Employee Theft: Problems and Solutions in the Hotel Sector Report

This report comprehensively addresses employee theft within the hotel industry. It begins with an executive summary and an introduction highlighting the significance of employee theft as a major concern. The report delves into the problem across various hotel departments, discussing the underlying motivations behind such actions, including factors like job dissatisfaction and financial pressures. It categorizes different types of employee theft, such as food and inventory theft, and intellectual property theft. Furthermore, the report examines best practices adopted by international hotels to prevent theft, including background checks, cash handling procedures, and technological solutions. Practical recommendations are provided on how employee theft can be managed effectively, emphasizing initial training, zero-tolerance policies, and employee screening. The report concludes by summarizing the key findings and reinforcing the impact of employee theft on organizational performance and the importance of implementing robust prevention strategies.

Running Head: EMPLOYEE THEFT
EMPLOYEE THEFT IN HOTEL

EMPLOYEE THEFT 2
Executive Summary
The main aim of this report to address employee theft in the hotel industry. Employee theft is
determined as the use or misuse of an organization’s asset without any permission. The
workplace’s asset is imperative because it could directly affect the organizational
performance. It could consider more than cash. Most of the industries, organization give more
value to the employee theft as it could directly impact on the organizational performance.
Moreover, there are many causes that could be caused by employee theft in working like
Food theft, time theft, and intellectual theft. The hospitality industry could consider different
kinds of methods to prevent initial training, basic, and safe.

EMPLOYEE THEFT 3
Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Employee theft in hotels.............................................................................................................4
Discuss how and if employee theft is a problem in the hotel industry...................................4
Discuss how employee theft is a problem across different departments................................5
Discuss the underlying motivations behind employee theft in hotels....................................5
Discuss the types of employee theft in hotels........................................................................6
Discuss best practices adopted by international hotels to prevent employee theft.................7
Practical recommendations on how employee theft can be managed effectively..................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

EMPLOYEE THEFT 4
Introduction
This report demonstrates how employee theft is a major concern for the hotel industry.
Moreover, it also discusses employee theft issues in the different department of the hotel. It
also demonstrates the underlying motivations behind employee theft in hotels. It shows
different kinds of employee theft in hotels. It also demonstrates best practices that are
adopted by international hotels for preventing employee theft. It could be recommended
strategies for effectively managing employee theft from the organization.
Employee theft in hotels
Discuss how and if employee theft is a problem in the hotel industry
According to Goh & Kong (2018) employee theft could be age-old issues. The hotel
represents many opportunities for employee theft. It is also evaluated that organization must
not entailed those employees who give more preference to those who have created employee
theft. Moreover, it is examined that hoteliers need to concentrate on preventing employee
theft and make a decision accordingly. The organization has considered the legal and
practical implications of employee theft in the working place.
In support of this, Teng Hsu & Cheng (2017) stated that regular evaluation of the hotel
security could measures and procedure of hotel as it could directly impact on the
organizational performance. The employee theft could created by the misuse of
organizational products and services. It is evaluated that process and employee guest
assessment could also be imperative for identifying workforces. It is stated that the
organization could also determine the causes of theft in the hotel for making a positive image
of the firm in the marketplace.
Yadav (2018) argued that identification of the best practices that are associated with a credit
card as well as a determination of documents and effectively limit of workforces that have to
access to the guest determination and the credit card data. It could also consider proper

EMPLOYEE THEFT 5
workforce screening. It is also stated that employee theft could be checked by criminal
background as well as workforces with accessing financial assets. It is stated that workforces
could be imperative in obtaining a reliable outcome.
Discuss how employee theft is a problem across different departments
Teng Hsu Lai & Chen (2018) stated that the consequences related to employee’s theft are an
operational, psychological and financial factor. It is prone for affecting over staff member to
perform the theft. Considering the theft loss program can pay for itself in revenue can be
recovered.
The financial theft could be categorized as stealing the items of materials, submitting the time
sheet for the time that was not performed, misappropriate funds as well as any other kind of
employee fraud. The average hotels decline 5% of its annual revenue regarding fraud as per
the association of certified fraud evaluation website.
On the other side, Hon Lu & Chan (2015) examined that the operational damage on
workplace due to employee theft is the cause of one-third of bankruptcies of business as per
international foundation for protection officer’s website. In order to cover the damages due to
theft of employees, a hotel can get lower patrol by releasing the workforces, delay in
promotions of key personnel, raises forgo and holding the company expansion plans. It is also
stated that employee theft may cause the employer to take the employer to use security
measures that can influence the whole organization. Tension may create between employees
and management while strict rule can put and take into consideration for preventing the theft
of employee. An organization should also comprehend different methods for eliminating the
employee theft from the organization.
There are creation activities that are considered by the hospitality sector like identity gadgets,
surveillance cameras, and restriction regarding employee’s workforce assessment to materials
of a corporation like supplies and office equipment.

EMPLOYEE THEFT 6
Discuss the underlying motivations behind employee theft in hotels
Goh Nguyen & Law (2017) argued that employee’s theft may be related to lying to manager
and subordinates, submitting the inappropriate time sheets, and unethical behaviour like drug
abuse and harassment. While a hotel experiences theft within an organization then, it may
decline the revenue, productivity, and morale. Hotelier can create the policies for overcoming
it. It is stated that the hotel does not permit theft and takes strong action against it. To avoid
organizational theft, there should be comprehensive policies that outline what dishonesty is
and the results for workforces who disrupt those approaches. The ownership and company
management should be attentive to enforce the policies regarding generating the culture that
avoids theft.
In support of this, Dimitriou & Ducette (2018) stated that theft in the organization could be
the cause of low morale; however, it could be prompted through the current environment of
employee dissatisfaction. Along with this, workforces who are dissatisfied with their jobs,
company management within an organization may engage in workforce theft, declining
production and misappropriation of work hours on time sheet. Along with this, identifying
moral concerns can support to prevent employees theft.
On the other side, Zoghbi-Manrique-de-Lara & Guerra-Báez (2016) examined that hotel that
does not have a check and balance system on account books and feasible inventory system
can become victim associated with theft within an organization. When workforces do not fear
for caught, and then the notion of stealing money and supplies from the corporation may stay
the employees. It can generate a series associated with assessing all accounting entries, petty
cash receipts as well as an inventory system for assessing the activity and avoiding the theft.
In opposition to this, Goh & Jie (2019) examined that workforces who feel that they are
underpaid can feel the inclination to steal within hotel or pad time of sheet hours for
increasing their income. When an employee does not feel that the company provides

EMPLOYEE THEFT 7
sufficient career advancement and development, then production may decline and
absenteeism of employees can increase in the hotel.
Discuss the types of employee theft in hotels
Frawley Goh & Law (2018) stated that food and inventory theft is determined as intentional
or tangible theft. There are two kinds of methods that are considered as tangible theft like
food and inventory theft and intellectual property theft. The food and inventory theft could
consider different kinds of factors like shift meal, snaking on your supplies, offering free
meals to their family and friends, having food for their home, straight up the supplies of a
delivery truck.
In support of this, Tuzun & Kalemci (2018) stated that intellectual property theft is
unintentional or intangible theft, which could directly impact on the overall performance of
the firm. Intellectual property could easily create employee theft in the working place. For
illustration, if a chef is hired by the hotels to make the recipe then they would be mandated to
secure proprietary recipes, lists of ingredients, processes of cooking, and branding. It could
support to differentiate the organization and eliminating employee theft from the working
place. The organization could also mandate to all staff members to secure their intellectual
property to retain their position.
Discuss best practices adopted by international hotels to prevent employee theft
Frempong (2019) argued that hotels by nature can grab the opportunity for thieves for
stealing from the guest. In addition, guest rooms can be filled with valuable technology and
items. Along with this, costly fixtures and amenities such as flat-screen TV’s as well as a
computer can be found in every room. Credit cards are applied for most purchases permitting
plenty of possibilities for identity theft in order to operate with relative ease. Different steps
could be used for preventing the theft to control the situation.

EMPLOYEE THEFT 8
In support of this, Tuzun & Kalemci (2018) examined that stolen towels as well as other
guest room services amount can be high expenses for different chains and hotels.
Furthermore, the hotel may pass on that addition operation cost to guests. Modern technology
may come up with a new method for avoiding towel theft, it entails the placement regarding
tiny electronic devices inside the towel as well as other hotel items concern for theft.
On the other side, Goh & Kong (2017) examined that one of the effective methods for
avoiding the thieves through preying on the guest is to ensure they are not hired to act at a
hotel in first place. By assessing the criminal background regarding every workforce, the
hotelier can avoid the potential for future concerns with employees who have depicted
criminal behavior in ancient. Along with this, cash handling position and front desk may
require not only a criminal check but also credit assessment. Workforces screening is not
completed once the hire is finished. It can keep regular but impulsive drawer counts, personal
inspections and inventory checks for making sure that company items, as well as cash, are not
being stolen at any time.
In opposition to this, Harris & He (2019) examined that hotels and their guest could be
victimized by employees who may take chance while risk-free opportunity creates. Along
with this, it can avoid such instances by cash depositing in the bank at the end of each
business day. Therefore, there is not a substantial amount regarding money of hand for
attracting thieves. Along with this, bag searched could be executed for all workforces because
they leave for the day as well as workforces parking could be constrained to an extreme point
by which hotel merchandise, as well as material, can be removed unlawfully.
Practical recommendations on how employee theft can be managed effectively
O'Brien Minjock Colarelli & Yang (2018) recommended that an organization should imply
the initial training to the employee for the firm for managing theft effectively. It is one of an
effective tool as it is smart to the employees for dealing with the employee theft issues in the

EMPLOYEE THEFT 9
upcoming period. The organization should also use the zero tolerance method, which drilled
into the mind of workforces will inspire the idea which workforce theft will be dealt with as
harshly as possible.
Harris & He (2019) suggested that termination is another imperative method for eliminating
the employee theft issue from the organization. It could be effective in making little fear
among the workforces to do any theft activity at the working place. It could also prevent the
available workforces for performing well in a systematic manner. Before the judgment of a
candidates section, an organization should also make aware of the background of the
organization decision towards employee theft. It could be effective in eliminating the theft
from the organization. It could also decline criminal activity from the organization and
enhance the possibilities of getting a positive outcome.
Conclusion
With respect to the discussion, it can be summarized that employee theft could directly
impact on the overall performance of the firm. It can be recommended that there are different
kinds of methods that are different kinds of methods, which are considered as the employee
thefts like tangible and intangible theft. It can also be summarized that organization should
use different kinds of methods that are used by the hotel to prevent the employee theft from
the organization like training and development method, employee termination, stick rules and
regulation for employee theft. Thus, it can be evaluated that the strategies of employee theft
could lead to declining the criminal issues form the organization and support to make a
reliable decision with respect to the organizational growth.

EMPLOYEE THEFT 10
References
Dimitriou, C. K., & Ducette, J. P. (2018). An analysis of the key determinants of hotel
employees' ethical behavior. Journal of Hospitality and Tourism Management, 34, 66-
74.
Frawley, T., Goh, E., & Law, R. (2018). Quality assurance at hotel management tertiary
institutions in Australia: an insight into factors behind domestic and international
student satisfaction. Journal of Hospitality & Tourism Education, 1-9.
Frempong, F. (2019). Gender and Ethical Conduct of Hotel Employees in Kumasi
Metropolis, Ghana. Journal of Business Ethics, 1-11.
Goh, E., & Jie, F. (2019). To waste or not to waste: Exploring motivational factors of
Generation Z hospitality employees towards food wastage in the hospitality
industry. International Journal of Hospitality Management, 80, 126-135.
Goh, E., & Kong, S. (2017). Hotel employee theft: exploring behavioral intentions among
hotel frontline employees to steal from employers. Tourism and Hospitality Research,
1-14.
Goh, E., & Kong, S. (2018). Theft in the hotel workplace: Exploring frontline employees’
perceptions of hotel employee theft. Tourism and Hospitality Research, 18(4), 442-
455.
Goh, E., Nguyen, S., & Law, R. (2017). Marketing private hotel management schools in
Australia. Asia Pacific Journal of Marketing and Logistics, 29(4), 880-889.
Harris, L. C., & He, H. (2019). Retail employee pilferage: A study of moral
disengagement. Journal of Business Research, 99, 57-68.
Hon, A. H., Lu, L., & Chan, W. W. (2015). Does cultural value exacerbate or mitigate the
effect of perceived compensation gap between locals and expatriates in hotel
industry?. International journal of hospitality management, 48, 83-91.

EMPLOYEE THEFT 11
O'Brien, K. E., Minjock, R. M., Colarelli, S. M., & Yang, C. (2018). Kinship ties and
employee theft perceptions in family-owned businesses. European Management
Journal, 36(3), 421-430.
Teng, C. C., Hsu, S. M., & Cheng, S. S. (2017). identifying critical ethical issues in the
hospitality workplace: the employee perspective. readings book, 932.
Teng, C. C., Hsu, S. M., Lai, H. S., & Chen, H. (2018). Exploring Ethical Incidents In The
Taiwanese Hotel Industry. International Journal of Hospitality & Tourism
Administration, 1-18.
Tuzun, I. K., & Kalemci, R. A. (2018). Workplace deviance and human resource
management relations: A case study of Turkish hotel employees. Journal of Human
Resources in Hospitality & Tourism, 17(2), 137-153.
Yadav, A. K. (2018). Emerging Opportunities In Planning & Review Of Inventory Control in
Hotel Industries. Multidisciplinary Higher Education, Research, Dynamics &
Concepts: Opportunities & Challenges For Sustainable Development (ISBN 978-93-
87662-12-4), 1(1), 126-138.
Zoghbi-Manrique-de-Lara, P., & Guerra-Báez, R. M. (2016). The way justice unleashes the
staff’s compassion toward hotel guests. International Journal of Organizational
Analysis, 24(3), 471-486.