Organizational Dynamics of Favoritism and Nepotism

Favoritism and nepotism represent enduring phenomena in which individuals receive preferential treatment based on personal relationships rather than merit. These practices shape organisational dynamics by distorting recruitment, promotion and resource allocation, undermining notions of fairness and eroding trust in leadership. At the core lies a tension between formal rules and informal networks, whereby kinship ties or reciprocal obligations override established procedures. Such dynamics influence the psychological contract between employees and employers, alter the organisational microclimate and affect levels of engagement, morale and performance. In family firms, nepotism can obstruct professionalisation and stifle innovation, while in large public or private institutions cronyism may foster cynicism and counterproductive work behaviour. Across cultural and sectoral contexts, the global significance of these phenomena has driven research into their antecedents, including power asymmetries, social exchange processes and organisational culture, as well as their consequences for sustainability, ethical governance and workforce well-being.

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Organizational Dynamics of Favoritism and Nepotism publication trend

The graph below shows the total number of articles in organizational dynamics of favoritism and nepotism across all publications each year (not limited to Nature Index journals).

Technical terms

Cronyism: Preferential treatment granted to colleagues or associates based on personal connections rather than merit.

Nepotism: A form of favouritism in which family members receive undue advantage in recruitment or promotion.

Relational psychological contract: The unwritten set of mutual expectations concerning trust, loyalty and support between employer and employee.

Organisational microclimate: The prevailing atmosphere of norms, values and interpersonal relations within a work unit.

Psychological capital: An individual’s positive psychological state, encompassing self-efficacy, optimism, hope and resilience.

Employee silence: The withholding of work-related concerns or suggestions by employees, often in response to perceived unfairness.

Knowledge hiding: Deliberate concealment of information or expertise that may be critical to colleagues or organisational objectives.

References

1. Nepotism and Favouritism in Polish and Lithuanian Organizations: The Context of Organisational Microclimate. Sustainability (2020).
2. Negative reflections of nepotism on employees and obstacles in the process of institutionalization of family businesses. Corporate Governance and Organizational Behavior Review (2022).
3. The Outcomes of Organizational Cronyism: A Social Exchange Theory Perspective. Frontiers in Psychology (2022).
4. Workplace Favoritism and Workforce Sustainability: An Analysis of Employees’ Well-Being. Sustainability (2022).
5. The effect of favouritism on employee competencies in the hotel industry: Mediating role of employee silence. Investigaciones Turísticas (2023).