Featured Research

from universities, journals, and other organizations

IT monitoring effective in deterring fraud by restaurant employees

Date:
September 3, 2013
Source:
Washington University in St. Louis
Summary:
For many firms, losing significant revenue and profit to employee theft has been a cost of doing business. But a new study finds that information technology monitoring is strikingly effective in reducing theft and fraud, especially in the restaurant industry.

For many firms, losing significant revenue and profit to employee theft has been a cost of doing business.

Related Articles


But a new study from Washington University in St. Louis finds that information technology monitoring is strikingly effective in reducing theft and fraud, especially in the restaurant industry.

"Cleaning House: The Impact of Information Technology Monitoring on Employee Theft and Productivity," by Lamar Pierce, PhD, associate professor of strategy at Olin Business School, finds that mining sales data of employees increased restaurant revenue about 7 percent.

The paper is co-written with Daniel Snow, associate professor at the Marriott School at Brigham Young University, and Andrew McAfee, research scientist at the Sloan School of Management at the Massachusetts Institute of Technology.

Using monitoring software called Restaurant Guard developed by NCR, the researchers measured the effect of theft and fraud before and after installation of the software at 392 restaurants in 39 states.

Pierce and his team found that after installing the monitoring software, revenue per restaurant increased an average of $2,982 per week, about 7 percent. Restaurants also experienced a 22 percent drop in theft.

"The NCR system works with data directly from the point of sale," Pierce says. "It reduces the need for managers to use cameras and constantly watch their employees. In that sense it's not more surveillance, it's better and less intrusive monitoring."

Employee theft and fraud are big problems in the United States, adding up to more than a $200 billion annual impact on the economy.

"Our results suggest a counterintuitive and hopeful pattern in human behavior," the researchers write. "Employee theft is a remediable problem at the individual employee level. While individual differences in moral preferences may indeed exist, realigning incentives through organizational design can have a powerful effect in reducing corrupt behaviors in a way that benefits both the firm and its workers."


Story Source:

The above story is based on materials provided by Washington University in St. Louis. The original article was written by Neil Schoenherr. Note: Materials may be edited for content and length.


Journal Reference:

  1. Lamar Pierce, Daniel Snow, Andrew McAfee. Cleaning House: The Impact of Information Technology Monitoring on Employee Theft and Productivity. MIT Sloan Research, 2013

Cite This Page:

Washington University in St. Louis. "IT monitoring effective in deterring fraud by restaurant employees." ScienceDaily. ScienceDaily, 3 September 2013. <www.sciencedaily.com/releases/2013/09/130903123050.htm>.
Washington University in St. Louis. (2013, September 3). IT monitoring effective in deterring fraud by restaurant employees. ScienceDaily. Retrieved March 27, 2015 from www.sciencedaily.com/releases/2013/09/130903123050.htm
Washington University in St. Louis. "IT monitoring effective in deterring fraud by restaurant employees." ScienceDaily. www.sciencedaily.com/releases/2013/09/130903123050.htm (accessed March 27, 2015).

Share This


More From ScienceDaily



More Science & Society News

Friday, March 27, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Indiana Permits Needle Exchange as HIV Cases Skyrocket

Indiana Permits Needle Exchange as HIV Cases Skyrocket

Reuters - US Online Video (Mar. 26, 2015) Governor Mike Pence declares the recent HIV outbreak in rural Indiana a "public health emergency" and authorizes a short-term needle-exchange program. Rough Cut (no reporter narration) Video provided by Reuters
Powered by NewsLook.com
AAA: Distracted Driving a Serious Teen Problem

AAA: Distracted Driving a Serious Teen Problem

AP (Mar. 25, 2015) While distracted driving is not a new problem for teens, new research from the AAA Foundation for Traffic Safety says it&apos;s much more serious than previously thought. (March 25) Video provided by AP
Powered by NewsLook.com
Obama: Affordable Care Act 'saving Lives'

Obama: Affordable Care Act 'saving Lives'

AP (Mar. 25, 2015) Speaking at a White House event marking the fifth anniversary of the Affordable Care Act, President Barack Obama says the law is "saving lives that touch all of us." (March 25) Video provided by AP
Powered by NewsLook.com
Amazon Complains U.S. Is Too Slow To Regulate Drones

Amazon Complains U.S. Is Too Slow To Regulate Drones

Newsy (Mar. 25, 2015) Days after getting approval to test certain commercial drones, Amazon says the Federal Aviation Administration is dragging its feet on the matter. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins