Analyzing Tipping Policy: Effects on Customer Satisfaction & Economy

This essay examines the controversial topic of tipping policies, particularly within the restaurant industry, and analyzes its impact on customer satisfaction and employee motivation. The essay explores arguments for and against tipping, referencing studies and opinions from various researchers. It discusses how tipping can incentivize employees, increase customer satisfaction by allowing them to reward good service, and help retain talented workers. However, it also acknowledges concerns about potential inequalities among staff, the creation of a partiality-based culture, and the risk of anger or violence if employees perceive unfairness in tip distribution. The essay concludes that while tipping can positively impact employee performance and customer perception, managers must actively manage the system and gather customer feedback to mitigate potential negative consequences and ensure a fair and satisfactory experience for both customers and staff. Desklib offers a variety of study tools and resources for similar assignments.

Running head: ENGLISH ASSIGNMENTS
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2ENGLISH ASSIGNMENT
Tipping is one of the practices that have grown largely in different corners of the world.
As per the opinion of (Ludlum, Marty and Jennifer Barger Johnson, 88), the tipping culture is
largely seen in the restaurants and the other service sectors where people usually go for some
kinds of hospitality services. As a result of the good and the hospitable behavior that the
customers receive at the hospitality sectors like the restaurants and other such places they often
pay some amount of money as tips. Therefore Gold, Alex, and Christiaan Hogendorn (85) opined
that tipping is one of the great motivations that helps in boosting up the moral strength of the
employees. This is because this tipping culture is very helpful as it helps in making providing a
financial appreciation to the customers and this in turn helps in shaping their zeal and their
confidence to contribute positively towards the work. However CÓRDOVA-ESPINOZA,
MIGUEL IGNACIO (140) has argued in the similar context saying that tipping might also lead
to a kind of inequality or a feeling of jealousy among the workers,. This is because the amount of
tip that is given by different guests or different customers to the employees working in the places
(Lynn, Michael, 750). Thus there can be a feeling of jealousy and they might just stop working
hard. Thus it can be said that that the policy of tipping helps in positively impacting the
hardworking nature of the employees.
Tipping policy is helpful in making the employees put forward more effort towards their
work. Ludlum, Marty and Jennifer Barger Johnson (88) has stated that in order to motivate the
employees it is the duty of the managers to motivate the employees. This motivation comes
through different ways like monetary benefits, some extra allowances and others. Tipping policy
in North America was meant mainly to motivate the efforts that are being put forward by the
employees for the purpose of improving their mindset and their zeal towards the work.

3ENGLISH ASSIGNMENT
Lynn, Michael (130) has stated that the policy of tipping is already much popular in many
different parts of America.
It is mainly done in order to help the workers or the employees know that they are being
able to satisfy the needs and demands of their customers. This is helpful for motivating and
increasing their energy and also the amount of money that is being earned by them. Tipping is
useful as it helps in putting forward a platform or a certain level of performance that all the
different employees must try to achieve. This will help in creating a culture of competitiveness
among the workers and they will know that in order to achieve a good amount of tip and also to
get good promotion they must be able to provide some extra added efforts just like their
counterparts or colleagues who are already getting good tips.
Tipping policy is helpful in increasing the customers satisfaction. Shih et al. 130 have
stated that an extensive research was carried on to find out the opinion of the customers.
However in this matter, It was seen that the majority of the customers were in favor of the
tipping system rare than the system of the inclusive service taxes in the food. This is evident of
the fact that the system of tipping will naturally be helpful for the customers to know that they
will be getting a good service and it will run out to be the value for money for them. However on
the other hand the system of tipping will also be very helpful for the hotel management as well.
They will be able to increase their customer loyalty and also their good will as they will be able
to get a raised flow of visitors or tourist in their outlets. Lynn, Michael, 120 have stated that if
the restaurant is changing the tip within the price of food that is in the form of the service
charges then the customers think that the hotel or he restaurant authority is charging more money
from them than what is actually needed. However if the customers themselves are making the
payment for the tipping as per their choice then they are satisfied. For an example the customer

4ENGLISH ASSIGNMENT
reviews of the Carnival. Cruise shows that then customers were much satisfied when they had to
pay the tips to the customers as per their choice rather than the no tipping policy or a policy of
including the service charges within the overall price of the cruse.
Tipping is a pay for performance system that helps the customers in retaining more
talented and dedicated workers. Ripping policy is helpful in motivating the employees and
retaining them in the same organization for a long time. In other words, the restaurants have to
make sure that they are being able to diversify themselves in order to stay in competition.
However they will have to also ensure that the employees must be retained in the organization
and one best ways of retaining the employees is monetary benefit. Therefore it must be noted
that tipping will help the restaurant to selectively attract the employees who are more educated
towards their worm. This will be helpful for increasing the overall welfare and success of the
organization. This is also directly related towards the enhancing of customer loyalty. Customers
will be assured of the fact that as they are able to pay tip as per their own choice they are not
being cheated in any way and will automatically increase their level of purchases
In the modern scenario there are many scholars and researchers putting their arguments
against the tipping policy. They are of the opinion that tipping policy is often based on favorites
and it creates a culture of partiality. There is always a kind of discrimination between the staffs.
For an instance the staffs of the front office often get more tips than the ones who are the kitchen.
Apart from this the waiters or waitresses who look more attractive often get more amounts of
tips. Therefore it can be said that there is always a fear and also anger among the staffs or the
employees regarding the amount of tip that they will be receive from the customers they serve.
Thus there are many researchers and scholars who have voted for abolition of the tipping system
as they believe that this will be helpful in bringing about a very free and justified culture.

5ENGLISH ASSIGNMENT
Thus it can be concluded that there is a debate that continues on the topic of tipping
policy. Tipping policy is surely essential as it helps in making the customers satisfied as they feel
that they will be getting the right kind of services from the staffs and they will also not have to
bear any extra added service charges. On the other hand there are chances that the employees
might get angry on one another or start getting violent if they see that their colleagues are getting
better tip and better appreciation from others. Thus it is essential for the managers to conduct
regular feedback session with customers and try to know about the opinions that they have.

6ENGLISH ASSIGNMENT
References
CÓRDOVA-ESPINOZA, MIGUEL IGNACIO. "The Evolution of Interlocking Directorates
Studies-A Global Trend Perspective." AD-minister 33 (2018): 135-164.
Gold, Alex, and Christiaan Hogendorn. "Tipping in two-sided markets with asymmetric
platforms." Economic Analysis and Policy 50 (2016): 85-90.
Ludlum, Marty, and Jennifer Barger Johnson. "Forget Video Poker: Sell Marijuana on Tribal
Lands." Southern Law Journal28.1 (2018): 85-116.
Lynn, Michael. "Should US restaurants abandon tipping? A review of the issues and
evidence." Psychosociological issues in human resource management 5.1 (2017): 120-
159.
Shih, I-hsuan, Tun-Min Catherine Jai, and Shane C. Blum. "Tipping: The case of hotel turndown
service." International Journal of Hospitality Management 55 (2016): 129-131.
Vonderlack-Navarro, Rebecca, and William Sites. "The bi-national road to immigrant rights
mobilization: states, social movements and Chicago's Mexican hometown
associations." Ethnic and Racial Studies 38.1 (2015): 141-157.
Lynn, Michael. "The Effects of Tipping on Consumers' Satisfaction with Restaurants." Journal
of Consumer Affairs52.3 (2018): 746-755.