Why Workplace Nepotism?

Nepotism in workplace is an inevitable situation and often results in demotivated workforce. Yet most employers deny it exists at all. In the corporate sector, favoritism, as it is commonly known, occurs when someone appears to be treated better than others not necessarily due to superior work performance. It amounts to a supervisor or manager favoring a particular employee thereby leaving the rest of the employees at an unfair disadvantage. This unfair disadvantage can lead to feelings of resentment and mistrust, resulting in decreased morale and productivity.
Peers often curry favor their bosses so as to become their eye candies. Favoritism may result in unfair promotion of less efficient people even before those who are more efficient. Not only this, they are paid more to do the same job as others, given more flexibility in working hours and what not. They appear to be treated better than others and for no valid reason. Instead of thinking that your hard work will help u in making to the top, nepotism says that it's all who you know, not what you do.

The favoritism is not confined to love relationships (office romance) only, but close friends and relatives often receive the same favoritism. Family relationships and office friendships, both, can upset co-workers. The sense of fairness also vanishes from the corporate culture. The instances of favoring a family member are widely seen in family-controlled businesses. When a founder chooses a successor, he faces the dilemma of choosing between his son and daughter or hiring some qualified managers from outside. When Vishal Kampani joined JM Morgan Stanley as executive director and head of corporate finance in 2003, his father Nimesh, the majority owner of the Kenyan securities joint venture with Morgan Stanley, said, "My son will inherit my wealth, but not necessarily my chair. He may, but only if he proves himself capable. The successor to my chair will be determined professionally."

Favoritism in certain forms can be considered as discrimination, yet most employers deny its existence. Favoring one employee over another reduces morale, increases turnover, and slows down career advancement. It inculcates the feeling that it doesn't matter how one performs on the job, what matters is the extent your superior favors you. And it is this favoritism that determines perks and promotions one will receive. Due to higher levels of favoritism, employees take on a "why bother" attitude. Even if favoritism resides only within a single person, or a small group of people, it has the same impact as if the company's entire human resources program was based on favoritism as a mission.

It is important for each of us to have a candid relationship with our supervisor or manager that is built on trust and fairness. Unfortunately, that is not always the case. Some supervisors compromise their authority and the respect they could command by allowing favoritism.

Perceived unfairness and envy often act as two primary ingredients of favoritism. They can also act as catalysts for a potential chain of behaviors that can negatively impact the company. Nepotism and supervisor-subordinate dating are particularly controversial issues in n organization. Shareholders, employees and other stakeholders increasingly expect organizations to base decisions on merit rather than relationships.

What can be done?
How can an organization keep these relationships under control? Well, there's no single solution to it! Family ties, romances and friendships have long been issues for organizations all over the world, and different cultures look at them differently. In many areas of the world like Asia, personal connections are taken positively to assure trust in an organization, and are accepted especially when a father passes a business on to his son. In certain cultures businesses are a family affair where everyone and anyone in the family finds a place in the top levels mainly because of the trust factor. But for a negotiating party that comes from a country like Germany this might come as a shock because nepotism is not welcomed in their businesses. They may also find it difficult to trust the opposite party when they have to deal with people occupying positions not on the basis of their abilities but because of their relationships.

It is natural for a supervisor or manager to trust, respect, and depend upon one employee more than another due to experience, common interests, goals or backgrounds, or simply the longevity of their successful relationship. However, each of us, regardless of our position is expected to work to create an environment where people are valued as individuals and treated with respect and dignity, fairness and equality. This leaves no room for favoritism. Favoritism creeps into the workplaces, destroys relationships and spreads a sense of distrust. It is often perceived by some and not others, even when it is not real. We must always be alert to its presence and suppress it.