Favoritism Rampant at Large Companies

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By Douglas A. McIntyre Published

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“Senior executives say widespread favoritism exists in large organizations, yet few admit practicing favoritism themselves,” according to research by Georgetown University’s McDonough School of Business. The study adds that among senior management, “29 percent of respondents said their most recent promotion of people into a new job considered only a single candidate.”

The data demonstrate that the majority of senior managers do not admit to favoritism themselves, which would indicate that it should not be widespread. But it is widespread. So, a number of executives, it seems, are almost certainly not willing to admit to the behavior themselves, although the research shows it must be otherwise.

Why is favoritism such a broad problem? Twelve percent say promotions are based on people who have “views similar to mine.” Another 5% say a “background similar to mine.” Senior managers are unlikely to want to see these things in themselves, even in a confidential survey. That means the numbers for these two measurements are almost certain to be underreported. There has to be some reason why white males do so well in large companies, for instance. Perhaps it is that white males run most of these firms. A “background similar to mine” means women and members of ethnic groups are likely to struggle for promotions, particularly if this reason is underreported.

Jonathan Gardner, one of the authors of the report, did not mince words: “This study confirms what many have suspected — that favoritism plays a much greater role in employee advancement than companies normally portray. I hope this study will help us acknowledge the prevalence of favoritism in employee promotions so that we can find ways to better understand the role it plays.”

A single study will not change anything. The culture that favors a system that perpetuates itself cannot be so easily changed.

Methodology: From March 8, 2011, to March 10, 2011, Penn Schoen Berland conducted 303 online interviews with senior business executives at companies in the United States with at least 1,000 employees.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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