Favoritism & Nepotism In The Organizations: The Perspectives Of Malaysia’s SMEs In The Handicraft Wood Industry

Author

See Mun Chan, Asad Ur Rehman, Ayesha Nawal, Ihtisham Ullah, Waris Ali Khan


Abstract

 Over the past few years, there is a growing number of organizations have focused on favoritism and nepotism. They are improper conducts that possibly affects firms and employees. Despite performance-based practices were stressed by numerous firms, biased treatment guided by personal networks remain prevalent to influence managerial practices and employees’ views within the organizations. Therefore, this study was carried in response to the mentioned scenario. It is primarily aimed to analyze the effects of favoritism on organizational citizenship behavior (OCB) and the impacts of nepotism on workplace conflicts. At the same time, the mediating effect of high performance punishment (HPP) and moderating role of organizational justice (OJ) are considered. This study has applied simple random sampling technique to collect the required responses. Subsequently, SEM was used to assess the acquired data. These inputs had reflected favoritism as a direct and significant element that influencing OCB with HPP in the tested industry. Besides, nepotism is shown immediately and substantially influences conflicts and HPP in the firms. However, the mediating effect of HPP is rejected, while OJ as a moderator is supported in this study. These had suggested the organizations to reduce favoritism that lessening OCB and nepotism that raising workplace conflicts. Additionally, OJ is encouraged and HPP shall be prevented. From here, both individual and organizational performances are strengthened, which in turn devote to a better firm performances in the long run. 



Keywords

Favoritism, Nepotism, Organizational Citizenship Behavior (OCB), Workplace Conflict, High Performance Punishment (HPP), Organizational Justice (OJ)



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