The employee is the most important resource in an organization. Good management of a company ensures that all employees are treated with dignity. However, there are barriers that prevent the situation from occurring. One of them is nepotism. Nepotism which comes from the Latin word “Nepot” can be defined as an unprofessional act that shows favoritism towards relatives (Wikipedia, 2011). Nepotism usually occurs in business management and political affairs, but what will be discussed here is nepotism in business management. Nepotism can contribute to many disadvantages for an organization, such as injustice towards other employees, lowered employee morale, and pressure on relatives themselves. First, the downside of nepotism is injustice to other employees (Kinsman, 2006). The feeling arises from the fact that the employer only shows favoritism towards the relative's workers. There is a possibility that non-family employees will feel disappointed and prejudiced when they are treated this way. Managers who practice nepotism will always put their relatives first over other employees (Encyclopedia, 2006). Some examples of injustice could be biased in unfairly positioning the job or task to employees when distributing rewards and benefits. There is a significant relationship between injustice and employee motivation which influences the decrease or increase in the level of employee motivation. At the same time, conflicts may arise between staff who previously worked in the company and the new staff member who was hired due to the family relationship. So, it can strongly be a disaster for the company and for the company itself because it will be difficult to work with each other. As we know, to earn or maximize profits by comp...... middle of paper ......ure to relatives. The situation worsens especially when the company is managed by a family group where the practice of nepotism will be simultaneously inherited to subsequent generations of managers. Therefore, employers must play their role in preventing this unprofessional act from becoming a normal practice in management. Furthermore, an organization can gain benefits such as professional management and good teamwork can be created when all employees are treated with dignity and fairness. Works Cited http://www.enotes.com/management-encyclopedia/nepotism http://en.wikipedia. org/wiki/Nepotismhttp://www.iaes.org/conferences/past/philadelphia_52/prelim_program/d00-2/laker-williams.htmhttp://familybusiness.about.com/od/managementandoperatives/a/commonthreats.htmnepotism/ info_8778191_nepotism-private-sector.htmlhttp://www.jobjournal.com/article_full_text.asp?artid=1792