This research has two purposes. Firstly, the effects of nepotism-favoritism and cronyism on the employees working at Turkish Public banks are analyzed. The second aim is analyzing the relationship between the human resource practices at public banks and effects of nepotism and cronyism. Data was gathered by questionnaire method. The research is carried on 243 employees working public banks operating in Ankara. According to the research it can be understood that nepotism and cronyism, types of favoritism, have negative effects on the employees. As nepotism and cronyism arise, the employees' job stress arise, but their job satisfaction, trust on the employer and motivation decrease. This leads to a decrease on the employees' organizational commitment, and an increase on their intention to quit. Also, as the human resource practices increase at the organizations, the negative effects of nepotism-favoritism and cronyism on the employees decrease. [ABSTRACT FROM AUTHOR]