Question

In: Operations Management

One of the major problems facing private security administrators in retail stores is the issue of...

One of the major problems facing private security administrators in retail stores is the issue of internal theft, or theft by employees. Imagine that you own a retail business. Then, think about the reasons employees become involved in theft.

Respond to the following questions: How does the motivation for internal theft differ from that of external theft? Based on your thoughts, what types of procedures would you put into place to curb internal theft? Please explain your recommendations.

Solutions

Expert Solution

Major studies in various parts of the world show that many employees in retail shops take things unknowing to the owner. It is either called internal theft or shop lifting in lighter tone.

Internal theft differs in various ways from the external theft in many aspects and they have a complete different motivation to do the theft. They are

1. Many times external theft is completely planned but not in the case of internal theft. It might be just like that.

2. Financial hurdles or need becomes a major criteria for both theft but in internal theft it becomes a very small quantity.

3. External theft happens by a person or a group who are completely unknown to the shop owners and they do not think of aftermaths of their theft.

4. If employees are not paid well they tend to take products by stealing.

5. As a sense of revenge also in many places there is internal theft as in a case where employees are not treated with respect and considered cheap labourers.

6. Some employees have an unconditional and uncontrollable instinct to shoplift products. This is also one of the major reason.

The owners can positively take some measures to avoid this kind of internal theft. They are

1. Make a thorough background check of the employees even at their initial stages.

2. Throughout advanced security check and installation of cameras and appointing securities will help a lot.

3. Employees should feel happy and safe working in a particular environment.

4. Financially their needs should be met.

5. Advanced software installation will help in continuous updation of data.

6. Employees should be very often given sessions on ethical values and motivation talks.


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