Cleaning House: The Impact of Information Technology Monitoring on Employee Theft and Productivity
نویسندگان
چکیده
In this paper, we study how firm investments in technology-based employee monitoring impact both misconduct and productivity. We use unique and detailed theft and sales data from 392 restaurant locations from five different chains that adopt a theft monitoring information technology (IT) product. Since the specific timing of individual locations’ technology adoption is plausibly exogenous, we can use difference-in-differences models to estimate the treatment effect of IT monitoring on theft and productivity within each location for all employees. We find significant treatment effects in reduced theft and improved productivity that appear to be driven by changing the behavior of individual workers rather than selection effects. These findings suggest multitasking by employees under a pay-for-performance system, as they increase effort toward sales following monitoring implementation in order to compensate for lost theft income. In addition to substantial financial benefits to the firms in our sample, the average worker enjoys increased tip-based earnings of $0.58 per hour. Our results suggest that employee misconduct is primarily a result of managerial policies rather than individual differences in ethics or morality, and that policies that reduce misconduct can benefit both firms and employees.
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ورودعنوان ژورنال:
- Management Science
دوره 61 شماره
صفحات -
تاریخ انتشار 2015