The underestimation of the risks associated with the attribution of managerial roles based on familiarity

It may have happened to you, in your work activity, during an interview with the owner of the company or with a CEO belonging to the family that owns the company, answers of the like: you won't want to earn more than my daughter, you won't think of aspiring to a higher managerial role than my brother, you can't expect my wife to take orders from you and so on.

The concept of company ownership many times, especially in medium-small companies, but often also in large family-run ones, is confused with the concept of its management, where people should operate according to the convenience of the company and not of individuals subjects.

A short circuit whose results cannot be seen in the short term, but which are certainly harmful in the medium to long term, with a catastrophic series of consequences that undermine credibility and the quality of human resources.

As we have said, managerial nepotism can have a significant impact on companies, of which some possible effects:

Decreased employee morale

When leadership positions are assigned based on family or personal relationships rather than merit, this can cause a decrease in employee morale, leading to a reduction in productivity and an increase in turnover.

Poor leadership quality

If people are promoted into management positions based on personal connections rather than competence, the quality of leadership can suffer. Such an attitude can lead to poor business decisions, lost business opportunities and potentially a loss of competitiveness in the marketplace.

Damage to corporate reputation

Nepotism can cause damage to a company's reputation if it is perceived as unfair or dishonest. Favorable behavior can make it difficult for the company to attract top talent or retain customers and business partners.

Reducing diversity

Nepotism can lead to a lack of diversity in the management team, which can limit the range of ideas and perspectives in running the company .

So, while it may seem convenient to promote familiar or well-known people into leadership positions, nepotism can have significant negative consequences for companies.

What reaction do company employees have to managerial nepotism?

We are quite convinced that businesses, at all levels and in all fields, are made up of men and their success depends on the quality of the human resources that live within the companies.

The more motivated and ambitious the collaborators are in achieving results, the more the constructive climate infects the workers and attracts new and capable human resources.

For this reason the nepotistic attitude within the company clashes with its growth, creating a poor overall evaluation and a mistrust of workers towards the managerial pyramid.

Employee reaction to managerial nepotism can vary, but tends to be negative for the following reasons:

Lack of trust

If employees see decisions being made based on nepotism, they may lose trust in company leaders, a behavior that can lead to a lack of respect for managers and a reduction in leadership effectiveness.

Resentment

Nepotism can create tension and resentment among employees. Those who are not favored may feel resentful of those who are, and this can lead to a toxic work environment.

Lack of motivation

If employees see that promotions are based on personal relationships rather than merit, they may lose motivation to work hard and improve their skills .

How to overcome managerial nepotism in the company by the owner?

Fighting managerial nepotism can be difficult, especially if it is practiced by the company owner. However, there are some steps that can be taken:

-Implement clear hiring and promotion policiesthat emphasize merit rather than personal relationships. These policies should be well documented and easily accessible to all employees.

- Provide training to managers and business leaders on how to avoid nepotism and how to make impartial decisions.

- Create channels through which employees can report nepotism without fear of retaliation. This could include a hotline or an anonymous email inbox.

- Consider having an outside party, such as a consultant or employment lawyer, to review hiring decisions and promotion. This can help ensure that decisions are made fairly.

- Communicate openly with employees about steps taken to combat nepotism. This can help build trust and show that the company takes the issue seriously.

It is worth remembering, however, that these strategies may not be effective if the business owner is not willing to change his practices. In this case, you may need to seek legal advice or consider other employment options.

Automatic translation. We apologize for any inaccuracies. Original article in Italian.