All publications of ZAIN-UL-ABIDIN . کراچی , Pākistān
Nepotism is defined as the practice among those with power or influence of favouring relatives or friends, especially by giving them jobs. It is actually the unfair use of power for their families only. It can also be defined as hiring or encouraging a relative or friend, even if there are other certified candidates for the position. Nepotism in the workplace is not uncommon, since this is a practice that does not have any universal law attached to it. However, in recent times, states have passed laws to lower this practice, since it has many social issues involved in it. These practices can have spoiling effects on businesses—such as the support of non-favored employees or lowering the value and innovation of management. Nepotism is both seen in the private and public sector. However, based on research, it is actually more extensive in the public sector.
Nepotism is apparent in family owned businesses for the manifest reasons. Families would want to pass the business from generation to generation and this means that the profit and all gains will stay within the family and will be come into by family members. And other qualified people are not given opportunity to participate.
ADVANTAGES AND DISADVANTAGES OF NEPOTISM:
However nepotism has many advantages as well as may disadvantages, some these are discussed in below.
If practiced fairly (itself a disputable term in this regard), nepotism can be a true benefit, Sharon Nelton suggests, citing the example of Thomas Publishing Company. In 1998 there were seven third- and fourth-generation family members working for the company. The third-generation president, Tom Knudson, inspire nepotism among their independent sales contractors because he believed it resulted in high performance, stability, and long-term commitment.
Chad Kaydo also writes that nepotism may be applicable. For example, a top salesperson's relative may have many of the same qualities that make the representative successful. Enlisting family members can therefore boost both performance as well as detention.
However, nepotism is considered as a disaster. Lines Brothers in Britain, once a highly successful maker of Triang toys, was extend worthless in just a few years by its second generation of leadership. Yale Express, a U.S. delivery company, was bankrupt within five years of the second generation presuming the presidency.
Nepotism can contribute to lots of disadvantages to an organization such as unfairness to other employees, lower employees’ morale and pressure to the relatives themselves.
First and foremost, the disadvantage of nepotism is unfairness to other employees. The feeling arises because employer shows favoritism only to the relative’s workers. There is possibility that non-family employees will feel disappointed and prejudice when they are treated like that.
EFFECT OF NEPOTISM:
When nepotism give negative effects on a company, the morale of the employees decreases, and their self-confidence also decreases no matter how productive the company is but it result in lowering of a person self-esteem.
Employees may feel unrewarded, and as a result, they may lose motivation to do day-to-day tasks and they start to question their abilities. Companies should avoid playing favorites when it comes to work and productivity. This is unfairness to other people which affects the team as a whole, leading to declined performance. People should be treated equally at work. They should focus on creating a professional environment where everyone has equal chances of success.
Types of Nepotism:
Credentials nepotism: This form of nepotism is sometimes obscure but could be very dangerous to both an individual and an organization. In this situation people are given more credit for attending a class and passing but cannot apply what they have learnt. In short credential nepotism means giving someone more credit because they are certified.
Referral nepotism: Referral is an employment which is said to be natural. In this case, management asks high performers within the organization to recommend someone for a job opening that needs to be filled. Management hiring someone who turns out to be a poor performer but is tied to a high performer through friendship could lead to chaos in that trying to conclude that poor performer without upsetting the high performer is almost inevitable.
Contribution nepotism: This is a situation where persons within an organization receive preferential treatment because of a one-time contribution that made the organization more successful even though their succeeding performance has been poor or unsatisfactory.
Connection nepotism: is a connection which comes about by virtue of a shared experience such as attending the same school, attend the same church, from the same community, are members of the same sports club or were in the same profession. Connection nepotism is inclined to turn a blind eye to low employee performance and poor job fit.
An effective anti-nepotism policy can actually help the employers to avoid the approach of favoritism. Additionally, make sure all hiring, promotion, compensation, and other employment decisions are based on objective factors, including an individual's qualifications, ability, and performance.