COMSATS University Islamabad,

Lahore Campus

Name of Students : Muhammad Waqar Saifi

Registration No. : FA18-BSE-014

Course Code : MGT101

Course Title : Introduction to Management

Program Name : BSE

Semester : FAll 2018

Submission Date : 15 of the May
Teacher Name : Kanwal Bilal
Quiz
Q. You are in the leadership team for a chain of stores with more than 100 locations. The company
has a problem with inventory shrinkage and store managers are reporting that employee theft
seems to be the significant problem. Brainstorm a list of possible actions that the company could
take to reduce the occurrence of employee theft. Consider reasons why employees may steal from
the company?

Employee Theft:
Companies lost billions of dollars annually just because of employee theft. According to the research
employee theft and crumpet employees cost $50 billion dollar a year. Another research says that 75% of a
employee theft at least once in their entire careers and half of them do it multiple times. So it is seems that
a company cannot continue its procedure just because of employee theft.
Definition:
“Employee theft is any robbery, use or misuse of their employer’s assets without authority to use it.”
There are also different types of theft.

 Money theft
 Time theft
 Theft the products
 Also information theft (most damaging) etc..

Reason
Incredibly, employees asked why they stole often justify and rationalize their action. They often state
that opportunity of theft presented by itself through inconvenient policies, controls and management
ignorance. Another reason for employees steal is, they belief that their management steal so it’s okay for
us too. So, if the company wants theft free work environment so they have to set the example of honesty
and faithfulness to the policies.
Some other examples of an employee to rationalize their action given blew
 I am underpaid so I deserve to do it.
 Our management and every employee do it so rather write it off
 My company angered me so I got back at it.
 My company makes lost of profit so I deserve to theft some of it.
Rarely employees steal for their need. They often do because the opportunity of theft presented by itself.
Some of them steal because the chances of being caught is much low.
So the many other example of this rubbish theft is given blew.
 They thought that company is misbehaving or doing wrong with them in some sense.
 No strict policies for theft and the consequences of it are minimal. They continue stealing because
if they being caught so they won’t be punished.
  No proper arrangement to control the inventory. They steal because lack of preventive measure to
stop this shit. If the preventive measure is not taken then probability of theft is high.

Tips to Prevent Employee Theft

Employee theft is major problem in Small business and company. So, these small business or company
reduce the employee theft and protect their company by applying some preventive measures.

 Positive work environment:

Positive work environment helps the employees to follow the rule and regulation with their best
interest. So the Fair employment practices, verified and clear organizational structure and
procedure, clearly written job descriptions, comprehensive rules and regulation, open
communication between management and employees will help to reduce the employee theft.

 Create a Zero-Tolerance Policy:

If the employee is being caught red-handed so irrespective of the age or gender responded are
give to consequences. It does not mean to make our company prison but good environment with
strict laws and to make it clear from the very beginning if someone find to be guilty that there
will be no warnings or second chances.

 Investigate every incident:

Company should have depth and solid investigation of policies and regulation violation, any
warning sign of theft etc. which will give you fact to take action and reduce the loss.

 Educate your employees:

References:

https://www.pmq.com/employee-theft/

https://smartwerksusa.com/articles/when-employees-steal/