Customer's Perspective on This Issue Thesis

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Another organizational behavior theory that can be positively applied to support the idea according to which as service charge on the bill is more appropriate than under the table tipping is the equity theory. The equity theory proposes a ratio according to which the individual's outcomes divided by the individual's own inputs is equal to the relational partner's outcomes divided by the relational partner's inputs. This type of organizational behavior theory tends to connect closer the members of a team in an organization, as well as the inputs and correlated outcomes. This is also valid for a restaurant.

In fact, such a theory would actually propose that the service charge that is placed on the bill will be shared among the participants in the process according to their contribution to the final outcome, which is the sum received from the client. Who is to make this decision? Something similar to a focus group is probably the recommendable way to deal with this. This would mean creating a team with representatives of every branch in a restaurant (kitchen, waiters etc.) that would decide how the service charge sum gathered at the end of each month will be divided based on the participations of each of the entities mentioned. The management will not necessarily have a decision making position, but could participate with advice and potentially intervening to regulate any disputes that may appear.

In my opinion, there is really no organizational behavior theory that does not support this potential recommendation and this assumption is based on the initial premise according to which the perception of the waiters is not that tipping motivates, but rather that tipping is deserved because of their very low wages.

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Following this perspective, it is reasonable to assume that this could be a feasible solution to the problem.

The most affected by such a solution would obviously be the waiters. Instead of seeing all the tip being put into their pocket, they are likely to perceive this as a way to share their profits. However, they will need to understand that the tips are not necessarily something strictly related to their own services, but that their services are actually part of a much larger process that includes other stakeholders, also entitled, just as they are, to part of the profits.

On the other hand, their wages will probably also need to rise a bit so as to correspond better to this new service charge sharing agreement. The bus-boys will certainly gain from this agreement, because usually their work is really not accounted for and not translated into a contribution from customers.

In my opinion, however, the biggest gainers are the customers. With this solution, they will now feel that all the money they leave in a restaurant is accounted for, taxable and recorded as a financial transaction. They will no longer feel as if someone is digging into their pocket, but will now understand that the service charge they pay is an official way of appreciating the entire team in the restaurant for their participation. In case the waiter service is not appropriate, this will not affect the activity that the people in the kitchen, for example, do and will allow the customer to complain separately about the service, if he feels that….....

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