Because you have a pool of family members or relatives of employees, your recruiting costs will be lower, as will training costs since many may have worked part time while going to school and have familiarity with the business.
A case could be made though that in a company of 15 or more employees, continuing to hire relatives of a certain gender or race to the exclusion of other races and the opposite gender constitutes unfair labor practices. He easily and politely diffused the situation using the diplomacy techniques he had gleaned from his father, the very senior contractor the client disliked, and gained a larger-than-usual sale.
Furthermore, as more families rely on multiple incomes for their standard of living, the ethical and pragmatic considerations regarding nepotism must be carefully negotiated to ensure the most effective overall business strategy. He has two sons in the business with significant responsibilities earmarked to take control when he retires.
Lack of Federal Direction There is nothing unusual about workplace nepotism. The word nepotism stems from the Latin word for nephew, especially the "nephews" of the prelates in medieval times. In there were seven third- and fourth-generation family members working for the company.
Here are a couple additional factors that often come into play: There are no federal laws aimed at nepotism, although some states and cities have passed antinepotism laws to protect public sector workplaces. Family members are usually very dedicated resulting in lower turnover.
There is a higher level of commitment since relatives want to see the company succeed. More directly, the unqualified heir may simply instill policies that drive the company into the ground. As one South American executive commented, "If I cannot hire and trust my own family, just who can I trust?
The key was to have clear criteria for the job and to apply them consistently for all candidates, neither favoring nor discriminating against family members. By his wife and three of his adult children two daughters and a son all worked for the company.
Many companies and individuals consider the practice to be unethical, largely due to its conflict with traditional American values of self-reliance and fairness.
For example, the increase in dual-career marriages increased legal challenges to nepotism issues.
In order to make nepotism work, strong core values in the organization are important, as well as holding ALL employees to these values. Most family-owned businesses simply expect family to be involved in the future, as do the in-laws who join the family.
In Asia the majority of entrepreneurs look to the family, rather than the broader populace, for the succession of the business.Some people would say you can only trust your family.
Your father or family member is less likely to fire you. Relatives have more access to the higher ranking family member. This is where blood is thicker then water comes from.
Nepotism is the act of hiring or promoting a person simply because that person is a family member. Even when there is somebody better equipped for the job, the family member is rewarded with it. Individuals weigh the pros and cons of nepotism based upon whether they benefit or are hurt by the practice.
Nepotism Nepotism is favoritism shown by somebody in power to relatives and friends, especially in appointing them to good positions.
The chief complaint in a company that operates through nepotism is the patent lack of fairness. It is perceived as favoritism of a relative that can cause dissatisfaction among workers and lower morale. The Disadvantages of Nepotism Essay; The Disadvantages of Nepotism Essay.
The advantages of budgets 6 The disadvantages of budgets 7 Conclusion 8 Chapter 3 The relevance of budgets within Management and Control 10 Management control system 10 Management 10 Control 10 System 11 Budgeting within the. Nepotism is defined as “the practice among those with power or influence of favoring relatives or friends.” We normally think of it as negative; but is it really?
What are some of the advantages of nepotism? Nepotism describes a variety of practices related to favoritism; it can mean simply hiring one's own family members, or it can mean hiring and advancing unqualified or under qualified family members based simply on the familial relationship.Download