Nepotism's effect on employee satisfaction and organisational commitment: an empirical study

Most of what we know about nepotism is anecdotal. The benefits mentioned have been: lower recruiting costs, training costs, turnover, dissatisfaction, and higher levels of loyalty, morale and trust. Negative aspects have included perceptions of favouritism, problems with discipline, potential fraud, and breached confidentiality. In all cases, the bases for these claims have been anecdotal. If we are to really understand the impact of nepotism on employees and organisations, we need to go beyond anecdote and measure nepotism empirically. Research has shown that employees routinely show dissatisfaction where they experience favouritism and inequity. The present study examined the effect of nepotism on employee satisfaction and organisational commitment. Nepotic relationships in this study included the following: between parents and children, siblings, extended family members and marriage. Employee's perceptions of equity, influenced by nepotism, are assumed to affect employee morale and commitment. Most work has assumed that nepotism will always lead to decreased employee satisfaction and commitment. Further research should explore both the positive and negative effects of nepotism, and the conditions under which each exists.