Furthermore, misuse of company time impacts shareholders indirectly. When productivity declines as a result of lost time, organizational profitability is negatively impacted. This can subsequently lead to diminished dividends and a reduced value for shareholder stock. Weiss argues that misuse of company time is one of the more prevalent forms of workplace misconduct attributable to personal factors contributing to organizational integrity and workplace functions. Misuse of company time inevitably causes disruptions within the workforce and will likely  be reported at some time over the course of an employment relationship, which is further put at risk by employee performance issues stemming from former misconduct from other employees. For management, this type of misconduct can result in operational inefficiencies and increased labor costs. For example, if employees are getting paid to be present yet do not work to their full potential are paid hourly, these payroll expenditures cause the company to accrue inflated costs for labor not accounted for originally when allocating resources to sustain the company's budget. Further even management must contend with sometime potential employee distractiveness as this phenomenon of wasted time may cause well engaged employees to leave the organization, likely with even little motivation.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
Problem 17.6IP
Question

Furthermore, misuse of company time impacts shareholders indirectly. When productivity declines as a result of lost time, organizational profitability is negatively impacted. This can subsequently lead to diminished dividends and a reduced value for shareholder stock. Weiss argues that misuse of company time is one of the more prevalent forms of workplace misconduct attributable to personal factors contributing to organizational integrity and workplace functions. Misuse of company time inevitably causes disruptions within the workforce and will likely  be reported at some time over the course of an employment relationship, which is further put at risk by employee performance issues stemming from former misconduct from other employees. For management, this type of misconduct can result in operational inefficiencies and increased labor costs. For example, if employees are getting paid to be present yet do not work to their full potential are paid hourly, these payroll expenditures cause the company to accrue inflated costs for labor not accounted for originally when allocating resources to sustain the company's budget. Further even management must contend with sometime potential employee distractiveness as this phenomenon of wasted time may cause well engaged employees to leave the organization, likely with even little motivation. 

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