The Effect of Nepotism on Hrm

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The effects of nepotism on human resource management
The case of three, four and five star hotels in Northern Cyprus Huseyin Arasli
School of Tourism and Hospitality Management, Eastern Mediterranean University, Mersin, Turkey

Effects of nepotism on HRM 295

Ali Bavik
Department of Tourism and Hospitality Management, Cyprus International University, Mersin, Turkey, and

Erdogan H. Ekiz
Department of Hotel and Tourism Management, The Hong Kong Polytechnic University, Kowloon, Hong Kong Abstract
Purpose – The purpose of this study is to investigate the potential effects of nepotism on human resource management (HRM) practices through the use of Turkish Cypriot hotel employees in three, four, and five star accommodation establishments in Northern Cyprus. Design/methodology/approach – Questionnaires were distributed to full time hotel employees in three, four, and five star hotels in Northern Cyprus. Of the 500 distributed, 257 usable questionnaires were retrieved. A judgmental sampling approach was used. Findings – The principal finding is that nepotism has a significant negative effect on HRM, job satisfaction, quitting intention, and negative word of mouth. The study also shows that HRM exerts a significant positive effect on job satisfaction. Research limitations/implications – This study reveals that nepotism is an unprofessional phenomenon that provides benefits merely to the family members or close friends. Therefore, nepotism paralyzes human resource practices and affects the level of satisfaction among employees. Although the job opportunities are limited in the hotel industry in north Cyprus, employees may think of quitting their jobs or using negative word of mouth if their job satisfaction level is not enhanced. Customers perceive and evaluate the quality by considering the attitude, behavior and tone of the voice of employees. Therefore, priority of satisfaction has to be given to the employees in order to satisfy the customers. There are several limitations to the current study. In future studies, other variables such as role stress, organizational commitment, and different facets of job satisfaction may be used in order to examine the probable relationships. Secondly, future research with larger sample size elsewhere would be productive to provide a support for the generalization of the present findings. Thirdly, this study employed judgmental sampling approach. Future studies may use probability-sampling approach in order to support the current study findings. Originality/value – This study is necessary and useful for three reasons. Firstly, it investigates the possible impacts of nepotism on multiple organizational dimensions, which is a relatively virgin area. Secondly, the effects of nepotism have been mostly examined at the macro level resulting in a paucity of empirical research especially at the organizational level. Thirdly, the study provides some propositions and managerial implications to owners, managers, and employees in North Cyprus where the tourism and hospitality industry constitutes an essential part of the economy. Keywords Human resource management, Customer satisfaction, Employees, Hotels, Cyprus Paper type Research paper

Introduction Socio-cultural, economic, educational, and political circumstances force people to become more cohesive in order to solve problems and in small nations in particular, as

International Journal of Sociology and Social Policy Vol. 26 No. 7/8, 2006 pp. 295-308 # Emerald Group Publishing Limited 0144-333X DOI 10.1108/01443330610680399

IJSSP 26,7/8

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Anckar and Anckar (1995) highlight, the lack of anonymity allows political leaders to accumulate a great deal of personal information on voters and citizens who can be easily identified and victimized, such as by being denied jobs (Hope, 1986). This issue of nepotism has...
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