The concept of cronyism has been investigated to explain different concepts in the literature. In this study, we aim at researching the influence of cronyism on Career Satisfaction and Work Frustration with a mediating variable of Organizational Loyalty of individuals and explain how the influence differentiates their career satisfaction or frustration with work perception of individuals. Therefore, we focused on government officials working in a public sector universities at Rawalpindi and Islamabad to examine their perception of cronyism in the organization. Having gathered the data from 73 government officials, validity and reliability was initially conducted on the scales of cronyism, organizational loyalty, career satisfaction and work frustration .After controlling the validity and reliability of the scales, model testing was carried out. Regression and mediation analysis were done. Results indicated that organizational loyalty partially mediated the relationship between cronyism and career satisfaction. In addition, organizational commitment partially mediated the relationship between cronyism and frustration with work. This study is an attempt to examine the impact of Cronyism on Career Satisfaction and Work Frustration when mediator is affecting their relationship, at organizational level. Supervisor:- Dr. Nadeem Ahmed Khan