Nepotism means showing too much favour by people in power to their relatives. This word is particularly in relation to giving employment and related favours such as higher increments and undeserved promotions. This practice of nepotism is unethical and frequently against policies and interest of company.
Though individuals may engage in nepotism, I have not come across any instances where it is practiced as an formally approved method of recruitment. However, there is another honest recruitment practice that may be confused with nepotism. As per this practice for recruitment selection, significant importance is given to recommendation of existing employees< and if the person recommended is a relative that is even better. In this system the person who has recommended someone for employment is expected to exercise proper judgement in recommending the right candidate. If a person recommended is found to be much below requirements, this becomes a negative mark against the person recommending.This method of recruitment may offer following advantage.
- It is an economical method of finding candidates for employment.
- Person who recommends is able to exert some influence on the employee recommended to ensure good performance and behavior.
- This fosters good relationship among employees. How ever it can also lead to development of groupism.
- This promotes loyalty among employees as they feel that company values their recommendations.
- Employing more than additional member from a family is one of the way of rewarding an employee, without incurring any extra cost.