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Nepotism refers to a practice of granting effective favours to one's relatives and kins (Liu, Eubanks and Chater, 2015). This benefit could be given in various fields such as politics, business, etc. However, there are various theories which is associated with reduction in such practices within an organisation. One such theory is Competencies' Theory which sets up various parameters for competencies in terms of team, change, ethical, communication and culture (Nepotism, employees’ competencies and firm performance, 2019). This theory is assistive in helping to reduce nepotism practices within the organisation.

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Category 1:

National Culture: According to the culture of Tanzania, hiring individuals who are relatives or have connection with influential people of the country is considered quite normal as well as legal. A major reason for Tanzanian Culture in supporting nepotism is because there is a high rate of unemployment within the nation, local individuals expect relationship or friendship within organisations to ensure higher priority while consideration.

Category 2:

Leadership: As per the case, leadership within Hydro Generation promotes Nepotism. Throughout the case study, there are various instances which reflected Steinberg being aware about Jones' hiring practices and even disliked the same, however, there were no attempts took by him to stop the doing. Thus, his ineffective leadership lead to promotion of nepotism in organisational practices in Tanzania (Safina, 2015).

Category 3:

Motivation and HRM: Brett Jones has been quite strategic in accomplishing the tasks allotted to him by the management in the power plant project in Tanzania. His HRM practices did not follow the set code of conduct or ethical standards which promoted certain practices like nepotism and favouritism. However, the results he acquired such as smooth running of operations due to established connection with individuals like customs officer, In addition, his practices of tipping these individuals produced effective results in business operations.

References

  • Liu, C., Eubanks, D.L. and Chater, N., 2015. The weakness of strong ties: Sampling bias, social ties, and nepotism in family business succession. The Leadership Quarterly. 26(3). pp.419-435.
  • Safina, D., 2015. Favouritism and nepotism in an organization: Causes and effects. Procedia economics and finance. 23. pp.630-634.
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