If Bill Gates hired his best friend to be his partner in business, people would be mad. If President Clinton hired his daughter to be the Secretary of State, people would more than likely be mad. These scenarios are examples of nepotism, the practice of hiring and/or showing employment or development preference to a member of your family, immediate household, or relative in disregard of the qualifications of others better suited for that same position ("City of Bristol Tennessee Nepotism Policy" 1). Although nepotism is viewed as an unethical means of hiring, it is not illegal, and is practiced in many places. In Hollywood, the phrase "It's who you know" is what can make or break an actor or actress' career (Torres 1). Nepotism is also found in today's corporate world (Myers 1). There are many family owned businesses and firms that use nepotism (Myers 1). In the early 1700's, nepotism was the means of public appointment in Britain under Queen Anne ("Merit Rules, OK?" 1). It is even found way back in the mid-16th century in the Ottoman Empire. Corruption and nepotism have been found in all levels of the Empire's administration ("Ottoman Empire" 1). The practice of nepotism brings with it negatives as well as positives and can ensure the success or failure in the particular place where it is being practiced.
The practice of nepotism in a family owned business may possibly lead to many negative things. One negative is that it limits the number of people to choose from when hiring potential leaders. Another is that employees who are not part of the family will become disgruntled because they may see their chances of "moving up the ladder" are limited. It also has a large negative impact on other small business operations such as the recruiting, training, and developmental progress of non-family members (Myers 1). When all of these negative factor...