Please read Chapter 7, Exercise: Unethical Behavior from the textbook. (a) As a manager, what steps should Alex take to reduce employee theft? (b) Do these events give you any additional insights into how to decrease employee theft in this store? Please share two additional ideas (not redundant from the first answer). Please compare your answers before and after the following scenario 7.3.

EXERCISE: UNETHICAL BEHAVIOR The purpose of this exercise is to explore how authorities can prevent unethical behaviors on the part of their employees. This exercise uses roups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps: Read the following scenario: Alex Grant recently graduated from college and is excited to be starting his first job as a store manager for The Grocery Cart, a large supermarket chain. The company has a very good management training program, and it is one of the fastest-growing chains in the nation. If Alex does well managing his first store, there are a number of promising advancement opportunities in the company. After completing the store management training program, Alex met with Regina Hill, his area supervisor. She informed Alex that he would be taking charge of a medium-volume store ( $250,000 in sales/week) in an upper-class neighborhood. This store had been operating without a store manager for the past six months. The store had also not made a profit in any of the monthly financial reports for the last year. Page 235 Hill also shared the following information with Alex: Because the store has been without a store manager for the last six months, the assistant manager (Drew Smith) has been in charge. Drew is known for being highly competent and a solid performer. However, there have been complaints that he is frequently rude to employees and insults and ridicules them whenever they make mistakes. Turnover among sales clerks and cashiers at this store has been somewhat higher than in other stores in the area. The average pay of clerks and cashiers is $7.25/ hour. The last two semiannual inventories at this store showed significant losses. There has been a large amount of theft from the store stockroom (an area where only employees are allowed). Given that the store has generally done well in sales (compared with others in the area) and that most expenses seem well under control, Hill believes that the profitability problem for this store is primarily due to theft. Therefore, she suggested that Alex's plans for the store should focus on this priority over any others. As a manager, what steps should Alex take to reduce employee theft? Come up with a list of three ideas. Elect a group member to write the group's three ideas on the board or on a transparency. .3 Now read the following scenario: When Alex arrived for his first day of work in his new store, he saw that Drew was in the process of terminating an employee (Rudy Johnson) who had been caught stealing. Alex immediately went to the break room of the store where the termination interview was being conducted to learn more about the situation. Drew informed Alex that Rudy had been a grocery clerk for the past six weeks and that he had apparently figured out how to tell if the alarms to the stockroom doors were off. Rudy would then open the back stockroom doors and stack cases of beer outside the store to pick up after his shift. After Drew caught Rudy doing this, Drew had a conversation with one of his friends who works as a restaurant manager down the street. Drew's friend noted that he had hired Rudy a few months ago and that he'd been caught stealing there too. Turning to Rudy, Drew asked, "So, Rudy, what do you have to say for yourself?"* Rudy quickly replied: "Look here, [expletive], you dont pay me enough to work here and put up with this garbage. In fact, you're always riding everyone like they're your personal servant or something. So I was trying to get some beer. I've seen you let stockers take home damaged merchandise a dozen times. So just because they cut open a box of cookies, which we all know they do on purpose, they get to take stuff home for free. For that matter, we've all seen you do the same thing! I've never seen you make a big deal about this stuff before. Why can't I get a few cases of beer? What's the big deal?"* Do these events give you any additional insights into how to decrease employee theft in this store? If so, elect a group member to write an additional one or two reasons in your spot on the board or on your transparency