Essay: Nepotism

Summary
Nepotism is a hiring mechanism in companies where management hires their relatives and as a result perpetuating family involvement over time and across generations. There are two types of Nepotism. Entitlement Nepotism based on family network without consideration of family conditions. In this case, entitled nepots have little obligation to reach performance expectations. Another type is Reciprocal Nepotism associated with the family conditions of interdependence, previous cooperation, and cultural norms that support commitment to the family members. Cronyism based on hiring and promotion of friends.
The Effect on the Employer
Employees will likely take a dim view of an employer’s ethics and judgment when they hire relatives and friends for vacant positions. Nepotism occurs when employer is weak and insecure and needs loyal subordinates who will support their decisions. Employer considers that family members will be reliable, trustworthy and high committed to the firm. However, some of these employees may take advantage of their family ties, be incompetent to their position, and arrogant to their coworkers. Coworkers have negative and distrustful attitude to colleagues who have family or close ties with management. Moreover, cases from personal working experience show that relatives and friends are promoted faster than other personnel.
The Effect on the Employee
Even if a family member or a friend was the best candidate for the position, he/she will be under colleagues’ suspicion. Every action will be judged for signs of incompetence and weak intellectual abilities. Their decisions and work outcomes might be challenged to test his/her trustworthiness and loyalty to the firm. Possible friendship with co-workers might be interpreted as a game to find out secrets and report them to the boss. Nevertheless. the respect of colleagues may be won through good working performance, truthful and reliable relationships with co-workers and subordinates.
Examples of Nepotism
During the presentation team members will be presenting public known cases such as Chase Morgan bank hiring in China and Camp Grayling military case. As well as team members will share cases from their personal working experience related with nepotism in hiring. One of the cases will show how hiring manager met an ethical dilemma when she wanted to hire her friend and how she solved this situation. Another case will illustrate how not-qualified man was hired on top management position by his father and how team member was dealing with arrogant and unprofessional boss. These examples will lead to discussion with classmates.
US and International government regulations
In the U.S., there are very few state and federal laws that specifically prohibit nepotism in the workplace. Issues that surround incidents of nepotism such as discrimination, fraternization, and conflicts of interest (COIs) are regulated by state and federal law. It is common for U.S. businesses to define COIs concerning their employees and to enact policies that prevent relatives or people with personal relationships from supervising each other or working in the same department.
In Uzbekistan and Turkmenistan there are limitations for relatives to work together in a state company. No restrictions for private companies unless it is written in company policy book.