Effects on Performance Management When Nepotism and Cronyism are Present

Topics: Management, Organizational studies, Organization Pages: 12 (2905 words) Published: August 4, 2014


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

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 support coordinator and some college experience. After the new director took over, the entire center seemed to be recreated. The “daughter” was made a program manager and the “friend” was made a program manager. Once these positions were filled and time went on, cronyism became very visible among the center staff. The “daughter” had now been moved into an “invented position” since she was unable to perform her managerial duties, as told to staff, yet her salary and status seemed to remain intact. The “friend” however seemed to shine brighter daily and chain of command communicated regularly. The morale of the organization started falling and stories and complaints traveled quickly between staff. It was starting to be evident that the word “team” did not exist. If rooms needed assistance, coverage, or other types of conflict arose there was not anyone to come and offer support. The staff knew they had to call the program manager per chain of command but she was never available. After months of back and forth from trying to get answers from the director and when questioned, the program manager, who also happens to have tightened the bond of friendship with this director would lie and say it is handled or just not show up when needed the staff began feeling like no matter how much they complained or tried fixing the situation the director valued the friendships more than the organizations culture all together. Every year when it is time to do performance evaluations the direct support staff would cringe. They all knew that no matter what was on the form that they signed it did not matter because “if” there was a raise to be given, it would be a standard 1%-3% across the board. The facts that the “mangers” actually had a larger salary increased their raises due to the percentage factor. This past year most staff filled out their own evaluations and wrote their own goal to work towards the following year and the managers just signed off and passed to the director. The character of cronyism is proactive and dynamic. Goman (1991) notes that loyalty has two true-hearted dimensions: emotional and behavioral....
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