Unfair practice in which people in power give positions in a government or organization to their relatives or friends, rather than to any individual who is well-qualified. This can lead to inefficiency in the functioning of the government or organization, since hiring is based on personal connections, rather than ability or merit. In addition, nepotism can cause conflicting loyalties for the person who receives the job: he or she may be more loyal to the person who hired him or her than to the government or organization.