International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue IX, September 2022|ISSN 2454-6186
Nepotistic Practices in the Private Sector
Sheryl A. Nicolas1*, Katerina S. Abaño1, John Dave R. Abelado1, Denzel Jhon E. Frany1, Jheena Jamaica J. Villeges1, Sheryl R. Morales2
1Bachelor of Science in Business Administration, Major in Human Resource Management, Quezon City Branch, Polytechnic University of the Philippines
2Research Management Office, Polytechnic University of the Philippines – Quezon City Branch (Thesis Adviser)
*Corresponding Author
Abstract: There is a prevalence of nepotism in all organizations. Numerous studies have attempted to examine nepotism, but very few have focused on the Philippine context. Through the perspectives of private-sector employees, this qualitative study explored workplace nepotism. Literature and participants’ data indicate that nepotism has significant negative effects on an organization. Low morale promotes workplace discontent, stress, and demotivation. Inefficiency costs the company money. Employees and management may experience communication and leadership difficulties due to nepotism. Although not illegal, it can cost a business money if it leads to discrimination and an unpleasant workplace. It is unethical because it favors relatives or close acquaintances. It disregards merit, competency, and skill. In private companies, nepotism maintains the business in the family, but it must be used with prudence. As it has negative implications, it is not a smart strategy for the survival, development, or expansion of a business. The family should be approached with discretion.
Keywords: Company policy, Family-owned business, Nepotistic practices, Preferential treatment, Unethical Practice
I. INTRODUCTION
A privately-owned organization is a business affiliation in which essential relationship is influenced by members of family related by blood or marriage or selection who has both the capacity to affect the vision of the company and the energy to utilize this capacity to look for after specific goals.
Business owned by family is the foremost set up and most fundamental show of budgetary affiliation. By distant, most of organization all through the world from shops to multinational organization recorded affiliation with a colossal number of laborers can be considered as companies run by families.
Nepotism is a form of preferential treatment in which family members or friends are accepted or hired to the company or business for reasons unrelated to their experiences, knowledge, or skills. As Bellow (2005), mentioned, there is bad and good nepotism. Hiring one’s relatives is considered unethical in an organization as it interferes with someone’s right to fair treatment. It tends to overlook an employee’s merit, skill, and capability, therefore it’s not a suitable strategy for any organizational survival, development, and growth, and so it is a bad nepotism. Good nepotism is hiring a relative that is qualified for the job. Many of them are qualified for their role, but perhaps not the best qualified. Yet, organizations let it slide, because people