Nepotism: A Double-edged Sword

 By: Jolina L. Balbas & Vernice Santa P. Guzman

Abstract

 

In the quest for a fair and equitable society, one of the major obstacles we face is the general issue of nepotism. Nepotism, the act of favouring relatives or close associates in professional or social settings, goes against the principles of meritocracy and equal opportunity.

 

Some people say that nepotism is just a natural tendency to help and trust people we know, while others say it's an intentional misuse of power and influence. On one hand, nepotism can make people more loyal and trusting in a company, which could make it more stable and cohesive. On the other hand, when workers think someone is being favoured, it often leads to inefficiency, vengeance, and low morale. To truly understand the unfavourable effects of nepotism, we need to look into all of its different aspects and points of view. This paper looks at the complex effects of nepotism on business success, employee satisfaction, and organizational culture by looking at a lot of previous research and case studies. The results show that nepotism can help in the short term by making employees more reliable and making communication easier, but it is very bad for total efficiency and fairness. At the end of the paper, suggestions are made for how to trade with the double-edged sword, to reduce the damage it does to the organization.

 

Keywords

nepotism, favouritism, work ethics, meritocracy, double-edged sword, career advancement, family ties, social networks, employee morale, discrimination, conflict of interest, corruption

 

Introduction

 

Nepotism has always been a challenge in the workplace, politics, business, education, and philanthropy. Despite its common occurrence, it continues to be a subject of controversy. The Latin root of the word “nepotism” is nepos, which means nephew or grandson. However, the word itself comes from the Italian nipóte, which refers to any male or female family member (Bellow, A. 2003). The origin of the term “nepotism” comes from Catholic bishops who would bequeath wealth, property, and priesthood to their “nephews”. The nephews were usually their illegitimate offspring, and it served as a way for church clergy to both own property and to retain power in their families (Bellow, A. 2003) and (Jones, R.G. Ed., 2012).

 

Aristotle, the renowned philosopher, famously stated, “Equals should be treated equally, and unequals unequally.” Aristotle’s principle serves as a foundation for ethical decision-making by emphasizing the importance of treating individuals fairly according to their worth and circumstances. However, practices like nepotism directly oppose this principle, therefore compromising equity and establishing an imbalanced competitive environment.

 

Nepotism deliberately violates Aristotle’s principle. It prioritizes familial ties over value, granting preferential treatment to family members regardless of their qualifications or experience. This creates an unfair advantage for those within the family circle, while those outside it are denied equal opportunities. The act of showing preferential treatment based on personal relationships or biases also contradicts Aristotle’s principle. It prioritizes personal connections over objective criteria, leading to decisions that are not based on merit but on subjective preferences.  Such favouritism creates an unfair advantage for those who are favoured, while those who are not, even if they are more deserving, are disadvantaged. When management assigns responsibility or gives promotions based on favouritism, not based on performance, the company will not be able to attract the most qualified person for a job. It discourages excellent performance and encourages mediocrity (Abun, D. 2014). This entry explores the problematic and highly politicized concept of nepotism. This inherent unfairness lies at the heart of the “double-edged sword” metaphor, as it represents the ethical dilemma of nepotism.

 

Nepotism has long been a subject of debate. While it can be seen as a source of loyalty and trust, it can also lead to unfair disadvantages and hinder meritocratic systems. This research examines the complex nature of nepotism, exploring its benefits and drawbacks, as well as the reasons why it is still common and controversial in many areas.

 

Forms of Nepotism

 

To be clear...every organization has some form of nepotism.  The reality is that nepotism goes far beyond the hiring and favouritism of family members.  Other forms of nepotism are just as debilitating (if not more so) as the traditional "relative nepotism" (Young, 2008).

 

·         Relative Nepotism. This is one of the most insidious forms of nepotism in the workplace. The relationship with the family members is highly prioritized by the higher authority in key positions. In the local government service, extends to the relatives of the appointing or recommending authority within the fourth civil degree of consanguinity or affinity (Civil Service Commission, under Sec. 9, Rule XIII (Prohibitions), Revised Omnibus Rules on Appointments and other Personnel Actions (CSC MC No. 40, s. 1998). The rules aim to prevent favouritism and ensure that appointments are based on merit and qualifications. The rule on relative nepotism is essential for maintaining a fair and transparent work environment in government agencies and other organizations.

 

·         Friend Nepotism. A form of nepotism where individuals are appointed to positions or given preferential treatment because of their close personal relationships with decision-makers, rather than their qualifications or their merit. This can include friendships that are not necessarily familial in nature, but still create a sense of loyalty or obligation.

·         Connection Nepotism. A form of nepotism that refers to the practice of hiring or promoting individuals who are well-connected or have a strong network of contacts, rather than being the most qualified candidate for the position. This can include individuals who have a strong social media presence, attend the same events, or have a large network of friends or acquaintances.

·         Contribution Nepotism. A form of nepotism where individuals are given preferential treatment or opportunities because of their past contributions or achievements rather than their current qualifications or merit. This can include individuals who have made significant contributions to the organization in the past, but may not be the most qualified candidate for a current position.

·         Referral Nepotism. A form of nepotism where an employee is hired or promoted based on the recommendation of a current employee, often without a formal evaluation process or consideration of other qualified candidates. While referral nepotism can be problematic, it's not necessarily wrong to consider referrals from current employees. However, organizations should ensure that they are using a fair and transparent evaluation process to assess candidates and that all candidates are given equal opportunities to be considered for positions.

·         “They Were With Us through Thick and Thin” Nepotism. A form of nepotism where an employee is given preferential treatment or opportunities because of their long-term tenure with the organization, regardless of their performance or qualifications. This phrase is often used to describe the notion that employees who have been with the organization for a long time, regardless of their current performance or qualifications, are entitled to special treatment or rewards.

·         Credential Nepotism. A form of nepotism where an individual’s connections or relationships to others with prestigious credentials or achievements are used to gain an advantage or opportunity, regardless of their own qualifications or abilities.

·         Favoritism. It is the practice of giving preferential treatment to one individual or group over others, often based on personal relationships, biases, or other non-meritocratic factors.

Nepotism is more than just the custom of hiring and promoting family members; it is a widespread and complex issues. The forms of nepotism all have the potential to compromise the principles of fairness, transparency, and merit-based decision-making in organizations. 

 

“Double-edged Sword”

 

Nepotism presents a complex ethical dilemma. While its inherent unfairness of equality poses significant challenges, it can also offer potential benefits. Adam Bellow (2003) states that “Nepotism is widely condemned yet even more widely practised…this is not necessarily a bad thing. Nepotism, likewise, is universally condemned but seems just as ineradicable.” Nepotism, being defined as the practice of giving preference or favour to family members or close relatives in personal, professional, or social matters, is indeed widely condemned. Many people view nepotism as unfair, unethical, and even corrupt, as it can lead to unequal opportunities and unequal treatment of individuals. However, despite the widespread disapproval of nepotism, it's also undeniable that it's a universal phenomenon. Studies have consistently shown that nepotism is a common practice across various cultures, industries, and professions. In fact, many people have anecdotal evidence of instances where family ties or close relationships have influenced decisions, promotions, or opportunities. So, is nepotism necessarily a bad thing? Not necessarily.

 

Sharp Edge of the Sword

 

Dealing with nepotism in the workplace can be tough, especially if you're the one on the short end of the stick. It occurs when employers show favoritism toward family members or relatives when making employment decisions, without taking into account anything else. When a manager hires a relative who is less qualified than other candidates, it creates an unfair advantage for the relative and disadvantages those who are more deserving but lack the familial connection. Thus, people naturally think that nepotism as a practice is adverse.

 

Robert Jones, a professor of Industrial-Organizational Psychology at Missouri State University says, “Nepotism is a natural part of the human endowment”. How it's perceived is tied to culture. In China and India, nepotism is a way of life and is regarded positively but in Western, individualistic areas such as the United States, negates it particularly if the favoured person is not qualified.

 

Nepotism entails giving individuals excessive benefits or special treatment because they know important people within the organization, instead of being evaluated based on their skills, knowledge, and experiences. This type of practice can damage worker morale, make them feel like they are being treated unfairly, and stop the company from growing and succeeding as a whole. Of course, any act of nepotism or favouritism in the workplace is unethical because it keeps qualified people from getting their fair share of growth opportunities. It may also lead to unethical behaviors and attitudes among those who feel alienated and victimized by nepotism hence, further escalating ethical issues. Even if an employer hires a non-deserving candidate because of a personal connection, there are many ways in which the business may also suffer because of this unethical practice.

 

a.      Create a toxic working environment

 

Acts of nepotism or favouritism can lead to negative influences in the workplace harming the company culture. It will create a high degree of negativity among employees who will begin to think they will never get the chances they deserve, no matter how hard they work. People who are recently recruited are also affected by these kinds of influences and conversations at work. So, cultural problems will have a direct effect on how much money and profit a business makes. To describe, Forbes says that strong company cultures can increase profits by four times. It's also possible to say that the opposite is true and that bad cultures can hurt sales.

 

b.    Increase level of disengagement and turnover rates

 

In the study conducted by Farahmand (2013), he stated that most people feel nepotism as discriminatory actions in the workplace that have a detrimental influence on organizational efficiency and may lead to high employee turnover. When honest workers are harmed by favouritism or office politics, they lose drive and start to slowly stop working for the company. The same goes for other workers who think their coworkers are being unfairly favoured. In general, the number of disengaged people starts to rise, which leads to high unemployment rates. If we look at it from the perspective of millennial and Gen Z employees, for them career growth is a high priority and so is company culture. If they think the atmosphere is bad and based on favouritism, they will quit without giving it much thought.

 

c.    Loss of business efficiency

 

When organizational leaders are chosen entirely based on nepotism, it can lead to loss of organizational productivity and cause business structures to fall apart. The best-case scenario is that people with the right attitude, skills, experience, and knowledge should be in charge because they can move a company forward. However, if experienced people are passed over for less experienced or less qualified ones because of bias, the organization is sure to have problems with productivity. Due to the influence of nepotism, we anticipate a decline in overall business efficiency.

 

    d.    Feeling of vengeance among employees

 

Employees who feel like they haven't been given enough chances at work may also feel vengeance and want to get back at those responsible. In this case, they will feel like they are being personally attacked by nepotism and favouritism from the top management, and they may work with competitors to hurt their current employer. Their main motivation would be to get back at the company for not giving them what they were owed. Because of that, organizations can suffer large losses.

 

    e.   Challenge in Disciplinary and Grievance Procedures

 

A challenging situation can arise when a manager is in a position of authority over a family member of a proprietor, making it difficult to implement disciplinary actions. Managers may encounter difficulty in disciplining or investigating grievances against the owner's family member due to concerns about potential backlash from the owner or other stakeholders. This can lead to difficulties in maintaining fairness and impartiality in the workplace, ultimately affecting employee morale and trust.

 

Blunt Edge of the Sword

 

Nepotism has long been associated with family businesses, where the practice is often regarded as a key ingredient for success. While nepotism is not a healthy or effective way to manage a business or an organization, there are some potential benefits to hiring a close friend or family member. Family members working together can share a common vision, commitment, and loyalty, which can contribute to the longevity and growth of the business. They may be more likely to work collaboratively, share knowledge readily, and prioritize the business’ success.

 

Nepotism allows individuals to obtain employment opportunities solely based on their personal relationships, rather than their qualifications. The expression "It's not what you know, but who you know" is applicable in various industries as nepotism can serve as an incentive for individuals to enter the workforce, particularly when conventional application procedures are either daunting or useless.

 

a.   Enhanced collaboration

Working with someone you know or a family member of someone you know can help you communicate and work together better. Having existing relationships can help build trust and openness, which makes it easier to work together and solve problems. This could lead to more work getting done and being done more quickly.

    b.   Lower recruitment costs

 

Hiring family members can often save money on recruitment costs because you may not have to do as much hiring promotion or headhunting. In well-run businesses, nepotism can also lower the number of absences and employee loss. Strong family bonds may make people more committed and loyal, which makes them less likely to look for work elsewhere.

     c.   Shared Values

 

A company choosing to hire someone from the same background as an existing leader, they are more likely to find someone whose beliefs are in line with those of the company. Passing on information and values from one generation to the next can help keep things stable and long-lasting. When it comes to start-ups, nepotism can help get the business up and running faster because working with people you already know can be more efficient. Businesses try to build a brand identity around ideals that everyone shares.

       d.   Enhanced Trust and Loyalty

 

One of the best things about nepotism is that it can lead to more trust and loyalty within a company. People in the same family often already work together because they trust each other and share the same values. In turn, this can lead to better communication, stronger teamwork, and a stronger desire to reach organizational goals. For instance, if a business owner hires their sibling as a manager, they may have faith in their skills and feel more comfortable giving them big tasks.

e. Transfer of knowledge and continuity

Nepotism can also help organizations keep going by transferring knowledge and making sure people stay in their jobs. When family members are hired, they may bring valuable skills or knowledge about the business that can be passed down from generation to generation. This can help keep institutional memory alive, protect unique knowledge, and keep important data from being lost when leadership changes.

  

Trading-off the Double-edged Sword

 

            Adam Bellow (2003) argues that nepotism practised badly or haphazardly is an embarrassment to all, including the incompetent beneficiary, but nepotism practised well can satisfy a deep biological urge to provide for the children and even benefit society as a whole.

 

          The decision to participate in nepotism is based on the process in which it is executed and whether it is conducted in a way that prioritizes meritocracy, transparency, and fairness. To establish a culture that prioritizes diversity, inclusion, and equal opportunities for all employees, organizations must evaluate the potential advantages against the potential disadvantages.

 

          a. Establish Transparency and Clear Policies

 

Organizations should establish clear policies regarding nepotism, specifying the standards of hiring and promotion, and ensuring that all candidates are treated fairly. Transparency in these procedures can help build trust and minimize resentment, maintain work ethics, and also increase the efficiency of the organizations.

 

          b. Define transparent hiring and promotion culture

 

Hiring new staff and promoting existing staff must be open and visible to all employees. Family members should be held to the same standards as other candidates, and their credentials and performance should be evaluated equally. This should include the involvement of multiple people with the HR department also looped in to ensure the neutrality of the final decision-makers. This can help ensure that nepotism doesn’t result to unfair career advancement and compromise the organization’s reputation.

 

          c. Maintain professional boundaries

 

Family members should maintain professional boundaries to prevent personal conflicts from impacting work relationships and ensure that all employees are treated with respect and dignity. This also ensures the prevention of corruption and conflict of interest among family members within the organization.

 

  d. Establish Open Communication

 

It's important to be able to talk about problems and build an atmosphere of fairness and honesty through open communication. Family members should be open to comments and talk about any biases that might be present.

 

  e. Third-party Assessment

Involving external advisors or consultants can help keep an eye on practices of nepotism and make sure the company is adhering to ethical standards.         

 

Conclusion

 

                        Nepotism is a double-edged sword that can bring both opportunities and challenges. Individuals and organizations will be able to successfully handle this complex issue if they have a thorough awareness of its possible advantages and disadvantages, as well as if they implement strategies to mitigate the negative effects of it. Organizations must meticulously evaluate the potential advantages against the potential disadvantages and strive to establish a work environment that is equitable and inclusive, where talent is acknowledged and rewarded, rather than favouring family members or friends. If they want to improve employee morale and improve productivity in the workplace, they need to reduce employee favouritism and nepotism. Ultimately, the most important key to achieving success is cultivating a culture that prioritizes fairness, transparency, and merit-based decision-making. This will ensure that nepotism does not undermine the organization's principles or its capacity to grow under all circumstances.

 

References

 

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CSC MEMORANDUM CIRCULAR NO. 40 S. 1998 - REVISED OMNIBUS RULES ON APPOINTMENTS AND OTHER PERSONNEL ACTIONS - Supreme Court E-Library. (n.d.). Retrieved from https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/38414

 

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Jones, R.G.(Ed.), (2012). Nepotism in Organizations. Routledge. Retrieved from https://www.psychologytoday.com/intl/blog/cutting-edge-leadership/201210/is-nepotism-a-good-thing-or-bad

 

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