Effects on Performance Management and the Company when Nepotism and Cronyism is Present.

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EFFECTS ON PERFORMANCE MANAGEMENT AND THE COMPANY 2

EFFECTS ON PERFORMANCE MANAGEMENT AND THE COMPANY 3

Effects on Performance Management and the Company when Nepotism and Cronyism is Present.

Running head: EFFECTS ON PERFORMANCE MANAGEMENT AND THE COMPANY 1

Effects on Performance Management and the Company when Nepotism and Cronyism is Present.

Whether deliberate or unintentional, workplace nepotism and cronyism threatens positive corporate culture as well as the company's overall performance management. Managers who give special treatment to their family members or their favorites decrease the morale of the other employees and do not pay attention to the areas of need that the employee may be facing in their job performance. Finding yourself on the non-receiving end of desirable assignments can be rough-especially when the recipient also lacks adequate employment qualifications. The organization being discussed is a relatively small organization; there are approximately twenty full-time employees and seventeen part-time employees.

The organization serves adults with developmental disabilities on cite and in the community. They are a non-profit organization and rely on state funded money as well as fundraisers. Their performance evaluation they work with does not have any weight when considering raises or pay scale.

There have been two directors in the last ten years and both directors suffered from performance management issues. However, since the latest director has been in charge the organizational culture is also changing rapidly. The previous director hired her daughter and the daughter's best friend. When both were hired neither had the required skills to perform their duties. They both rapidly moved up the ladder of success during the director's time. A couple of years prior to the director's retirement an "assistant director" position was created to train the upcoming replacement. She also happened to be a family friend. This friend had experience as a...