The effect of nepotism on organization members’ behavior and approach

The purpose of this study is to investigate the potential effects of nepotism on human resource management (HRM) practices. For this purpose, the relationship between variables such as; human resource management (HRM), job satisfaction (JS), quitting intention (QI) and negative word of mouth (NWM), were studied. According to these variables, 10 hypotheses were developed to examine the relationship between these variables mutually. Questionnaires were distributed between Tile industry employees. In order to test the hypothesis, LISREL software and Path Analysis Model (PAM) were used. The findings show that nepotism has a significant negative effect on HRM and job satisfaction; HRM has a significant positive effect on job satisfaction and negative effect on negative word of mouth. Job satisfaction has a meaningful negative effect on quitting intention and negative word of mouth. Findings also indicate that relationship between quitting intention and negative word of mouth is positive. This study reveals that nepotism is an unprofessional phenomenon that provides benefits merely to the family members or close friends. Therefore, nepotism paralyzes human resource practices and affects the level of satisfaction among employees. Employees may think of quitting their jobs or using negative word of mouth if their job satisfaction level is not enhanced. The study also showed that job satisfaction is the key to organizational success and high levels of job satisfaction that leads to loyalty and commitment of employees to do the job better.