Nepotism is only favoritism shown by the business to the family members or friends of the employer or the owner. When the friends or the relatives are granted a fresh job, promotion, or more career opportunity, of merit regardless, the act is known as nepotism. Sometimes, the managers create a like or dislike towards a specific team member and action accordingly.
This work is also known as nepotism. According to Huseyin Arasli from BNET, the CBS interactive business network, the service sectors in micro-geographies are inclined to nepotism at various work levels. The sociocultural, political, and economic structures are given as the common reasons for such favoritism in such geographies. What happens in the bigger places and organizations? Employees undergo nepotism in one way or another in bigger organizations as well.
This cronyism will create both short and long-term negativity among employees and in turn impact the organizational development. Let us look in detail about how exactly nepotism spoils employee workplace and morale culture. How does Nepotism Affect Employee Morale? Why do people choose to have their friends or relatives at their place of work?
What do they achieve, aside from benefiting their friends or relatives? According to Ron Prokosch, president of The Prokosch Group, an HR consulting firm, utilizing friends or family members will save costs on recruiting and training. Additionally it is believed to help reduce employee turnover because the relatives are highly committed to organizational growth. However, a lot of the right time, having a relative in the business spoils the morale of employees.
What are all the reasons? When the family members are given a key advertising or position, bypassing a worker with strong merits, it spoils worker morale as a whole. Employees believe that they may be being used without getting anything in exchange and begin looking for a chance to leave the business soon. Employees suffering from favoritism see no profession growth in the business and subsequently lose interest in the company’s development. The level of commitment, loyalty, and the sense of possession are low since the employees don’t achieve any personal development.
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The employees who manage the family members of the company find it hard to manage them and take corrective action if necessary. This greatly impacts team morale, which can lead to a high level of worker attrition. How would you feel if your partner faced you during an important public meeting? Well, organizations have different opinions on a wife and husband working together. To avoid personal workplace or conflicts stress, some organizations have policies against both spouses working together on their behalf. Some companies, the IT organizations that use an onshore-offshore model mostly, prefer to have both husband and wife doing work for them. They are able to send these to onsite projects together.
This helps the employers to maintain them on long-term onsite projects. So, how exactly does Nepotism Affect Organizational Culture? Some employers feel that the level of commitment, morale, trust, and commitment of friends or family members they hire is higher in comparison to others in the workplace. Read ahead to learn how nepotism in the workplace affects organizational culture. Control: Unfortunately, not all family members and relatives include the right merit to be used for a specific position or a job.
When the supervisor is not allowed to regulate a subordinate just because she is a member of the family of an employer, imagine what will happen to the company’s discipline. Nepotism allows guidelines to be damaged and can lead to a chaotic situation for business owners. Ethics: When relatives are involved, the company’s ethics can get spoiled and even get into ruins.
Let us take an example of Sathyam Computers, one of the India-based IT giants of mid-2000. Despite the apprehensions elevated by the panel members, its founder, Mr. Ramalinga Raju, went forward and acquired infrastructure companies possessed by his sons. This led the business to reduce its share by 55% and the investors experienced great loss.