EFFECTS OF GROUP RESPONSE‐COST PROCEDURES ON CASH SHORTAGES IN A SMALL BUSINESS

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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.