Employers may be interested in knowing whether or not you have connections to the organization/company already, and if they should be particularly aware of these existing relationships, but be advised—they may reflect well on your status as an applicant if they have recommended you for the position, but if you are in the unfortunate circumstance of knowing an employee who you know is not particularly doing well at the organization, the opposite effect may occur. Regardless, it is important to be honest and disclose any relationships. An interviewer may be harmless in posing this question, and could be just curious.