Organizational Behavior: Human Behavior at Work 14th Edition by John Newstrom

Exercise 11

Two Accounting Clerks
Rosemary Janis and Mary Lopez were the only two clerks handling payments from customers in the office of Atlantic Plumbing Supply Company. They reported to the owner of the business. Janis had been employed for 18 months and Lopez for 14 months. Both were community college graduates, about 23 years old, and unmarried.
By manipulating the accounts in a rather ingenious way that would not normally be detected, Janis was stealing from account payments as they were received. During her third month of employment, Lopez learned of Janis's thefts, but she decided not to tell management, rationalizing that Janis's personal conduct was none of her business. Lopez did not benefit from Janis's thefts, and the two women were not close friends. Their duties allowed them to work rather independently of each other, each handling a different alphabetical portion of the accounts.
By the time the owner learned of Janis's thefts through the recent installation of hidden surveillance cameras, she had stolen approximately $5,700. During investigation of the thefts the owner learned that Lopez had known about them for several months, because it was evident that the thefts could not have occurred for an extended period without Lopez's knowledge. At the time of employment, both women had been instructed by the owner that they would be handling money and that strict honesty would be required of them.
What disciplinary action, either preventive or corrective, do you recommend for each of the two women? Why?