Passwords that contain a real word or name are too easy for someone to guess. You may think that people within your organization are not going to try and guess other people's passwords. This is somewhat true. The big problem is that most systems have a modem attached or even worse have a connection to the Internet. In this case, your system can be exposed to the outside world of hackers.
Hackers are people who seem to have nothing better to do than try to break into systems.
This is something you are trying to prevent by the use of passwords. When simple passwords are used, they can easily be discovered. In addition many systems require a minimum of 6 characters. I don't know why, but 7 character passwords are harder to break than 6 or 8. So we recommend using password with 7 characters.