because the owner of the business do not want relationship frictions to affect people's work.
because the owner of the business do not want relationship frictions to affect people's work.
Even today, the primary concern when I'm talking to other managers dealing with job applications from family members (including kids) and even friends of existing employees is "How does the existing employee react if it doesn't work out and we have to fire their spouse/kid/best friend?"
Better to avoid that drama entirely. (edit: EASIER to avoid that drama, I should say, but perhaps not always better)
And if you don't think management isn't at least 60% drama control between team members you've never been in management of a diverse set of people, which is why the best engineer, the best electrician, etc doesn't necessarily make the best manager, etc. Different skill sets, different universe of concerns.
Capitalism for thee but not for me.
Often, this is done for tax reasons.