Overcoming the Challenges of Nepotism to Create a System Fair and Transparent Selection in Business Entities Regional Property in North Sumatra

Authors

  • Nurul Huda Chasanah Universitas Sumatera Utara Medan
  • Muhammad Syahrizal Nasution Universitas Sumatera Utara Medan
  • Debora Tifani Turnip Universitas Sumatera Utara Medan
  • Ritha F. Dalimunthe Universitas Sumatera Utara Medan
  • Prihantin Lumbanraja Universitas Sumatera Utara Medan

DOI:

https://doi.org/10.61132/greeninflation.v1i4.152

Keywords:

Nepotism, Recruitment, Transparency, Organizational Effectiveness

Abstract

The practice of nepotism in the employee selection process at Regional Owned Enterprises (BUMD) in North Sumatra, which has an impact on transparency, fairness and organizational effectiveness. BUMDs have an important role in regional economic development, but nepotism practices often damage the integrity of the recruitment process. Through a qualitative approach and case studies, this research reveals that nepotism creates inequality in employee selection, reduces the quality of human resources, and reduces public trust in BUMD. This article also identifies the factors that cause nepotism and offers solutions in the form of selection transparency, anti-nepotism policies, independent supervision, and outreach to build a culture of meritocracy in BUMD. By overcoming nepotism, BUMD is expected to be able to create a fair and professional recruitment system, thereby supporting the achievement of optimal performance.

Downloads

Download data is not yet available.

References

Agustina, R., Dalimunthe, RF, & Sinulingga, S. (2019). The effect of recruitment, training, and placement on the performance of employees in PT Astra International Tbk, Toyota Auto 2000 SM. King of Medan. European Journal of Human Resource Management Studies, 3 (1).

Alesina, A., & Ardagna, S. (2019). Fiscal consolidation in a low inflation environment: Pay cuts versus lost jobs. Journal of Economic Perspectives, 33 (1), 89-112. Retrieved from https://www.academia.edu/124170184/Jumping_the_Queue_Nepotism_and_Public_Sector_Pay

Banerjee, A., & Duflo, E. (2018). Merit-based recruitment in the public sector: Effectiveness and challenges. Journal of Economic Perspectives, 32 (3), 123-146. Retrieved from https://core.ac.uk/download/pdf/266991599.pdf

Bertrand, M., & Schoar, A. (2020). Nepotism, political competition, and overemployment. The Economic Journal, 130 (629), 1365-1390. Retrieved from https://www.tandfonline.com/doi/pdf/10.1080/2474736X.2020.1781542

Colonnelli, E., Prem, M., & Teso, E. (2020). Intergenerational transfers of public sector jobs: A shred of evidence on nepotism. Journal of Public Economics, 187 , 104206. Retrieved from https://www.jstor.org/stable/40270951

Dalimunthe, RF, Hajar, S., Pardede, SN, Sirait, B., & Ivana, N. (2024). The effect of training and employee motivation on employee productivity: A literature review. Neraca: Journal of Economics, Management and Accounting , 2 (6), 478–484.

Dessler, G. (2015). Human Resource Management: Principles and practices .

Dosi, G., Fagiolo, G., & Roventini, A. (2020). Jumping the queue: Nepotism and public-sector pay. Review of Economic Dynamics, 23 (1), 45-56. Retrieved from https://ideas.repec.org/a/red/issued/20-120.html

Gagliarducci, S., & Nannicini, T. (2018). Public-sector employment, wages, and education decisions. Journal of Labor Economics, 36 (4), 1234-1271. Retrieved from https://www.academia.edu/124170184/Jumping_the_Queue_Nepotism_and_Public_Sector_Pay

Gopinath, G., & Itskhoki, O. (2020). Exchange rate adjustment in the Euro area. Brookings Papers on Economic Activity, 2020 (1), 119-137. Retrieved from https://www.academia.edu/124170184/Jumping_the_Queue_Nepotism_and_Public_Sector_Pay

La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2017). State regulations, job search, and wage bargaining: A study in the economics of the informal sector. The Quarterly Journal of Economics, 132 (3), 1091-1151. Retrieved from https://core.ac.uk/download/pdf/395012345.pdf

Martins, P. S. (2019). The intergenerational transfer of public sector jobs: Nepotism or human capital transmission? Labor Economics, 60 , 21-35. Retrieved from https://gupea.ub.gu.se/bitstream/handle/2077/75990/2023_7_Wittberg.pdf?sequence=1

Regulation of the Minister of Home Affairs No. 37 of 2018 concerning the Appointment and Dismissal of Members of the Board of Directors, Members of the Supervisory Board, and Employees of BUMD.

Government Regulation of the Republic of Indonesia No. 54 of 2017 concerning Regionally-Owned Enterprises (BUMD).

Ramadhan, H., Lumbanraja, P., & Sinulingga, S. (2021). Analysis of the effect of competence and soft skills on employee performance with job satisfaction as an intervening variable at the Regional Social Services of South Tapanuli Regency. International Journal of Research and Reviews, 8 (8), 290-298.

Rodrik, D. (2019). Fiscal consolidation and public wages. American Economic Review: Insights, 1 (3), 263-280. Retrieved from https://www.academia.edu/124170184/Jumping_the_Queue_Nepotism_and_Public_Sector_Pay

Samosir, B., Dalimunthe, RF, & Absah, Y. (2024). The influence of individual characteristics, training, employee performance, and job placement on PT. Bank BNI Medan. Proceedings of The 3rd International Conference on Business, Economics, and Sustainability Science (BESS) 2023 , 20-29.

Siahaan, E., Gultom, P., & Lumbanraja, P. (2016). Improvement of employee banking performance based on competency improvement and placement working through career development (Case study in Indonesia). International Business Management, 10 (3), 255-261.

Law No. 5 of 2014 concerning State Civil Apparatus (ASN).

Downloads

Published

2024-11-21

How to Cite

Nurul Huda Chasanah, Muhammad Syahrizal Nasution, Debora Tifani Turnip, Ritha F. Dalimunthe, & Prihantin Lumbanraja. (2024). Overcoming the Challenges of Nepotism to Create a System Fair and Transparent Selection in Business Entities Regional Property in North Sumatra. Green Inflation: International Journal of Management and Strategic Business Leadership, 1(4), 296–306. https://doi.org/10.61132/greeninflation.v1i4.152