Case Study

Favoritism

As favoritism is the broadest of these related terms, we'll start with its definition. Favoritism is partiality or bias. To show favoritism is to give preference to one person over others with equal claims. It is similar to discrimination and may be based on conditions such as social class, wealth, clothing, actions, etc. Basically favoritism is just what it sounds like; it's favoring a person not because he or she is doing the best job but rather because of some extraneous feature-membership in a favored group, personal likes and dislikes, etc. Favoritism can be demonstrated in hiring, honoring, or awarding contracts. A related idea is patronage, giving public service jobs to those who may have helped elect the person who has the power of appointment.

Favoritism has always been a complaint in government service. In 2002, a survey from the federal government's Office of Personnel Management found that only 36.1 percent of federal workers thought promotions in their work units were based on merit. (Government Executive Magazine, "Playing Favorites," by Brian Friel, October 2004). They believed that connections, partisanship, and other factors played a role.

Cronyism

Cronyism is a more specific form of favoritism, referring to partiality towards friends and associates. As the old saying goes, "It's not what you know but who you know," or, as blogger Danny Ferguson put it, "It's not what you don't know; it's who your college roommate knows." Cronyism occurs within a network of insiders-the "good ol' boys," who confer favors on one another.

The act of showing partiality to one's close friends, typically by appointing them to a position in a company or organization despite the individual not necessarily being the best person for the position. Although this is favoritism is frowned upon in many cases, it is often hard to determine what is or is not cronyism. In general it is not wrong to hire or appoint someone you know, as long as they are well qualified, so the boundary between the two scenarios is very unclear. Although accusations of cronyism are prevalent, they very rarely amount to any disciplinary action or removals from power.

Nepotism

Practice of appointing relatives and friends in one's organization to positions for which outsiders might be better qualified. Despite its negative connotations, nepotism (if applied sensibly) is an important and positive practice in the startup and formative years of a firm where complete trust and willingness to work hard (for little or no immediate reward) are critical for its survival.

Nepotism is an even narrower form of favoritism. Coming from the Italian word for nephew, it covers favoritism to members of the family. Both nepotism and cronyism are often at work when political

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