To tip or not to tip, that is the question: rewarding customer service encounters

Alan J. Richardson, Eksa Kilfoyle

Research output: Contribution to journalArticleOtherpeer-review


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.

Original languageEnglish
Pages (from-to)301-308
Number of pages8
JournalAccounting Perspectives
Issue number4
Publication statusPublished - Dec 2014
Externally publishedYes


  • Compensation systems
  • Management control
  • Restaurants
  • Tipping

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