The effects of nepotism on human resource management: The case of three, four and five star hotels in Northern Cyprus

The purpose of this study is to investigate the potential effects of nepotism on human resource management (HRM) practices through the use of Turkish Cypriot hotel employees in three, four, and five star accommodation establishments in Northern Cyprus.

Questionnaires were distributed to full time hotel employees in three, four, and five star hotels in Northern Cyprus. Of the 500 distributed, 257 usable questionnaires were retrieved. A judgmental sampling approach was used.

The principal finding is that nepotism has a significant negative effect on HRM, job satisfaction, quitting intention, and negative word of mouth. The study also shows that HRM exerts a significant positive effect on job satisfaction.

This study reveals that nepotism is an unprofessional phenomenon that provides benefits merely to the family members or close friends. Therefore, nepotism paralyzes human resource practices and affects the level of satisfaction among employees. Although the job opportunities are limited in the hotel industry in north Cyprus, employees may think of quitting their jobs or using negative word of mouth if their job satisfaction level is not enhanced. Customers perceive and evaluate the quality by considering the attitude, behavior and tone of the voice of employees. Therefore, priority of satisfaction has to be given to the employees in order to satisfy the customers. There are several limitations to the current study. In future studies, other variables such as role stress, organizational commitment, and different facets of job satisfaction may be used in order to examine the probable relationships. Secondly, future research with larger sample size elsewhere would be productive to provide a support for the generalization of the present findings. Thirdly, this study employed judgmental sampling approach. Future studies may use probability‐sampling approach in order to support the current study findings.

This study is necessary and useful for three reasons. Firstly, it investigates the possible impacts of nepotism on multiple organizational dimensions, which is a relatively virgin area. Secondly, the effects of nepotism have been mostly examined at the macro level resulting in a paucity of empirical research especially at the organizational level. Thirdly, the study provides some propositions and managerial implications to owners, managers, and employees in North Cyprus where the tourism and hospitality industry constitutes an essential part of the economy.