The Effect of Nepotism on employees' performance with the mediating role of Employees’ Competencies

At present, nepotism is one of the undesirable organizational phenomena that exist in most countries, especially developing countries, in various forms. Consequently, the purpose of this study was to investigate the effect of nepotism on employee performance by the mediating role of employee competencies (self-competence, team competence, change competence, communication competence, ethical competence, and cultural competence). Population of study consists of Travel and tourism services companies' employees in city of Tehran. In order to obtain sample size, simple random sampling way and Cochran's formula were applied. To obtain the required sample size, simple random sampling and Cochran formula are used. To gather the required data, library and field methods are used. Present study is an applied study in terms of purpose and in terms of collecting data it is regarded as a descriptive survey. To analyze the data, confirmatory factor analysis and structural equation modeling, available in LISERAL and SPSS are used. The results showed that nepotism had a significant negative effect on employee performance, self-competence, team competence, ethical competence and cultural competence and self-competence, team competence, change competence and communication competence also have a significant positive effect on employee performance.