Monday, November 5, 2012

Cronyism or Extreme Social Connections?

Normally the hiring process is a relatively random process based on the selection of applicants.  And in the recruiting process, referral hiring is a common practice.   But there are times when the selection process is not so random or neutral.   What happens when the hiring manager is not totally indifferent to members of the candidate pool and the referral value of a candidate increases based on their social connection with the hiring manager?   Is this where an organization, or manager, potentially crosses the line into favoritism? 
 
In my last blog (Nepotism - It's All Relative) I discussed nepotism and the challenges it may bring to an office environment.  Skipping down that little favoritism trail,  hand in hand with nepotism, is cronyism.   Cronyism is a specific form of favoritism referring to partiality towards friends and associates.   
 
Have you ever worked in an environment where there's a bunch of "good ole boys?"   A group of individuals that are given an undue advantage but who don't necessarily merit this treatment?   Individuals that may be in positions where they are not even qualified to do their job?  In an environment where it's not WHAT you know but WHO you know, you are experiencing cronyism.  That favoritism can be exhibited in compensation, discipline, or even positions.  
 
Does cronyism undermine business effectiveness?  Unfortunately cronyism can create an air of entitlement for those employees who were hired based on their social connection.  They may feel as though company rules do not apply to them.  Additional negative consequences are that sometimes these individuals are under-qualified to perform their jobs (potentially promoted to a level of incompetence) and even pay scales may become distorted.
 
Referencing my earlier question regarding the practice of nepotism and whether or not it's ethical, here's something for consideration:
  • One of the most basic themes in ethics is fairness. Logically, cronyism (or nepotism) interferes with fairness through the undue advantage of one person who may not merit such treatment.
Both can greatly undermine the effectiveness of an organization.  So, draw your own conclusion.
 
Always keep an eye on your hiring practices.   We all know that businesses are often thick with social connections.  But don't allow your organization to become too relationship-driven that you unknowingly violate Title VII of the Civil Rights Act by discounting highly qualified applicants.

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