wrongful release which occurs when an employee relinquishes his or her job because of nepotism at work which makes working conditions unbearable (Employeeissues. com, 2010).


A person, business that has a immediate or indirect interest or involvement in an group is actually a stakeholder. A stakeholder make a difference or be affected by the activities objectives and guidelines taken by the organization. Different stakeholders are entitled to different considerations being that they are not all similar (Gitman, 2009).

The key stakeholders who are influenced by nepotism are employees, households, management, companies and companies, shareholders, modern culture and customers.

Research has shown that nepotism has a negative effect on job satisfaction, job turnover and Individuals Reference Management. Any undesired decision made by any organization effects intensely on management. Nepotism paralyzes and exposes a firm or establishment as it undermines their competence, intentions and degree of fairness. This may lead to lessen revenue, creation, quality of goods and services and company rankings (Arasli, Bavik, & Ekiz, 2006).

The stakeholder who is mostly damaged by nepotism is the employees. The employees as stakeholders are those who ought to see the course where the business is heading. They are the ones who are likely to indicate little changes that contain been made that aroused their suspicions. Nepotism is considered to be a practice which is inequitable to workers who are definitely more competent and competent. Nepotism directly impacts an employee degree of job satisfaction so that management will not recognize their commitment and effort designed to the business (Arasli, Bavik, & Ekiz, 2006). Nepotism created dissatisfaction, makes employees feel offended, decreases employees moral and also low level of discipline (workers who sense unfairness question whether rules should be adopted or not) in an organization. This may lead to staff producing unsatisfactory result, breach in the organizations confidentiality and insufficient commitment among employees. Nepotism may possibly also lead to company's reputation being tarnished since unsatisfied employees might use negative word of mouth to express their dissatisfaction. Company could suffer from reduced revenue, earnings and could increase fraud (Bush-Bacelis, 2010).

The negative effects of nepotism on the employees could be shown on their young families and eventually societies. Low morale, poor job satisfaction, job turnover are issues which happen from the task place and may add instability within the house. Nepotism could influence a family psychologically (e. g. disgruntled parents taking it from children) and fiscally (quitting job because of nepotism, therefore not being able to give family). Nepotism could lead to discrimination among community associates and those who have suffered with the repercussions of nepotism have a tendency to dislike those who benefited from it, competition, erotic orientation and religious beliefs (Morris, 2005).

A shareholders main goal is to maximize their go back on investment funds. With a concern such as nepotism that could lead several negative effects which have been mentioned above, investors would become very considering the issues at hand. This problem could determine the amount of return a shareholder gets on his or her investment. Unhappy share holders may seek to replace management and may even consider taking their purchases elsewhere. Professionals especially Human Resource Personnel should avoid such situations and really should always take into consideration the emotions of the shareholders when making decisions (employment decisions) within the company (Morris, 2005).

Customers are mostly worried about price, quality, or services of product. Customers acknowledge and evaluate quality based on the behavior and tone of voice and in particular the frame of mind of the employees who serve them. Poor service and repugnant frame of mind may lead to a person changing their buying patterns or choosing another place which gives better service.

Dissatisfied and furious customers would lead to diminish in profits, increase job turnover and lowering on dividends on ventures. Therefore, management must place job satisfaction for employees near the top of their list so that employees could better provide customers which would lead to increase earnings, profits, creation and quality (Bush-Bacelis, 2010).

Nepotism, although could profit an organization but it might easily eliminate it. Family members could bring in conflicts in to the work place which could hamper the effective functioning of the work place hence changing the business's main purpose from creation of quality goods and services and profitability to love and nurture of 1 another. Nepotism could create disagreements in a organization that could lead to hatred among employees and management. Lack of valued employees who added significantly to your day to day operations and success of the business is actually a severe repercussion of nepotism in the task place. This may to a company's lack of ability to maintain its main goal which is revenue and quality of goods and services (Ezhel, 2010).

Ethically Correct Actions

If Human Resource decides to employ family members either that of Executives or any other positions, they ought to ensure that they meet the pursuing requirements;

Appropriate education for job

Work experience between 3-5 years outside of the company

Pay and performance should be determined by the positioning which is being filled.

Implement and enforce national laws relating to nepotism. Anti-nepotism laws and regulations have only been carried out in some elements of the entire world like the United States and it needs to be enforced in places where it isn't part with their culture. Anti-nepotism laws will be unproductive in countries like Saudi Arabia since it is part with their culture (Bush-Bacelis, 2010).

Implement and enforce anti-nepotism policies which will are different based on the country. Certain states in america have implemented guidelines that prevent skilled couples from working under the same company while some think that it is only discrimination (Bush-Bacelis, 2010).

Managers should try to go all out to not to experiment with favorites and must also ensure that managers under them do the same (Young, 2008).

Human Resource Employees could start periodic employment surveys (every quarter) which would seek to help employees tone of voice their concerns about potential or genuine nepotism serves within the organization (Young, 2008).


Nepotism can be an issue that can be very difficult to control once there are relatives or family members who carry key positions in organizations and who have influence of who's hired and who is not appointed. In a small people like Grenada, it will be a difficult process to alleviate the challenge, since 'everybody recognizes everybody' in Grenada. The term 'yank string' will be an issue in our society.

Even in the greater developed countries, it could be a difficult concern to battle, since there's also members of the family and friends used in advanced positions who can be very important in the recruitment process. However, if guidelines and techniques are executed, the practice of nepotism can be decreased, and person will be appointed for their qualifications and skills instead of being hired because of a friendly or a family group relation.

It is important that organizations avoid the routines of nepotism. Predicated on our research conducted, nepotism could be very harmful to an organization and could result in a loss of revenue and this could also tarnish the reputation of the business.

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