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Nepotism refers to when an employer gives preferential treatment to an employee or job applicant because of their family relationship or personal connection to the employer. It is often seen as unethical because it can lead to favoritism and create an unfair working environment.
Most companies regard nepotism as a conflict of interest. Nepotism can also refer to particular appointments, such as those awarded to family members or close relatives regardless of merit or qualification.
Nepotism can be of various types:
Nepotism in the workplace can have many adverse effects. The most common ones are:
It is important to remember that everyone should be treated fairly and equally in the workplace, regardless of family relationships. However, some strategies can help employers manage nepotism:
Companies can use a DE&I dashboard to help track and measure their progress in creating a diverse and inclusive workplace. This dashboard is designed to help organizations identify areas where they need to focus their efforts and resources to promote diversity and inclusion. Additionally, it provides real-time insights into the organization’s progress in achieving its DEI goals.
The two words are used similarly as both refer to discrimination towards an individual by neglecting the benefits of others. However, there are differences in their definitions. Nepotism is defined as “favouritism granted to relatives or friends,” whereas favouritism is defined as “discrimination in favor of oneself or one’s group.”
In short, nepotism and favoritism are two sides of the same coin – if you were going for a job interview and land a job at your cousin’s firm despite there being more qualified candidates, it could be considered nepotism. But if it was your friend’s company and you landed a position despite more qualified candidates being considered, then it could be regarded as favoritism.
Some of the laws against nepotism are:
In case any of the provisions mentioned above are violated, disciplinary action can be taken against the concerned government servants.
India has laws against nepotism and favouritism in the public sector. However, nepotism is not illegal in India in the private sector, but it is considered a form of corruption. Within the Indian culture, nepotism has been practiced for many centuries and has become so deeply rooted that it is hard to make people realize its ill effects.
Nepotism and cronyism are similar in essence. Cronyism is a practice whereby jobs or other opportunities are awarded not based on merit or qualifications but to the closest friends, relatives, and associates of those in power. Cronyism is often practiced in politics, which may be informal and unspoken.
Meanwhile, nepotism refers to awarding benefits and opportunities to family members irrespective of their merit or qualifications.
Nepotism is prevalent amongst many countries and organizations in the world. The most common sectors where nepotism prevails are politics, entertainment, and corporate/government organizations (for employment).
Nepotism is prevalent in every society because of the solid emotional bond between family members and relatives. It is characterized by the preferential treatment given to family members over non-relatives in terms of access to material resources, opportunities, and services.
Nepotism can cause adverse effects on the organizational structure since it encourages the rise of personal influence, friendship, and connections within the organization rather than merit. Also, nepotism has been seen as a negative influence on organizations because it encourages favoritism and increases corruption and fraud.
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