CORPORATE BIAS & NEPOTISM - A HINDRANCE FOR EFFECTIVE MANAGEMENT

                                                                      Abstract
Whether globalization, liberalization and privatization drive to secure socio- economic integration and development of all the people of the world through a free flow of goods, services, information, knowledge and people across all boundaries purpose, or not, they twist the World societies to run behind a socio-economic disparities in each segments of the people. They lead many unethical policies like predatory competition culture not only among Nations, business organizations but they create a much unfair groupism in various societies and drive them towards contradictory nationalism with polarization, nepotism and bias internally and externally in micro and macro level environments in every corners of their functions. Most of the corporate businesses are the main platforms for these radical discriminations and biases.

                                                                Introduction
Even though each and every workmanship and leadership have the common objectives in an organization, there is a hidden or unconscious bias and favoritism in their individual mindset of ethnic or cultural division due to Xenophobia.  Many of recent researches have shown that inequality between ethnic groups is strongly driven by politics, where powerful groups and elites channel the state's resources toward their constituencies. Most of the existing literature assumes that these politically induced inequalities are static and rarely change over time. These politically driven or motivated racism or nationalism arises in every business organizations from developed, developing countries and economically weaker countries. We challenge this claim and argue that economic globalization and domestic institutions interact in shaping inequality between groups. In weakly institutionalized states, gains from trade primarily accrue to political insiders and their co-ethnics. By contrast, politically excluded groups gain ground where a capable and meritocratic state apparatus governs trade liberalization. Using nighttime luminosity data from 1992 to till date and a global sample of ethnic groups, we show that the gap between politically marginalized groups and their included counterparts has narrowed over time while economic globalization progressed at a steady pace. Our quantitative analysis and four qualitative case narratives show, however, that increasing trade openness is associated with economic gains accruing to excluded groups in only institutionally strong states, as predicted by our theoretical argument. In contrast, the economic gap between ethnopolitical insiders and outsiders remains constant or even widens in weakly institutionalized countries. The growth of economy is not the real-time growth of industry and the consequent employment opportunities. But in the growing economies, the state or corporate industries have limited many opportunities only to few segments of people according to their ethnopolitical or fiscal policies. Sometimes the Government policies are the game changers for this shifting from economic distribution to economic disparity in societies and individuals. 
 
                                                Bias in a common perspective
The importance of organizational objectives in cohesive approach towards Mission and Vision in the last decades is slowly shifting towards political, ethnic or personal diversities of the managers and their vision. So, the hierarchical value disproportion in an organizational structure from top to bottom on a vertical basis is shrinking to a narrow ideology that discriminates a balanced work culture and business ethics from recruitments to remunerations. People easily can apprehend that the world and the workplace with it are changing. Business organizations not only use different countries for different functions, but they create and eliminate functions all the time—many of the highest paid non-management jobs did not exist 10 years ago. At the same time, computational power and robotics are making many jobs obsolete. So, the managers are in the positions to handle such manpower requirements within the organizations. These biases are formed in our brains unknowingly throughout our lifetime. Some help us be more efficient or put real “brainpower” to other tasks. But some of these biases may lead to workplace discrimination, unhealthy risk aversion, overinflated confidence, and poor business decisions.
 
Besides various other global apprehensions, we recognize the need to adapt our way of thinking to address the plethora of current global social, economic, political and cultural challenges which are turning back to centuries ago in some countries. This also means challenging the mental habits, paradigms, and assumptions that have been successful right up until the 21st century. Ethnic political desires dominate most functions that calibrate the depth of the root of favoritism. 
As companies vie to keep up with these changes, it’s important to recognize that many of the attitudes and behaviors of people involved will be unconsciously influenced. This can be both useful and hindering, so understanding this is paramount. Unconscious bias is a catch-all phrase for how we make decisions that are based on “rules of thumb” rather than all the facts. There is a fast-increasing body of knowledge exploring these tricky human phenomena. Businesses are now keen to catch up with the science in order to improve the experience they provide to both their customers and employees. From changing the way businesses hire and hold meetings, to how they reach their markets, understanding the predictable, but not always rationale, choices of human beings will help improve their customer experience strategies. The potential here is only just being realized. However, we can’t be conscious of all of our senses all of the time. As we grow up, we filter information to create mental shortcuts and develop habits that help us get by. It is these consciously created “rules of thumb” that once learned, become unconscious. Like habits, unconscious biases are hard things to break.        
 
                                    Areas and kinds of Nepotism and Favoritism
After globalization effect most of the nations in the World are functioning as a prototype corporate model and in concern with the interest of corporate firms to adjust their political, fiscal and environmental policies. The policies of governments are most favoring to corporate sectors which are directing the manufacturing and retail trade towards a monopolistic trend. The small players in the international or domestic manufacturing and retail sectors especially micro, small and medium enterprises and weaker entrepreneurs are continuously losing their market share and tend to move to their inactive stage. MSME sector is one of the largest job providing sectors with 61 Million units creating around 110 Million jobs and contributing around 30% share of India’s GDP. We can find closure of many of these units and related job losses and unemployment due to the galvanized effect of Corporatization and crony capitalism. Nepotism is sometimes is a path to corruption and anti-trust measures. The bureaucracy in governance, the public and private and financial sectors, stock or security exchange markets are also rigid with small scale enterprises, MSMEs and start-ups whereas very flexible with bigger companies in following their procedural policies and norms. This kind of nepotism in the corporate world gives life to financially strong companies but at the same time challenges the survival of the weaker business units.

The human resources policies nowadays are shifted from HR perspective to line manager perspective that is from recruitment-selection process to picking-up process even though it is seen as a recruiting process in the open forum. Most of the current recruiting processes are a short-term perspective or objective in human resources planning compared to previous decades. So, the selection process only acclimatizes the qualities of managers for a job profile rather than quality leadership. Hence, the operational standards and guidance are framed in a systemized and mechanized manner and not with a human approach. So, in most of the service sectors and retail industries, the CRM-Customer relationship becomes robotic from a customer-centric approach. So, we can recognize many switching over of customers, customers’ dissatisfaction, arrogance in customer service, the declining graph of employee engagement, improper time management, selection of inexperienced, incapable and unskilled people and related service issued without proper understanding, knowledge and skills.
 
                        Corporate, Politics, Governance, Media – Social Interference
Corporate governance, politics, government, bureaucracy and media are interrelated to each other in both micro and macro level. The public relations and social interactions within them and from them are the inevitable stimuli that derive mass psychology, mass attraction and mass opinion. In industrial countries like India, the above play a major role in influencing any policies, agenda, projects, industrial and infrastructure development within a locality or region consisting of various ethnic groups. The advertisements, political campaigns, corporate press releases, paid news commercially and politically, governments’ notices are generalized and digitalized through various print and visual media centers, consultative organizations. Since all these functions in corporate governance, politics, government, bureaucracy and media are working on commercial as well as a benefit or returns-oriented aspects their trustworthiness and reliability are many times to be questioned. 
                                                Aim and objectives of this research
The aim of the study is to investigate the impact of bias, favoritism and nepotism as a form of corruption on the effectiveness of management and leadership determining the relationship between individuals, groups, organizations, societies and taking it into account as a potential threat to secure and sustainable development of the organizations and societies with multiple diversities. The data will be collected from private and public organizations and to be used to test research hypotheses with the application of structural equation modeling to check the models with median effects.  The results of the test allowed to identify the negative aspects of above problems in the relationship between the manager’s behavior and organizational performance and problems causing internal conflicts and an atmosphere of mistrust in both public and private organizations, which leads to poor company performance and quality of services provided, and the potential loss of competent leaders, managers and effective governance and management in a society.
 
                                                Hypotheses and research Questions
Hypothesis 1 : The manager of the organization supports bias, nepotism, cronyism, favoritism and other forms of protectionism, which negatively affects the organization’s activities.
Hypothesis 2: Nepotism, cronyism, favoritism and other forms of protectionism create a negative psychological climate in the organization and society.
Hypothesis 3: A negative psychological climate in the organization and society increases mistrust among ethnic groups and causes tension in communication gives rise to mutual suspicion and snooping.
Hypothesis 4: Positive aspects of nepotism, cronyism, favoritism and other forms of protectionism have a positive effect on the organization’s or social activities.
Hypothesis 5: Nepotism, cronyism, favoritism have a negative effect on the functioning of public sector organizations and malfunctioning arises to control the equality and social justice.
Hypothesis 6: Nepotism, cronyism, favoritism have a positive effect on the functioning of private sector or public sector organizations and relative progressive outcome in the society.
 
                                                Research Methods to be used
 
A quantitative study will be conducted with employees, managers and business leaders from private and public sector organizations. The execution of the quantitative and qualitative analyses will be directly linked to both the search for answers to problem issues and the disclosure of the current situation, aiming to collect unique and useful information to identify, compare, and uncover relevant details in connection with the researched topic on Corporate bias, nepotism and favoritism.