Referred to promoting or hiring a family member in the smacks of favoritism. In some family-owned business, nepotism is expected and natural but in some companies, company laws it is forbidden.
It can have its advantages and disadvantages as some may find hiring a family member leading to swift trust. And if the relations get along and have the same vision for the company. Whereas some employees may find this unfair favoritism when they are overlooked by incompetent family members.
Usually, employees and people tend to believe that favoritism exists whenever a relative is hired. Irrespective of what their beliefs are on nepotism. Even if the relative is highly qualified for the job, employees tend to believe, is the family relations that got them the job.
Corruption is rampant but so is nepotism or favoritism granted to family members. Which also results in bias decision making and losses to a company’s performance. It hinders healthy competition due to people or employees lacking confidence and feeling demotivated. These consequences affect the performance of organizations and eventually impact economic development as a whole.
Few might be in support of nepotism, considering it a human ground where a blood-related person is chosen over other employees as it also reduces the risk of getting betrayed. Whereas others might believe that it closes opportunities and that there is no point in working hard if merit counts for so little.
This unfair treatment where people get demotivated and do no use their abilities and capabilities in support and to strengthen the company makes them lazy, removes competition and innovations hard to achieve. This starts at an early age in the family where favoritism is done by parents and later it influences the children’s decisions in their lives.
Justifications for nepotism can influence how a country perceives it. It is considered human nature in some countries. Example – during university enrollments, students from influential and powerful families get a higher chance of getting enrolled
In India, nepotism is a way of life where Rahul Gandhi also quotes “My father was in politics. My grandmother and great-grandfather were in politics. So, it was easy for me to enter politics. This is a problem. I am a symptom of this problem.”
Justifications for nepotism can influence how a country perceives it. There is no easy way to end it as it exists in every level of society. The citizens of the country should try and understand the consequences of this term, as well as the government, should take steps in preventing this practice