Effects of group response-cost procedures on cash shortages in a small business

Abstract

The effect of a group response-cost procedure (accompanied by verbal and written instruction) designed to decrease cash shortages in a small business was evaluated with a reversal design. When cash shortages were subtracted from the six employees' salaries on days in which the shortage exceeded 1% of total daily sales, the magnitude of daily shortages sharply decreased. This response-cost contingency was used only three times throughout the study, with a maximum cost of $8.70 per subject over the 41-day period. The efficacy of the procedures may be due to either increased precision in change calculations, a decreased frequency of stealing from the cash register, increased shortchanging of customers, and/or increased incidents of register under-ringing. Ethical questions relative to the utilization of group punishment procedures are raised, and it was concluded that the procedures used were more humane than commonly used alternatives.