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To Tip or Not to Tip, That Is the Question: Rewarding Customer Service Encounters

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  • Alan J. Richardson
  • Eksa Kilfoyle

Abstract

This instructional case deals with compensation schemes in service industries, specifically with managerial intervention in tipping schemes in a restaurant. The case provides an opportunity to explore the interaction of direct client feedback and management control systems in controlling service encounters and to develop an understanding of management control systems in a team production environment. While the case focuses on compensation issues and requires some quantitative analysis, it also provides an opportunity to introduce the concept of “management controls as a package” and an assessment of the linkage between organizational strategy and the overall package of management controls. Case guidance is provided for alternative approaches to using the case. Résumé L'étude de cas proposée par les auteurs porte sur les régimes de rémunération dans le secteur des services, plus précisément sur l'intervention de la direction dans la gestion des pourboires dans le milieu de la restauration. L'exercice suggéré permet d'explorer l'interaction de la rétroaction directe du client et des systèmes de contrôle de gestion dans l'encadrement des expériences de service et de mieux comprendre les systèmes de contrôle de gestion dans l'environnement de production d'une équipe. Bien que l'étude de cas soit axée sur les enjeux liés à la rémunération et qu'elle exige une certaine analyse quantitative, elle offre également l'occasion d'introduire la notion de « panoplie des contrôles de gestion » et la possibilité d'évaluer le lien entre la stratégie de l'organisation et la panoplie des contrôles de gestion dans leur ensemble. Les auteurs orientent également le lecteur relativement à d'autres applications de l'étude de cas.

Suggested Citation

  • Alan J. Richardson & Eksa Kilfoyle, 2014. "To Tip or Not to Tip, That Is the Question: Rewarding Customer Service Encounters," Accounting Perspectives, John Wiley & Sons, vol. 13(4), pages 301-308, December.
    • Handle: RePEc:wly:accper:v:13:y:2014:i:4:p:301-308
    DOI: 10.1111/1911-3838.12037
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    References listed on IDEAS

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    1. Thomas Ahrens & Christopher S. Chapman, 2004. "Accounting for Flexibility and Efficiency: A Field Study of Management Control Systems in a Restaurant Chain," Contemporary Accounting Research, John Wiley & Sons, vol. 21(2), pages 271-301, June.
    2. Ahrens, Thomas & Chapman, Christopher S., 2007. "Management accounting as practice," Accounting, Organizations and Society, Elsevier, vol. 32(1-2), pages 1-27.
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