The effects of nepotism on human resource management

Abstract

PurposeThe 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/approachQuestionnaires 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.FindingsThe 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/implicationsThis 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/valueThis 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.

The Impact of External Social Capital on Human Resource Management Practices

“…Whether the employees undertake managerial or non managerial work, it is very difficult to promote them if they compete with the one who has a family member, relative or friends in the higher levels positioning the organization (Araslı et al, 2006). This leads to demotivating the employees in the organization.…”

“…Nepotism has a negative effect on human resource functions such as recruitment and selection practices, because candidates are chosen for their friendship and relative relationship (Araslı and Tumer, 2008). Other effects of nepotic practices are seen in the satisfaction level of the employees, quitting intentions and negative word of mouth (Araslı et al, 2006).…”

“…Such an environment holds the dangers of having human resource management applications with negative effects mentioned in the inquiries in literature (Araslı et al, 2006, Araslı andTumer, 2008) and building of a nepotic culture. A nepotic organizational culture in return develops advantaged and disadvanteged groups according to the in-group and outgroup relations.…”

“…Building an organizational climate around the notion of a family environment is mostly benefited by the employers in the sense that a nepotic oriented organizational culture will bring them some advantages. Employing through their personal networks, in-group or even family members, in other words, using their external social capital resources for the employment processes will ensure the employer to have dedicated and committed employees (Araslı et al, 2006;Dailey and Reuschling, 1980;Ford and McLaughlin, 1986) who will obey the rules and commands without questioning them. The employer will not be spending any time for getting to know the new employees and hence he will reduce his transaction costs.…”

“…Advantages of nepotism are highlighted such that nepotic environments create eternal commitment and loyalty to the employer, dedicated personnel, foster family-oriented climate,and improve communication (Araslı et al, 2006;Dailey and Reuschling, 1980;Ford and McLaughlin, 1986). On the other hand research on the disadvantages of nepotism bring forth issues such as the difficulty in supervising the relatives, feelings and perceptions about the unjustifiable distribution of promotions and rewards, conflicts, inessential rivalry, decrease in employee morale and problems in decision-making processes (Ford and McLaughlin, 1986;Ichniowski, 1988).…”