The Cutting Edge Leadership column in Psychology Today summarizes Part 1 of a study of nepotism:
What we are finding, however, is that people tend to believe that there is favoritism whenever a relative is hired, regardless of whether they tolerate nepotism or not. Even when a relative is the most qualified person for the job, coworkers tend to believe that it was their family relationship, rather than their qualifications, that got the person the job.
Part 2? The impact that perceptions of nepotism may have on employee performance, motivation, and decisions to stay with the company.
Suggestion for Part 3: Are there parallels between perceptions concerning nepotism and perceptions concerning affirmative action?