Organisational Favouritism

One of the major hindrances to the development of an economy is unfair practices and corruption. Favouritism being a prime factor accounting for unfair practices within formal sector organisations, the expansion of the industrial sector often faces challenges in terms of its efficiency. This chapter aims to provide a survey of the studies on favouritism, especially within formal organisational set-ups. It intends to summarise the different studies in a concise manner and comment on the undesirability of favouritism together with the divergent views on the emergence of favouritism within organisations. This chapter highlights the intriguing trade-off between efficiency and favouritism and underlines some probable measures of elimination of its adverse consequences, which will help researchers to address the developmental issues through the lenses of economics of favouritism.