management theories
NEPOTISM
Nepotism – favouritism
In a business world, 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. Many companies and individuals consider the practice to be unethical, largely due to its conflict with traditional American values of self-reliance and fairness.
APPLICATIONS
Hiring family members can also provide benefits to companies, for example by reducing their health insurance costs. Nepotism can also extend to older family members. Bill Gate’s father serves as the Gates Foundation's chairman.
Wrigley is another successful company that has been run by a family for many years. One Business Week story noted that family-run businesses can have lower employee turnover rates as specific managerial values are passed down from generation to generation.
Adam Bellow in his book In Praise of Nepotism , Bellow and others have commented that nepotism can be a savvy business strategy, especially when a family is closely associated with a particular company or brand. In these cases, nepotism can work to bolster confidence in a firm.
DISADVANTAGES
In Western societies nepotism raises legal concerns, discrimination issues and pragmatic concerns. There are practical reasons to not hire family and friends, particularly the inherent conflict of interest. The risks arise in many other areas of employment, such as assignment, compensation, evaluation, and promotion decisions.
Lines Brothers in Britain, once a highly successful maker of Triang toys, was rendered worthless in just a few years by its second generation of leadership.
Adelphia Communications represents one of the most disastrous instances of corporate nepotism. In 2004, John Rigas and his two sons were disgraced in a highly publicized case of corporate fraud. This can be seen as a case where nepotism ruined a company not by placing incompetents in powerful positions, but rather by generating
Nepotism – favouritism
In a business world, 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. Many companies and individuals consider the practice to be unethical, largely due to its conflict with traditional American values of self-reliance and fairness.
APPLICATIONS
Hiring family members can also provide benefits to companies, for example by reducing their health insurance costs. Nepotism can also extend to older family members. Bill Gate’s father serves as the Gates Foundation's chairman.
Wrigley is another successful company that has been run by a family for many years. One Business Week story noted that family-run businesses can have lower employee turnover rates as specific managerial values are passed down from generation to generation.
Adam Bellow in his book In Praise of Nepotism , Bellow and others have commented that nepotism can be a savvy business strategy, especially when a family is closely associated with a particular company or brand. In these cases, nepotism can work to bolster confidence in a firm.
DISADVANTAGES
In Western societies nepotism raises legal concerns, discrimination issues and pragmatic concerns. There are practical reasons to not hire family and friends, particularly the inherent conflict of interest. The risks arise in many other areas of employment, such as assignment, compensation, evaluation, and promotion decisions.
Lines Brothers in Britain, once a highly successful maker of Triang toys, was rendered worthless in just a few years by its second generation of leadership.
Adelphia Communications represents one of the most disastrous instances of corporate nepotism. In 2004, John Rigas and his two sons were disgraced in a highly publicized case of corporate fraud. This can be seen as a case where nepotism ruined a company not by placing incompetents in powerful positions, but rather by generating