Employee Theft Management - Coursework Example

Employee Theft Management Name Date Introduction Employee theft is common in the present day business companies Basselt (2008). Small business companies are, therefore, not free from the plague either. In fact, employee theft is the sole cause of small business breakdown. It is however surprising that the most trusted employees are the culprits. Employee larceny can be defined as stealing, misuse or use of employer’s property without their consent. Employee theft, therefore, entails more than money. It can include stealing time, information company supplies, and merchandise. Shulman 2006 contends that whatever the case, the consequences of employee theft are dire since business organizations suffer losses as somebody has taken something far away from them. Employee theft could, therefore, result in loss of potential customers and finances. For instance, recently the employment details of Morrisons, UK based supermarket, workers were unlawfully posted online by an unknown person. This data theft incidence impacted on the company in a negative way eventually leading to loss of customer loyalty as well as employee insecurity. Recent reports show that most of these employee theft cases are not reported in time nor are they detected early enough. In some instances, some cases go totally unreported. According to the survey, global economic crime 2014, conducted by Price Waterhouse coopers, incidences of employee swindle and thievery are on the rise presently. This survey further reveals that most companies are suffering from employee theft despite the ongoing attempts to tackle the crime. It is, therefore, advisable that business organizations put in place security management systems that make it impossible for the employees to commit the crime Basselt (2008). Organizations should be ever vigilant in handling apprehensive activities within the organization. There is a rising concern over employee theft due to the recent increase in the crime. Consequently, these rising theft incidences elicit a number of questions. First, do these affected organizations have any security systems to keep these crimes in check? Second, how effectively have these systems been implemented in order to control employee theft? It is thus apparent that any business organization is susceptible to employee stealing. Effective security systems should trim down the prospect, longing and spur of the employee to steal Shulman (2006). Analysis The increase in employee theft is attributed to the financial crisis in the UK. Over the past two years, that the retail sector is the most affected by this offense. Theft is quite alarming since three is already a decrease in sales. Any occurrences of employee thievery are, therefore, most likely to harm the business however big (From online sources with no author see item). Employee theft is responsible for more than 2 billion pounds of lost income in the UK. These statistics indicate that we can blame not only financial crisis for the decrease in retail returns but also internal theft. Employee theft increased by 7% whereas the company spending on security activities is at 5%. The decline in security costs could be a factor fueling the crime. Business companies thus need to be vigilant on security systems, devise ways to curb internal theft in order to survive during economic recessions. Recent reports show that business organizations trust their employees too much as far as safeguarding of organization data is concerned (UK Companies). Most companies in the UK do not have enforceable scheme to avert employees from illegal access to organization data. Though a high number of employees view and steal confidential data from companies, most employers believe that they cannot. Too much trusting on the side of the employer is thus one of the causes of employee theft. Most employees access organization data especially that regarding colleagues ‘bonuses and salaries without the knowledge of the company. Despite employee data stealing, most companies do not see the necessity of protecting data from their employees. They are, therefore, not heedful in altering passwords and do not impede ex-employee from accessing company data. An apparent gap thus exists between internal business security systems and the behavior of the employer. Though data breaching is on the rise, most employers are doing little about unlawful access of their confidential data. A higher number of employers do not make out any possible danger of employee theft. It is evident that many organizations are ignorant of what is happening on their data networks. A considerable number of employers are not in a position of identifying threats posed to their confidential data systems . It was recently reported by BBC business news that, Morrisons, a leading retail shop in the UK had its data tampered with. The company alleges that the theft has affected most of its staff members. Morrisons revealed to a BBC correspondent that particulars of approximately one hundred human resources had been stolen. The firm further stated that the stolen information which incorporates details of employee bank accounts was published online and also sent to a certain newspaper. Preliminary inquiry by the company points to an insider as a possible culprit (BBC business news).A BBC correspondent argues that a discontented employee is behind data theft, and the intention was to humiliate the company. However, the firm has assured its employees that the data theft will not disadvantage them financially. The firm is working with cyber offense authorities and the police to trail down the source of the theft. The company is also appraising its internal systems of data security. Another major step that the company has taken is setting up a helpline for its members of staff. The firm has informed UK banks of the alleged theft so that they can protect the staff’s accounts. The company informed its employees of the theft through Facebook and explained to them how it is trying to limit the theft (BBC Business News). The Morrison’s security tumble confirms that firms need to be aware of interior safety threats. Another instance of theft was reported by western morning news that a 24-year-old clear stole $72000 from Barclays bank in Cornwall UK. The culprit used the money to enhance her chance of becoming super model .she put the money into breast surgery, teeth whitening, hair extensions, and liposuctions. The reports indicate that the money was not stolen in the whole sum but bits. In Another report, a woman who was highly paid embezzled 10 million pounds from Baierl Acura where she was the manager. The woman received annual earnings of $53000. Employees are motivation by a variety of factors to engage in theft (online BBC Business News). Conventional wisdom affirms that a range of factors such as financial insecurity, unemployment, low consumer confidence and other poor monetary pointers may cause an increase in the frequency of worker theft. However, this can be argued out not to be the case as employee theft crime occurs long before they are discovered. In fact, employees begin to steal during the good economic times when they are not likely to be noticed. There are factors that may facilitate employee theft in addition to economic factors. Conversely, financial crises are to blame, to some degree, for increased employee theft as in the case of the UK. For the conventional wisdom among security, experts state that employee theft can be controlled through employing concrete practices that involve aptitude experiments and background verifications. Though this may be of great help, the truth is that potential thieves would not behave in an alarming manner in the early engagement process. Most employees who commit the crime are those who have served the firm for a long term and gained a considerable amount of trust from the employer ( warwic Ashford,2014)). However, service duration can be a positive aspect in employee thievery in cases where the employer has gained the loyalty. On the contrary, employers who have served for long duration have a thorough understanding of the company’s internal operations and know how to cover up their scandalous actions. Employees are, therefore, likely to steal if they believe there are minimal chances of being caught from firms that are vigilant. It is clear that the control method is not sufficient. In any case those managers, believed to be loyal, carrying out the background tests are the ones stealing. The pre-hire prevention mechanisms may deceive employers of the possible theft. Though control actions decrease stealing, it does not foresee deceitful behavior nor motivate sincere behavior. Many contend that job satisfaction influences employee pilfering. Satisfied employees are less likely to steal. Although this notion holds some truth in it, satisfaction is relative, and this brings about disparity effects. When employees are disgruntled with the management, they are less likely to engage in theft. Conversely, dissatisfaction with work organization is likely to cause pilfering. In the Morrison’s case, for instance, a discontented employee is a major suspect. This proves that job dissatisfaction can cause employee theft. Conversely, other employees engage in theft even though they are highly paid. Other factors such as luxury and a desire to please friends and family members motivate some to rob their employers. Many embezzlers who pilfer from their employer believe that their actions are not wrong. They take the money in the form of loans with initial intentions of paying back. When they realize that they can take away from the company without being discovered they intensify their thievery actions. Most employee thievery thus begins as small actions and progress in magnitude as the thief becomes more acquainted for not having been caught. Conversely, to the common belief, most executors of hefty scale employee burglary crimes are women. Finance department where most these crimes are committed is dominated by women. Another factor that influences this crime is job ranking and description. Companies often trust the top executives who are also thieves. Most business organizations concentrate on fighting theft crimes committed by employers in the lower ranks and overlook that those in higher ranks are responsible for the greatest percentage of company theft losses. Though managing executives commit a small percentage of crimes, they cause high percentage monetary losses in business organizations. Employee theft is of great concern because presently since research shows that it is on the increase. One, therefore, wonders whether business firms are aware of the dangers of this crime. Is possible for employers to prevent this crime through effective security systems? How effective are the organization security systems in prevention and control of employee stealing? Practical rationale This study of employee theft control management is import as it benefits the stakeholders involved in different ways. The issue of security awareness is rising globally. Companies, organizations, individuals, possess data and assets that need protection. This research will, therefore, create security awareness since there has been high profile of breaching of data and stealing of other company assets by employee, this research will make the people concerned aware of the threats that exist out there and that any employee is capable of stealing including those that are least expected to do so. Growing awareness will probably initiate the right action by the employers in order to protect their data systems, as well as other physical assets. When the employers are aware of the risks posed to company property by dishonest employee, they will be ready to invest some money in security. It will be a great benefit since most employees are reluctant to invest in effective security systems (Collins, 2009). Security administrators have been faced by the challenge of convincing employers across many industries to invest invisible security systems. Though companies desire a secure working environment in addition to protection of their property, most want to achieve this without investing many resources. For most business companies, it is easy to focus on profits and sales ignoring security as the most fundamental element of the firm’s overall makeup and endurance. Through this study, the employers can change their attitude towards employees. From the above analysis, we can deduce that those who steal are those least expected to do so. Top executive supervisor, women and long term employees are often trusted though they also engage in this crime. Once employers change their trusting notion on these people they will be better placed to guard their property. Technology plays as significant role in initiating employee theft. For instance, online data systems are more susceptible to data breaching. Conversely technology is very crucial in fighting crime. This research is thus aimed at informing the employers on the importance of technology in security systems. Employers will, therefore, adopt the appropriate security measures in order to reduce the risk of theft. Security policy makers will benefit a lot from these research insights. Through this study, the policy makers will be able to define reasons and the need for particular security policy existence. The reason why organizations need to come up with effective security policies is to ensure there are maximum data and asset security. For instance, industry policy makers will be able to define the kind of information that is accessible to employees and that which cannot be accessed. Free confidential data access is a fuelling factor in employee theft (Employee Theft). Access of company confidential data should be restricted. Since most security systems have proved ineffective in controlling employee theft, it is advisable for firms to identify and identify IT assets that are most useful to the company. Some of the most effective policies that can be adopted by firms are implementation of breach reporting process. Employees will be more willing to report breaches frequently if the whole processes are conducted in a confidential manner. The policy makers should update the security policies from time to time. The policies need to be reviewed to a yearly basis to ensure that they are germane (Employee Theft). Through this research, the respective stakeholders will be informed of their responsibility in ensuring company data and asset security. Employees, for instance, should report to the management any instance of theft. This will enable those concerned to act in time. It will also sensitize the stakeholders on their responsibility in regard to fighting employee theft. Business industries will, therefore, understand the rationale of investing in security systems. They will treat this security investment with the seriousness it deserves. This way they will be able to prevent theft effectively. In addition to prevention, managers will now the right action in case of employee theft. Further exploration To explore this topical issue further, I will review a number of literature sources. This will particularly involve a thorough survey literature sources that are relevant to management of employee theft. Literature review will involve a critical summary and evaluation of the sources that I have used in relation to the research question. This process will basically involve critical thinking on the soundness and consistency of the resource involving determining the quality of their content. The first step will be to select a number of sources relevant to this topic. This will involve a thorough search both online and offline. After selecting quite a number of sources to be analyzed and evaluated, the next step will involve evaluating the sources to determine whether they can provide reliable in terms of content. Evaluating the sources involves finding out more about the author, year of publication and critical examination of the content and the topical issues dealt with in the different sources. Assessing the sources will thus enable me to single out those sources that are most reliable and useful to my research. The most appropriate sources, they will now be used to address the topic in questions. This will involve a thorough examination of the sources mainly focusing on the issues that have been dealt with by the author relating to the research topic. From the sources, I can establish answers to a number of questions regarding my research questions Shulman (2006). This will involve finding out what the various sources have addressed regarding employee theft and what they have not addressed. For instance according to the sources what are the causes of the current rise in employee theft. This will lead to assessment whether business organizations are taking preventive measures or not. It will further elaborate whether the sources have addressed the question of employee theft and if so to what extent Collis (2009). This will also involve comparison of the sources involved in relation to the research question. The views and, opinions expressed In the different academic literature will be assessed in depth. How useful are these views, opinions in understanding the research topic? What have the different authors not considered in their research? Some of the academic journals that will be used in his research include: 1. Employee Theft a Reaction to Underpayment Inequity: Journal of Applied Psychology Vol 75 OCT 1990 2. How to Minimize Retail Shrinkage Due to Employee Theft.International Journal of Retail and Distribution Management. Vol 34 3. Journal of Law and Conflict Resolution Vol 4. 4. An Analysis of Identity Theft: Motives, Related Frauds, and Techniques. 5. Journal of Business and Psychology: Predicting Employee Theft. Journal of Business Ethics 26. Vol 74:5. 6. Psychological Behaviors Related To Employee Theft Psychological Journal of Organization Behavior Vol 33: 10 7.) Journal of Small Business Management. References Basselt, J. (2008) Solving Employee Theft: New Insights New Tactics. 2008. Booksurge. Collis, J. (2009) Business Research: A Practical Guide For Undergraduate And Post Graduate Students. Palgarve, Macmillian. Employee Theft in the Workplace on Increase. Retrieved On 24 November 2014 from http://www.investigate.co.uk/1. Employee Theft a Reaction to Underpayment Inequity: Journal of Applied Psychology Vol 75 OCT 1990 How to Minimize Retail Shrinkage Due to Employee Theft.International Journal of Retail and Distribution Management. Vol 34 Morrison supermarket suffers payroll data theft from http://www.bbc.co.uk/news/business retrieved on 22 It’s a rocky road ahead for the retailers that fail to ... (n.d.).Retrieved from http://www.retailgazette.co.uk/articles. Shulman, D.T. (2006) Biting the Hand That Feeds: The Employee Theft Epidemics- New Perspectives New Solutions. Michigan: Shulman Center UK companies unable to stop employees stealing data, study shows Warwick Ashford retrieved onWednesday 10 April 2013 14:37 Read More