If you were the overseer and had to choose who to place in a key position, then, all things being equal, you are almost certainly going to choose someone that you know and have confidence in OVER someone that you do not know, but NOT necessarily to do someone a favor or what have you. I would think that nepotism is not just that you HAPPEN to place a nephew (nephewism?) in a position, but when it is done when other candidates are clearly more qualified. Now, I don't LIKE it, especially if I am the one who got passed over, but the thing is that, even if the person is not related to the boss, the boss is almost always going to given preferential treatment to those he knows. We might fuss over nepotism, but if we do, we really ought to fuss over ALL favoritism...except that most of us practice it a little bit ourselves, in that we want people in place that we know, can depend on, etc.