In the workplace, nepotism is defined as individuals showing favoritism and favouring to the family members and friends by providing them with jobs or giving them promotions based on their relationships, and not competence with the rest.

Nepotism is regarded as an unfair practice by both employees and other people. Since it is not accepted and every one is against such things the owners have to face several consequences whuch hinders the workplace.


Companies who practice and favour nepotism could be at risk of getting sued by employees or other people. Nepotism can cost a company a lawsuit if a potential employee has proof against such unfair hiring of people. There could be a great risk to the company if they show favouritism in matter of salary, hiring, promotions and benefits towards any of their friends and family members and ignoring and neglecting the potential of other people.

Lower Employee Morale

Low morale of employees can hinder and affect their work thus loss of profits which will make company less productive and can cause employees to focus less on customers who will alwyas remain unsatisfied. When nepotism has a negative effect on a workplace, morale of employees working employee shrinks, which affects smooth working of a company even when the employees project great potential and are productive. Employees may feel unappreciated and not praised for their upliftments and as a result, they may lose their motivation to achieve their goals and accomplish tge given tasks.

Effect of nepotism On the Organization

• A discontented employee and an unethical leader is a hazardous combination for the firm.

• The injustice of this situation will cause resentment all over the office, festering a bad work environment.

• Reduced productivity of employees will be one of prominent negative consequences and effect of Nepotism. This leads to inefficiency, unsatisfactory results, and decrease in output.

• The organization will begin to observe a stunted withering to increased conflicts and low productivity.

• The firm will bear loss of good, efficient employees with innovative and better ideas.

• Breach of confidentiality is also a negative effect of this practice. An employee who is supposed to follow the instructed rules, may go against them due to frustration and dissatisfaction.

• Eventually, this will lead to much bigger issues and the organization will suffer problematic results.

1 of every 100 people are not able to attain what they deserve and what they aspire due to this phenomenon. Every one deserves an equal chance and equal support to accomplish what they worked hard for.