a grandparent, parent, sibling, niece, nephew, uncle, or aunt;
or a relative through marriage, such as a husband, wife, brother-in-law, or sister-in-law.
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Nepotism can occur in the public and private
sectors. In the public sector, officials may give preferential
treatment to their relatives in employment-related decisions. For example, a public official who approves a bid for a government contract submitted by her husband’s firm is engaging in nepotism if other firms had submitted lower bids for the contract.
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In the private sector, members of MANAGEMENT may
give preferential treatment to their relatives in hiring or
promotion decisions. For example, a senior manager of a CORPORATION who hires her brother for a position in the corporation is probably engaging in nepotism if her brother is less qualified for the position than other candidates who applied for the job.
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Some specific examples of potential "rules" for managing
nepotism include: Must have education appropriate for the job Work outside
of the family business for 3-5 years before entering the family business Can enter the family business only if there is an appropriate job available Enter the family business at a pay-level and performance level appropriate for the job
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Nepotism is not uncommon in the business world.
Arguments are made both for and against employment granted
due to a family connection.
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On one hand, nepotism can provide stability and
continuity. Critics cite studies that demonstrate decreased morale and
commitment from non-related employees, and a generally negative attitude towards superior positions filled through nepotism.