Employee Theft Mitigation at Mrs. Parmas

This assignment delves into the issue of employee theft within the restaurant industry, specifically examining Mrs. Parmas Restaurant. It presents a survey questionnaire and interview guide designed to gather information about perceptions of safety, security, and potential reasons for employee theft. The assignment also explores mitigation strategies implemented by management and analyzes their effectiveness. The goal is to understand the factors contributing to employee theft and develop recommendations for reducing its occurrence in this particular restaurant setting.

Running head: INDUSTRY RESEARCH PROJECT
REDUCING THE OPPORTUNITY OF THEFT AT MRS. PARMAS
RESTAURANT
Akhil Sood (22645470)

1INDUSTRY RESEARCH PROJECT
Executive Summary
This study highlights the major issue encountered by Mrs Parmas Restaurant, that is, employee
theft. Increasing case of employee theft at Mrs Parmas Restaurant is reportedly hampering the
business of the restaurant because the restaurant is losing a regular sum of money through theft.
Thus, the study is conducted in order to find methods to reduce employee theft at Mrs Parmas
Restaurant. Solving the issue of employee theft for Mrs Parmas Restaurant will allow the
management to reduce losses suffered by the business. The current issue encountered by Mrs
Parmas Restaurant is the increasing cases of employee theft that is occurring in the restaurant. As
a result of increasing employee theft, Mrs Parmas Restaurant is losing business and customers
due to unsatisfactory services to the potential customers. As the employees are stealing money,
the restaurant is unable to provide high-class services and facilities to the customers due to lack
of inventory. As a result, the restaurant is losing customers due to unsatisfactory service due to
lack of money. The restaurant has 15 kitchen staffs out of which three employees are full-time
cooks and 6 employees are part-time cooks. The restaurant also has 16 front staff out of which 4
employees are full-timers, 6 part-timers and 6 casual employees. Semi-structured interviews and
survey both were used for collecting data for conducting this research. The employees of Mrs.
Parmas restaurant were interviewed and surveyed in order to develop an insight regarding the
current employee theft scenario at the restaurant and ways to mitigate it. However, one of the
limitations encountered while collecting data includes an extra time required for interviewing the
employees. As the researcher interviewed all the employees of the restaurant, it was time-
consuming. Recording and analyzing the interview transcripts were hectic and time-consuming.

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The major findings of the research highlight that the financial issues encountered by the
employees are the main reason behind employee theft at Mrs. Parmas Restaurant. It has been
seen that the restaurant has been failing to fulfil the financial requirements of the employees that
is enforcing them to commit theft within the organization. As the employees are unable to meet
their living standards and fulfil their basic needs by working at Mrs. Parmas Restaurant, they are
stealing and misusing the assets of the restaurant in order to compensate for their loss. Another
major finding of the research includes the lack of safety and security that exists at Mrs. Parmas
Restaurant. As a result, the employees are receiving more opportunity of committing theft in the
restaurant. The suitable actions for reducing employee theft at Mrs. Parmas Restaurant includes
installation of CCTV camera, stricter action by the management and fulfilling the basic needs of
the employees by increasing their pay scale as well as paying them on time.

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Table of Contents
Introduction......................................................................................................................................8
Background of the study..............................................................................................................8
Overview of the industry partner.................................................................................................8
Introducing the problem..............................................................................................................9
Aim of the report.........................................................................................................................9
Structure of the proposal..............................................................................................................9
Problem Statement.........................................................................................................................11
What is the issue?......................................................................................................................11
Why it is an issue?.....................................................................................................................11
Why is it an issue now?.............................................................................................................12
What this issue shed light on?...................................................................................................12
Research question..........................................................................................................................13
Primary research questions........................................................................................................13
Secondary research question......................................................................................................13
Literature Review..........................................................................................................................14
Overview....................................................................................................................................14
Conceptual framework...............................................................................................................14
Employee theft...........................................................................................................................15

4INDUSTRY RESEARCH PROJECT
Factors affecting employee theft...............................................................................................16
Theory of planned behavior.......................................................................................................17
Impact of employee theft on employers....................................................................................18
Methods of reducing employee theft.........................................................................................19
Challenges encountered in reducing employee theft.................................................................20
Summary....................................................................................................................................21
Methodology..................................................................................................................................22
Research Design............................................................................................................................22
Research style............................................................................................................................22
Sampling technique and sampling size......................................................................................22
Data collection technique..........................................................................................................23
Research tools............................................................................................................................23
Ethical considerations................................................................................................................24
Findings.........................................................................................................................................25
Survey........................................................................................................................................25
Semi-structured interview..........................................................................................................41
Interview....................................................................................................................................41
Discussions....................................................................................................................................43
Findings from the survey...........................................................................................................43
Findings from the transcript.......................................................................................................48

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Recommendations..........................................................................................................................50
Limitations.....................................................................................................................................52
Conclusion.....................................................................................................................................53
References......................................................................................................................................54

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List of Tables
Table 1: Gender specification........................................................................................................25
Table 2: Employment duration......................................................................................................26
Table 3: Type of employment........................................................................................................27
Table 4: Safety and security is a priority.......................................................................................28
Table 5: Safety and security priority for business.........................................................................29
Table 6: Noticing employee theft..................................................................................................30
Table 7: Reducing employee theft.................................................................................................31
Table 8: Potential reasons of employee theft.................................................................................32
Table 9: Employee theft is due to the available opportunity.........................................................33
Table 10: Managerial actions.........................................................................................................34
Table 11: Actions for reducing employee theft.............................................................................35
Table 12: Significance of pre-employment check.........................................................................37
Table 13: Significance of inventory check....................................................................................38
Table 14: Improving security.........................................................................................................39
Table 15: Mitigating employee theft completely...........................................................................40

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List of Figures
Figure 1: Impact of employee theft...............................................................................................12
Figure 3: Gender Specification......................................................................................................25
Figure 4: Employment duration.....................................................................................................26
Figure 5: Type of employment......................................................................................................27
Figure 6: Safety and security is a priority......................................................................................28
Figure 7: Safety and security priority for business........................................................................29
Figure 8: Noticing employee theft.................................................................................................30
Figure 9: Reducing employee theft................................................................................................31
Figure 10: Potential reasons of employee theft.............................................................................32
Figure 11: Employee theft is due to the available opportunity......................................................33
Figure 12: Managerial actions.......................................................................................................35
Figure 13: Actions for reducing employee theft............................................................................36
Figure 14: Significance of pre-employment check........................................................................37
Figure 15: Significance of inventory check...................................................................................38
Figure 16: Improving security.......................................................................................................39
Figure 17: Mitigating employee theft completely.........................................................................40

8INDUSTRY RESEARCH PROJECT
Introduction
Background of the study
This study highlights the major issue encountered by Mrs Parmas Restaurant, that is,
employee theft. Increasing cases of employee theft at Mrs Parmas Restaurant are reportedly
hampering the business of the restaurant, as they are losing customers due to unsatisfactory
behavior from the restaurant. As the employees are stealing money, the restaurant is unable to
provide high-class services and facilities to the customers due to lack of inventory. As a result,
the restaurant is losing customers due to unsatisfactory service due to lack of money. Thus, the
study is conducted in order to find methods to reduce employee theft at Mrs Parmas Restaurant
(Bond 2018). In Australia, the bar and bistro industry is highly in demand, as people regularly
gather dine out with close friends and family over drinks. The restaurant business in the
Australian market is highly competitive thereby, giving rise to tough competition. Thus, the
restaurants in Australia need to implement innovative strategies for surviving in the competitive
market.
Overview of the industry partner
Mrs Parmas Restaurant is one of first one of its kind Bar/Bistro pub in Melbourne
Australia that started in 2006. The restaurant specializes in Parma Giana’s and Victorian micro-
brewery beers. Mrs Parmas Restaurant is located in the middle of the city and this has helped the
restaurant to gain a lot of customer attention and expand their business quickly (Bond 2018). The
restaurant has 15 kitchen staff out of which three employees are full-time cooks and 6 employees
are part-time cooks. The restaurant also has 16 front-staff out of which 4 employees are full-
timers, 6 part-timers and 6 casual employees.

9INDUSTRY RESEARCH PROJECT
Introducing the problem
The current issue encountered by Mrs Parmas Restaurant is the increasing cases of
employee theft occurring in the restaurant. As a result of increasing employee theft, Mrs Parmas
Restaurant is losing business and customers due to unsatisfactory services to the potential
customers. Lack of adequate inventory due to employee theft at Mrs. Parmas is preventing the
restaurant from providing adequate service to the customers. The service provided by the
restaurant is hampered in terms of quality and facilities of the food. As a result, the restaurant is
losing customers due to employee theft at Mrs. Parmas.
Aim of the report
The aim of the proposal includes:
 To identify the major issues that lead to employee theft
 To investigate the various methods to reduce employee theft
 To critically evaluate the techniques to avoid employee theft from occurring again Mrs
Parmas Restaurant
 To provide suitable recommendations for reducing employee theft at Mrs Parmas
Restaurant
Structure of the proposal
The structure of the industry analysis report includes namely nine sections. They are
 Introduction: This section highlights the context of the study along with briefly
introducing the problem and the aim of the industry analysis. Problem identification: This chapter identifies the rationale of the industry analysis in
detail.

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 Literature review: The chapter sheds light on the various theoretical approaches of
variable thereby, developing e deeper understanding of the topic. Methods: This chapter states the various methods for collecting data for the industry
analysis and justifies their selection. Findings: This chapter includes the data collected from primary sources and is
represented by graphs charts and figures. Discussion: This chapter includes the discussion and implications of the collected data
along with comparing the findings with literature review. Recommendations: This chapter provides suitable recommendations based on the
findings. Limitations: This chapter discusses the potential challenges encountered by the
researcher while conducting the industry analysis due to which the quality is
compromised. Conclusion: This chapter deduces a suitable conclusion based on the scope of the study,
the major findings, suitable recommendations and likely business improvements.

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Problem Statement
What is the issue?
Employee theft is a major issue as their own employees misuse the assets of the
employers. Employee theft is the major reason for the loss of business for the business
organizations that need to be reduced (Pierce, Snow and McAfee 2015 & Murphy 1993).
Why it is an issue?
Employee theft is an issue because it imposes a potential threat to the employers. This is
because the employers are exposed to the loss and misuse of organizational specific information,
data and inventory. As a result, its competitors threaten the market position of the business
organizations (Noon, Blyton and Morrell 2013 & Hair, Bush and Busch 1976). Additionally,
employee theft also results in loss of business, as the business organization loses its valuable and
confidential information that makes them stand out from their competitors.

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Figure 1: Impact of employee theft
(Abs.gov.au 2018)
Why is it an issue now?
It is an issue now for Mrs. Parmas Restaurant, as the employer is losing its business and
customers. The increasing case of employee theft has also threatened the survival of Mrs. Parmas
as a restaurant in the competitive market. Mrs. Parmas Restaurant is a casual dining restaurant in
Melbourne that serves handcrafted parmas and handcrafted beers to the customers (Bond, 2018).
The increasing case of employee theft is compromising with the quality of service provided by
the restaurant thereby, hampering the customer satisfaction and business. It is evident that the
quality of service is highly influenced by the amount of capital or money used by the restaurants
while providing service. Thus, shortage of money hampers the quality of service provided by the
restaurant thereby, affecting the customer satisfaction badly. Thus, inadequate service due to
employee theft leads to unsatisfied customers thereby, losing both business and customers.
What this issue shed light on?
This issue sheds light on the importance of reducing employee theft for Mrs. Parmas
Restaurant in Melbourne. Reducing the employee theft effectively will provide an opportunity
for Mrs. Parmas Restaurant to prevent the loss and misuse of valuable information and inventory
thereby, ensuring high-quality service to the diners (Samnani, Salamon and Singh 2014). Solving
the issue of employee theft for Mrs Parmas Restaurant allow the management to reduce losses
suffered by the business.

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Research questions
Primary research questions
The primary questions include:
1. What are the reasons that lead to a higher amount of theft by the employees?
2. What strategies can be implemented for solving this issue?
Secondary research question
The secondary question includes:
1. What are the effects of employee theft?

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Literature Review
Overview
This chapter highlights the theoretical background and relevant theories related to
employee theft. The data and information provided in this section help in developing a deeper
understanding about employee theft and associated factors with it. The chapter also determines
the impact of employee theft on organizations and methods of reducing employee theft for
organizational progress.

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Employee theft
Reasons
Financial issues
Psychological issues
Organizational issues
Personal issues
Methods to reduce employee theft
Installing CCTV
Strict management actions
Increasing the number of supervisors
Increasing the pay
Conceptual framework
Figure 2: Conceptual framework
(Source: Author)
Employee theft
Employee theft is the act of stealing or misusing the assets of the employers without their
permission. As mentioned by Colquitt et al. (2013), if employees steal or misuse the assets of the
employers that can lead to serious legal consequences. The assets of the employers are
significant for their organizations, as this determines their position in the competitive market.
Employee theft poses potential challenges for the employers, as they lose significant information
and assets for their business. As commented by Klotz and Buckley & Lipman and McGraw
(2013 & 1988), employee theft deals with the stealing or misusing of cash or inventory of the

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employers. However, as argued by Christian and Ellis (2014), employee theft is not restricted to
cash only because the employees can misuse and steal organizations specific information. It has
been seen that employees provide secret and confidential information of the employers to the
competitors that threatens their business as well as their market position. The basic property that
the employees steal from the employers includes money, time, supplies, company property or
merchandise and valuable information.
The various methods used by the employees to steal include embezzlement, larceny,
skimming, stealing business opportunities and fraudulent disbursements. As commented by Gill,
Prowse and Vlassopoulos & Wells (2013 & 2004) larceny is defined as the taking away of
personal property illegally with the intention of depriving the owner purposely and permanently.
This includes the stealing or misusing of money or property of the employers by the employees.
However, as underlined by Holtz and Harold (2013), the concept of embezzlement highlights the
process of stealing conducted by a person holding a trustworthy and loyal position in the
company for accessing capital. For instance, the kitchen employee will be charged with larceny
if he walks out with cash, but the cashier will be charged with embezzlement if he walks out with
cash. This is because the cashier has the legal right to access cash whereas the kitchen cook does
not have it. On the other hand, skimming is also referred to the theft process where the stealing is
done without being recorded. For example, if an employee at the restaurant charges an amount
from the customer for a meal but does not record it as a sale, then the theft is considered as
skimming.
Factors affecting employee theft
The primary reason that influences employee theft is the need of the employees. As
commented by Bernhardt, Spiller and Polson (2013) & Greenberg (1990), the employees’

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misuses or theft of the assets of the employers occurs when they feel that their needs are not
fulfilled. Some of the employers fail to consider and fulfil the needs of their employees thereby,
leading to illegal activities conducted by the employees. It is essential for the business
organizations to sustain in the competitive market by strengthening their market position. The
employers use the experience, skills and qualification of the employees along with the hard work
for gaining competitive advantage in the market. Thus, it is essential for the employers to
consider and fulfil the requirements and needs of the employees. Thus, failure to do so results in
employee theft which hampers the employers and their assets. However, as argued by Greenberg
& Peters and Maniam (2002 & 2016), increased professional greed and opportunities also
influences employee theft. The increased urge and greed to succeed professionally sometimes
enforce the employees to conduct theft or misuse the assets of the employers. The employees are
seen to steal or misuse the confidential and valuable employer-specific information to the
competitors. This threatens the survival of the employer in the competitive market, as they lose
their assets to the competitors.
On the other hand, financial reasons also enforce the employees to conduct theft or
misuse the assets of the employers. Thus, it is essential for the business organizations to increase
the basic pay of the employees so that their financial standards are uplifted (Shigihara 2013 &
Greenberg 1990). In certain instances, it can be seen that the employees suffer personal and
financial issues that lead them to illegal activity. Thus, the employees sell valuable and
confidential information of the employers to competitors for the sake of financial gaining.
Additionally, the employees are also seen to steal money or cash from the employers in order to
combat their personal financial issues. The factors of employee theft are different, but the loss of

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the employer is huge and irreplaceable. Consequently, the employers need to undertake actions
for reducing employee theft by mitigating the factors influencing employee theft.
Theory of planned behavior
The concept of theory of planned behavior highlights the relationship of individual belief
with individual actions. The theory helps in increasing the predictive power of the reasoned
actions by considering the perceived behavior of the individuals. As observed by Montano and
Kasprzyk (2015), this theory can help the employers to understand and analyze the intention of
the individual for performing a particular behavior. Thus, the employers are able to identify the
reason and the intention of the intention of the employees for performing a particular behavior.
According to the theory, it can be said that the best predictor of an actual behavior is the
behavior of a person actually who intends to act. Thus, the employers are able to consider the
attitude of the employees towards a particular a behavior or action. However, in spite of having
the best intentions, the employees are indulged in fraudulent actions. This is due to both personal
and professional reason that enforces the employees to conduct theft or fraud.
As mentioned by Kautonen, Gelderen and Fink (2015), it is essential for the business
organizations to monitor the behavior of the employees very closely. This can be done by
interacting with the employees personally or arranging counselling sessions for them. According
to the theory of planned behavior, this provides an opportunity for the employers to understand
the belief of the employees’ perceived action. Thus, the employers consider the attitude of the
employees towards the behavior, subjective norms and perceived behavioral control for
understanding the factors that shaped up the behaviors and intentions of the employees. As a
result, the employers are able to understand the intentions and behaviors of the employees behind
theft or fraud.

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Impact of employee theft on employers
The illegal activity of theft or stealing conducted by the employees affects the employers
adversely. This is because the employees are considered the backbone of the organizations and
illegal activities conducted by the employees hamper their position in the market, business and
customer. As commented by Krippel et. al. (2008), the employers lose up to 20% of capital due
to employee theft. This is because the employees indulge them in stealing cash or money from
their employers thereby, putting the employers in danger. Due to employee theft, the employers
incur a huge financial loss that is difficult for them to overcome by the time it is caught. The
financial loss of the employers due to employee theft leads to loss of business and customers
thereby, questioning their survival in the market. However, as argued by De Vries and van
Gelder (2015), the reputation of the employers is also hampered due to employee theft. It tends
to impose an adverse effect on the customers if they come to know that business organization has
unfaithful employees. This is because the customers feel if the employees are stealing the
employers’ money and assets, they might also misuse the money and assets customers.
A report suggests that 20% of the employees are caught doing illegal activities within the
business organizations. As a result, the efficiency of the employers is hampered. Hampering the
organizational efficiency due to employee theft results in delayed employers’ activity. Due to
which the employers will fail to achieve organizational goals and objectives within time (Wells
2004). As a result, with time, the employer will lose potential customers, and this will impose a
threat for their survival in the market. Being engaged in theft also hampers the quality of service
provided by the employers. This is because the employees are more inclined towards financial
gain rather than emphasizing the quality of service. As a result, the employers tend to lose their
current market position to the competitors.

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Methods of reducing employee theft
In order to sustain in the competitive market, it is essential for the employers to undertake
suitable actions for reducing employee theft. As commented by Yang et al. & Arbetter (2013 &
1993), it is essential for the employers to conduct a thorough and comprehensive pre-
employment check of the employees. This provides an opportunity for the employers to develop
an overall understanding of the employees and analyze them for the information provided.
Additionally, the comprehensive pre-employment check also provides an opportunity for the
employers to crosscheck the information provided by the employees and judge the truthfulness.
However, as argued by Fida et al. (2015), keeping a close look on the employees while they are
working helps in reducing employee theft more effectively. The employers allocate a team of
four to five people under a supervisor or managers so that close monitoring can be ensured.
Thus, monitoring the employees closely reduces the chances of employee theft efficiently. This
is a stricter action that the management undertakes in order to reduce employee theft.
Ariani & Ninemeier (2013 & 1982) explains how managing the inventory regularly by
scheduled and random checking can also help in reducing employee theft effectively. Regular
scheduled inventory checking provides an opportunity for the employers to record stealing and
misusing of the assets. As the employees are aware of regular checking, it is difficult for them to
conduct actions of theft. However, on the contrary, random checks are more effective compared
to regular checks, as the employees have the fear of being caught because they do not have the
time to cover them up. Conducting pre-employment checks, assigning supervisors and
conducting regular and random checks allows monitoring a small number of employees at a
certain time. According to Ninemeier (1982) installing surveillance camera provides a better
opportunity of reducing employee theft, as the employers are able to monitor the employees

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throughout the day. Additionally, installation of surveillance systems will also help the
employers to maintain a track of the workplace daily thereby, the ability to cross check
suspicious activities. Nevertheless, the successful implementation of the methods by the
management determines the effective reduction of employee theft.
Challenges encountered in reducing employee theft
The employers encounter potential challenges in reducing employee theft. As mentioned
by Wilder & Arbetter (2005 & 1993), the individuals given the responsibility of reducing
employee theft are at fault. It has been seen that the managements of the business organizations
are unable to implement the methods of reducing employee theft effectively. For instance, the
management fails in assigning the roles and responsibilities of reducing employee theft to the
right person. Thus, the person who has been assigned with the duty of supervising a team might
take individual job roles and responsibilities lightly and casually. As a result, reducing
employees’ theft becomes a severe issue. However, as argued by Cho and Sai & Arbetter (2013
& 1993), lack of training compromises with the methods undertaken for reducing employee
theft. For instance, if the individual assigned the task of maintaining security and surveillance
lacks appropriate training for maintaining the technologies. As a result, lack of job responsibility
and clarification thereby gives rise to challenges in reducing employee theft effectively.
In certain instances, it can also be seen that the individuals given the task to supervise and
monitor the employees are themselves engaged in thefts. As a result, it becomes difficult for the
employers to reduce employee theft, as the individual with power is indulged in theft or fraud.
On the other hand, it can also be seen that the individual given the responsibility of monitoring
the surveillance of the workplace is indulged in theft and fraud. Thus, the individual can
manipulate data very easily thereby, making it challenging for the employers to reduce employee

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theft or fraud. Thus, it is essential for the employers to keep on reconsidering the challenges
encountered in reducing employee theft (Anjum and Parvez 2013 & Ninemeier 1982).
Summary
In this chapter, it can be summarized that employee theft is indeed a major cause of
concern for the employers, as this hampers their business, customers and financial growth
thereby, threatening their survival in the competitive market. The chapter also summarizes the
potential challenges encountered by the employers while reducing employee theft as well as the
potential methods reducing employee theft effectively. The literature review is relevant as this
helps in developing a deeper understanding of the concept employee theft, factors affecting
employee theft and impact of employee theft on the business organizations. Additionally, the
literature review helped in determining the appropriate methodology and developing questions
that addressed the research aim and objectives.
Methodology
Primary and secondary research questions were not asked directly in the survey or interviews due
to ethical considerations and the sensitiveness of the topic.
Research Design
Research style
In the case of this industry analysis, the researcher has used deductive approach. The use
of deductive approach has allowed the researcher to refer to previously existing literature and
concepts in terms of employee theft to support and develop relevant arguments. The use of the
deductive approach has also provided an opportunity for the researcher to derive observations

23INDUSTRY RESEARCH PROJECT
based on the previously existing relevant data and information. The use of relevant data and
information in terms of employee theft has helped in providing a deeper understanding of
employee theft and methods of reducing it for the betterment of the business (Pearl 2014).
Sampling technique and sampling size
There are different types of sampling technique that are used while sampling the
participants for data collection. The concept of cluster sampling technique highlights dividing the
population into small groups according to preferences and collecting data from them (Levy and
Lemeshow 2013). In the case of stratified sampling technique, the researcher divides the entire
population into different sub-groups and then selects the respondents randomly (Robinson 2014).
Random sampling technique is defined as the option of selecting the respondent randomly based
on their suitability of data collection. Random sampling methods were used for data collection
for the report. This is because random sampling method provided equal chances for all the
employees at Mrs. Parmas Restaurant to participate in the data collection process (Johnson and
Wichern 2014). Semi-structured interviews were scheduled that included 8 kitchen staff (1 head
chef, 4 cooks and 3 kitchen hands), 8 service staff (1 restaurant manager, 1 full-time, 3 part-time
and 3 casuals) and 2 ex-employees. The use of this method was justified, as this allowed to
develop in-depth knowledge about the commencing concern at Mrs. Parmas Restaurant. While
taking the interview, the employees were observed by conducting informal talks.
Data collection technique
Both primary qualitative and quantitative methods are used for data collection for this
report. The use of primary qualitative data collection tools included online web, face-to-face
interview, phones and emails (Bazeley and Jackson 2013). The use of a qualitative data
collection approach allowed the researcher to establish direct communication with the

24INDUSTRY RESEARCH PROJECT
respondents. As a result, deeper understanding of the current situation of Mrs. Parmas Restaurant
is easily understood. On the other hand, quantitative data collection tools included online forums,
online communities and web surveys. The use of quantitative data collection tool is justified for
this research, as this allowed the researcher to gather survey responses from online platforms
(Treiman 2014). As a result, it was easy to gather a large amount of data regarding employee
theft and analyze the opinions and perspectives of the larger population.
Research tools
In the case of this report, qualitative research tools were used to collect relevant data.
This is because the use of qualitative research tools allowed conducting informal conversation
thereby, leading to the main agenda. Semi-structured interview allowed the researcher to develop
a deeper understanding of the increasing cases of employee theft at Mrs. Parmas Restaurant
(Refer to Appendix 3). The employee theft feedback questionnaire was analyzed for
understanding the major reasons of employee theft at Mrs. Parmas Restaurant (Refer to
Appendix 2). The employee theft prevention and observation checklist was also analyzed in
order to reduce employee theft at the restaurant (Refer to Appendix 1).
Ethical considerations
The ethical consideration that was mandatory to follow includes:
 It was ensured that none of the respondents was harmed during data collection (Ritchie et
al. 2013)
 Voluntary participation was ensured from the individuals (Kosinski et al. 2015)
 The names and identity of the respondents were kept confidential (Harriss and Atkinson
2013)

25INDUSTRY RESEARCH PROJECT
 Non-threatening, non-personal and non-intrusive data collection was ensured (Marshall
and Rossman 2014)
 It was disclosed to the respondents that the data was collected for research purpose
(Creswell and Poth 2017)

26INDUSTRY RESEARCH PROJECT
Findings
The formulas for calculating mean, median and mode are as follows:
Mean (average value) = Total value/count of each responses
Median (mid value) = value of ((n+1)/2)
Mode (highest value) = I + [ fs
fp+fs∗c ]
I = lower limit
fs = frequency of the subsidiary modal class
fp = frequency of the preceding modal class
c = interval
Survey
Q1) What is your gender specification?
Options No. of respondents Total number of
respondents
Response %
Male 20 30 66.67%
Female 10 30 33.33%
Mean 1.33
Median 1
Mode 1

27INDUSTRY RESEARCH PROJECT
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant are male.
Table 1: Gender specification
(Source: Author)
1 2 3
0
5
10
15
20
25
30
20
30
0.666700000000
003
10
30
0.333300000000
001
Figure 3: Gender Specification
(Source: Author)
Results found out that out of 30 respondents, 10 were female and 20 were male.
Q2) How long have you been working at Mrs. Parmas Restaurant?
Options No. of respondents Total number of
respondents
Response %
0-2 years 8 30 26.67%
3-5 years 7 30 23.33%

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6-9 years 10 30 33.33%
10 years and above 5 30 16.67%
Mean 2.4
Median 2.5
Mode 3
Table 2: Employment duration
(Source: Author)
If the mean is 2, it suggests that average respondents have selected option 2. If the mode is 3, it
suggests that the maximum respondents have selected option 3. Thus, it can be concluded that
majority of the employees at the restaurant are working for 6-9 years in the restaurant.
0-2 years 3-5 years 6-9 years 10 years and
above
0
5
10
15
20
25
30
8 7
10
5
30 30 30 30
26.67% 23.33% 33.33% 16.67%

29INDUSTRY RESEARCH PROJECT
Figure 4: Employment duration
(Source: Author)
The results indicated that 33.33% of the workers have been employed at the restaurant for 6-9
years followed by 26% of the employees for 0-2 years, 23.33% workers for 3-5 years and
16.67% employees for more than 10 years.
Q3) Do you work full-time, part-time or casual?
Options No. of respondents Total number of
respondents
Response %
Full time 12 30 40%
Part time 10 30 33.33%
Casual 8 30 26.67%
Mean 1.87
Median 2
Mode 1
Table 3: Type of employment
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant works as full-timers.

30INDUSTRY RESEARCH PROJECT
1 2 3
0
5
10
15
20
25
30
12
30
0.4
10
30
0.333300000000
001
8
30
0.2667
Figure 5: Type of employment
(Source: Author)
The results showed that the restaurant has 40% full-time workers, 33.33% part-time workers and
26.67% casual workers.
Q4) Do you believe safety and security is a priority for you in the workplace?
Options No. of respondents Total number of
respondents
Response %
Yes 24 30 80%
No 3 30 10%
Maybe 3 30 10%
Mean 1.3
Median 1
Mode 1

31INDUSTRY RESEARCH PROJECT
Table 4: Safety and security is a priority
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant considers safety and security is a priority at
workplace.
1 2 3
0
5
10
15
20
25
30
24
30
0.8
3
30
0.1
3
30
0.1
Figure 6: Safety and security is a priority
(Source: Author)
The results obtained from graph highlights that 80% of the employees at Mrs. Parmas restaurant
agrees that safety and security are utmost important at work. However, 10% of the employees

32INDUSTRY RESEARCH PROJECT
beg to differ and the remaining 10% was unsure about the significant role of safety and security
at a workplace.
Q5) Do you think safety and security is a priority for the business?
Options No. of respondents Total number of
respondents
Response %
Yes 24 30 80%
No 3 30 10%
Maybe 3 30 10%
Mean 1.3
Median 1
Mode 1
Table 5: Safety and security priority for business
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant agree that safety and security is a top priority for
business.

33INDUSTRY RESEARCH PROJECT
1 2 3
0
5
10
15
20
25
30
24
30
0.8
3
30
0.1
3
30
0.1
Figure 7: Safety and security priority for business
(Source: Author)
The results indicate that 80% of the employees at the restaurant feels that safety and security for
the business are of utmost priority whereas the rest 20% feels it might be essential or not
essential.
Q6) Have you noticed any employee theft in Mrs. Parmas Restaurant before?
Options No. of respondents Total number of
respondents
Response %
Yes 12 30 40%
No 10 30 33.33%
Maybe 8 30 26.67%
Mean 1.87
Median 2

34INDUSTRY RESEARCH PROJECT
Mode 1
Table 6: Noticing employee theft
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant have noticed employee theft.
1 2 3
0
5
10
15
20
25
30
12
30
0.4
10
30
0.333300000000
001
8
30
0.2667
Figure 8: Noticing employee theft
(Source: Author)
The results indicated that 40% of the employees have seen their fellow employees committing
theft at the restaurant whereas 33.33% of the employees disagree with the fact. The rest 26%
preferred not to answer the question.
Q7) Do you think employee theft in Mrs. Parmas Restaurant can be reduced?

35INDUSTRY RESEARCH PROJECT
Options No. of respondents Total number of
respondents
Response %
Yes 8 30 26.67%
No 12 30 40%
Maybe 10 30 33.33%
Mean 2.07
Median 2
Mode 2
Table 7: Reducing employee theft
(Source: Author)
If the mean is 2, it suggests that average respondents have selected option 2. If the mode is 2, it
suggests that the maximum respondents have selected option 2. Thus, it can be concluded that
majority of the employees at the restaurant think that theft at the restaurant can be reduced.
1 2 3
0
5
10
15
20
25
30
8
30
0.2667
12
30
0.4
10
30
0.333300000000
001

36INDUSTRY RESEARCH PROJECT
Figure 9: Reducing employee theft
(Source: Author)
The results indicate that 40% of the employees feel that employee theft at the restaurant has not
reduced whereas 26.67% agrees that employee theft has been reduced. However, 33.33%
preferred not to share their opinion.
Q8) What are the potential reasons of employee theft identified at Mrs. Parmas Restaurant?
Options No. of respondents Total number of
respondents
Response %
Personal issues 8 30 26.67%
Psychological issues 6 30 20%
Financial issues 9 30 30%
Organizational issues 7 30 23.33%
Mean 2.5
Median 3
Mode 3
Table 8: Potential reasons of employee theft
(Source: Author)
If the mean is 2, it suggests that average respondents have selected option 2. If the mode is 3, it
suggests that the maximum respondents have selected option 3. Thus, it can be concluded that

37INDUSTRY RESEARCH PROJECT
majority of the employees at the restaurant have identified financial issues as the reason for
employee theft.
Personal issues Psychological
issues Financial issues Organizational
issues
0
5
10
15
20
25
30
Figure 10: Potential reasons of employee theft
(Source: Author)
The results indicated that the major reason of employee theft is due to financial issues faced by
the employees. Around 26.67% of the employees feel personal issues results in employee theft,
20% think it to be psychological influences and 23.33% of the employees blame the
organizations for employee theft.
Q9) Do you think one of the potential reasons of employee theft is an available opportunity to
them?
Options No. of respondents Total number of
respondents
Response %
Yes 15 30 50%

38INDUSTRY RESEARCH PROJECT
No 10 30 33.33%
Maybe 5 30 16.67%
Mean 1.67
Median 1.5
Mode 1
Table 9: Employee theft is due to the available opportunity
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant consider that employee theft is due to availability of
opportunity at the restaurant.
1 2 3
0
5
10
15
20
25
30
15
30
0.5
10
30
0.333300000000
001
5
30
0.1667

39INDUSTRY RESEARCH PROJECT
Figure 11: Employee theft is due to the available opportunity
(Source: Author)
The results indicated that 50% of the employees agree that employee theft id dies to the
availability of opportunities whereas 33.33% of the employees beg to differ. However, 16.67%
of the employees are unsure about the question.
Q10) Has the management of Mrs. Parmas Restaurant taken any action for mitigating employee
theft yet?
Options No. of respondents Total number of
respondents
Response %
Yes 12 30 40%
No 10 30 33.33%
Maybe 8 30 26.67%
Mean 1.87
Median 2
Mode 1
Table 10: Managerial actions
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
the management of the restaurant are taking required steps for mitigating employee theft.

40INDUSTRY RESEARCH PROJECT
1 2 3
0
5
10
15
20
25
30
12
30
0.4
10
30
0.333300000000
001
8
30
0.2667
Figure 12: Managerial actions
(Source: Author)
The results indicate that 40% of the employees feel that the management of the restaurant has
taken suitable steps to reduce employee theft whereas 33.33% of the employees disagree with the
fact. However, 26.67% of the employees are unsure whether the management has taken any
action or not.
Q11) What actions have the management undertaken for mitigating employee theft at Mrs.
Parmas Restaurant?
Options No. of respondents Total number of
respondents
Response %
Installation of CCTV 18 30 60%
Increasing the number 4 30 13.33%

41INDUSTRY RESEARCH PROJECT
of supervisors
Stricter security check 3 30 10%
Counseling 5 30 16.67%
Mean 1.83
Median 1
Mode 1
Table 11: Actions for reducing employee theft
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
the management is installing CCTV for mitigating employee theft at the restaurant.
Installation of
CCTV Increasing the
number of
supervisors
Stricter security
check Counseling
0
5
10
15
20
25
30
18
4 3
5
30 30 30 30
60.00% 13.33% 10.00% 16.67%

42INDUSTRY RESEARCH PROJECT
Figure 13: Actions for reducing employee theft
(Source: Author)
The results indicated that 60% of the employees agree that installing CCTV will help in reducing
employee theft effectively whereas 16.67% of the employees feel that counselling will help in
reducing employee theft more effectively. However, 13.33% of the employees feel that
increasing the number of supervisors will help in reducing employee theft and the remaining
10% feel stricter security check will help in reducing employee theft.
Q12) Is it significant to conduct comprehensive pre-employment screening of employees for
reducing employee theft at Mrs. Parmas Restaurant?
Options No. of respondents Total number of
respondents
Response %
Yes 20 30 66.67%
No 8 30 26.67%
Maybe 2 30 6.66%
Mean 1.4
Median 1
Mode 1
Table 12: Significance of pre-employment check
(Source: Author)

43INDUSTRY RESEARCH PROJECT
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant considers comprehensive pre-employment screening
of employees important.
1 2 3
0
5
10
15
20
25
30
20
30
0.666700000000
002
8
30
0.2667
2
30
0.0666
Figure 14: Significance of pre-employment check
(Source: Author)
The results indicated that 66.675 of the employees felt that comprehensive pre-employment
check helps in reducing employee theft. However, 26.67% of the employees disagree and 6.66%
of the employees prefer not to answer.
Q13) Is it significant to have an inventory control program that provides regular scheduled and
random inventory checks at Mrs. Parmas Restaurant for reducing employee theft?
Options No. of respondents Total number of
respondents
Response %

44INDUSTRY RESEARCH PROJECT
Yes 19 30 63.33%
No 8 30 26.67%
Maybe 3 30 10%
Mean 1.47
Median 1
Mode 1
Table 13: Significance of inventory check
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant considers scheduled and random inventory checks at
the restaurant important.
1 2 3
0
5
10
15
20
25
30
19
30
0.633300000000
001
8
30
0.2667
3
30
0.1

45INDUSTRY RESEARCH PROJECT
Figure 15: Significance of inventory check
(Source: Author)
The result indicated that 63.33% of the employees agreed that regular and random inventory
checks help in reducing employee theft whereas 26.67% of the employees beg to differ.
Q14) Do you feel that Mrs. Parmas Restaurant needs further improvement in terms of security
for reducing employee theft?
Options No. of respondents Total number of
respondents
Response %
Yes 25 30 83.33%
No 3 30 10%
Maybe 2 30 6.67%
Mean 1.23
Median 1
Mode 1
Table 14: Improving security
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant thinks the restaurant needs improvement in terms of
security for reducing employee theft.

46INDUSTRY RESEARCH PROJECT
1 2 3
0
5
10
15
20
25
30
25
30
0.8333
3
30
0.1
2
30
0.0667
Figure 16: Improving security
(Source: Author)
The results indicated that 83.33% of the employees feel that the management of the restaurant
needs to improve their security for reducing employee theft.
Q15) Do you think employee theft can be stopped completely?
Options No. of respondents Total number of
respondents
Response %
Yes 19 30 63.33%
No 8 30 26.67%
Maybe 3 30 10%
Mean 1.47
Median 1
Mode 1

47INDUSTRY RESEARCH PROJECT
Table 15: Mitigating employee theft completely
(Source: Author)
If the mean is 1, it suggests that average respondents have selected option 1. If the mode is 1, it
suggests that the maximum respondents have selected option 1. Thus, it can be concluded that
majority of the employees at the restaurant thinks that employee theft can be stopped completely.
1 2 3
0
5
10
15
20
25
30
19
30
0.633300000000
001
8
30
0.2667
3
30
0.1
Figure 17: Mitigating employee theft completely
(Source: Author)
The results indicated that 63.33% of the employees feel that employee theft can be stopped
completely whereas 26.67% of the employees disagreed.

48INDUSTRY RESEARCH PROJECT
Semi-structured interview
The results indicate sample answers which were considered to be most revelling and relevant to
the research.
Interview
Interviewer: Question 1: What are the potential reasons of employee theft identified at Mrs.
Parmas Restaurant?
Respondent: Answer 1: ‘We have encountered employee thefts at Mrs. Parmas Restaurant
mainly due to financial issues among the employees. Additionally, personal and psychological
issues among the employees have also lead to increased cases of employee theft in the restaurant.
We have also come to know some of us are not satisfied with the organizational policies in terms
of salary and hike that has forced them to conduct theft in the organization.’
Interviewer: Question 2: Have you noticed any employee theft in Mrs. Parmas Restaurant
before?
Respondent: Answer 2: ‘We have noticed employee theft in the organization before where
employees have been caught stealing cash from the till. We have also seen employees charging
more for the food but not recording it in the till. Apart from the front staffs, we have noticed
employees conducting theft in the kitchen. The employees are caught stealing raw food items
and cooked food items along with brews from the kitchen.’
Interviewer: Question 3: What actions have the management undertaken for mitigating
employee theft at Mrs. Parmas Restaurant?

49INDUSTRY RESEARCH PROJECT
Respondent: Answer 3: ‘We have seen the management to take strict actions for reducing
employee theft at Mrs. Parmas Restaurant. The management has installed CCTV camera on the
premises both front and kitchen in order to maintain 24/7 surveillance. Additionally, the
management has assigned us to supervisors so that they can have a better eye on the employees
to help reduce employee theft.’
Interviewer: Question 4: Is it significant to conduct comprehensive pre-employment screening
of employees for reducing employee theft at Mrs. Parmas Restaurant?
Respondent: Answer 4: ‘We think that comprehensive pre-employment checks are necessary
for Mrs. Parmas Restaurant. This has helped the Mrs. Parmas Restaurant in crosschecking the
personal and professional information provided the employees in their application forms and
judging its truth. A comprehensive pre-employment check has also helped Mrs. Parmas
Restaurant to predict the attitudes and behaviors of the employees thereby, reducing the rate of
employee thefts.’
Interviewer: Question 5: Is it significant to have an inventory control program that provides
regular scheduled and random inventory checks at Mrs. Parmas Restaurant for reducing
employee theft?
Respondent: Answer 5: ‘We think it is significant for Mrs. Parmas Restaurant to conduct
planned and random inventory checks within the restaurant, as this provides an opportunity for
detecting any loopholes in the stock at a regular basis. In addition, it is easier to keep track of the
list of inventories in the restaurant by conducting both planned and random inventory checks.’

50INDUSTRY RESEARCH PROJECT
Discussion
Findings from the survey
From the results obtained in graph 1, it can be seen that a number of employees at Mrs.
Parmas Restaurant are new. The restaurant has an estimated 33.33% new employees and an
estimated 16.67% employees that have been working for more than 10 years. Findings indicate
that increased employee theft at Mrs. Parmas Restaurant has restricted the restaurant to retain
their employees for a longer period. As the restaurant is poor in managing their security, they are
also unable to retain their employees. Some of the employees are terminated, as they were
involved in theft whereas other employees left the restaurant, as they did not find any security of
their belongings at the restaurant.
From the results obtained in graph 2, it can be said that majority of the employees at Mrs.
Parmas Restaurant working full-time. Around 40% of the employees, both front and kitchen
employees work as full-timers whereas the restaurant has 33.33% of part-time employees and
26.67% causal workers. Having so many employees working in the restaurant, along with a lack
of strict supervision gives rise to frequent employee thefts thereby, hampering the business.
From the results obtained in graph 3, it can be seen that around 80% of the employees
working at Mrs. Parmas Restaurant believe that safety and security is the topmost priority at a
workplace. The result supports the ideas of Gill, Prowse and Vlassopoulos (2013), who identified
that the importance of security at workplace leads to employee satisfaction. Workplace safety
and security is crucial, as this highlights the concern of the company towards their employees as
well as towards their business. It is only through workplace safety and security, Mrs. Parmas
Restaurant can reduce employee thefts that results in loss of business for the restaurant.

51INDUSTRY RESEARCH PROJECT
Workplace safety and security is also significant for Mrs. Parmas Restaurant, as the personal
assets of the employees are also saved from being stolen or misused by fellow employees.
From the results obtained in graph 4, it can be seen that 40% of the employees have seen
their fellow employees conducting theft at Mrs. Parmas Restaurant. On the other hand, 33.33%
of the employees say that they have never seen any of their fellow employees committing theft
within the restaurant whereas around 26.67% of the employees preferred not to agree or disagree
with the answer. Additionally, around 40% of the employees feel that employee theft at Mrs.
Parmas Restaurant can be reduced. This is because they feel that employee theft has been
increasing in the restaurant and needs to be controlled. The employees feel that the management
of the restaurant has the capability of reducing employee theft in the restaurant. On the other
hand, 33.33% of the employees feel it can or cannot, as this is depending on the effort, strategies
developed, and implemented by the management of Mrs. Parmas Restaurant.
From the results obtained in graph 5, it can be suggested that employees at Mrs. Parmas
Restaurant commit theft due to financial issues. Around 30% of the employees tend to support
the view that financial issue enforces the individuals to commits theft, as their basic requirements
remain unfulfilled. Mrs. Parmas Restaurant is failing to support and satisfy the employees with
their basic wages and salaries and this may force them to be involved in other activities that
allow them to earn more to fulfil their basic requirements. Shigihara & Greenberg (2013 & 1990)
have supported the findings, in the literature review. Additionally, around 26.67% of the
employees commit theft due to personal issues and 23.33% of the employees commit theft due to
organizational issues. It might be that the upbringing and the attitudes of the individuals have
developed the habit of stealing since childhood. Due to their behavior and habits, the employees

52INDUSTRY RESEARCH PROJECT
tend to continue commit theft at Mrs. Parmas Restaurant. This highlights the psychological
issues of the individuals that forces them to commit thefts at a workplace.
From the data obtained in graph 6, it can be said that around 50% of the employees
believe that availability of suitable opportunities at Mrs. Parmas Restaurant encourages the
employees to commit theft. However, on the contrary, 33.33% disagree that availability of
suitable opportunities allows them to commit theft. 33.33% of the employees believe that other
issues such financial and psychological issues are the major reasons that result employee theft.
According to the findings by Montano and Kasprzyk (2015), it can be said that the personal
condition influences the psychology of the employees that enforces them to commit theft
intentionally. On the other hand, 16.67% are unsure about the potential reason for employees
committing theft. Around 50% of the employees believed that Mrs. Parmas Restaurant lacks
strict security and safety of their assets and inventory that provides an opportunity for the
employees to commit theft at the restaurant.
From the data obtained in graph 7, it can be said that after the management came to know
that availability of suitable opportunities is one of the major reasons of an employee stealing at
Mrs. Parmas Restaurant, they began aiming towards taking actions to mitigate theft. From the
results, it can be seen that around 40% of the employees agree that the management has taken the
matter seriously and is developing steps to mitigate employee theft at Mrs. Parmas Restaurant.
However, on the other hand, 33.33% of the employees think that the management is taking
actions but are unable to implement the strategies appropriately for mitigating employee theft at
Mrs. Parmas Restaurant. 26.67% of the employees have no opinion to share on this point, as it
does not concern them as far as they feel secure and safe at the restaurant.

53INDUSTRY RESEARCH PROJECT
From the data obtained in graph 8, it can be said that around 60% of the employees
believe that the management of Mrs. Parmas Restaurant is installing CCTV in order to mitigate
theft. This is because the employees have seen an increased number of CCTV’s at the restaurant
premises and installation of the whole set-up for monitoring the CCTV footage 24/7. The
management of Mrs. Parmas Restaurant has also been recruiting professionals to monitor the
CCTV footage minutely in order to ensure the reduction of employee theft. Around 13.33% of
the employees said that the management has increased the number of supervisors in the
restaurant for mitigating employee theft. The research by Fida et al. & Ninemeier (2015 & 1982)
supported that the managers play a significant role in mitigating employee theft at a workplace.
Only 16.67% of the employees said that the restaurant is providing counselling to the employees
in order to understand the psychology behind employee theft and eradicating them.
From the results obtained in graph 12, it can be said that around 66.67% of the employees
at Mrs. Parmas Restaurant feel that conducting comprehensive pre-employment screening of the
employees is essential, as this provides an opportunity for the management to verify the
documents provided by the employees before joining. As a result, the management is able to
predict the behavior of the employees before hiring them. However, around 26.67% of the
employees feel it is unnecessary, as information provided by the employees might be correct, but
it might not match their habits and attitudes thereby, making it difficult management to catch the
concerned employees (Yang et al. 2013 & Arbetter 1993). Around, 6.66% of the employees
think that conducting comprehensive pre-employment screening of the employees hardly affects
the reduction of employee theft.
From the results obtained in graph 13, it can be said that around 83.33% of the employees
feel that the security for conducting comprehensive pre-employment screening of the employees

54INDUSTRY RESEARCH PROJECT
needs severe improvement. This is because according to the majority, improving the security at
Mrs. Parmas Restaurant ensures monitoring the employees and their activities closely. However,
10% considers it unnecessary and 6.67% fail to share their data. Around 63.33% thinks that
employee theft can be stopped completely by ensuring strict action by the management and
regular follow-ups.

55INDUSTRY RESEARCH PROJECT
Findings from the transcript
Interviewer: What are the potential reasons of employee theft identified at Mrs. Parmas
Restaurant?
Interpretation of the employee’s interview: From the interview, it can be said that financial
issues force some individuals to commit theft at their workplace. Additionally, the psychological
issue of the individuals also influences employee theft. According to the information gathered in
the literature review, the theory of planned behavior suggests that the habits and the attitudes of
the individuals force the individuals to commit thefts. The upbringing, attitudes and habits of the
individuals highlight such personalities. From the evidence provided by Shigihara (2013), it can
also be said that financial issues enforce the individuals to steal thereby, fulfilling their basic
demands and standard of living.
Interviewer: Have you noticed any employee theft in Mrs. Parmas Restaurant before?
Interpretation of the employee’s interview: The data gathered from the literature review
suggests that employees commit thefts and staling in absence of everyone thereby, making it
difficult to record or catch them.
Interviewer: What actions have the management undertaken for mitigating employee theft at
Mrs. Parmas Restaurant?
Interpretation of the employee’s interview: The information provided by Fida et al &
Ninemeier (2015 & 1982), in the literature review supports that CCTV installation by the
management helps in effective reduction of employee theft at a workplace, as this provides an
opportunity to monitor the employees and their activities 24/7.

56INDUSTRY RESEARCH PROJECT
Interviewer: Is it significant to conduct comprehensive pre-employment screening of employees
for reducing employee theft at Mrs. Parmas Restaurant?
Interpretation of the employee’s interview: The employees think that conducting a
comprehensive pre-employment check for the employees is necessary, as this provides an
opportunity for the management to verify the information provided by the individuals. The
information gathered from the literature review by Yang et al. & Arbetter (2013 & 1993),
concurs with the findings, showing that pre-employment check is necessary and is supported by
various authors, as this saves the time of the management of the business organizations.
Interviewer: Is it significant to have an inventory control program that provides regular
scheduled and random inventory checks at Mrs. Parmas Restaurant for reducing employee theft?
Interpretation of the employee’s interview: The information gathered from the literature
review by Ariani & Neinmeier (2013 & 1982), supports that conducting random and planned
inventory checks is one of the strategies that management can undertake in order to reduce
employee theft.

57INDUSTRY RESEARCH PROJECT
Recommendations
The suitable recommendations of reducing employee theft at Mrs. Parmas Restaurant
include:
 Installation of CCTV camera: Mrs. Parmas Restaurant needs to install CCTV camera
inside their premises. Installing CCTV camera will provide an opportunity for the
management of Mrs. Parmas Restaurant to monitor the employees and their activities
closely and minutely. As a result, the management will be able to keep track of the
behaviors and attitudes of the employees thereby, preventing the employees from
committing illegal activities. This will solve the problem of employee theft, as the
employees will be aware that they are continuously being noticed and monitored. Being
cautious will prevent the employees to commit theft, as they will have the fear of being
caught and lose the job that will hamper them professionally Fida et al & Ninemeier
(2015 & 1982). Stricter action by the management: Another method of reducing employee theft at Mrs.
Parmas Restaurant is that the management needs to take strict actions. Strict action by the
management will help in identifying and recording the faults within the restaurant at
regular interval. Stricter action by the management at Mrs. Parmas Restaurant will make
the employees more cautious regarding the actions taken by them at the restaurant. This
will solve the problem by making them afraid of being caught while stealing or misusing
the activities of them (Fida et al. 2015 & McBurney 1993). Counseling: Counseling is another method of reducing employee theft at Mrs. Parmas
Restaurant. This needs to be done, as this will help the management of the restaurant to

58INDUSTRY RESEARCH PROJECT
understand the psychological aspect of the employees that forced them to conduct illegal
activities at the workplace. As the management will be able to understand to the
psychology of the employees in terms of habits, attitudes and needs, they will be able to
mitigate employee theft by fulfilling their psychological demands (Kautonen, Gelderen
and Fink 2015). Increasing the number of supervisors: The management of Mrs. Parmas Restaurant will
have to increase the number of supervisors in the kitchen and in the front. The
management of Mrs. Parmas Restaurant will allocate 3-4 team members under each of
the supervisors that will provide an opportunity for the management to monitor the
employees and their activities closely. Close monitoring by the supervisors will help in
reducing employee theft, as the employees will be aware that their activities are closely
noticed (Fida et al. 2015, Neinmeier 1982 & McBurney 1993). Increasing the basic pay of the employees: The management can also increase the basic
pay of the employees at Mrs. Parmas Restaurant. This will provide a financial stability to
the employees, as increased pay will allow the employees to fulfil the basic needs and
live a standard life. Moreover, increasing the basic salary will also help the employees to
get rid of financial issues thereby, preventing them from getting involved in illegal
activities at Mrs. Parmas Restaurant (Shigihara 2013 & Greenberg 1990).

59INDUSTRY RESEARCH PROJECT
Limitations
While conducting the industry analysis, some potential challenges have been encountered
that compromised the quality of the work. Time was one of the limitations that hampered the
quality of work. As the researcher had limited time, extensive research for gathering relevant
data and information was restricted. While conducting the study, the effects of employee thefts
are omitted in the study. The research solely focused on employee theft, factors affecting
employee thefts and linked the findings to relevant theories. The researcher has failed to include
the impact of employee theft on business organizations due to which the study excluded the best-
suited strategies of the impacts.
Furthermore, the researcher has been unable to access the most appropriate method for
research. The use of both qualitative and quantitative method for data analysis has made the
work more complex and difficult to understand. The sample size selected by the researcher is
appropriate for the survey, but it is not for the semi-structured interview. Interviewing 30
employees at Mrs. Parmas Restaurant was time-consuming and this hampered the quality of the
research. The researcher faced difficulties in analyzing the transcripts of 30 interviewers, as they
all shared detailed information about employee theft at Mrs. Parmas Restaurant. The researcher
has also encountered bias behavior among the employees at Mrs. Parmas Restaurant that
restricted them from sharing their viewpoints and opinions freely during the qualitative analysis.
Lastly, the researcher also faced difficulties in accessing the relevant participants that would
have helped in providing an in-depth knowledge and information of the current scenario at Mrs.
Parmas Restaurant.

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Conclusion
In this industry analysis, it can be concluded that the scope of the study was to reduce the
employee theft at Mrs. Parmas Restaurant. The main problem identified in this investigative
analysis was the increasing cases of employee theft at Mrs. Parmas Restaurant. The report has
successfully identified the major issues of employee theft as well as the various methods of
reducing employee theft effectively. The research has also critically evaluated the most effective
method of reducing employee theft along with providing suitable recommendations for the
encountered problem at the Mrs. Parmas Restaurant. The major findings of the research
highlights that the financial issues encountered by the employees are the main reasons of
employee theft at Mrs. Parmas Restaurant. It has been seen that the restaurant has been failing to
fulfil the financial requirement of the employees that are enforcing them to commit theft within
the organization. As the employees are unable to meet their living standard and accomplish their
basic requirement by working at Mrs. Parmas Restaurant, they are stealing and misusing the
assets of the restaurant in order to compensate for their inadequate pay. Another major finding of
the research includes the lack of safety and security that exists at Mrs. Parmas Restaurant. As a
result, the employees are attaining more opportunity to commit theft in the restaurant. The
suitable actions for reducing employee theft at Mrs. Parmas Restaurant includes installation of
CCTV camera, stricter action by the management and fulfilling the basic needs of the employees
by increasing their pay scale as well as paying them on time.

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Appendices
Appendix 1
Employee Theft Prevention and Observation Checklist
General Considerations
Is there a comprehensive pre-employment screening program that has been reviewed by
legal counsel and which affords the basis for an in-depth check of the applicant's background?
Is every job applicant required to completely fill out and sign an employment application
form?
Are checks performed on the applicant's references and previous employers?
Depending on the importance or sensitivity of the job, are criminal and credit checks
performed?
Are there written security guidelines that outline the company's policy for dealing with an
employee caught stealing?
Are all employees provided with a copy of the guidelines and required to sign a receipt
that they received them?
Are human resource programs in place, such as profit-sharing, promotion-from-within
policies, and fair compensation practices that are designed to build employee loyalty and align
employee and company goals?
Is company merchandise or property of the type that makes it desirable and easy to
steal?

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Procedural Controls
Are there controls on petty cash disbursements, bank deposits and withdrawals,
issuance of checks, payrolls, reconciliation of bank statements, and the paying of invoices?
Are responsibilities and functions separated so that no one employee has control over all
parts of a given financial transaction, and workflow organized so that the work of one
employee acts as a check on that of another?
Is there an inventory control program that provides for regularly scheduled and random
inventory checks?
Is there a badge identification system to identify all employees and to regulate the
movement of visitors?
If feasible, are employees required to enter and exit the facility through a single
employee entrance, monitored by a guard?
Are receiving operations supervised by closed-circuit television (CCTV) surveillance?
Is all incoming merchandise checked against purchase invoices and all outgoing
merchandise against shipping documents?
Is there a designated area within the facility, if possible, for the collection of trash before its
disposal?
(Source: AIG Programs & Edited by Author)
Appendix 2
Survey questionnaire
Q1) What is your gender specification?
Male
Female

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Q2) How long have you been working at Mrs. Parmas Restaurant?
0-2 years
3-5 years
6-9 years
10 years and above
Q3) Do you work full-time, part-time or casual?
Full-Time
Part-Time
Casual
Q4) Do you believe safety and security is a priority for you in the workplace?
Yes
No
Maybe
Q5) Do you think safety and security is a priority for the business?
Yes
No
Maybe

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Q6) Have you noticed any employee theft in Mrs. Parmas Restaurant before?
Yes
No
Maybe
Q7) Do you think employee theft in Mrs. Parmas Restaurant can be reduced?
Yes
No
Maybe
Q8) What are the potential reasons of employee theft identified by Mrs. Parmas Restaurant?
Personal issues
Psychological issues
Financial issues
Organizational issues
Q9) Do you think one of the potential reasons of employee theft is an available opportunity to
them?
Yes
No
Maybe

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Q10) Has the management of Mrs. Parmas Restaurant taken any action for mitigating employee
theft yet?
Yes
No
Maybe
Q11) What actions have the management undertaken for mitigating employee theft at Mrs.
Parmas Restaurant?
Installation of CCTV
Increasing the number of supervisor
Stricter security check
Counseling
Q12) Is it significant to conduct comprehensive pre-employment screening of employees for
reducing employee theft at Mrs. Parmas Restaurant?
Yes
No
Maybe
Q13) Is it significant to have an inventory control program that provides regular scheduled and
random inventory checks at Mrs. Parmas Restaurant for reducing employee theft?