According to Hollinger and Clark for Policy development, management must pay attention to:

The Hollinger and Clark study, a foundational piece of research in employee deviance, concluded that management policies must address both the causes of theft and the deterrents. The study found that employee theft is often linked to job dissatisfaction, meaning management needs a clear understanding of theft behavior to address its root causes. It also determined that the perception of detection is the most effective deterrent. Therefore, the consistent enforcement of sanctions is critical to creating a credible threat and reducing misconduct. Effective policy development requires both elements.

A. A clear understanding regarding theft behavior: This is only partially correct. While understanding the drivers of theft is crucial, it is insufficient without credible deterrents like enforced sanctions.
B. Enforcement of sanctions: This is also only partially correct. While enforcement is a key deterrent, policies are less effective if they don't also address the underlying causes of misconduct.
D. Neither A nor B: This is incorrect as both A and B are essential components of effective policy development according to the study's findings.

1. ACFE. (2023). Fraud Examiners Manual, International Edition. Section 1, "Criminology & Ethics," Subsection "Research in Occupational Fraud and Abuse." The manual discusses the Hollinger-Clark study, noting its conclusions on the importance of both understanding employee dissatisfaction (the behavior) and increasing the perception of detection (enforced sanctions) as primary control mechanisms.

2. Hollinger, R. C., & Clark, J. P. (1983). Theft by employees. Lexington Books. In the concluding chapters on policy implications (specifically Chapters 6 and 7), the authors advocate for a dual approach. They recommend that management address issues of job satisfaction to reduce the motivation for theft while simultaneously implementing controls that increase the perceived certainty of sanctions.

3. Wells, J. T. (2017). Corporate Fraud Handbook: Prevention and Detection (5th ed.). John Wiley & Sons. Chapter 3, "Why People Commit Fraud," summarizes the Hollinger-Clark study, emphasizing that "the best way to deter employee theft and other counterproductive behavior was to increase the perception of detection" and that policies must be publicized and enforced. It also discusses the study's findings on employee dissatisfaction as a driver of theft.