Favouritism and Nepotism in an Organization: Causes and Effects

Over the last years the outspread of favouritism and nepotism in Russia began developing in menacing proportions there through jeopardizing the country's social and economic development. At this time in Russia favouritism and nepotism were practically not analyzed as an organizational phenomenon. Traditionally they were considered to be sociocultural phenomena and were mainly studied by historians, political analysts, sociologistsand psychologists. In this regard a lot of undiscovered issues of the reasons, consequences and ways to counterstand these trends in an organization have been recently brought up. These are those vital problems the given article is devoted to. The social and economic situation in today's Russia predetermines opportunities for favouritism and nepotism's intensive development. The formal institution's acceptable confidence level and the level of interpersonal credibility in Russia are very low what certainly brings to well-being of various unofficial institutions giving rise to favouritism and nepotism and hence, corruption at all levels of governance. The present article illustrates that just nepotism quite often creates opportunities for simulation of superior positions and even the whole departments for close relatives what inevitably brings about organizational effectiveness degrading. The author comes to conclusion that further advancement of favouritism and nepotism leads to «brain drain» from Russia what altogether puts the country's social and economic development at hazard.