Final answer:
If the CEO of a company hires his or her cousin, who lacks the required qualification, to head a division of the company, it can be considered nepotism. Nepotism refers to the favoritism shown to family or relatives in employment or the granting of promotions. This can have several negative consequences and create feelings of unfairness and inequity within the organization.
Step-by-step explanation:
If the CEO of a company hires his or her cousin, who lacks the required qualification, to head a division of the company, then it can be considered nepotism. Nepotism refers to the favoritism shown to family or relatives in employment or the granting of promotions. In this case, the CEO is prioritizing personal relationships over qualifications, which is not fair to other employees and may affect the company's performance.
Nepotism can have several negative consequences, including a decrease in employee morale, a lack of trust in leadership, and a decline in overall productivity. When individuals are promoted based on familial connections rather than merit, it can create feelings of unfairness and inequity within the organization.
In order to maintain a fair and merit-based work environment, it is crucial for organizations to have transparent hiring practices and adhere to equal opportunity principles.