http://bits.blogs.nytimes.com/2013/08/26/how-surveillance-changes-behavior-a-restaurant-workers-case-study/?ref=technology

[snip]

Most of the public discussion of surveillance technology and its use
revolves around the question: Is it spooky or reassuring?

But another issue is the effect of surveillance on behavior. And a new
research paper, published on Saturday, shows in detail how significant
the surveillance effect can be.

The paper, “Cleaning House: The Impact of Information Technology
Monitoring on Employee Theft and Productivity,” is the work of three
academics: Lamar Pierce, an associate professor at the Olin Business
School at Washington University in St. Louis; Daniel Snow, an
associate professor at the Marriott School at Brigham Young
University; and Andrew McAfee, a research scientist at the Sloan
School of Management at the Massachusetts Institute of Technology.

The researchers measured the impact of software that monitors
employee-level theft and sales transactions, before and after the
technology was installed, at 392 restaurants in 39 states. The
restaurants were in five “casual dining” chains. The paper does not
name the five, but it cites examples of the casual dining category
including Applebee’s, Chili’s and Olive Garden.

Employee theft and fraud is a big problem, estimated at up to $200
billion a year across the economy. In the restaurant industry,
analysts estimate the losses from employee theft at 1 percent of
revenue. That does not seem like a lot, but restaurant profit margins
are slender, typically 2 to 5 percent. So cutting down on theft can be
an important contributor to a restaurant’s financial health.

Most of the restaurant industry pays its servers low wages and they
depend on tips. Employee turnover is high. In that environment, a
certain amount of theft has long been regarded as a normal part of the
business.

Unethical behavior runs the gamut. There is even a how-to book on the
subject, published in 2004, “How To Burn Down the House: The Infamous
Waiter and Bartender’s Scam Bible by Two Bourbon Street Waiters.” A
simple example is a bartender’s not charging for a round of drinks,
and urging the customers to “take care of me” — with a large tip.
Other tactics are more elaborate.

But monitoring software is now available to track all transactions and
detect suspicious patterns. In the new study, the tracking software
was NCR’s Restaurant Guard product, and NCR provided the data. The
software is intentionally set so that a restaurant manager gets only
an electronic theft alert in cases that seem to clearly be misconduct.
Otherwise, a manager might be mired in time-consuming detective work
instead of running the restaurant.

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