Employee Preferences for Tipping Systems

Abstract

In this paper, a human resource management perspective was adopted to compare and evaluate four different tip systems. Data were collected by means of a between-subjects experiment; two hundred and six individuals were randomly assigned to each of four groups. Participants were first required to read written scenario and then their perceptions of fairness, distributive justice, and perceptions of control were measured. The results indicate significant group differences. Participants rated a modified tipping system tied to sales as the most just, fair, and providing the most autonomy. Implications of the results of this study for theory and practice are discussed.

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