The employee is the most important asset of an organization. Good business management ensures that all employees are treated with dignity. However, there are obstacles that prevent this situation from happening. One of them is nepotism. Nepotism, derived from the Latin word “Nepot”, can be defined as an unprofessional act showing favoritism towards close ones (Wikipedia, 2011). Nepotism usually occurs in business management and political affairs, but what will be discussed here is nepotism in business management. Nepotism can contribute to many disadvantages to an organization, such as unfairness to other employees, lower employee morale, and pressure on loved ones themselves. Above all, the downside of nepotism is unfairness to other employees (Kinsman, 2006). This feeling arises because the employer only shows favoritism towards the parent's workers. Non-family employees may feel disappointed and biased when they are treated this way. Managers who practice nepotism will always put those close to them before other employees (Encyclopedia, 2006). An example of unfairness would be unfair positioning of the position or task towards employees when distributing rewards and benefits. There is a significant relationship between injustice and employee motivation which influences the decrease or increase in the level of employee motivation. At the same time, conflicts may arise between the staff who previously worked in the company and the new staff member hired due to the family relationship. So it can be a disaster for the company and for the company itself, because it will be difficult for them to work together. As we know, to earn or maximize business profits...... middle of paper ......ure to relatives. The situation becomes worse especially when the company is managed by a family group where the practice of nepotism will simultaneously be inherited from the next generations of managers. Employers must therefore play their role to prevent this unprofessional act from becoming a normative management practice. Additionally, an organization can enjoy benefits such as professional management and good teamwork can be created when all employees are treated with dignity and fairly. org/wiki/Nepotismhttp://www.iaes.org/conferences/past/philadelphia_52/prelim_program/d00-2/laker-williams.htmhttp://familybusiness.about.com/od/managementandoperations/a/commonthreats.htmnepotism/ info_8778191_nepotism-private-sector.htmlhttp://www.jobjournal.com/article_full_text.asp?artid=1792