A Performance Management View On Tipping

Recently I read an article about tipping and it triggered me to elaborate on the subject, because it offers many possibilities.

In this view the idea of tipping is compared with performance management. The client is the one who evaluates the performance. And as tipping is often used in restaurants and bars, the client is the customer who is receiving the service.

When comparing the tip as an incentive for the performance the first question to answer by the one who is offering the service, or who is evaluating the service is: how do you do your job?

One. On average. This means that in a normal distribution - nearly 70 percent of the cases the client receives an average attention. This is nothing more than the average (attention) of all people who serve in restaurants. Should the receiver of the service tip in this case?

Two. Below average. Same setting, but the attention is below every expectation. In this case the client should not receive a tip, but issue a complaint. It will probably do neither, but the guest in question will probably not return.

Three. Your service if above expectations. Should you receive a tip? Yes, but remember that this view on tipping is highly dependent on culture. In performance-cultures you should receive a tip, otherwise you wont have to.

This view on tipping is probably not extensive enough, but it serves as a good starting point.

Another interesting view would be the parallel of give-and-take tips in the area of article marketing. If you apply the same performance rules to the article writer, the average article will receive no tip (no rating). And an above-or-below-article-content will. But here too, the cultural element is decisive. Supporters of a performance culture should -- if they value performance issue a rating. Others will probably not (bother).

2007 Hans Bool

Hans Bool is the founder of Astor White a traditional management consulting company that offers online management tools. Have a look at some of our free management tools

Sales Performance Management
Sales organizations spend a lot of money on systems, processes, and people designed to improve individual salesperson performance and increase sales results. Yet, most sales organizations remain unable to effectively manage performance, let alone dri...

Sales Performance Management
Sales management is an integral sub-system of marketing management. It translates the marketing plan into marketing performance. Sales management is hence described as the muscle behind marketing management. The sales manager in a modern organization...

The Measurement of Sales Performance
The measurement of sales performance is an essential part of any business. The success of a company depends on its revenue, which depends on sales. To stay in business, you have to make enough sales that you generate more income than expenses. Sales ...

Six Steps To Sales Performance Management
In todays day and age a lot of senior managers and sales managers struggle with maintaining their top line growth performance because they neglect their fundamental duties when it comes to managing the performance of their sales team.If you want to t...

Rotten to the Core: The Story of How the Best and Brightest can be Ruined
The objective of an incentive is to incite action within an organization using a device or mechanism that that allows the rewarding or recognition of behaviors. This can be accomplished by offering preferential treatment, money, privileges, promotio...

Training: The Common Denominator For Success
A few months back Fortune magazine published their 2007 100 Best Companies To Work For" report. I enjoy analyzing reports like this to find commonalities that link successful organizations.The products and services that these winning organizations of...

Debt Management Services vs. Debt Consolidation Loans
Figuring out the difference between a debt management service and a debt consolidation loan can be a little tricky. While both are designed to lower your payments and get you out of debt, each goes about this task in a different way. It is important...

Web-Based Learning Management Systems Deployed in Customer Support Settings
In many respects, e-learning has matured as a technology and industry. Today we will look at how web-based learning management systems can and are being used as part of the customer support function in a company or organization.What is a learning ma...

The Effective Executive
What does it mean to be an "effective executive"? Well very simply it means achieving the goals you set out to achieve in an efficient, creative and effortless manner. Some of the benefits that ensue from this self efficacy are: feelings of self conf...

The Traits of Great Sales Leaders
The key to sales performance is the quality of an organizations salespeople. That includes, and starts with, having a great sales leader. But, what makes a great sales leader? There isnt a single extraordinary defining characteristic. But, there ...