Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

IT monitoring effective in deterring restaurant fraud

04.09.2013
For many firms, losing significant revenue and profit to employee theft has been a cost of doing business.

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, published in the MIT Sloan Research 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 said. “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.”

Neil Schoenherr | EurekAlert!
Further information:
http://www.wustl.edu

More articles from Studies and Analyses:

nachricht Some brain tumors may respond to immunotherapy, new study suggests
11.12.2018 | Columbia University Irving Medical Center

nachricht Climate change and air pollution damaging health and causing millions of premature deaths
30.11.2018 | International Institute for Applied Systems Analysis (IIASA)

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: An energy-efficient way to stay warm: Sew high-tech heating patches to your clothes

Personal patches could reduce energy waste in buildings, Rutgers-led study says

What if, instead of turning up the thermostat, you could warm up with high-tech, flexible patches sewn into your clothes - while significantly reducing your...

Im Focus: Lethal combination: Drug cocktail turns off the juice to cancer cells

A widely used diabetes medication combined with an antihypertensive drug specifically inhibits tumor growth – this was discovered by researchers from the University of Basel’s Biozentrum two years ago. In a follow-up study, recently published in “Cell Reports”, the scientists report that this drug cocktail induces cancer cell death by switching off their energy supply.

The widely used anti-diabetes drug metformin not only reduces blood sugar but also has an anti-cancer effect. However, the metformin dose commonly used in the...

Im Focus: New Foldable Drone Flies through Narrow Holes in Rescue Missions

A research team from the University of Zurich has developed a new drone that can retract its propeller arms in flight and make itself small to fit through narrow gaps and holes. This is particularly useful when searching for victims of natural disasters.

Inspecting a damaged building after an earthquake or during a fire is exactly the kind of job that human rescuers would like drones to do for them. A flying...

Im Focus: Topological material switched off and on for the first time

Key advance for future topological transistors

Over the last decade, there has been much excitement about the discovery, recognised by the Nobel Prize in Physics only two years ago, that there are two types...

Im Focus: Researchers develop method to transfer entire 2D circuits to any smooth surface

What if a sensor sensing a thing could be part of the thing itself? Rice University engineers believe they have a two-dimensional solution to do just that.

Rice engineers led by materials scientists Pulickel Ajayan and Jun Lou have developed a method to make atom-flat sensors that seamlessly integrate with devices...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

ICTM Conference 2019: Digitization emerges as an engineering trend for turbomachinery construction

12.12.2018 | Event News

New Plastics Economy Investor Forum - Meeting Point for Innovations

10.12.2018 | Event News

EGU 2019 meeting: Media registration now open

06.12.2018 | Event News

 
Latest News

Magic number colloidal clusters

13.12.2018 | Life Sciences

UNLV study unlocks clues to how planets form

13.12.2018 | Physics and Astronomy

Live from the ocean research vessel Atlantis

13.12.2018 | Earth Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>