This study aimed to explore the phenomenon of Merit display in Tehran’s governmental organizations using a grounded theory approach. Merit display is defined as the use of symbolic capital to secure professional positions without genuine competencies (knowledge, skills, or performance). Data were collected through 45- to 60-minute semi-structured interviews with 27 government employees and analyzed using open, axial, and selective coding. Open coding extracted codes, axial coding organized them around the core category of Merit display , and selective coding developed the phenomenon’s storyline. The study’s credibility was ensured through triangulation (comparing interviews with observations and documents), member checking by 15 participants, and peer debriefing in three group discussions. Findings revealed that Merit display is shaped by causal factors (feigned confidence, superficial self-presentation, unethical networking), contextual conditions (inefficient bureaucratic structures, a display-oriented culture, social media influence), and action strategies (displaying confidence, superficial reports, informal relationships), leading to diminished organizational trust, weakened meritocracy, and eroded motivation and professional cohesion. Integrating theories by Bourdieu (1986), Spence (1973), and Greenberg (1990), this study provides a localized framework for analyzing Merit display . Practical recommendations include designing transparent evaluation systems, fostering a collaborative culture, and training managers. This study offers deep insights into Merit display , and future research could employ quantitative methods or explore managers’ perspectives to advance this field.