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[quote=Anonymous][quote=Anonymous]Some of the worst environments for favoritism are huge old companies and organizations.  I've read that a ridiculously high percentage of generals/admirals are blood relatives of former generals/admirals.  And I work for a big company (not a family company by any means) where the same is true about company executives.[/quote]

I think this is because old companies and organizations tend to promote from within.  So people rise up in a certain culture and then just perpetuate that culture.   They don't get new approaches to management because the people who become managers have been kind of indoctrinated into that way of managing.  People get used to the friends and family plan, the idea that you help the people with whom you are friendly and have a comfort level.  Someone who just happened to like you helped you out, so you get in a position of power, and your first instinct is to help your friends down the line.  You figure as long as the people are competent, it isn't an issue.  But you fail to realize that it is an issue because you've essentially removed the competitive aspect of promotions and perhaps ignored promising employees for no other reason than you just don't know them well on a personal level.

Organizations and companies that frequently hire external candidates are constantly getting fresh blood, so to say, in.  The external candidates hired have no established network of friends to whom they feel allegiance so they tend to make decisions that are based more on the needs of the organization and the work product.

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