Average Tip Size in Relation To Level of Employee Motivation

St.
Scholasticas College
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Average Tip Size in Relation to Level of Employee Motivation
A Thesis Presented to the Faculty of the Institute of Hotel, Leisure, and Restaurant Management (I-HOTELEIRES) St. Scholasticas College, Manila, Philippines
In Partial Fulfillment of the Requirements for the Degree in Bachelor of Science in Hotel and Restaurant Management
Grich B. De Vera October 2012
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St. Scholasticas College

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CERTIFICATE OF APPROVAL
This thesis entitled Average Tip Size in Relation to Level of Employee Motivation, prepared and submitted by Grich B. De Vera, is hereby accepted in partial fulfillment of the requirements for the degree in Bachelor of Science in Hotel and Restaurant Management by the panel of examiners with a grade of Passed in October 2012.
______________________________ Rufino C. Oliva, MBA Panel Chair
Yummy F. Mangondaya, BST Panel Member
Maria Cristina D. Dizon, MSHRM Panel Member
Accepted in partial fulfillment of the requirements for the degree in Bachelor of Science in Hotel and Restaurant Management.
______________________________ Victoria N. Naagas, MBA, MSTS Director, I-HOTELEIRES
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ABSTRACT The main purpose of this research is to determine if there is a significant relationship between restaurant employees average tip size per day and their level of motivation on the job. The following sub-objectives of this study are: to find out what is the demographic profile of these restaurant employees and what is their average tip size per day; to measure their levels of motivation when they are grouped according to demographic profile and according to their average tip size per day; to detect significant differences in their level of motivation when they are grouped according to demographic profile and according to their average tip size per day; then, finally, to ascertain whether average tip size is significantly correlated to their level of motivation. The data used in this study was collected from one full-service casual dining restaurant located in Quezon City, which practices a pooled tipping distribution system. All 58 of their non-management, regular, and full-time tipped employees were included as respondents to the one-shot survey questionnaire administered to them in mid-2012. With the use of ANOVA, it was determined that there was a significant difference in the level of motivation when the respondents were grouped according to the number of years they had worked in the restaurant industry. The results showed that those who had been employed in the restaurant business for more than five years were highly motivated to outperform their co-workers to receive more tips. On the other hand, those who had been restaurant workers for less than five years were neither motivated nor demotivated to do so.
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The T-Test revealed that a significant difference in the level of motivation occurred when respondents were grouped according to their average tip size per day. Respondents, who were low tip earners, were highly motivated by management's recognition of their efforts to earn tips. Meanwhile, respondents, who were identified as high tip earners, were only moderately motivated by this factor. The results of the Point-Biserial Correlation showed that there was no significant relationship between the respondents average tip size per day and their levels of motivation. Their top motivators were found to be challenging duties and enjoyable tasks at work, fair distribution and honest administration of tips, a sense of belongingness in the organization, good wages, and opportunities for promotion none of which pertained to the size of their tips. Among all the identified job factors besides tip, management support towards personal issues outside of work (e.g.: death or illness in the family, domestic problems, etc.) was rated as the lowest motivational factor by all respondents of the study. On the basis of the findings revealed and the conclusions made in this study, the researcher recommends that the management of the respondent restaurant maintain its current tip practices, policies, and procedures and that they possibly evaluate their levels of support towards their employees personal issues outside of work. For future study and research, it is recommended that a larger sample size be included in a similar study to get a broader perspective of the entire organizations average tip size per day in relation to the level of employee motivation.
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ACKNOWLEDGEMENT The researcher expresses her sincere appreciation and utmost gratitude to the people who have willingly and generously extended to her their all-out support towards the completion of this study. To her loving husband, Angelo, who has selflessly given her all the support and the opportunity she needed to complete her bachelors degree amidst the challenges of their everyday family life. To her daughter, Gillian, who has been her strongest driving force and inspiration in pushing herself harder and farther towards the direction and the attainment of her greatest dreams. To her loyal househelp, Michelle, who tirelessly and without complaint took over a lot of her home management and parental responsibilities during the most trying times of this research. To her sisters cum best friends, Chalk and Reb, and her mom, Gay, all of whom kept cheering her on every step of the way. To her Tita Lynn and Tito Boying, who, without having to be asked, exerted their very best efforts to help the researcher overcome every single challenge this study presented to her. To her uncles, Al and Kevin, whose contributions from start to finish proved invaluable to this research and with whose assistance she was able to juggle and balance her work, her studies, this paper, and her life at home.
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To her thesis adviser, Amy Tuble, Ph.D., who firmly stood by her promise to the researcher when she said, I will never give up on you so do not give up on yourself. The researcher is forever in her debt. To her fellow student researcher and classmate, Crystal Lo, who so generously shared with the researcher her technical know-how, her references, and her entire undergraduate thesis with the genuine intention to be of help. To Tita Virgie of the I-HOTELEIRES Deans Office and to Tita Leony of the Registrars Office, who, semester after semester, kept showing their support to the researcher with their kind words of encouragement and inspiration. To her statistician, Edna Abulon, Ph.D. of the Center for Research and Statistical Service at the Philippine Normal University, who always displayed a keen sense of urgency towards the data processing for this research. To the management team of the participating restaurant and their respondent employees, who so willingly shared their time and their thoughts for the successful completion of this paper. Most of all, to the Lord Almighty for all the blessings that He has showered upon her each and every single day, for the guidance and strength He provided her with during the most difficult phases of this study, and for His unconditional love and presence in her life during this research and beyond.
The researcher can never THANK YOU enough.
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TABLE OF CONTENTS
Introduction Significance of the Study Review of Related Literature Review of Related Studies Conceptual Framework Operational Definition of Terms Statement of the Problem Hypotheses Method Research Design Research Instrument Respondents of the Study Data Collection Statistical Treatment of Data Summary Method Results and Discussion Summary and Conclusion Recommendations References Appendices Negotiation Letter Research Instrument
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INTRODUCTION Tipping is a multi-billion dollar phenomenon, which has flourished in so many countries around the globe (Azar, 2007; Conlin, et. al., 2003). In the United States alone, it is estimated that restaurant diners dole out about $42B a year in tips at full-service restaurants (McConnell, 2009) so annual tips worldwide must be at a much higher figure (Azar, 2007). Roughly 2.6 million waiters and waitresses in full-service restaurants all over the United States are largely dependent on their tips (Azar, 2007; McConnell, 2009; Roberts, 2010). A huge majority of them do not even make much more than the minimum wage (Mariani, 2008). In some cases, tips make up 100% of their net or take home pay because taxes eat up a huge bulk of their income (Lynn, 2006). It is this particular scenario that jobs in the restaurant service industry are notoriously labeled as lowly paid (Curtis, et. al., 2009; Enz, 2001; Roberts, 2010). This factor, the high stress, long working hours, and the seasonality of restaurant service jobs all work against employee motivation (Curtis, et. al., 2009; Enz, 2001). The characteristics of tips make it unique compared to other forms of compensation and bring with it important advantages and disadvantages that can have a variety of effects on individual and organizational performance (Lynn, et. al., 2011). Numerous managers depend on tips as incentive to motivate employees to deliver excellent service (Lynn, 2001) because tips provide immediate compensation for their employees hard work (McConnell, 2009).
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Human resource issues are very high on the restaurant industrys priority list (Enz, 2011). At the top of almost every problem is the use of human capital how to care for employees and address the most frequently identified areas of concern, which are attracting, motivating, developing, and retaining the industrys workforce of today and tomorrow (Curtis, et. al., 2009; Enz, 2001). Employee motivation is highly important to the future success of restaurant organizations because, if properly identified and addressed correctly, managers can steer clear of the high costs associated with turnover. Also, because there is stiff competition with other industries to attract and retain employees to meet the increasing demands of customers, restaurant managers stand to gain from a better understanding of employee motivation (Curtis, et. al., 2009). Again, while tips may be considered as a supplementary source of income for employees in the restaurant service industry (Azar, 2007; McConnell, 2009; Roberts, 2010), it is crucial to note that tips make up a huge percentage of that same net income (Lynn, 2006). Having said this, one cannot simply ignore the fact that the behavior of these employees more specifically, their levels of motivation on the job is affected by the promise of this type of monetary reward (Guerrier, 1999).
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SIGNIFICANCE OF THE STUDY This study aims to determine if there is a significant difference in the levels of motivation when tipped restaurant employees are grouped according to their demographic profile and their average tip size per day. It also attempts to find out if there is a relationship between these same workers average tip size per day and their level of motivation. Pointing out these significant differences and determining the relationship between average tip size and the level of employee motivation may provide hoteliers, restaurateurs, and human resource management teams with new knowledge in designing, developing, and implementing tip-related programs, policies, systems, and training in their own establishments. Thus, promoting and further strengthening employee motivation. The results of this study may provide fresh information to the management team of the participating establishment. It may give them a clearer picture of how average tip size could affect the differences in their employees levels of motivation. It may also provide them with insight on which identified job factors are the strongest driving forces boosting their employees motivational levels and which ones are crucial areas for improvement. The findings of this study may be used as a reference tool by government institutions and private associations in developing and lobbying for guidelines and policies on tips in the restaurant service industry that would help improve employee
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morale and motivation, plus, and most importantly, increase employee income and improve their economic welfare. This study also attempts to be of major significance to the academe and to students in the fields of hospitality, tourism, and human resource management by providing them with new information on restaurant tips and employee motivation that may be used for future study, teaching, and research. Above all, this study is of personal importance to the researcher, who will be seeking employment in hotels, resorts, and restaurants after her graduation. The results of this study will be used as one of the factors to be considered when she chooses between applying for and accepting tipped versus non-tipped positions in the hospitality service industry.
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REVIEW OF RELATED LITERATURE TIP / GRATUITY Definition of Tip / Gratuity A tip or gratuity is defined as a gift or a sum of money given for a service performed or anticipated and something given voluntarily or beyond ones obligation usually for a service performed (Lynn, 2006; McConnell, 2009; Roberts, 2010). It is also defined as a voluntary payment made to certain service sectors on top of the advertised price of the transaction, which is settled after the service has been provided (Azar, 2004). Tip also refers to giving a gratuity to a servant or employee (Lobb, 2001), that it is a private transaction between a customer and a service provider (Lynn, 2006) and, as in most cases, given to strangers (Azar, 2007). A tip is also described as an economic payment that happens in the context of a commercial exchange (Lynn, 2001). It is said that tip is an acronym for the phrases To Insure Promptness, To Insure Promptitude, and To Insure Proper Service (Azar, 2004; Lobb, 2001; McConnell, 2009; Strianese, et. al., 2003; Thomas, 2006). Others suggest that tip may have come from the word stipend, a corrupted version of the Latin word stips, or perhaps from the Dutch word tippen, which translates to tap and pertains to the tapping sound of a coin placed on a table or struck against glassware to call the servers attention. It may also have been taken from the phrase tipper me your money from the language of the gypsies, Romany, which translates to give me your money, or from the 18th century English phrase tip me, which means give me. Similarly, The Oxford Dictionary of
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English Etymology refers to tip as having come from a rogues cant or medieval street talk meaning hand it over or give me money. However, some argue that tip is associated with drinking because tipping started out during drinking sessions and, therefore, they propose that tip is an abbreviation for the English word tipple, which means to drink (Azar, 2004; Lobb, 2001). History of Tipping Tipping in the Early Ages There are numerous claims about the origins of tipping. In research papers done by Azar (2004, 2007), there are assertions that tipping started way back in the Roman era, perhaps even earlier. It could also have begun during the time of feudal lords who were said to have flung coins over to beggars they came across during their travels in order to buy them a safe passage (Azar, 2004). Tipping might have also started towards the end of the Middle Ages when a master or lord of the manor would hand his servant some coins to show appreciation for an act of good service or as a charitable gesture in cases where the servant is experiencing severe poverty or difficulties resulting from having to raise a huge family, sickness, death of a relative, or the like (Azar, 2004). Tipping in Englands Private Homes In the 16th century, it was expected of guests in private homes in England to give amounts of money called vails at the end of their stay to the hosts servants for extra service they received during their visit extra service that was beyond the servants
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normal duties (Azar, 2004; McConnell, 2009). Later on, they became expected of all guests that visited and spent the night in anothers home. By the mid-1700s, valets, footmen, and all servants expected to receive vails, which made visiting with friends a costly and irritating experience (Azar, 2004). In some instances, tipping ungenerously had severe and humiliating consequences perpetrated by the servants against their masters guests. Because of this mistreatment and the expectation of vails even when there was no exceptional or additional service provided, people eventually detested the practice and several attempts made by the gentry and nobility at that time were made to get rid of it (Azar, 2004). Tipping in Commercial Establishments Tipping in commercial establishments is said to have started in 16th century England at a time when the local upper class would meet up for discussions and an exchange of ideas at coffee shops, which were called penny universities at that time. They would drop a coin in a brass bound box situated by the entrance door to insure promptitude of service. Two hundred years forward, servers at coffee houses in London were given coins along with notes that said, To Insure Promptitude. One other version of tipping in Englands commercial establishments during the 18th century involved customers placing a coin every so often during their stay in a bowl labeled To Insure Promptitude (Azar, 2004, 2007; McConnell, 2009). Since tips were given before the service was provided, one can assume that servers were motivated to deliver better quality of service. Customers gave tips in person
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and in advance with this expectation an expectation that was most probably met with little or no disappointment (Azar, 2004). Around 1795, tipping became a frequent practice in hotels as well. Azar (2004) quotes a remark made by a journalist in a 1936 Cornhill Magazine about tipping during the 1700s: If a man puts up at an inn, besides his usual bill, he must give at least one shilling to the waiter, sixpence each to the chambermaid, the ostler, and the jackboot, making together half a crown. If the traveler only puts up to have refreshment, besides paying for his horses standing, he has to give away in the day another half-crown, which makes five shillings in the day to the servants. The practice of tipping swiftly extended outside the borders of England and into the cultures of many countries all over Europe, particularly in areas that had a servant class. In the United States, however, it is assumed that since the country did not have a servant class, tipping was not practiced until after the Civil War. It was around this period when wealthy Americans, who journeyed in Europe and were expected to tip there, had introduced the custom of tipping in the United States to let others know that they had been overseas and were learned about the ways of Europe (Azar, 2004; McConnell, 2009). Some of those American travelers were also restaurant owners in the United States. During their trips to Europe, they hired European dining and kitchen staff there and brought them over to America with all trip expenses covered. They offered wages for the cooks, but service staffs were to work only for tips so they could reduce their labor costs. When these restaurant owners returned to the United States along with their new
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employees, they introduced the practice of tipping by claiming that it was a wellingrained custom in Europe (Strianese, et. al., 2003). Tipping in the Late 19th Century and Early 20th Century By the late 1890s, tipping was institutionalized in the United States involving many employees and huge sums of money (Azar, 2004, 2007). While the usual tip in restaurants throughout Europe was 5% of the total bill, 10% was the norm in the United States despite the fact that American waiters were compensated well in terms of wages (Azar, 2004). From these figures, one can infer that restaurant servers then generated a substantial income from tips and, when this income coupled with their regular wage exceeded the government-mandated minimum wage, restaurant owners were given the opportunity to benefit from this income to boost their own revenues. Some did this by pocketing portions of the tips for themselves. In cases where minimum wages were nonexistent, they reduced the waiters wages to such low amounts, even negative amounts that they charged waiters for the opportunity to work at their establishments and earn tips. This occurred in the United States with the practice more popularly applied in fancy upscale restaurants. Because tips were computed as a percentage of the total bill, the higher the cost of the items on the menu, the higher the earnings in tips. In France, some popular eating establishments even had their garcons (waiters) pay for their jobs in the amount of 1 to 4 shillings daily so they could make 35 shillings
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weekly. In both France and Berlin, garcons, who had already paid for their jobs, also had to give the restaurant owner the tips they received above a specified amount (Azar, 2004). Why People Tip Tipping is very closely associated with psychology because the explanations on why people tip are mainly psychological. In fact, majority of empirical studies on the practice of tipping were done by psychologists (Azar, 2007). The act of giving a tip is an intriguing economic human behavior, not just because it is practiced in most countries around the world, but also because it involves a cost that is optional to consumers, which they may choose to avoid (Lynn, 2006). It is also not a legal obligation and the size of a tip is always at the customers discretion (Azar, 2007; Lynn, 2006; Strianese, et. al., 2003). However, stiffing (not tipping) or tipping below the customary amounts is frowned upon by many and considered a serious social blunder (Azar, 2004, 2007). Until the 16th century, the usual reasons for tipping were for showing appreciation of services performed beyond the servants normal duties and for charitable causes towards alleviating a servants personal hardships. By tipping in advance at coffee houses during the 16th century, customers tipped to insure promptitude of service throughout their entire stay (Azar, 2004). Today, the individual motives for tipping are varied. People tip to boost servers earnings (Azar, 2007; Guerrier, 1999; Lynn, 2001, 2006), to buy future service from servers they will interact with again, to feel positive emotions such as pride and/or to avoid negative emotions such as guilt, to receive social approval and/or to avoid social
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disapproval, to build an honest character, and to support the practice of tipping (Lynn, 2006). Of all these individual motives, the most prolific is the motive of adhering to social norms and tradition (Azar, 2007; Conlin, et. al., 2003; Lynn, 2001, 2006; Mariani, 2008; McConnell, 2009) wherein the violation thereof may make one feel a mix of negative emotions such as humiliation, uneasiness, agitation, guilt, or shame. Generally, people are uncomfortable having others dislike them even if the chances they will interact with the same person or group of persons is very slim or none at all this applies to people they are dining with and to the server waiting on them. Thus, their propensity to tip is greatly influenced by a tipping norm. Also, since people often deliberate at the end of a meal how much their waiter deserves to be tipped, there is also an underlying social norm related to the concerns for fairness acknowledging that the waiter is deserving of a reward for his efforts (Azar, 2007; Conlin, et. al., 2003; McConnell, 2009). There is also evidence that customers who frequent an establishment always leave tips and much larger at that than those who do not. With repeated visits to a restaurant, a guest is most likely able to interact with a particular waiter. The more interaction a guest has with this specific waiter, the more he identifies with the waiter and values the waiters social approval and esteem. Thus, the guest is more likely to leave a tip and a much larger tip at that compared to other guests who do not frequent the establishment (Azar, 2007; Conlin, et. al., 2003; Lobb, 2001; Lynn, 2006).
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Tipping and the Improvement in the Quality of Service Tipping is an efficient means of rewarding employees who perform highly personalized service (Enz, et. al., 1995; Lobb, 2001; Lynn, 2006). While the quality of service plays a crucial role in a guests overall dining experience, good restaurant service involves efficiency, which, in turn, requires a waiter to exert some effort. Since this is the case, then the waiter must receive some sort of incentive coupled with monitoring to exert the optimum level of effort required. Because the guest has more opportunity to observe and rate the quality of service received from the waiter compared to the restaurant operator or manager (Azar, 2007; Conlin, et. al., 2003; Lobb, 2001, Lynn, 2006; Lynn, et. al., 2011), void of transaction expenses, in essence, this incentive could be given through a service agreement or contract between the guest and the waiter. However, because such an agreement or service contract during a guests every visit would entail prohibitive transaction costs, the practice of restaurant tipping may be used in its place. Thus, in such an arrangement, the tip should increase with the quality of service (Azar, 2007; Conlin, et. al., 2003; Lynn, 2006) so many restaurant operators leave the task of monitoring and rewarding in the hands of their customers through the system of tipping (Lynn, 2006; Lynn, et. al., 2011). Many employers agree that this practice is indeed the most efficient motivator in urging employees to deliver the best service (Lynn, 2001; Lynn, et. al., 2011; Wood, 1997), that it reduces the cost of employee monitoring, and increases the quality of service (Azar, 2007).
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In most cases, servers understand that the size of their tips is related to the quality of service they deliver (Lynn, et. al., 2011) because, generally, customers who receive better service leave larger tips (Lynn, 2006). In fact, research has shown that there is direct correlation between delivering poor service and receiving a poor tip in return (Azar, 2007; Guerrier, 1999; Strianese, et. al., 2003). However tricky the practice of tipping may seem, one should not undervalue the influence and strength of the multiplier effect, which means that tipping more than the usual amounts could guarantee one will receive the best of service (Mariani, 2008). Tipping Distribution Systems The Tronc, as it is called in England and also known as Shared or Pooled Tipping, refers to a pool in which all tips or service charge are collected and then distributed to all eligible employees (Bennett, 2006; Thomas, 2006; Wood, 1997). In most cases, it is divided equally, after deductions for the buspersons, service bartender, and maybe the captain or hostess (Thomas, 2006). In others, the distribution is based on some points system. In essence, the points awarded to a particular employee are a tradeoff between rank and tenure of service and have little or no bearing on the principle of effort reward. This system is sometimes aligned with hierarchical organizational structures because it is based primarily on an employees status as a means of tip allocation. While it may seem like it is a fair way of making sure that all employees receive tips, there are no assurances that the tronc is seen as such by the entire workforce, especially those of low status (Wood, 1997). This system would, at times, rouse suspicion
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and friction among workers especially because some employees are better tip earners than others. Thus, an employee who receives a huge tip may be tempted to withhold it from the tronc (Thomas, 2006). Instead of fostering teamwork and cooperation, the tronc may also cause deceptiveness and dishonesty wherein employees may keep tips to themselves especially in cases wherein employers use the tronc as a means of gathering information on the amount generated from tips and using this same information to justify lowered wages (Wood, 1997). In some other restaurant establishments, the servers get to keep their individual tips. This is called Individual or Independent Tipping. At the onset, this may seem ideal, but then some tables, particularly those in the front, near the entrance, or next to windows, are more preferred by guests compared to other tables. The server assigned to tables at the back may feel resentful as the more popular tables are turned over and over again while his are almost always unoccupied. This type of situation could lead to conflict and dissent among employees. Given this scenario, tip pooling, which facilitates a fairer means of tip allocation and promotes harmonious relationships among employees, might be the most ideal set-up (McConnell, 2009; Thomas, 2006). Pros and Cons of Tipping Many people regard tipping as degrading (Lynn, 2006; Thomas, 2006) and prefer having a service charge system instead wherein an automatic 15% to 18% is added to the bill. However, a few restaurant operators take advantage of this system to earn profits by not giving the amounts collected to their employees. Thus, most workers in the
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hospitality industry who are in tipped positions prefer to just take their chances on the system of tipping because they feel they could fair better (Thomas, 2006). A current distasteful practice in some restaurants is to add a service charge on top of the bill then leave a blank line next to the words Tip / Gratuity at the bottom of the credit card slip. Thus, a guest pays for the service charge and he may also add a tip. It is an unpleasant tactic to rip off a guest. A guest who realizes such a thing would surely be disgusted (Thomas, 2006). The most unpleasant side of tipping is the nasty demeanor it develops among servers specially the young ones as they badmouth customers who do not leave big tips. They do not seem to realize that perhaps their poor tip is a reflection of their delivery of poor service. Even if they do, they tend to blame others such as the chef for the quality of food or the bartender for the drinks (Thomas, 2006). Tipping also prompts servers to rush guests through their meal so that tables are turned quickly. The practice also encourages some servers to provide guests with free food, beverages, and all sorts of other freebies, and to exert little effort and spend little time in serving and interacting with guests who are known to be poor tippers (Lynn, 2006). Retaliation by stiffed workers is not unknown, too. There have been reports of waiters in the United States running after customers who did not leave a tip and yelling at them. Frequent customers who are also known to be stiffers or poor tippers not only receive bad service, they are also served leftover breads and given dirty plates, glasses, and silverware. At times, waiters even spit on their food and beverages (Azar, 2007).
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From a tax collectors point of view, tipping, in a way, is an indirect means for tax evasion because it allows customers to pay less in sales taxes. Since restaurants are able to reduce their labor costs, they are also able to reduce the prices of menu items that ultimately lead to lowered sales taxes (Lynn, 2006). In addition, it allows hospitality service employees to pay lower income taxes because undeclared or under-reporting of tip income is not easy for the government to monitor and detect compared to the misdeclaration of basic wages. In a research done by the Internal Revenue Service (IRS) in the United States, tip income is the number one under-reported type of income compared to all other legal sources of income (Azar, 2007; Lynn, 2006). On the positive side of things, for some customers, the practice of tipping is a delightful way for them to get what they want done and, sometimes, done with a little extra on the side. Some job-related tasks and duties are worthwhile where tips are abound. Take for instance the case of a bellhop who would exert the effort of making his way through a jam-packed lobby to carry heavy and bulky luggage in exchange for a reward. Also, if one is a repeat customer and he tips generously, then he becomes the staffs favorite customer, earning him tickets to all sorts of extras and freebies plus maybe some warm smiles when he asks for extra jam or bread (Thomas, 2006). From an employers perspective, tipping is an efficient and cost-effective way of rewarding employees who perform highly personalized service (Azar, 2007; Lobb, 2001; Lynn, 2006). It is also reduces the cost of monitoring and motivating employee effort
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because employers leave the task of rating and rewarding employees to their customers through the practice of voluntary tipping (Azar, 2007; Conlin, et. al., 2003; Lynn, 2006). Tipping is also like a magnet that helps attract and retain better employees (Lynn, 2006; Lynn, et. al., 2011) because, in most cases, high performers are enticed by performance-based rewards much more than low performers. Therefore, tipping encourages the recruitment of a better talent pool made of good candidates because good performers can hope to receive bigger tips compared to low performers (Lynn, et. al., 2011). Some managers even rank the performance of servers based on tip averages (Lynn, 2001). Also, when compensation is positively related to performance, such as in the case of tipping, the retention of high performers is increased while it puts pressure on the low performers to leave. It also influences the job satisfaction levels of employees and affects their desire to either stay or leave the company (Lynn, et. al., 2011). Tipping, coupled with an efficient distribution scheme that is favored by an establishments workforce, further encourages the retention of good employees. Employees who receive higher compensation and feel a sense of belongingness in their organization because they fit into its culture are more likely to stay in that company. As more and more restaurants in the United States are depending on tipping to increase their servers earnings, the coherence of employee preference for tipping and an institutionalized policy on their tipping distribution system is imperative. This may not ultimately help to reduce the turnover of employees transferring to other restaurants, but
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this may alleviate the problem of employees switching to other occupations or industries (Lynn, et. al., 2011). Tipping Around the World Albeit not as ubiquitous as in the United States, where tipping is also known as toking, schmearing, greasing the wheels, or seeing the man (Brenner, 2001), the practice has also become customary in most other nations around the globe. It has also become a complicated business, particularly for frequent flyers, because tipping customs differ from one country to another in size, in the type and/or location of hospitality service establishments, in the position of the tipped employee, in government policies, plus many other considerations. Because of these disparities, local tipping customs are now published in most visitor guides (Azar, 2007; Lynn, 2006; Mariani, 2008). In the United States and Canada, the cultural standard is for restaurant servers to receive a tip of 15% of the check for good service and up to 20% for exceptional service (Bennett, 2006; Lynn, 2006; Mariani, 2008; Roberts, 2010) while bartenders typically get an average of 20% to 30% of the bill with a minimum of a dollar. Tips are most often less at the bar than at the table because bar checks are not as large as table checks, but, since bartenders earn decent basic wages around $80 per shift in most states based on the union scale there is hardly ever any complaint from bartenders regarding the size of their tips (Thomas, 2006). In general, tipping is not expected in Europe because service charges are included in the bill servizio incluso or service compris are often seen on restaurant checks
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(Bennett, 2006; Mariani, 2008). However, in countries like Belgium, France, Italy, The Netherlands, Greece, Germany, Norway, Spain, Portugal, Scandinavia, Turkey, and Sweden, one simply rounds up the bill or leaves small change on top of the standard service charge (Bennett, 2006; Conlin, et. al., 2003; Mariani, 2008) and this serves as a tip, also referred to as a trinkgeld in Berlin (Brenner, 2001). This practice is a French custom called pour boire, which means to leave excess change or a few francs or to round up the bill. The term is a literal translation of the phrase, for a drink, so the server may buy himself one (Lobb, 2001; Mariani, 2008). In Great Britain and Ireland, the practice of tipping is similar to that in the United States, but the tip percentages for servers are lower at around 10% to 15%. These days though, an increasing number of restaurants are including an optional or voluntary service charge of about 12.5%. It is not expected of one to tip at pubs or bars, but, in recent times, more and more patrons are encouraging the practice an indication of American influence on the global arena of hospitality service (Bennett, 2006; Mariani, 2008). In Denmark and Iceland though, tipping is still not customary (Conlin, et. al., 2003). While in Russia, tipping is not allowed (Conlin, et. al., 2003; Thomas, 2006). In Egypt, tips or baksheesh, are commonplace. One may tip the ma tre d $9 or more for a good table or for great service (Bennett, 2006). In Dubai, Israel, Kenya, Morocco, Saudi Arabia, and South Africa, individual tips are expected on top of the standard service charge. The customary tip is 10% of the bill (Bennett, 2006). However, it is difficult to really come up with a general picture of tipping customs for the entire
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Middle East. To be on the safe side, local visitor information offices are still the best resource for more accurate information (Mariani, 2008). In Latin American countries such as Argentina, Brazil, Chile, Guatemala, Mexico, Peru, Uruguay, and Venezuela, tipping is expected at hotels and restaurants even though service charge has already been included in the bill. The same is true for The Caribbean and the Bahamas (Bennett, 2006). In Australia, adding a service charge on top of the bill is still not the norm while tipping has just been introduced to the continent. As a general rule though, it is appropriate to leave a tip of at least a 10% of the restaurant bill (Bennett, 2006; Mariani, 2008). Tipping was once forbidden in Japan and was considered rude (Bennett, 2006; Conlin, et. al., 2003; Mariani, 2008; McGinnis, 2011), but, these days, one can find upscale hotels and dining establishments beginning to accept tips, which are referred to as a ryokan, the tradition of enclosing a few yen in a decorative envelope (Bennett, 2006). This used to hold true as well for China wherein Communist policy officially banned tipping. Years back, it was regarded as capitalist bribery and workers who were caught accepting tips faced jail time for the offense (Mariani, 2008). In recent times, however, in larger international cities like Beijing, Macau, Shanghai, and Hong Kong, one may see an additional 10% service charge on restaurant checks and it is common for travelers to tip hotel porters and restaurant servers. Tipping is also frowned upon in Singapore, but luggage porters will likely accept a few Singapore dollars for assistance with heavy bags
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and bulky luggage. Occasionally, one may also find a 10% service charge at restaurants (Bennett, 2006; McGinnis, 2011; Murphy, 2009). In Taiwan, a 10% to 15% service charge is automatically added to the bill and providing an extra tip is not necessary though rarely will tips be refused. The same goes for Thailand, but it is only done at more high-end restaurants. When dining at smaller, family-owned establishments, tipping is not expected (McGinnis, 2011). In Indonesia, Malaysia, and Vietnam, restaurant tips are about 10% of the check. Locals would round it off and add a few extra change to it. While in hotels, a 10% service charge is added to the bill. Bellhops and housekeeping staff usually get about a dollar or two (Bennett, 2006; Murphy, 2009). In South Korea, tipping is almost non-existent and is not expected except for the standard $10/day for tourist guides, $5/day for drivers, and usually $1/bag for bellhops (Murphy, 2009). Tipping in the Philippines In Manila, the nations capital, and in most urban cities around the country, tips are eagerly accepted and expected for most services; particularly in tourist areas. It is a common practice to leave a tip of about 10% of the total bill even though a restaurant check already includes a service charge (Department of Tourism, 2011; McGinnis, 2011; Murphy, 2009). Minimum Wage and Laws on Tipping In the United States, the federal minimum wage across all states and occupations is at $7.25 per hour, which amounts to $58 for an eight-hour shift. An employer of a tipped employee, one who regularly receives more than $30 a month in tips, is only
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required to pay $2.13 per hour in direct wages if that amount, combined with the tips received by the employee, equals the federal minimum wage. However, if the employees tips combined with the employers direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees (United States Department of Labor, 2010). In the Philippines, specifically in the National Capital Region, the minimum wage of the average worker in a non-agriculture industry is at P426 per day (Department of Labor and Employment National Wages and Productivity Commission, 2012). Article 96 of Presidential Decree No. 442, known as the Labor Code of the Philippines, states that, All service charges collected by hotels, restaurants, and similar establishments shall be distributed at the rate of 85% for all covered employees and 15% for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages. (Azucena, 2001; Chan, 1997; Department of Labor and Employment, 2009). The Department of Labor and Employment (DOLE) supplements the above ruling by stating that the 15% of the service charge allocated for management may be used to shoulder costs related to losses and breakages. Upon the discretion of management, it may also be distributed among managerial employees. The 85% of the service charge allocated for employees shall be distributed to all those eligible regardless of position or
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employment status. The distribution should be done once every two weeks or bi-monthly at intervals of not more than 16 days (Azucena, 2001; Chan, 1997; Department of Labor and Employment, 2009; Trasmonte, et. al., 2010). In the event that the company stops the collection of service charges, the average share previously received by the employees for the past 12 months immediately before service charges were abolished should be included in their basic wages. In cases wherein a restaurant or similar establishment does not impose service charges, but has a custom, system, or policy of monitoring and pooling tips freely given by customers to its employees, the pooled tips should be monitored, duly accounted for, and allocated in the same way as service charges (Chan, 1997; Department of Labor and Employment, 2009; Trasmonte, et. al., 2010). MOTIVATION Definition of Motivation The word motivation is derived from the Latin word movere, which means to move (Kinicki, et. al., 2008) and the most basic definition of motivation refers to it as the inner urges that cause people to behave in certain ways (Chandler, et. al., 2008). It represents the psychological processes that cause arousal, direction, and persistence of voluntary actions or behavior that are goal directed (Kinicki, et. al., 2008; Levy, et. al., 2002). In relation to work, motivation is defined as the force that drives people to choose a particular job, to stay with that job, and to work hard on it (Enz, et. al., 1995). It is a set of energetic forces that comes from within as well as beyond an employees being. These
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forces establish work-related behavior and determine its form, direction, strength, and sustainability (Chandler, et. al., 2008). Theories on Motivation Several researchers have developed various theories on motivation to organize the different concepts into a manageable system and set forth guidelines for the implementation of motivation enhancers. Motivation theories give managers a schematic representation on how to use various motivational techniques in the workplace. However, managers must first understand and take into consideration the individual differences of employees and the unique environmental factors that affect motivation in his organization before making use of any of the models. It is important to note that theories are not hard and fast rules. They were formed with the intent that they would help illustrate and clarify possibly useful concepts of employee motivation (Berger, et. al., 2008). Although these theories have many similarities, each of them provides a unique, valuable model for understanding employee motivation. None of them may be considered better than the other because all of them are uniquely beneficial, practical tools to support ones efforts in improving employee motivation (Berger, et. al., 2008). Content Theories / Need Theories Content Theories or Need Theories are mainly concerned with what causes human behavior. They state that motivation is rooted from an individuals urge to satiate specific personal and relationship needs (Berger, et. al., 2008; Chandler, et. al., 2008; Mill, 1998). There are four of these theories that have gained wide acceptance
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Maslows Need Hierarchy Theory, Herzbergs Two Factor Hygiene Motivation Theory, Alderfers E-R-G Theory, and Murrays and McClellands Acquired Needs or Achievement Motivation Theory (Mill, 1998). Developed by Psychologist Abraham Maslow in the 1940s and 1950s, the Need Hierarchy Theory, has been accepted and upheld by numerous scholars and practitioners. This model suggests that people are motivated by the urge to address and fulfill specific needs. Maslow further states that these needs are alike across most populations and arranged in a hierarchical progression. This means that people attempt to satiate lower-order needs first. Once satisfied, they progress into satisfying the next successively higher-order need and the lower-order need then ceases to be a motivator. These needs are categorized and arranged from low order to high order in a pyramid (Berger, et. al., 2008; Chandler, et. al., 2008; Davis, et. al., 2002; Guerrier, 1999; Kinicki, et. al., 2008; McDonald, et. al., 2007; Mill, 1998; Nelson, et. al., 2007).
Physiological needs are basic needs, which people need in everyday life to survive; needs such as food, clothing, and shelter (Berger, et. al., 2008; Davis, et. al., 2002; Mill, 1998). If, for example, a banquet manager had not eaten breakfast and lunch
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then he would certainly be hungry towards the afternoon. By this time, it would be very difficult for him to focus on anything but his hunger. Even if he had a very tight deadline to work on, like planning a banquet menu for instance, he would ignore the project for now and all he would think about is sitting down to a hearty meal at the diner down the corner. Now, suppose he was able to enjoy that meal plus maybe some dessert, he would then be full and satisfied and lose the motivation to look for more food. At this point, he would rush back to his desk to finish that banquet menu he was planning. As lower-order needs are fulfilled, the higher-order need then becomes more important (Berger, et. al., 2008). When basic physiological needs are satisfied, people then become concerned with their safety needs. In the beginnings of civilized society, most human beings were reasonably protected from the elements of nature that threatened primitive men. Now, in the place of a literal interpretation, this translates into the common need for job security, insurance, a savings account, and various forms of pre-need plans (Berger, et. al., 2008; Davis, et. al., 2002; Mill, 1998). Employees who have reached this stage would be cautious about taking risks and they would be planning for their future (Mill, 1998). Managers may address this need by reassuring employees of the security of their tenure and perhaps letting them know of possible career advancements over time (McDonald, et. al., 2007). These days, many cutting-edge firms offer more individualized, tailored, and flexible benefits as a means of addressing the safety needs of employees in their own organizations (Berger, et. al., 2008).
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After satisfying physiological and safety needs, people then become concerned with their social needs. At this point, one will long for the presence of family and friends and his acceptance into society. He will want to build relationships with others and belong to a group (Berger, et. al., 2008; Davis, et. al., 2002; Mill, 1998). Because his physiological and safety needs have been satisfied, he will pursue this need for love and belongingness with much fervency; a need he never even thought of when he was hungry and busy searching for food. People who have reached this stage in the need hierarchy will want to make and keep healthy relationships with the other people they work with (Berger, et. al., 2008). Once social needs are met, people are then concerned with their esteem needs. Maslow further divided this need into two stages the need for achievement and independence and the need to build a reputation or prestige in the eyes of other people (Berger, et. al., 2008; Davis, et. al., 2002). An employee, who has reached this level in the need hierarchy, would be seeking the respect of others and thriving on praise and publicity. He would be concerned about status symbols and desire material things (Mill, 1998). Maslow claimed that once a person has fulfilled his needs for self-esteem, he would have more self-confidence and heightened feelings of self-worth while people who are not able to satisfy these needs may feel a sense of helplessness and inferiority to others (Berger, et. al., 2008). The need for self-actualization is the last and final stage in Maslows hierarchy of needs. This refers to the need to strive for the ultimate fulfillment of ones potential in
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all endeavors (Berger, et. al., 2008; Davis, et. al., 2002; Mill, 1998). An employee who has reached this stage would want to make creative contributions and be in a challenging work environment (Mill, 1998). Maslow believed that the need for self-actualization would only be felt when all four lower-order needs are met. He also stated that those who have achieved this are those thought to be the healthiest and most creative of people (Berger, et. al., 2008; Chandler, et. al., 2008). Very little is known about this need because only very few have achieved it. Also, while many have already satisfied all their lower-order needs, not all have actually tried to satisfy their need for self-actualization (Berger, et. al., 2008). Towards the end of the 1950s, Frederick Herzberg came up with a two-factor theory of hygiene and motivation needed to enhance employee motivation. In the course of his research, he asked employees to come up with a list of occurrences in the workplace that they found satisfying and another list of occurrences that were dissatisfying it was from these lists that he derived the factors for his Two Factor Hygiene Motivation Theory (Berger, et. al., 2008; Davis, et. al., 2002). According to Herzberg, hygiene factors are related to the work environment and they are conditions related to dissatisfaction caused by discomfort or pain. They cannot be used to enhance employee motivation, but, in their absence or insufficiency, they create employee dissatisfaction. They must be maintained at a level wherein they will cause no negative effects to motivation. Hygiene factors are environmental factors that must be cleaned up to make the workplace conducive for the development of employee
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motivation. The common and most important hygiene factors are company policy and administration, technical supervision, interpersonal relations with supervisors, peers, and subordinates, salary, job security, personal life, working conditions, and status (Berger, et. al., 2008; Chandler, et. al., 2008; Davis, et. al., 2002; Mill, 1998; Nelson, et. al., 2007). When the workplace has been cleaned up of all the external hygiene issues, motivational factors come into action. Motivational factors are those directly related to the individuals job function. They are conditions related to the satisfaction of the need for psychological growth. Herzberg argues that merely changing the environment (hygiene factors) will not enhance motivation, but focusing on the job itself will. There are six common factors that play an integral part in fostering employee motivation. These are achievement, recognition of achievement, advancement, the work itself, the possibility of personal growth, and responsibility (Berger, et. al., 2008; Chandler, et. al., 2008; Davis, et. al., 2002; Mill, 1998; Nelson, et. al., 2007). According to Herzberg, through job enrichment, managers will be able to successfully motivate their employees. This involves carefully designing jobs that are interesting and meaningful to employees, (Kinicki, et. al., 2008; Mill, 1998). Although the needs outlined in Maslows theory are similar to Herzbergs, the difference between them is while Maslow claims that, as a person advances along the stages of the personal need hierarchy, each need in succession has the power to motivate, Herzberg states that hygiene needs do not motivate employees. They only need to be
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maintained at a certain level to enable the real motivational factors to work (Berger, et. al., 2008). In the 1970s, Clayton Alderfer categorized human needs into three basic groups existence needs, relatedness needs, and growth needs and developed his E-R-G Theory. Existence needs are essential for survival and are the same as Maslows physiological and safety needs. In the workplace, these translate to salary, fringe benefits, and the work environment. Relatedness needs refer to relationships with others and are similar to Maslows needs for social acceptance and belongingness. Growth needs refer to the urge for creative expression and intellectual challenge, which are related to Maslows need for self-esteem and self-actualization (Berger, et. al., 2008; Davis, et. al., 2002; Mill, 1998). Similar to Herzbergs model, Alderfers theory assigns specific needs in rearrangements of Maslows hierarchy of needs. However, Alderfers differs from Herzbergs on the rules that apply to the motivational characteristics of people. Also, while Maslow states that only one need may dominate other needs at any one time, Alderfer argues that motivation can be fueled by several needs at the same time. Furthermore, Alderfers model is flexible in either direction along the need hierarchy. His Existence, Relatedness, and Growth Theory suggests that one unsatisfied need will enhance a persons awareness of his other unsatisfied needs (Berger, et. al., 2008; Mill, 1998).
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The idea is that an unsatisfied need not only motivates a person to satisfy it, but it also increases the persons motivation to satisfy the need that is one step below in the hierarchy. For instance, if a person has unsatisfied relatedness needs, he will also be concerned with meeting both relatedness and existence needs at the same time. Likewise, a person who has unsatisfied growth needs may be preoccupied with meeting both growth and relatedness needs all at once. This leads to Alderfers proposition on the frustration regression phenomenon. He claims that a person, who is repeatedly frustrated with satisfying a need, will eventually just give up and slide or regress down the hierarchy to concentrate with satisfying the next lower level need. Thus, a need that seems unattainable and impossible for him to achieve will no longer be a motivational driver and the need directly lower in the hierarchy will become a vital source of motivation (Berger, et. al., 2008; Mill, 1998). In the early 1960s, David McClelland, an American social psychologist, developed the Achievement Motivation Theory, which proposes that a persons need for achievement plays a huge role in the delivery of his performance. Employees who have a high need for achievement prefer to take moderate risks, are persistent in achieving their goals, take personal accountability for their performance, welcome feedback on their performance, and are innovative. On the other hand, employees who have a low need for achievement take high risks. McClelland further explains that motivation is a function of three needs the need for affiliation, the need for power,
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and the need for achievement (Chandler, et. al., 2008; Davis, et. al., 2002; Kinicki, et. al., 2008; Mill, 1998; Nelson, et. al., 2007). People who have a high need for achievement prefer working on tasks that are moderately difficult. They would like to be in work situations where performance is due to their efforts and not dependent on sheer luck. They also seek regular feedback on the progress of their work and on their performance and they do not like having external events or other people interfering with their progress in attaining their goals (Davis, et. al., 2002; Kinicki, et. al., 2008; Nelson, et. al., 2007). On the other hand, people who have a high need for affiliation prefer spending their time establishing social relationships with others, joining teams, and being loved. They are motivated to express their feelings to others while expecting others to do the same in return. They like building close and personal relationships emphasizing friendship and companionship (Davis, et. al., 2002; Kinicki, et. al., 2008; Nelson, et. al., 2007). People with a high need for affiliation are generally not the most effective of leaders because they fear making decisions that may cause others to dislike them (Davis, et. al., 2002; Kinicki, et. al., 2008). Meanwhile, people who have a high need for power have the urge to influence others and control people or events. Power in this context is classified into two individualized or personal power and socialized or institutional power. When people want individualized or personal power, they just want it because of the heightened feelings they get from having power over others. When people want socialized or institutional
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power, they want it because they know that, with it, they can achieve goals for the good of everyone (Chandler, et. al., 2008; Davis, et. al., 2002; Kinicki, et. al., 2008; Mill, 1998; Nelson, et. al., 2007). The high need for power is actually one of the striking characteristics of managers and is rated the best in McClellands research. The best of managers have a very high need for socialized or institutional power. They have a genuine concern for others, are interested in organizational goals, and they have an urge to be useful not only to their organizations, but also to society (Nelson, et. al., 2007). Process Theories Process Theories deal with what influences and alters human behavior and how that behavior can be sustained. There are four such theories Equity Theory, Expectancy / Valence Theory, Operant Conditioning Theory or Reinforcement Theory, and GoalSetting Theory (Chandler, et. al., 2008; Mill, 1998). Equity Theory states that employees will measure what they put into the job against what they get out of the job then compare both to others (Chandler, et. al., 2008; Mill, 1998). This involves the reduction of inequity, the situation in which a person perceives that he is receiving less than what he is giving or that he is giving less than what he is receiving (Nelson, et. al., 2007). If a person believes that he is in an inequitable situation, he will make attempts to reduce the inequity. The greater the inequity, the higher the level of motivation will be to reduce it (Chandler, et. al., 2008; Mill, 1998).
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The equity theory posits that employees will attempt to reduce the inequity in a number of different ways. They may exert less effort into their jobs or seek more rewards for their efforts. They could delude themselves into believing that the situation is equitable or leave or absent themselves from work. They might convince others to exert less effort on their jobs or change the basis for their comparison (Mill, 1998; Nelson, et. al., 2007). At the end of the day, employees will do what is easiest for them (Mill, 1998). The driving force behind these employees motivation is restoring equity based on their perception of fairness of the rewards they receive for the effort they exert in comparison to those received by their relevant others (Chandler, et. al., 2008). The main point of this theory is that people compare themselves to others. What they choose to believe or perceive, even if it is not what really exists, is what is important to them. Their reactions to their own perceptions could be one of the several mentioned above (Mill, 1998). Employees are motivated to exhibit behaviors that will produce outcomes, which satisfy their needs. Often, however, employees are presented with more than just one need-satisfying behavior. Developed by Victor Vroom then expanded and refined by Porter, Hackman, and Lawler in the 1970s, the Expectancy / Valence Theory explains how employees choose from among a wide range of behaviors. This model is based on the assumption that the way a person behaves is a manifestation of his perception of how well he will be able to perform a task, what will happen if he performs at that level, and how strongly he desires the rewards he will receive for exhibiting that kind of behavior
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(Berger, et. al., 2008; Chandler, et. al., 2008; Davis, et. al., 2002; Levy, et. al., 2002; Mill, 1998; Nelson, et. al., 2007). An employee is then faced with three questions, Can I perform at that level if I try?, If I perform at that level, what will happen?, and, How do I feel about the things that will happen? (Berger, et. al., 2008). To answer the first question, the employee will evaluate the probability that his efforts will enable him to deliver the required level of performance. This is referred to as the effort to performance (EP) expectancy. To answer the second question, the employee will then evaluate the chances that the required level of performance will, in fact, generate specific outcomes. This is called the performance to outcome (PO) expectancy. To answer the third and last question, the employee will evaluate how attractive each of the outcomes is to him. This measurement of attractiveness that an employee delegates to each outcome is labeled as the valence (V) of the outcome (Berger, et. al., 2008; Levy, et. al., 2002). It is an expression of the amount of an employees desire to achieve a goal (Davis, et. al., 2002). The EP expectancy and PO expectancy may be represented in numerical values from zero to positive one. A zero means that the employee does not believe that his efforts will produce the required level of performance or that his performance will produce a specific outcome. A one would indicate that the employee is sure that his efforts will produce the required level of performance or that the specific outcome will, in fact, happen. Most of the time, expectancy values are anywhere between these two numbers. Valences may be represented in numerical values, too, from +1.0 to 1.0. An
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employee who finds monetary rewards strongly appealing will give a high positive valence to the outcome of a salary increase. Meanwhile, an employee who puts a great deal of importance on family time will give a negative valence to the outcome of a job promotion that entails spending a lot of time in the office (Berger, et. al., 2008). The Expectancy / Valence Theory states that an employees motivational drive for exhibiting a certain kind of behavior is measured by multiplying the EP expectancy times the PO expectancy times the valence of the outcome. Therefore, the assumption is that the motivational drive to exhibit certain kinds of behaviors is most powerful when the employee strongly believes that he will be able to deliver the level of performance required (high EP expectancy), that his behavior will produce outcomes (high PO expectancy), and that the outcomes are highly appealing to him (high positive V) (Berger, et. al., 2008; Davis, et. al., 2002). EP Expectancy x PO Expectancy x V = Motivation This model gives a rational explanation on why some employees are more motivated compared to others and how an employee, who is highly motivated to work on certain tasks, may not be as motivated to work on other tasks. When an employee is faced with options on what types of behaviors he would like to display, he will choose those which he believes will have the greatest potential in satisfying his needs (Berger, et. al., 2008). His motivation is lowered if the forthcoming reward will not satisfy his needs and if he does not believe that he will receive the reward for his efforts (Mill, 1998). Managers who understand this concept delegate tasks to employees who will find the
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tasks assigned to them as truly motivating. This means offering the right job to the right person, designing jobs that will encourage high levels of employee motivation, and giving the appropriate rewards that will lead to overall job satisfaction and organizational efficiency (Berger, et. al., 2008). Operant Conditioning Theory or Reinforcement Theory was developed in the 1950s by Burrhus Frederic Skinner, an American behaviorist and Edgar Pierce Professor of Psychology at Harvard University. This helped build the core for the field of behavioral psychology and, for the past decade, it has been increasingly applied in various organizations. There are four components of this theory; namely, positive reinforcement, extinction, punishment, and avoidance learning or negative reinforcement (Berger, et. al., 2008; Davis, et. al., 2002; Levy, et. al., 2002). Operant Conditioning Theory or Reinforcement Theory is based on the assumption that managers can control the behavior of their employees through the strategic manipulation of reward systems and that performance can be improved when it is rewarded or reinforced (Berger, et. al., 2008; Mill, 1998). This is different from Pavlovian conditioning though because, in Pavlovian conditioning, a person is trained to behave a specific way in response to a specific stimulus. The most popular example is that of the dog that salivates at the sight of food. If, after many tests, a bell is rung at the same time food is put out, the dog is eventually conditioned to salivate at the mere sound of the bell. In this case, the subject cannot control when the stimulus will be presented
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because the ringing of the bell is controlled by the person conducting the experiment (Berger, et. al., 2008). In operant conditioning however, a person is able to control when a stimulus is released or withheld. He does this by behaving in a way which he has learned will produce certain rewards or punishments. The name of this theory was derived from the fact that people operate actively upon their environment to produce the stimuli they desire. By consciously changing their behavior, employees, in theory, have the power to control the rewards and punishments given to them. Operant conditioning may be used to draw out desirable behavior or to get rid of unpleasant behavior (Berger, et. al., 2008). Positive reinforcement provides favorable consequences that encourage the repetition of desirable behavior (Davis, et. al., 2002; Mill, 1998). This technique works well in establishing new and pleasant behavior (Levy, et. al., 2002) and is based on the idea that employees behave in ways that are most rewarding to them (Mill, 1998). Salary increases, promotions, and non-monetary recognitions such as employee-of-the-month awards are very good examples of positive reinforcement in the workplace. These types of incentives increase the chances of employees being motivated to perform as the organization desires (Berger, et. al., 2008). Extinction involves withholding positive outcomes that were previously provided for desirable behavior. Such desirable learned behavior must be reinforced to encourage the employee to repeat the same behavior in the future (Davis, et. al., 2002). In order to
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develop an effective schedule of positive reinforcement, a manager must reward often enough to prevent the extinction of desirable behavior (Berger, et. al., 2008). Extinction is a powerful technique used for getting rid of unpleasant behavior. When positive reinforcement is withheld, an employee may still exhibit his unpleasant behavior for some time after, thinking that perhaps the reward is still coming but is just slightly delayed. However, if the positive reinforcement is withheld from him for a long enough period of time, the employee will eventually realize that his unpleasant behavior is no longer producing positive outcomes. At this point, the employee will stop his unpleasant behavior (Berger, et. al., 2008). Punishment refers to the introduction of unpleasant consequences or the discontinuance of positive outcomes each time a person exhibits undesirable behavior (Berger, et. al., 2008; Davis, et. al., 2002; Mill, 1998). Since punishment is effective in eliminating undesirable behavior (Levy, et. al., 2002), it is often used in the discipline of children (Berger, et. al., 2008). Although this may be an occasional necessity to discourage undesirable behavior in adults, managers should refrain from using punishment in shaping employee behavior. Punishment must be used with caution because it has certain limitations. It does not encourage desirable behavior unless the employee being punished is made aware of the alternative behavior he must exhibit. Also, it must be clear to him what particular behavior he is being punished for (Davis, et. al., 2002; Levy, et. al., 2002). Generally, managers should focus their efforts in rewarding desirable behavior instead of punishing unpleasant behavior (Berger, et. al., 2008).
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Another setback of the overreliance on punishment is that, even when it may eliminate unpleasant behavior, it may encourage avoidance behavior. For instance, an employee who is running late for work may suddenly decide to just call in sick and not report for work at all to avoid being reprimanded, suspended, or terminated (Mill, 1998). A server who has accidentally broken a couple of wine glasses may choose to hide the broken pieces and not report the incident so he can avoid some form of disciplinary action. Avoidance learning or negative reinforcement is similar to positive reinforcement because it helps enhance desirable behavior. In this method, an unpleasant stimulus is presented to a person, which he can avoid by exhibiting desirable behavior (Berger, et. al., 2008; Davis, et. al., 2002; Levy, et. al., 2002). An example of which would be the experience of a rooms reservations specialist who learns that if he does not double check bookings on a particular day and reserves a room that is already taken, he will surely get a reprimand from his boss, bad feedback from the angry guest, and, quite possibly, some form disciplinary action all of which are unpleasant consequences. This reinforcement teaches him to double check room reservations carefully and all the time to avoid such outcomes. Goal-Setting Theory is all about the effect goals have on an employees performance (Chandler, et. al., 2008). There exists scientific evidence proving that goals enable people to gain a clearer perspective, properly channeled energies, persistence, and better performance. They also influence and challenge an employees self-efficacy, a
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persons belief in himself that he is able to perform a task assigned to him (Chandler, et. al., 2008). The theory purports that aiming for difficult goals will result in better performance compared to aiming for easy ones (Mill, 1998). Sources of Motivation The question Whats in it for me? certainly takes center stage in motivating people. Self-interest, which refers to what a person thinks is most beneficial to him, is indeed the most powerful driving force behind motivation. One would first ask himself this question in many situations, but the answer usually varies among individuals and their present circumstances. A lot of people are more encouraged to perform tasks that promise to provide them with both personal and organizational needs. When people figure out ways of integrating organizational goals with their personal objectives, motivation levels increase tremendously (Berger, et. al., 2008). It is said though that managers cannot motivate employees and that motivation comes from within. Employees must have a reason for wanting to do what the organization expects of them. Thus, managers must find out what exactly motivates employees. To do that, managers must first get to know their employees. With this knowledge, managers are then able to set the stage in which employees would be motivated to perform (McDonald, et. al., 2007; Mill, 1998). By doing so, managers are also able to create a delicate, sensitive, carefully executed set of conditions wherein employees can meet their needs while meeting those of the organization (Levy, et. al., 2002; McDonald, et. al., 2007).
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Communication Motivating employees is a challenging feat because employees are individuals with unique needs (Bessell, et. al., 2002). Finding out what is needed to get the wheels of motivation for them going is not easy because, in most cases, managers do not know what their employees need. This communication gap creates a serious dent on employee motivation. A manager who does not have a clue on what employees need cannot motivate them. He must first understand what they need and what they value so he can give them the opportunities to satisfy those needs, the rewards that will increase their motivation to do their jobs (Berger, et. al., 2008; Bessell, et. al., 2002; Davis, et. al., 2002; Enz, et. al., 1995; McDonald, et. al., 2007; Mill, 1998). In numerous work environments, employees have very minimal or no opportunities to speak up and let their needs be known. Even if they were given chances, employees often feel inhibited and uncomfortable about saying how they truly feel. The most skillful of managers open up lines of communication. They set the stage for employees to express their needs and work with them to achieve their goals. These managers help employees relate their personal goals with those set by the organization. When employees believe that they are supporting their organization while they are meeting their own needs, they will take pride in their sense of purpose and become more forthcoming and truthful in voicing out what they need (Berger, et. al., 2008).
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Confidence As discussed in the previous pages, when employees are faced with options to choose from a set of actions or behaviors, they will choose those that they believe will have the greatest potential in producing the outcomes and the rewards they want. Employees who feel uncertain about their capability of accomplishing the results needed to produce rewards will be reluctant and averse towards their jobs (Berger, et. al., 2008). In most cases, the absence of motivation is merely an indication of low levels of confidence. An employee may just feel that he is not capable of doing the job. If this is the case, then his manager should not have assigned him to do the job in the first place since failure will just enhance his lack of self-efficacy. On the other hand, if the employee is capable of doing the job and is equipped with the necessary skills to do it, but is just bothered by the lack of self-confidence, his manager must boost his selfconfidence by reassuring him that he was selected because of his expertise, skills, experience, and personal qualifications that are required to complete the job. His manager must also reassure him that the organization will support him and see him through the completion of his tasks. When employees are truly confident in their competencies and capabilities to accomplish their jobs, their motivation levels soar (Berger, et. al., 2008). Connection The final step in making sure that employees will be motivated to do the jobs for which they were chosen is ensuring that they see the connection between their success and receiving the rewards they desire. Managers must make their employees trust them
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enough to know that their hard work will be rewarded. At the end of the day, it is still about, Whats in it for me? Managers must make their employees feel that the organization cares for them and hold true to its promise that excellence and success will, in fact, be rewarded. The idea is that employees will be motivated when they believe that excellent performance guarantees that they will produce outcomes and rewards that they value (Berger, et. al., 2008; Enz, et. al., 1995; Mill, 1998). Money as a Motivator It would be utterly nave to say that behavior is not the least bit affected by the promise of monetary reward (Guerrier, 1999). In fact, money is the main motivational factor for employees to continue working in the foodservice industry (Wildes, 2008). Variable pay, monetary incentives that are linked to specific and measurable performance outcomes (e.g.: guest satisfaction ratings), is a very influential motivator (Enz, et. al., 1995). In relation to Maslows hierarchy of needs, people have a high regard for money because it allows them to buy the necessities of everyday life. However, money is not only a way of meeting lower-order needs. It may also be a means to satisfy esteem needs. What one earns for a living may be viewed as a status symbol and a mark of ones worth (Davis, et. al., 2002; Guerrier, 1999; Mill, 1998). For some businessmen, money may be their means of self-actualization (Guerrier, 1999). The problem though with Maslows theory is that it is difficult to pinpoint where money comes into the picture for a particular employee. It may be assumed that money ceases to motivate an employee who is earning
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good wages as his basic needs have already been satisfied. For a person who looks at money as a way for him to keep score with the rest of society, money will continue to motivate him as he progresses to higher stages in the need hierarchy (Mill, 1998). Relating money to the expectancy / valence theory, money could be one of the rewards employees put a value on. If money is to be seen as a strong motivator, an employee certainly must want more of it, he must believe that his efforts will produce the required level of performance to earn it, and trust that money will be rewarded to him following his performance (Davis, et. al., 2002; Guerrier, 1999). However, whether they would exert more effort if their pay were linked to their performance would also depend on the other outcomes they expect in exchange for their hard work (Guerrier, 1999). Although most employees respond positively to money as a reward, money, by itself, will rarely be enough to ensure employees are motivated (Davis, et. al., 2002; McDonald, et. al., 2007). It certainly cannot make up for the lack of support from management or unsatisfactory job matches (McDonald, et. al., 2007). Also, money is an extrinsic reward (Szende, 2010) so it is easy to integrate into employee motivation and rewards programs. However, since monetary rewards originate outside the job, it is less satisfying than intrinsic rewards such as personal satisfaction and career advancement (Bessell, et. al., 2002; Davis, et. al., 2002; McDonald, et. al., 2007; Szende, 2010). Economic rewards will not be able to provide all the rewards needed by a psychologically healthy person, but adequate money coupled with good levels of overall job satisfaction may do just that (Davis, et. al., 2002; McDonald, et. al., 2007).
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REVIEW OF RELATED STUDIES Foreign Studies Curtis, et. al. (2009), in their study entitled Employee Motivation and
Organizational Commitment: A Comparison of Tipped and Non-tipped Restaurant Employees, explored the differences between the levels of motivation and organizational commitment of hourly tipped and non-tipped restaurant employees as segregated by gender. Their study was aimed at providing knowledge and information to restaurant management teams so that they may formulate effective and efficient programs, policies, and procedures that would positively impact the motivation and organizational commitment of these type of workers. Through opportunity sampling, they selected 104 such workers 85.4% were hourly tipped employees and 14.6% were hourly non-tipped workers; 56% of which were female and 44% were male all from a single branded, national chain of casual dining restaurants situated in the metropolitan area of Orlando, Florida. They administered questionnaire surveys on-site to their respondents in the late afternoon prior to each restaurants evening rush. The first section of their survey questionnaire composed of demographic profile questions on gender, age, educational attainment, race, marital status, type of current job, their tenure with their current employer, and their total tenure in the restaurant industry. The second portion comprised twelve (12) questions on motivation as derived from Kovachs (1995) motivational factors, namely:
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1. a feeling of being involved 2. job security 3. supervisors help with personal problems 4. good wages 5. interesting work 6. tactful discipline 7. promotion or career development 8. good working conditions 9. management / supervisor loyalty to employees 10. gratitude for a job well done 11. monetary incentives for a job well done; and 12. public celebration for a job well done. The third part of their survey included nine (9) statements derived from the shortened organizational commitment OCQ inventory by Mowday, et. al. (1979), which were: 1. I would accept almost any job to keep working for this organization. 2. I find that my values and organizations values are very similar. 3. I am proud to tell others that I am part of this organization. 4. This organization really inspires the very best in me in the way of job performance.
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5. I am extremely glad that I chose this organization to work for over others I was considering at the time I joined. 6. I really care about the fate of this organization. 7. For me, this is the best of all possible organizations for which to work. 8. I know what is expected of me at my job. 9. I am able to do what I do best every day. The questions and statements on the dependent variables motivation and organizational commitment were answerable through a five-point Likert scale ranging from very unimportant to very important for factors on motivation and strongly disagree to strongly agree for factors on organizational commitment. The data derived from their study was analyzed using the ANOVA procedure to find out whether there were significant differences in the levels of motivation and organizational commitment of hourly tipped and non-tipped restaurant workers when filtered by gender. Their findings revealed that there were no significant differences between the mean ratings of hourly tipped and non-tipped restaurant employees on some motivational factors, which were interesting work, promotion or career development, and gratitude for a job well done reflective of a general agreement on the above factors on motivation regardless of the employees tipped status. On the other hand, Curtis, et. al. (2009) discovered that there were significant variances between the mean ratings of male and female restaurant employees on six (6)
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of Kovachs motivational factors; specifically, job security, interesting work, promotion and career development, good working conditions, gratitude for a job well done, and monetary incentives for a job well done. Interestingly, females gave higher mean ratings for these motivational factors compared to their male counterparts. This suggests that hospitality management teams may drive worker performance and job satisfaction further by focusing on gender-related motivational factors that boost gender performance. On organizational commitment, their results showed that there were no significant differences between the mean ratings of hourly tipped and non-tipped restaurant employees on all nine factors indicative of a general agreement and consistent measurement of the level of organizational commitment by both types of employees regardless of their tipped status. However, when the mean ratings were screened by gender, Curtis, et. al. (2009) discovered significant differences between mean ratings of male and female restaurant employees on two (2) of the nine (9) factors on organizational commitment. The results showed that both males and females believed that their personal values were very much in line with their organizations corporate values, and that, in general, both genders were at ease with their selection of this particular restaurant as their employer and organization of choice. The variances noted were on the factors concerning the alignment of personal values with that of the organization and the evaluation that the respondent was satisfied with their selection of this employer compared to other employers that were available to them at the time they joined this organization. The findings revealed that females placed
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a higher level of importance on the alignment of their personal values with that of the organization compared to their male counterparts, which give other areas for hospitality management teams to consider in terms of employee job satisfaction and job performance. In general, Curtis, et. al. (2009) derived that the most important motivational factors for this type of restaurant workers were management loyalty to employees, good working conditions, job security, and good wages. The least important ones were supervisors help with personal problems and public celebration for a job well done. Where gender is concerned, results were varied. Gender accounted for differences on six (6) of the twelve (12) motivational factors work security, interesting work, promotion or career development, good working conditions, gratitude for a job well done, and monetary incentives for a job well done and for two (2) of the nine (9) organizational commitment factors alignment of personal values with organizational values and comfort with their decision in choosing their present employer. They summarized that there was a general agreement and consistent measurement with the restaurant employees perceptions when filtered by tipped status or by gender. Thus, giving evidence that the respondents were employed in an institutional environment that concentrates on policies, programs, and practices that promote organizational commitment. Curtis, et. al. (2009) concluded by stating that low levels of employee motivation may result to organizational issues in employee attrition and retention, employee morale,
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and poor job performance. Identification and recognition of the concern on employee motivation is the initial step a restaurant may take to address this issue. Since the restaurant involved in the study employed two different types of hourly staff the tipped worker and the non-tipped worker restaurant management teams must appreciate that these types of employees have varying needs. An understanding of these needs may help employers design, develop, and deploy different systems, practices, and policies in their organizations that will boost the levels of employee performance, motivation, and organizational commitment. In the study entitled, Identifying Job Motivation Factors of Restaurant Servers:
Insight for the Development of Effective Recruitment and Retention Strategies, Dermody, et. al. (2004) explored the different motivators of chain and independent restaurant workers to identify affective reasons for them to remain in jobs in the restaurant industry. Their study was aimed at providing a better understanding and appreciation of the motivational factors from the restaurant workers point of view, identifying the various reasons why they opt to work in the industry, and what fosters long term commitment. They conducted interviews with sixty (60) restaurant servers from a metropolitan city in the southeastern United States 50% were from fifteen (15) independent restaurants and the other 50% were from fifteen (15) chain restaurants. They selected restaurants which were medium in size (82-384 seats), operational for more than two (2) years, had a small employee headcount (22-65 workers), open during lunch hours and
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dinner time or dinner time only, and those with mid-range priced menu items ($8-$39 main courses). Dermody, et. al. (2004) conducted their interviews for four weeks during the offpeak hours at each participating restaurant with two (2) randomly chosen servers per visit. The two (2) types of restaurants independent and chain were selected to identify the possible variations in the motivational factors of their servers. Their interview questions were designed to generate data regarding recruitment, job motivation, incentives, and retention practices from the workers viewpoint. The method they applied during the interviews was an experience survey administered to their respondents, which contained six (6) questions: 1. What characteristics of restaurants attract you to the restaurant industry? 2. What motivates you in your work environment? 3. Does your restaurant have an incentive program? 4. Why do some servers quit their jobs? 5. Please indicate your level of satisfaction with your current employer regarding: management, promotions, raises, incentives, teamwork, and restaurant working environment. 6. Please indicate your overall level of satisfaction with your current employer / restaurant.
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The researchers discovered that there were similarities between the responses by independent and chain restaurant workers in terms of the frequency of comments stating that money was a primary factor for motivation. 67% of the employees from independent restaurants said money was their major reason for working in the industry while almost the same percentage of those from chain restaurants stated that money attracted them the most to the restaurant industry. For workers of the independent restaurants, relationships with co-workers was second on their list of characteristics that attracted them most to the restaurant industry. Other characteristics they mentioned were atmosphere, clientele, food, and management. On the other hand, employees of the chain restaurants stated that the second most attractive reason they were working for the industry was management then relationship with co-workers, reputation, and flexible hours. When they were questioned on what motivated them in their current work environment, the respondents from both the independent and chain restaurants highlighted the significance of co-workers and their work environment itself. Almost 50% of the employees of the independent restaurants stated that their relationship with co-workers was a motivator for working in their present environment. Other motivators frequently mentioned were professional atmosphere, clientele, money, air conditioning / comfort, working hours, and reputation. Employees from the chain restaurants stated relationships with co-workers / work environment were more important than money. Other motivators they cited were flexibility and understanding management.
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On the presence of incentive programs, more than 50% of chain restaurants had them while only 20% of independent restaurants did. 10% of all respondents mentioned that there were some incentive programs in place, but that they were irregular and that they differed among all restaurants. Some servers though could not understand the idea of incentives because incentives were not offered in their restaurant. There were various reasons given on why restaurant servers leave their jobs. The two most prolific reasons for workers of independent restaurants were that the employee found a better job and dissatisfaction with the work hours. Their third most frequent reason was that the server desired to earn more money. The rest of the responses could be classified as personal or human resource concerns like resigning to go to school or relocation, issues or unresolved differences with co-workers, or not getting a promotion. The number one most common reason for servers from chain restaurants was that the server found a better job. The second being that the server resigned because of money related issues or concerns with the number of working hours the employee was required to render. Just like the responses given by the servers from independent restaurants, the remaining responses can be classified as personal decisions and human resource concerns like issues with management or co-workers, the job was just seasonal work for the employee, or that the server had relocated. Both independent and chain restaurant employees seemed to have very high levels of satisfaction with the management and work environment at their current place of work. On a five-point scale, servers of the independent restaurants rated their management and
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work environment 4.08 and 4.21 respectively. However, they were less satisfied with other facets of their employment such as promotion and pay increases (3.38), incentive programs (3.67), and teamwork (3.79). Servers of chain restaurants had similar responses for management, work environment, and teamwork with ratings of 4.12, 4.04, and 3.96 respectively. They did, however, mention a general dissatisfaction with promotion and raises (2.20) and incentive programs (2.80). In spite of the levels of dissatisfaction with some elements of their job, the overall satisfaction ratings among all respondents is quite high at 4.10 for servers from independent restaurants and 4.36 for those from chain restaurants. With this, Dermody, et. al. (2004) concluded that money is a primary attraction for servers in the restaurant industry and that their work environment motivates them to keep working in this same industry. They recommend that improvement in the areas of career advancement and promotion, pay increases, and the implementation of incentive programs may boost the levels of job satisfaction of restaurant servers thereby increasing motivation and decreasing employee turnover. Lynn, et. al. (2011) conducted a study entitled Voluntary Tipping and the
Selective Attraction and Retention of Service Workers in the USA: An Application of the ASA Model, to determine whether voluntary tipping does in fact benefit restaurants by selectively attracting and retaining better service employees. The researchers used the ASA (Attraction Selection Retention) Model (Schneider, 1987) to describe and test this hypothesis. This model implies that there are three processes, which lead to better
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homogeneity in employees knowledge, skills, and abilities. The first, attraction, pertains to the match between job applicants and organizations characteristics. The second, selection, pertains to the organizations and job applicants choosing each other depending on how best they suit each others needs. The third, attrition, happens when workers resign from organizations because they do not fit. The researchers administered online surveys to current and previous restaurant servers, which generated 435 responses, but only 337 of them were used for analysis. They selected those that were only from respondents from the USA, who had been restaurant servers within the previous year, and among the first to send in their completed surveys from their remote IP addresses. The respondents, aged 16 to 63 (mean age at 24.6 years), comprised 213 present and 124 recent (within the previous year) restaurant servers from 43 various states plus the District of Columbia 91% of them were white, 76% female, and 14% married. As control variables, the researchers collected demographic information from the respondents such as gender, year of birth, race, marital status, and the number of years they had worked as a server at any and all restaurants. The servers service attitudes (SAs) towards providing good service were measured using Larsen and Bastiansens (1991) SAs scale, which evaluates their selfreported cognitive, affective, and behavioral reactions towards different elements of service work. This scale includes elements such as knowledge of the job requirements, empathizing with customers and treating them politely, getting to know customers
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individual and unique needs, going above the usual job requirements, providing customers with something more, and keeping the customers up to date. They also measured the servers perceived service-tip contingency (PSTC) servers perceptions that they can generate higher tips when they provide better service by posing three statements which were answerable with a seven-point scale (1 = strongly disagree, 4 = neutral, 7 = strongly disagree). The statements were: 1. I can substantially increase my tips by providing better service. 2. The size of my tips is strongly affected by the quality of service I deliver. 3. How much clients tip me seems unrelated to the quality of service I give them. The servers attraction to tipped service jobs was measured by posing one statement indicating their preference for working at a restaurant that employs voluntary gratuities against one that imposes 18% automatic service charges. They were to rate this on a seven-point scale (1 = strongly prefer working for voluntary tips, 4 = no preference, 7 = strongly prefer working for 18% automatic gratuity). Their tip income was measured by a single point of comparison on how they perceived their own tips versus their co-workers, which they were also to rate on a seven-point scale (1 = much larger than most others tips, 4 = about the same as most others tips, 7 = much smaller than most others tips). The results of this study on the selection attraction effect were regressed on the SAs scale, PSTC scale, and their product (interaction) in a hierarchical multiple
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regression that comprised server age, gender, race, and marital status as control variables. While the findings on selective retention effect were evaluated in separate regression analyses, which also included server age, gender, race, and marital status as control variables. On selective attraction, Lynn, et. al. (2011) discovered that most servers moderately to strongly correlated the quality of service they deliver to the tips they get in return. The servers SAs also had a significant and positive impact on their preference for tipped work and that servers with more positive SAs had a preference working for voluntary gratuities over automatic service charges. Further, the more servers perceived that their tips were based on the quality of service they provide, the relationship between their SAs and their attraction to tipped service jobs strengthened. All these suggest that tipping does target and attract better restaurant service workers. On selective retention, the findings showed that there was a significant and positive relationship between the attraction to tipped service jobs and servers tenure as well as SAs to tip income. The same also applied to tip income and servers tenure. These suggest that a voluntary tipping policy does have a positive impact on selectively retaining servers with more positive SAs and that these same workers will remain in tipped jobs for longer periods of time due to the fact that they prefer working for tips and have a perception that they can generate larger amounts of tipped income compared to their co-workers.
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Lynn, et. al. (2011) concluded that the concept of tipping contributes to the selective attraction and retention of better service employees. According to them, tipping as a form of compensation is an organizational characteristic that affects applicant and employee conduct in a way that is consistent with Schneiders ASA Model (1987). The researchers advise that tipping in itself will not selectively attract, motivate, and retain workers who perceive that the size of their tips is not based on the quality of service they provide, but restaurant management teams should consider job applicants with these same notions as potential high-risk employees. Also, because their findings show that employees with positive SAs prefer working for tips more and that these same employees will remain in tipped positions longer versus employees with less positive SAs, they recommend that before managers consider making changes to their existing tipping policies, that they should take the results of this study into consideration. Local Studies Valencia (2001), in the research paper entitled Money Attitude as Related to
Work Ethic and Intrinsic and Extrinsic Job Satisfaction, she pointed out the relationship between the money attitudes of supervisors, managers, and directors with their work ethic and their intrinsic and extrinsic job satisfaction. For this study, the researcher conducted one-shot surveys with 34 members of the management team of the Manila Midtown Hotel between the months of October and November 2000. This number of respondents comprised the entire population of supervisors, managers, and directors of the said establishment. Supplementary
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information for the study was gathered from journals and books, from government institutions such as the Bureau of Labor and Employment Statistics (BLES), from the World Wide Web, and from Prof. Thomas Li-Ping Tang himself, inventor of the Money Ethic Scale (MES), which was published during the 1990s in the Journal of Organizational Behavior, in Personality and Individual Differences, in the Journal of Economic Psychology, and in Public Personnel Management. The first part of the survey questionnaire asked the respondents questions on their demographic profile such as their gender, age, educational attainment, job title or position held, and their monthly net income. The second portion of the questionnaire composed of ten (10) statements on money attitudes. The researcher adapted these statements from several questionnaires on the Money Ethic Scale (MES) as sent to the researcher through email by Prof. Thomas Li-Ping Tang. The ten (10) statements were: 1. Money is a symbol of my success. 2. Money represents my achievements and accomplishments. 3. Money helps me gain respect in the workplace / community. 4. Money drives me to outperform others (be competitive). 5. I work efficiently because time is money. 6. Money gives me autonomy and freedom. 7. Money gives me considerable power. 8. I am highly motivated by money.
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9. I am not motivated by money. 10. Money is less important than recognition and achievement. The respondents of the study were to describe their money attitudes by stating the degree to which they agreed to the above statements using a five-point Likert scale ranging from strongly agree to strongly disagree. The third section of the survey posed the respondents with ten (10) statements on work ethic. Valencia (2001) based these statements on the Protestant Work Ethic Scale by Blood as published in the Journal of Personality and Social Psychology in 1999, the Work Ethic Scale by Ali as published in the Journal of Psychology in 1988, and the Service Ethic Scale by Tang, which was included in a research paper presented to the 25th Annual Colloquium of the International Association for Research in Economic Psychology in 2000. The researcher developed and tailor-fit the statements to make them applicable and relevant to the hospitality industry. These were: 1. Hard work makes one a better person. 2. Wasting time is as bad as wasting money. 3. A good indication of ones worth is how well one does ones job. 4. Work is not an end in itself, but a means to foster personal growth and social relations. 5. Work is a source of self-respect. 6. I am willing to work, even on holidays, should the hotel need my service.
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7. I make a conscious effort to meet and talk with guests and clients to further enhance the hotels service. 8. Service to others gives me a feeling of worthwhile accomplishments. 9. Service to others makes me feel that I am an important part of the community. 10. Service to others gives me a feeling of prestige. The respondents of the study were to describe their work ethic by stating the degree to which they agreed to the above statements using a five-point Likert scale ranging from strongly agree to strongly disagree. The fourth and last part of the questionnaire comprised twelve (12) statements on job satisfaction, which were derived from those included in the Minnesota Satisfaction Questionnaire Developed by Weiss et. al. and published in the Journal of Applied Psychology in 1989. The researcher used only those statements which pertained to intrinsic and extrinsic job satisfaction. The intrinsic job satisfaction statements used were those related to achievement, autonomy, freedom and authority, skill utilization, and self-worth while the extrinsic job satisfaction statements used were those that dealt with salary, job security, interpersonal relationships, advancement, supervisory style, and working conditions. The final ten (10) statements used were: 1. The chance to work alone on the job. 2. The feeling of achievement / accomplishment I get from the job. 3. The chance to be somebody in the community.
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4. The freedom to use my own judgment. 5. The chance to do something that makes use of my abilities. 6. The chance to tell people what I do. 7. My pay and the amount of work I do. 8. The way my boss handles his / her workers. 9. The quality of work conditions. 10. The way my co-workers get along with each other. 11. The chances for advancement. 12. The way my job provides for steady employment. The respondents of the study were to indicate the levels of their job satisfaction by stating the degree to which they agreed to the above statements using a five-point Likert scale ranging from very satisfied to very dissatisfied. On the statistical treatment of data gathered, Valencia (2001) used Frequency, Percentage, and Mean to identify and describe the respondents money attitudes and work ethic as well as to assess their levels of job satisfaction. Then, to determine if money attitudes had a relationship with work ethic and intrinsic and extrinsic job satisfaction, the researcher used Pearsons Correlation (Alpha p < 0.01 level R tab 0.409). The survey results showed that the majority of the 34 respondents were male at 56% and that their average age was 36.26 years old. Majority or 59% had completed a college degree this being their highest educational attainment. More than a third or 47% were managers and that their average monthly net income was P29,705.38.
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On money attitudes, the respondents of the study generally had an unconcerned or indifferent attitude towards money. They were unmoved by money and, to some extent, bore negative attitudes towards money. They hardly perceived the notions of money as earning them respect, as a representation of achievement, as a source of power and control, and / or as a symbol of success. They were not motivated by money, but by intrinsic factors such as recognition and achievement. Based on Tangs Money Profiles as published in Personality and Individual Differences in 1995, the researcher classified the respondents as Doer Money Disclaimers and described them as hard working, but least likely for financial or monetary reasons. The researcher concluded that money was not at the top of their priority list and that they were intrinsically motivated; more so by a sense of achievement. They had money, but were unmoved by it and that they did not believe in the so-called sacred meanings of money that it symbolizes freedom, power, success, etc.. On work ethic, the respondents were found to have positive attitudes towards work. They adhered to the basic principles of work ethic and that they valued hard work and believed that work should performed to the best of ones abilities. Moreover, they were service-oriented and found pleasure and personal fulfillment in being of service to others. On job satisfaction, the findings of the study showed that the respondents were generally satisfied with their current occupations. Their levels of intrinsic job satisfaction (i.e. autonomy, responsibility, skill utilization, authority, achievement) were slightly
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higher than their levels of extrinsic job satisfaction (i.e. co-worker, pay, promotion, supervision, working conditions). They personally valued and were motivated by both job content factors (i.e. achievement, autonomy, skill variety, etc.) and job context factors (i.e. co-workers, pay, supervision). Their overall level of job satisfaction suggested that intrinsic and extrinsic job factors were adequately maintained at a good level by the Manila Midtown Hotel. On the relationships between money attitude and work ethic and between money attitude and intrinsic job satisfaction, the researcher found no significant correlation. The respondents of the study were intrinsically satisfied with their jobs, but were generally unconcerned with money. However, on the relationship between money attitude and extrinsic job satisfaction, the researcher discovered a significant negative correlation between the two. This finding maintained those in previous studies by Tang as published in the Journal of Money Behavior in 1992 and in Personality and Individual Differences in 1995 where money attitude was also found to be significantly and negatively correlated to extrinsic job satisfaction. People who valued money as an achievement and desired to have more freedom and power from money experienced low levels of job satisfaction in relation to work, promotion, pay, and supervision. In conclusion, Valencia (2001) stated that although money is one of the most powerful motivational tools available to employers, the use of money should be relative to each employees set of values. This was explained further by saying, Employees with
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different money attitudes tend to exhibit different levels of job satisfaction, pay satisfaction, and other work-related attitudes. Hence, managers need to identify different motivational programs for employees with different attitudes towards money. In the study entitled An Evaluation of the Tipping Distribution System of the
Concierge Department in Makati Shangri-la Hotel, Manila in Relation to Job Satisfaction, Lee (2008) administered a survey to 54 employees of the hotels concierge department bellmen, valet parking attendants, doormen, airport representatives, and concierge clerks to determine whether their departments 14-year-old tipping distribution system had any influence on their overall levels of job satisfaction. The researcher also conducted a scheduled one-on-one interview with the assistant head concierge to acquire a better understanding of their current tipping distribution system. The questionnaire for the researchers one-on-one interview with the assistant head concierge contained thirteen (13) questions on the how-tos of the departments tipping distribution system the staffs working hours and shifts, how much in tips each employee would receive per day and who were eligible to receive tips, how and where these tips were pooled and divided, who was in charge of the tip pool securing, counting, dividing, and distributing, if there were any written memos about their tipping distribution system, and if there were any policies governing it and penalties involved for being in violation thereof. The researcher also asked the head concierge if their tipping distribution system was effective and if he wanted to modify it, in case he was given the opportunity to do so.
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Through the researchers one-on-one interview with the assistant head concierge, the researcher gained a birds eye view of the departments tipping distribution system. Tips were pooled and divided daily after each of departments three shifts 6AM to 2PM, 2PM to 10PM, and 10PM to 6PM. Each employees shift would depend on the hotels guest occupancy and guest arrival rate. All concierge staff both casual and regular employees were entitled to receive tips and that each would receive an average of P500 a day. The tips were pooled and secured in a tip box, which was managed and secured by the assigned bellman cum officer-in-charge for a particular shift. This same person was also in charge of counting, partitioning, and distributing the tips among the employees who had worked during his shift. Lee (2008) also learned that there was no written documentation to describe and outline the procedures for their tipping distribution system. Further, there were no policies governing the distribution and receipt of tips. If an employee was caught having done any corrupt activities concerning their tipping distribution system, he/she would be subject to an investigation initiated by the human resource department and, after which, a suspension of employment. In case the same employee commits the same offense again, he/she would be terminated. The assistant head concierge believed that their current tipping distribution was effective because tips were divided equally among all department staff. However, given the opportunity to modify the system, he would have preferred that an individual tipping distribution system was put in place so that the amount of work an employee did would equate to the amount of tips he/she received.
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The survey questionnaire for the concierge staff, which was administered to them after their pre-shift briefing, was divided into three (3) parts. The first part contained questions on the respondents demographic profile name (optional), job position, tenure, age, marital status, educational attainment, and no. of children. The second part consisted of nine (9) questions on the effectiveness of the concierge departments tipping distribution system. It focused on just two (2) touchpoints that the methods used in their tipping distribution system were reflective of fair performance appraisal across the entire department and that the partition and distribution of tips were based on an employees job performance. The respondents were to answer all these questions using a five-point Likert scale ranging from highly disagree to highly agree. The third part of the survey had eight (8) statements pertaining to the respondents levels of job satisfaction. These, like the second part of the survey, were answerable using a five-point Likert scale. This time, ranging from highly dissatisfied to highly satisfied. To analyze the data derived from the survey, three (3) different types of statistical treatment were put into use. For the demographic profiles of the concierge staff, Relative Frequency was called for. For their levels of job satisfaction, Weighted Mean was used. Then, to evaluate the concierge departments tipping distribution system and to correlate it with the employees overall levels of job satisfaction, the researcher used the ChiSquare of Dependence. Lee (2008) discovered that majority of the staff in the concierge department were male, most have worked in the concierge department for two years or less, and a very
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small number have been concierge employees for 1215 years. Most of them were young aged 2037 years old and that the largest group of employees in their department were bellmen and valet parking attendants. More than half of them were regular employees, the rest were casual workers, and that the workload and amount of tips both types of employees would were about the same. The only differences between them were the amount of basic pay they receive and their eligibility to receive service charges regular employees earned higher basic pay and casual employees were not entitled to service charges. On the methods used in their tipping distribution system, although there was a general agreement among majority of the concierge staff that the system was fair and accurate, they believed that it was still prone to several concerns such as dishonesty and discord among co-workers. Overall, the findings showed that, from the employees perspective, their tipping distribution system is neither good nor bad. On the partition and distribution of tips based on an employees job performance, there was a consistent agreement among most concierge staff that whether or not they go the extra mile for their guests or perform their duties and tasks properly, they would still receive a fair amount of tips based on the amount of work they do. Further, the bulk of this departments employees believe that their current tipping system is what works well for them. On the overall levels of job satisfaction, majority of the staff of the concierge department of Makati Shangri-la Hotel were satisfied with their jobs. as well as with their
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incentives tips in particular. With this, the researcher proved that there was indeed a significant relationship between the concierge departments tipping distribution system and their employees levels of job satisfaction. Based on the overall findings of the study, Lee (2008) recommended that the hotel management team review the concierge departments tipping distribution system and that they may further improve on it by coming up with a company-issued, written memo documenting the policies and procedures of their tipping distribution system. This may be used to address issues on misunderstanding and discord among department members. Also, a suggestion was made for hotel management to test the effectiveness of the individual tipping distribution system in the concierge department and compare it with their current system of shared tipping. This may help them in further increasing the levels of job satisfaction of the entire department and have a positive influence in improving their on-the-job performance. Diche (2009), in the research paper entitled, Relationship of Motivational
Factors to Job Satisfaction of the Employees of Hotel A and Hotel B, profiled 126 food and beverage employees of two (2) deluxe hotels to determine the degree to which various job motivational factors influenced their levels of satisfaction. She used a survey questionnaire, which was divided into three (3) parts. The first part contained questions on the demographic profile of her respondents age, gender, tenure, income per month, and in which area of the food and beverage department the respondents were working in. The second part consisted of ten (10) statements on
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motivational factors based on Kovachs (1995) Ten Factor Model. The respondents were to state the degree to which each factor was important to them using a four-point Likert scale ranging from not important to very important. The third part of the questionnaire posed the respondents with five (5) statements on the determinants of job satisfaction. The respondents were to indicate the degree to which each determinant satisfied them using a four-point Likert scale as well. This time, the scale ranged from very dissatisfied to very satisfied. Officer/s of the human resource department at each of the two (2) hotels took charge of distributing and collecting the survey questionnaires from the employees. After which, they were returned to the researcher. On the statistical treatment of data, Diche (2009) used Relative Frequency and Percentage Distribution for the demographic profiles. She used Weighted Mean and Standard Deviation to identify the most important motivational factors to the respondents from both hotels. The same statistical treatment was used to measure the levels of job satisfaction of the same respondents. The T-Test for Independent Mean was used to determine if there were any significant differences between the responses of the employees from both participating hotels on the importance of motivational factors and for their levels of job satisfaction. Meanwhile, Pearson R was used to correlate the motivational factors with the respondents levels of job satisfaction. The findings showed that majority of the survey participants were male (62%), aged 3039 years old (52%), and earned P10,100 P20,000 a month (75%), a great
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number had worked for their respective employer hotels for one to five years (44%) and assigned to the hotels restaurant outlets (29%). The three most important motivators for the respondent employees of Hotel A were good wages, job security, and good working conditions. On the other hand, those from Hotel B had job security, good wages, and opportunities for advancement and development as the top three on their list. These findings suggested that there were significant differences between the responses of the employees at each hotel. On the levels of job satisfaction, the survey participants from Hotel A were most satisfied with their relationships with their co-workers while the participants from Hotel B were most satisfied with the work itself. All the participants from both hotels were least satisfied with the quality of supervision at their place of work. Overall, there were no significant differences between the levels of job satisfaction of the employees from both hotels. On the relationship between motivational factors and the levels of job satisfaction, the researcher proved that there was none for employees of Hotel A, but that there was a significant relationship between them for the employees of Hotel B. Based on these findings, Diche (2009) recommended for the management teams of both hotels to work on the improvement of the employees personal relationship with their respective supervisors since this job satisfaction determinant (quality of supervision) got the lowest rating from the respondents of both hotels. She also recommended for the management of Hotel A to provide its employees with learning opportunities that would
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enhance their employees knowledge and skills making them viable for promotion. They may look into providing training programs or seminars on new trends and technologies in the industry because this factor opportunities for advancement and development was rated as the second least satisfying factor of their jobs. The researcher suggested for the management of Hotel B to design programs that would foster better working relationships between employees as this was the respondents second lowest satisfying job factor. They may do so by launching teambuilding programs that would strengthen the bonds and open communication lines between employees.
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CONCEPTUAL FRAMEWORK
Independent Variable
Dependent Variable
Average Tip Size Received per Day
Level of Employee Motivation
The conceptual framework for this research was based on four different studies. In the first study, Identifying Job Motivation Factors of Restaurant Servers: Insight for the Development of Effective Recruitment and Retention Strategies completed by Dermody, et. al. (2004), the researchers discovered that majority of the independent and chain restaurant workers that responded to their survey stated that money was a primary factor for motivation, it was their major reason for working in restaurants, and that it was money that attracted them most to seek employment in the restaurant industry. Also, among the various reasons given on why restaurant workers leave their jobs, the third most frequent reason was the desire to earn more money. The second study is entitled Relationship of Motivational Factors to Job Satisfaction of the Employees of Hotel A and Hotel B and was conducted by Diche
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(2009). Although there were significant differences between the results generated from the respondent employees of Hotel A and Hotel B as far as motivational factors were concerned, good wages was found to be on their list of top three job-related motivators. The third study is entitled Employee Motivation and Organizational Commitment: A Comparison of Tipped and Non-tipped Restaurant Employees by Curtis, et. al. (2009). Even though their results showed that there were no significant differences between the mean ratings of hourly tipped and non-tipped restaurant employees on some motivational factors, it is important to note that their study was conducted in the United States, where the cultural standard in tip percentages at restaurants range from 15% up to as high as 20% of the bill. On the other hand, the common practice in the Philippines is to leave a tip of only about 10% of the bill (Department of Tourism, 2011; McGinnis, 2011; Murphy, 2009). Furthermore, the federal minimum wage across all occupations in the United States is at $7.25 per hour or $58 for an eight-hour shift. In contrast, the minimum wage in the Philippines for nonagriculture industries, specifically in the National Capital Region, is only at P426 or roughly $10 per day. Given these astounding differences in tips and in direct wages, the findings in Curtis, et. al.s (2009) study may or may not hold true relative to the levels of employee motivation of tipped positions in the Philippines, where tip percentages and basic pay are much lower compared to U.S. standards by about 50% and 83% respectively.
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The fourth study is entitled Money Attitude as Related to Work Ethic and Intrinsic and Extrinsic Job Satisfaction done by Valencia (2001). Although it was found that there was no significant relationship between money attitude and intrinsic job satisfaction, it is important to note that the respondents of the study were either supervisors, managers, or directors earning an average of almost P30,000 per month in net income. This finding may or may not be the same for employees in non-management positions, the type of respondent employees for this study. Most tipped positions, such as restaurant servers, kitchen helpers, and the maitre d', are at staff level and their basic pay is not the same as those in management positions. Furthermore, their monthly net income, is largely supplemented by voluntary tips (Azar, 2007; Lynn, 2006; McConnell, 2009; Roberts, 2010). Thus, based on the aforementioned studies, the conceptual framework for this study was designed with the assumptions that there is a significant difference in the levels of employee motivation between restaurant workers receiving low and high average tip size per day and that there is a significant relationship between their average tip size per day and their level of motivation.
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OPERATIONAL DEFINITION OF TERMS
For the purposes of this study, the following terms will be defined as:
Demographic Profile Refers to the respondents personal characteristics; specifically, their age, marital status, gender, educational attainment, no. of children / dependents, take home pay / net income per month, the number of years they have worked for their current employer, and the total number of years they have worked in the restaurant industry.
Average Tip Size Received per Day It is the usual or normal amount of money in tips received on a daily basis by a tipped employee. These tips are sums of money voluntarily given by guests to a tipped employee for service performed during or after the guests dining experience.
Level of Employee Motivation The degree at which the internal force within an employee drives him deliver his best performance in order to satisfy his own needs, reach his personal goals, and those of the organization.
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STATEMENT OF THE PROBLEM The main problem, which will be addressed by this study, is: o Is there a significant relationship between the respondents average tip size per day and their level of employee motivation? To address the main problems, the following sub-problems will be dealt with accordingly: 1. What is the respondents demographic profile? 2. What is the respondents level of employee motivation when grouped according to their demographic profile? 3. Is there a significant difference in the levels of employee motivation when respondents are grouped according to their demographic profile? 4. What is the respondents average tip size per day? 5. What is the respondents level of employee motivation based on their average tip size per day? 6. Is there a significant difference in the levels of employee motivation between respondents receiving low and high average tip size per day? 7. Is there a significant relationship between the respondents average tip size per day and their level of employee motivation?
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HYPOTHESIS 1. Is there a significant difference in the levels of employee motivation when respondents are grouped according to their demographic profile? Ho : There is no significant difference in the levels of employee motivation when respondents are grouped according to their demographic profile. Ha : There is a significant difference in the levels of employee motivation when respondents are grouped according to their demographic profile.
2. Is there a significant difference in the levels of employee motivation between respondents receiving low and high average tip size per day? Ho : There is no significant difference in the levels of employee motivation between respondents receiving low and high average tip size per day. Ha : There is a significant difference in the levels of employee motivation between respondents receiving low and high average tip size per day.
3. Is there a significant relationship between the respondents average tip size per day and their level of employee motivation? Ho : There is no significant relationship between the respondents average tip size per day and their level of employee motivation. Ha : There is a significant relationship between the respondents average tip size per day and their level of employee motivation.
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METHOD RESEARCH DESIGN This study made use of the descriptive, comparative, and correlational methods of research design. First, it contains descriptive information on the respondents demographic profile and their average tip size per day. It also describes the respondents levels of employee motivation when they are grouped according to their demographic profile and their average tip size per day. Then it compares and contrasts these levels of employee motivation when respondents are grouped according to their demographic profile and between respondents receiving low and high average tip size per day. Finally, it points out if there is a significant relationship between the respondents average tip size per day and their levels of employee motivation. A one shot survey was administered to the respondents of this study, all of whom were non-managerial tipped employees of a full-service casual dining restaurant in Quezon City. The total number of this type of employees at the participating establishment was at 58. Owing to the small size of the population, all of them were included as respondents of this study. The results of this study were analyzed using descriptive statistics such as frequency and percentage distribution to determine the respondents demographic profile and their average tip size received per day. Weighted mean and standard deviation were used to assess their levels of employee motivation. ANOVA was used to compare and contrast the respondents level of employee motivation when they were grouped
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according to their demographic profile. The T-Test for Equality of Means was used to point out differences in their level of employee motivation based on their average tip size per day. Finally, the Point-Biserial Correlation was put to use in finding out if there was a significant relationship between the respondents average tip size per day and their level of employee motivation. RESEARCH INSTRUMENT The instrument used for this study was a two-part survey questionnaire. It was based on the ones designed for the researches included in the review of related studies for this paper. The first part contained questions on the respondents demographic profile patterned after the ones used by Curtis, et. al. (2009). The respondents of this study were asked for their age, marital status, gender, educational attainment, the number of their children or dependents, their net income per month or take home pay (excluding tips and less taxes and other mandatory deductions), the number of years they had worked for their current employer, the total number of years they had worked in the restaurant industry, and their average tip size per day. The second section posed the respondents with twenty six (26) statements pertaining to job factors on employee motivation. Thirteen (13) of which were related to identified job factors that motivate most employees to work. These are next to odd numbers as listed on the survey questionnaire. These statements were based on the ones used in the studies completed by Curtis, et. al. (2009) and Diche (2009). The other half of
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the statements in this section pertained to tips in relation to employee motivation. These were next to even numbers as listed on the survey questionnaire. These statements were based on the ones used in the studies done by Curtis, et. al. (2009), Lynn, et. al. (2011), Valencia (2001), and by Lee (2008). Respondents answered this second part of the questionnaire by rating the degree to which each statement applied to them using a fivepoint Likert scale ranging from strongly agree to strongly disagree. RESPONDENTS OF THE STUDY The respondents of this study were from one full-service casual dining restaurant, which will be referred to hereon as Restaurant X. They were all non-managerial, tipped employees, whose status of employment was full-time and regular. The total number of this type of employee at the participating establishment was at 58. Owing to the small size of the population, all of them were included as respondents to the survey. Company Profile Restaurant X is a full-service casual dining restaurant located inside a major shopping mall in Quezon City. Its decades-old specialty is fried chicken. It was first established in the Philippines in the 1940s, right after World War II, and is considered to be the pioneer in the casual dining restaurant industry in the country. It is one among 120 branches in the Philippines and abroad. Restaurant X boasts of being the second highest revenue-generating branch and has the most number of employees among all branches nationwide. Like all its Philippine branches, the management team of Restaurant X allows its employees to receive tips,
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which are pooled and divided equally among all eligible employees. The researcher chose Restaurant X for this study because of these highlights. DATA COLLECTION A request letter was sent to the branch manager of Restaurant X seeking his approval to gather data from their employees for the purpose of this study. Permission was sought to conduct an on-site survey at their establishment so the researcher could personally collect data from the respondents. The branch manager granted the researcher with permission on the premise that the name of their establishment and the identities of all respondents were to be kept confidential. After approval was obtained, the researcher negotiated with the branch supervisor for the schedule during which the researcher could personally meet with the respondents and administer the survey to them real time. The researcher then gathered data in July 2012 from Mondays through Thursdays between 03:00PM to 06:00PM. These were offpeak hours for the restaurant and, during this timeframe, the respondents were available to take the survey. Respondents who completed the survey and left no questions unanswered were given a small token of appreciation for their participation. STATISTICAL TREATMENT OF DATA After the raw data from the survey was collected and tabulated, the researcher determined and described the respondents demographic profile and their average tip size received per day. The respondents demographic information and average tip size received per day were analyzed using Frequency and Percentage Distribution. Frequency
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showed the actual headcount of respondents as grouped by their demographics and by their average tip size received per day. Percentage Distribution reflected these headcounts as fractions or portions of a hundred percent.
Where:
P =
F N
x 100
P F N
= = =
Percentage Frequency Total Population
The researcher used Weighted Mean and Standard Deviation to measure and describe the respondents levels of employee motivation when grouped according to their demographic profile and based on their average tip size received per day.
Where: X W = = = Mean Weight Score
The researcher then interpreted their answers using a five-point Likert scale, which ranged from strongly agree to strongly disagree.
Table 1 Respondents Levels of Motivation and Interpretation Respondents Answer Interpretation Strongly Agree Highly Motivated Moderately Agree Moderately Motivated Neither Agree nor Disagree Neither Motivated nor Demotivated Moderately Disagree Moderately Demotivated Strongly Disagree Highly Demotivated
Scale 4.21 5.00 3.41 4.20 2.61 3.40 1.81 2.60 1.00 1.80
To determine if there were significant differences in the levels of employee motivation when the respondents were grouped according to their demographic profile,
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the researcher made use of the One-Way Analysis of Variance (ANOVA) where the level of significance was set at 0.05.
Where:
F MSB MSW
= F Ratio = Mean Square Between Groups = Mean Square Within Groups
To find out if there were significant differences in the levels of employee motivation between respondents receiving low and high average tip size per day, the researcher made use of the Two-Tailed T-Test for Equality of Means where the level of significance was set at 0.05.
Where:
T N x S
= = = =
Test Statistic Total Number of Pairs Mean Standard Deviation of Differences Between All Pairs
= Mean of Population Values
To determine if there was a significant relationship between the respondents average tip size per day and their level of motivation, the researcher used the PointBiserial Correlation where the level of significance was set at 0.05. This statistical treatment is used to measure the degree of relationship between a dichotomized variable a categorical variable that has only two categories and an interval scale. The formula for Point-Biserial Correlation is mathematically equal to that of the Pearson Product-
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Moment Correlation or Pearsons R, which also tests the strength of the association between two variables. The interpretation of the resulting coefficient for both statistical treatments is the same.
Where:
M1 = Mean of Those Labeled 1 M0 = Mean of Those Labeled 0 n1 n0 n Sn
in the Real Dichotomous, y in the Real Dichotomous, y
= No. of Samples Labeled 1 in y = No. of Samples Labeled 0 in y = Total No. of Samples, n = n1 + n0 = Standard Deviation of All x Values
M1 and M0 represent the Average Tip Size per Day, dichotomized into two categories low tip earners and high tip earners. (y) n1 and n0 represent the Levels of Employee Motivation. (x)
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SUMMARY METHOD Below table shows a summary of the objectives, resources, research instrument, and statistical treatment of data that were used in this study:
Table 2 Summary Method Objectives To generate information on the respondents demographic profile To determine the respondents level of motivation when grouped according to their demographic profile To find out if there is a significant difference in the levels of motivation when respondents are grouped according to their demographic profile To generate information on the respondents average tip size per day To determine the respondents level of motivation based on their average tip size per day To find out if there is a significant difference in the levels of motivation between respondents receiving low and high average tip size per day To determine if there is a significant relationship between the respondents average tip size per day and their level of motivation Resources Respondent Employees Respondent Employees Research Instrument Survey Questionnaire Survey Questionnaire Statistical Treatment Frequency Percentage Distribution Weighted Mean Standard Deviation
Respondent Employees
Survey Questionnaire
One-Way ANOVA
Respondent Employees Respondent Employees
Survey Questionnaire Survey Questionnaire
Frequency Percentage Distribution Weighted Mean Standard Deviation
Two-Tailed T-Test
Point-Biserial Correlation
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RESULTS AND DISCUSSION In this section, the researcher presents the results of this study in tabulated forms. Interpretation, analysis, and discussion of the statistical data will follow each table. Tables will show the frequency and percentage distribution of the respondents demographic profile and their average tip size received per day. Tabulations on the weighted mean and standard deviation of the respondents levels of motivation when they were grouped according to their demographic profile and based on their average tip size received per day will also be presented. The ANOVA Table will show if there were significant differences in the levels of motivation when respondents were grouped according to their demographic profile. Meanwhile, the results of the T-Test are tabulated to show if there were significant differences in the levels of motivation when respondents were grouped according to their average tip size per day.
Table 3 Respondents Age Frequency 8 41 9 58
Age 20 29 Years Old
Percentage 14% 71% 16% 100%
19 Years Old and Below 30 Years Old and Above Total
The table above shows that 71% of the respondent employees were aged 20 to 29 years old. This is an indication that a big majority of the respondent employees at Restaurant X were fairly young. Based on the website of the respondent restaurant, where its job openings are advertised, they are in need of non-management employees who are below the age of 30.
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This need for young employees as part of their non-management workforce could be the reason why there was such a large number of respondent employees who were 20 to 29 years of age.
Table 4 Respondents Marital Status Marital Status Frequency Percentage Single Married Total 44 14 58 76% 24% 100%
The table above shows that three quarters (76%) of the respondent employees at Restaurant X were single while a lesser number (24%) of them were already married. The researcher was able to interview the branch supervisor at Restaurant X and learned from him that all of their employees render six-day work weeks. They report for work during weekends, holidays, and mall-wide sales because these are peak days for their business. Their rest days fall on the restaurants off peak days, which are from Mondays through Thursdays, or what would be considered as regular business days for employees in other industries. They work eight hours a day in shifts within the restaurants business hours, which are from 10AM to 10PM daily. Sometimes they would render overtime just to meet the operational requirements of the restaurant. Although Restaurant X does not discriminate against having married employees in its workforce, the nature of this erratic and hectic work schedule poses a big challenge for an employees married and/or family life. This could explain why a huge majority of the respondent employees were single.
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Table 5 Respondents Gender Gender Frequency Male Female Total 32 26 58
Percentage 55% 45% 100%
The table above shows that majority (55%) of the respondent employees at Restaurant X were male while a little less than half (45%) were female. This shows that there was almost the same population of men and women occupying non-management positions at the respondent restaurant. In the online job advertisement posted by Restaurant X, they give equal opportunity to both males and females who are looking for non-management jobs at their establishment. However, there is one type of position that is more suited for men than women that of motorcycle riders for food deliveries. This could be the reason why there was a slightly higher population of males among the respondent employees.
Table 6 Respondents Educational Attainment Educational Attainment Frequency Some High School, High School, Vocational Some College, College Graduate Studies Total 9 44 5 58
Percentage 16% 76% 9% 100%
The table above shows that 76% of the respondent employees at the participating restaurant had either attended some college or earned a college degree. These results show that three-fourths of the respondent employees had attained more than just a secondary level of education.
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It was communicated through the online webpage on career opportunities available at Restaurant X that almost all of their job vacancies are open to those who have completed at least first year college or to those who have earned a college degree. This job specification could explain why such a huge number of the respondent employees have attained more than a high school education or vocational course.
Table 7 Respondents No. of Children / Dependents No. of Children / Dependents Frequency Percentage With Children / Dependents Without Children / Dependents Total 17 41 58 29% 71% 100%
The table above shows that a big majority (71%) of the respondent employees at Restaurant X had no children or dependents while a lesser number (29%) of them had children or dependents. As previously shown in Table 4, three-fourths of the respondent employees were single while a lesser number of them were married. Their marital status may have been directly related to their number of children or dependents and could be the reason why, likewise, three fourths of them were without children or dependents.
Table 8 Respondents Take Home Pay / Net Income per Month Take Home Pay / Net Income per Month Frequency Percentage Below PHP 9,000 PHP 9,000 PHP 14,000 PHP 14,001 and Above Total 25 29 4 58 43% 50% 7% 100%
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The table above shows that half (50%) of all respondent employees at Restaurant X were earning a net income ranging from PHP 9,000 to PHP 14,000 per month while a greater number (43%) of them had a take home pay below PHP 9,000 per month. The government-mandated minimum wage for an average worker in a nonagriculture industry located in the National Capital Region is at PHP 426 per day (Department of Labor and Employment National Wages and Productivity Commission, 2012). Restaurant X, whose respondent employees fall under this category, is government compliant and strictly follows this ruling in managing its payroll. Since all respondent employees work an average of 27 days in a month, their total gross income would be somewhere around PHP 11,502, more or less depending on other individual pay level factors such as rank, tenure, skill, etc.. Less the mandatory salary deductions (i.e. SSS, Pag-IBIG, PhilHealth), their net take home pay could be anywhere from PHP 14,000 below. This may be why almost all of them (93%) had a monthly take home pay of up to PHP 14,000.
Table 9 Respondents Tenure No. of Years Worked for Current Employer Tenure No. of Years Frequency Percentage Worked for Current Employer Less than 1 Year 44 76% 1 Year or More Total 14 58 24% 100%
The table above shows that a large majority (76%) of the respondent employees at the participating restaurant had been employed by them for less than one year. This finding is reflective of the probability that three quarters of them are new employees, who
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are either casual workers, contractual employees, or staff who are still on their probationary period. According to Dermody et. al. (2004), Lynn (2002), and McDonald, et. al. (2007), it is not unusual for a restaurant to have an annual turnover rate of 90% to 100%. This is perhaps why such a very high number of respondent employees had been working for Restaurant X for less than a year.
Table 10 Respondents Tenure No. of Years Worked in the Restaurant Industry Tenure No. of Years Frequency Percentage Worked in the Restaurant Industry Less than 1 Year 40 69% 1 5 Years More than 5 Years Total 11 7 58 19% 12% 100%
The table above shows that close to three-fourths (69%) of the respondent employees at Restaurant X had been working in the restaurant industry for less than one year. According to Curtis, et. al. (2009) and Enz (2001), jobs in the restaurant industry are notoriously labeled as lowly paid, highly stressful, and seasonal. All of which are factors that work against employee motivation and organizational commitment. Lynn, et. al. (2011) further acknowledged that these factors pose a problem wherein restaurant employees switch to other industries. This could be the reason why only a small percentage of respondent employees were veterans to the restaurant business while a large majority of them were fairly new restaurant workers.
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Age 19 Years Old and Below 20 29 Years Old 30 Years Old and Above
Table 11 Respondents Level of Motivation When Grouped According to Age Level of Employee Motivation 4.25 4.16 4.50
Interpretation Highly Motivated Moderately Motivated Highly Motivated
The table above shows that the respondent employees of the participating restaurant, who were aged 19 years old and below and 30 years old and above, were highly motivated (Mean = 4.25 and 4.50 respectively) compared to those aged 20 to 29 years old, who were only moderately motivated (Mean = 4.16). As discussed under Table 6 on the respondent employees educational attainment, it was mentioned that Restaurant Xs online job advertisement stated that it is looking for non-management workers who have completed at least first year college or earned their college degree; the latter of which would usually be above the age of 19. Under Table 3 on the discussion regarding the respondent employees age, it was indicated that the respondent restaurants webpage communicated its need for non-management staff that are below the age of 30. These preferred job specifications could explain why those who were 19 years old and below and those who were 30 years old and above were highly motivated compared to the respondent employees who were were in their 20s. Those in the former two age groups could have been more driven to perform better at work to prove that they could be as competitive as those who had the job specifications initially preferred by the management of Restaurant X during the recruitment and selection process.
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Table 12 Respondents Level of Motivation When Grouped According to Marital Status Marital Status Level of Employee Motivation Interpretation Single Married 4.19 4.33 Moderately Motivated Highly Motivated
The table above shows that the married respondent employees of Restaurant X were highly motivated (Mean = 4.33) compared to the single respondent employees, who were only moderately motivated (Mean = 4.19). More often than not, married life involves having a family to support. This may be the reason why the respondent employees who were married were highly motivated compared to those who were single. The compelling need to support their family may have been the driving force behind their motivation to deliver better performance at work.
Table 13 Respondents Level of Motivation When Grouped According to Gender Level of Employee Motivation Interpretation 4.22 4.24 Highly Motivated Highly Motivated
Gender Male Female
The table above shows that both male and female respondent employees at Restaurant X were highly motivated (Mean = 4.22 and 4.24 respectively). In the discussion following the results displayed in Table 5 on the respondent employees gender, it was mentioned that, based on the online job advertisement of Restaurant X, it gives equal opportunities to both men and women when recruiting for its non-management positions. The results in the above table prove that this fair treatment of both genders by the management of the respondent restaurant extends beyond the hiring
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period and well into the respondent employees days on the job, keeping respondents of both genders highly motivated to deliver good performance at work. From an economic point of view, the results in Table 13 are reflective of the current economic situation both in the Philippines and abroad. In the old days, women were normally confined within the walls of their own homes. They were expected to take care of their families and perform domestic duties. In recent times, however, due to the pressures of providing financial support to their families once viewed as a mans sole responsibility and to the emerging empowerment of women and their roles in society, women are now seen as formidable members of todays workforce. They are now competing with the same fierce intensity as men in once male-dominated fields business, politics, education, etc.. This may explain why the female respondent employees were as highly motivated as their male counterparts.
Table 14 Respondents Level of Motivation When Grouped According to Educational Attainment Level of Educational Attainment Interpretation Employee Motivation Some High School, High School, Vocational 4.38 Highly Motivated Some College, College Graduate Studies 4.20 4.19 Moderately Motivated Moderately Motivated
The table above shows that the respondent employees of Restaurant X, who had either attended some high school, completed high school, or earned a vocational diploma, were highly motivated (Mean = 4.38). On the other hand, those who had either attended some college, completed college, or graduate studies were only moderately motivated (Mean = 4.20 and 4.19 respectively).
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The discussion following Table 6 states that Restaurant X had posted website advertisements in search of new non-management employees who have attended some college or completed their college degree. The lack of these preferred traits by those who had only completed some high school, high school, or vocational courses may be why they were highly motivated compared to those who had completed some college, college, or graduate studies. In relation to the Equity Theory (Chandler, et. al., 2008), the respondent employees who had not attended a single year in college may have been highly motivated by their need to prove that they could be as competitive as their coworkers who had attained a higher level of education; thereby, reducing their perceived inequity.
Table 15 Respondents Level of Motivation When Grouped According to No. of Children / Dependents No. of Children / Dependents Level of Employee Motivation Interpretation With Children / Dependents Without Children / Dependents 4.32 4.19 Highly Motivated Moderately Motivated
The table above shows that the respondent employees of Restaurant X who had children or dependents were highly motivated (Mean = 4.32) while those without children or dependents were only moderately motivated (Mean = 4.19). Abraham Maslows explanation for his Hierarchy of Needs stated that people are motivated by the urge to address and fulfill specific needs in a hierarchical progression physiological and safety needs being the first two needs in the hierarchy (Berger, et. al., 2008). Parents or guardians, as the primary source of food, clothing, shelter, education,
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and safety of their children or wards, are highly motivated to do their best on the job because of their desire to fulfill the needs of those dependent on them. This could explain the reason behind the high level of motivation expressed by the respondent employees who had children or dependents.
Table 16 Respondents Level of Motivation When Grouped According to Take Home Pay / Net Income per Month Level of Take Home Pay / Net Income per Month Interpretation Employee Motivation Below PHP 9,000 4.24 Highly Motivated PHP 9,000 PHP 14,000 PHP 14,001 and Above 4.17 4.54 Moderately Motivated Highly Motivated
The table above shows that the respondent employees of Restaurant X, who were earning a net income below PHP 9,000 per month and more than PHP 14,000 per month, were highly motivated (Mean = 4.24 and 4.54 respectively). Meanwhile, those who had a take home pay ranging from PHP 9,000 to PHP 14,000 per month were only moderately motivated (Mean = 4.17). As discussed under Table 8, based on the government-mandated minimum wage for an average worker in a non-agriculture industry located in the National Capital Region, the usual gross income of non-management workers at the respondent restaurant would be around PHP 11,502 per month. Table 8 shows that the largest number of employees at Restaurant X had a take home pay of PHP 9,000 to PHP 14,000 per month after taxes and other mandatory deductions. According to the Equity Theory, employees will measure what they put into the job against what they get out of the job then compare both to their relevant others. It further states that this involves the reduction of inequity
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(Chandler, et. al., 2008). Based on this theory, the respondent employees who were earning less than PHP 9,000 may have been trying to reduce their perceived inequity by exerting more effort into their jobs in order to get more monetary rewards for their efforts, such as a salary raise. This could be why this group of employees was highly motivated. Based on Abraham Maslows Hierarchy of Needs, people have a high regard for money because it allows them to buy the necessities of everyday life, satisfying their lower-order needs. Money is also a way of satisfying esteem needs, a higher-order need, because it is also viewed as a status symbol or a mark of ones worth (Davis, et. al., 2002). However, while Maslow states that only one need may dominate other needs at any one time, Clayton Alderfers E-R-G Theory poses that motivation can be fueled by several needs at the same time (Berger, et. al., 2008). While these two theories differ, they may both be used to explain the results shown in the table above. The respondents with a net income of more than PHP 14,000 per month were probably able to satisfy almost all of their primary needs in the hierarchy physiological, safety, social, and esteem needs all at the same time and with the use of money. This could explain why they were highly motivated.
Table 17 Respondents Level of Motivation When Grouped According to Tenure No. of Years Worked for Current Employer Tenure No. of Years Level of Employee Motivation Interpretation Worked for Current Employer Less than 1 Year 1 Year or More 4.23 4.21 Highly Motivated Highly Motivated
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The table above shows that all respondent employees, regardless of their tenure at the participating restaurant, were highly motivated less than one year (Mean = 4.23) and one year or more (Mean = 4.21). Restaurant X has been in the business for over half a century. It prides itself in being a pioneer in its category in the foodservice industry and of having survived the socio-economic and political turmoil from post World War II, over a decade of martial law, the EDSA I revolt, the coups d'tat that followed, and the global economic recession of recent years. Having been around for over half a century, they have proven time and time again that they are a strong company and that they are able to reassure their employees of the security of their tenure amidst every challenge the business has been faced with. This sense of pride at being employed by a prime mover and shaker in the restaurant industry and by one of the oldest in its class is probably the reason why all respondent employees were highly motivated regardless of their tenure at the respondent restaurant.
Table 18 Respondents Level of Motivation When Grouped According to Tenure No. of Years Worked in the Restaurant Industry Tenure No. of Years Level of Interpretation Worked in the Restaurant Industry Employee Motivation Less than 1 Year 1 5 Years More than 5 Years 4.12 4.33 4.67 Moderately Motivated Highly Motivated Highly Motivated
The table above shows that the respondent employees, who had worked in the restaurant industry for one year or more, were highly motivated one to five years (Mean
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= 4.33) and more than five years (Mean = 4.67) compared to those who had been restaurant workers for less than a year (Mean = 4.12). In Victor Vrooms Expectancy Theory, it is assumed that the way a person behaves is a perception of how well he will be able to perform a task and what will happen if he performs the task at that level (Nelson, et. al.., 2007). An employee who has been working in the restaurant industry for a year or more would be more knowledgeable and more skillful in the practices, processes, and procedures done in the industry compared to a restaurant employee who has been working for less than a year. Thus, when measuring the effort to performance expectancy (EP), a more tenured restaurant worker is self-assured and more confident that he or she would be able to deliver the required level of performance expected of him or her. A tenured employee is also assumed to have had past experiences over time of being rewarded and/or recognized for the good performance he or she was able to deliver. Therefore, when evaluating the performance to outcome expectancy (PO), this increases the chances that he or she would want to perform a task and perform it well because of the rewards it promises. This is perhaps why the respondent employees who had been restaurant workers for a year or more were highly motivated.
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Table 19 ANOVA on Significant Difference in the Levels of Motivation When Grouped According to Demographic Profile Grouping by Demographic Profile Age Marital Status Gender Educational Attainment No. of Children / Dependents Take Home Pay / Net Income per Month Tenure No. of Years Worked for Current Employer Tenure No. of Years Worked in the Restaurant Industry *(p < 0.05) Significant Difference Sig. 0.177 0.367 0.871 0.608 0.375 0.379 0.862 0.017 Interpretation No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference Significant Difference*
The ANOVA table above shows that there are no significant differences in the levels of motivation when respondents were grouped according to all of their demographic traits except for the number of years they have worked in the restaurant industry. This is supported by a probability value of 0.017, which is lower than 0.05. Thus, the null hypothesis of no significant difference in the levels of motivation when the respondents were grouped according to demographic profile, specifically the number of years they have worked in the restaurant industry, is rejected. The table below will show that the significant difference in the levels of motivation when respondents were grouped according to the number of years they have
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worked in the restaurant industry was found when respondents were asked to evaluate their level of motivation based on the statement, I am motivated to outperform my coworkers so I can receive more tips. It was discovered that respondents who had worked in the restaurant industry for five years or less were neither motivated nor demotivated less than one year (Mean = 3.28) and one to five years (Mean = 3.18) while those who had been restaurant workers for over five years were highly motivated (Mean = 4.57).
Table 20 Respondents Level of Motivation When Grouped According to Tenure No. of Years Worked in the Restaurant Industry Statement Tenure No. of Years Worked in the Restaurant Industry Less than 1 Year I am motivated to outperform my co-workers so I can receive more tips. 1 5 Years More than 5 Years x 3.28 3.18 4.57 Interpretation Neither Motivated nor Demotivated Neither Motivated nor Demotivated Highly Motivated
Those who had worked for more than five years in the restaurant industry may have felt the pressure coming from the realization that the respondent restaurant is always in search of new and younger employees because of the nature of its business and its high rate of employee turnover. Furthermore, according to Lynn, et. al. (2011), in most cases, servers understand that the size of their tips is related to the quality of service they deliver. Research has also shown that there is a direct correlation between the quality of service delivered and the size of the tip received in return (Azar, 2007). Based on these reasons, the respondent employees, who were old-timers in the restaurant industry, may
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have had a more compelling drive to outperform their co-workers to receive more tips so they could prove that they were as competitive as their newer and younger counterparts. On the other hand, the respondent employees, who had worked in the restaurant industry for five years or less, did not feel motivated or demotivated by outperforming their co-workers to receive more tips probably because of the nature of the tip distribution scheme at the respondent restaurant. Although the tronc or tip pooling may facilitate a fair means of tip distribution and promote harmonious relationships among employees (McConnell, 2009), this system also provides for an equal distribution among all eligible employees at a restaurant and may have no bearing on the principle of effort reward (Wood, 1997). Thus, regardless of whether an employee delivers good or bad performance on the job in comparison to his or her co-workers, he or she is entitled to receive the same amount in tips. This may explain why the less tenured respondent employees had a neutral feeling towards outperforming their co-workers in the premise of earning more tips.
Table 21 Respondents Average Tip Size per Day Average Tip Size Received per Day Frequency Below PHP 100 (Low Tip Earners) PHP 100 and Above (High Tip Earners) Total 48 10 58
Percentage 83% 17% 100%
The table above shows that most (83%) of the respondents were receiving a low average tip size per day at below PHP 100 and only a few (17%) received a high average tip size per day at PHP 100 or more.
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Based on the interview with the branch supervisor of the respondent restaurant, the average check per table at their establishment ranges from PHP 500 to almost PHP 1,000. According to the Department of Tourism (2011), McGinnis (2011), and Murphy (2009), the common practice in the Philippines is for customers to leave about 10% of the total bill even though the restaurant check already includes a service charge. This could explain why most of the respondent employees received tips below PHP 100.
Table 22 Respondents Level of Motivation Based on Average Tip Size per Day Average Tip Size Received per Day Level of Employee Motivation Below PHP 100 (Low Tip Earners) PHP 100 and Above (High Tip Earners) 4.22 4.24
Interpretation Highly Motivated Highly Motivated
The table above shows that all of the respondent employees at Restaurant X were highly motivated below PHP 100 (Mean = 4.22) and PHP 100 and above (Mean = 4.24) regardless of whether they received a low or high average tip size per day. According to the branch supervisor of Restaurant X and informal interviews with some of the respondent employees, the tips they received were pooled together then divided and distributed to all employees on a weekly basis. This manner of collection and allocation is descriptive of shared tipping or a tronc, as it is called in England (Thomas, 2006). Below table will show that all respondent employees were highly motivated because they believed that the respondent restaurants tip policies were fair and unbiased
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(Mean = 4.26) and because their tips were handled honestly and distributed fairly among all employees in their organization (Mean = 4.52).
Table 23 All Respondents Level of Motivation Statement I am encouraged to perform well on the job because the tipping policies in my organization are fair and unbiased. I am motivated to perform better on the job because tips are handled honestly in my organization. I am motivated to deliver good performance on the job because tips are distributed fairly among all employees in my organization.
x 4.26 4.52 4.55
Interpretation Highly Motivated Highly Motivated Highly Motivated
Thus, regardless of the size of their average tip size per day, all of them were confident and assured of the receipt of tips because there was a just and unbiased policy plus an honest and fair system of distribution in place whether the amount they received was high or low. Furthermore, it is said that the tronc facilitates a fair means of allocation, which promotes harmonious relationships among employees (McConnell, 2009). In relating all these considerations to the Equity Theory (Chandler, et. al., 2008), it could be inferred that the existence of fairness or equity among the respondent employees was the driving force behind their high levels of motivation.
Table 24 T-Test on Significant Difference in the Levels of Motivation When Grouped According to Average Tip Size per Day (Low Tip Earners and High Tip Earners) Statement I am motivated to report for work every day because I know that I will receive tips. I am inspired to do my best on the job because I receive tips. Sig. (2-Tailed) 0.395 0.920 Interpretation No Significant Difference No Significant Difference
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I am inspired to do my best on the job because of the size of my tips. I am motivated to outperform my co-workers so I can receive more tips. I am encouraged to deliver good customer service so that I may receive bigger tips. I am driven to improve my performance on the job because the tips I receive make me feel appreciated. I am motivated to acquire new knowledge and skills that will help me increase my tips. I am encouraged to perform well on the job because management allows employees to receive tips. I am inspired to do my best on the job because management recognizes my efforts to earn tips. I am driven to improve my performance on the job because management provides me with training to help me increase my tips. I am encouraged to perform well on the job because the tipping policies in my organization are fair and unbiased. I am motivated to perform better on the job because tips are handled honestly in my organization. I am motivated to deliver good performance on the job because tips are distributed fairly among all employees in my organization. I am driven to improve my performance on the job because I receive adequate income to support my needs. I am encouraged to perform well on the job because I like my work schedule. I am encouraged to perform well on the job because I am guaranteed of the security of my employment. I am driven to improve my performance on the job because my workplace is conducive for me to do my tasks. I am encouraged to perform well on the job because I am provided with the necessary resources to complete my job. I am motivated to perform better on the job because I am given enjoyable tasks at work. I am encouraged to perform well on the job because I am given challenging duties at work.
0.895 0.805 0.608 0.468 0.577 0.772 0.033 0.392 0.565 0.539 0.820 0.539 0.082 0.946 0.307 0.964 0.615 0.425
No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference Significant Difference* No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference
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I am inspired to do my best on the job because there are opportunities for promotion in this organization. I am motivated to perform better on the job because I feel a sense of belongingness in this organization. I am encouraged to perform well on the job because the people I work with demonstrate a people-centered attitude towards others. I am inspired to do my best on the job because management is supportive of my personal issues outside of work (e.g. death or illness in the family, domestic problems). I am inspired to do my best on the job because management is concerned about my welfare. I am encouraged to perform well on the job because management recognizes my contributions. *(t < 0.05) Significant Difference
0.105 0.393 0.601 0.684 0.851 0.170
No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference No Significant Difference
The results of the Two-Tailed T-Test revealed that there is one significant difference in the levels of motivation when the respondent employees were grouped according to their average tip size per day (low and high). This was confirmed by a tvalue of 0.033 when the respondents were asked to rate their level of motivation based on the statement, I am inspired to do my best on the job because management recognizes my efforts to earn tips. Therefore, the null hypothesis of no significant difference in the levels of motivation based on the respondents average tip size received per day is rejected.
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Table 25 Respondents Level of Motivation When Grouped According to Average Tip Size per Day (Low Tip Earners and High Tip Earners) Statement I am inspired to do my best on the job because management recognizes my efforts to earn tips. Average Tip Size Received per Day Below PHP 100 (Low Tip Earners) PHP 100 and Above (High Tip Earners) x 4.29 3.60 Interpretation Highly Motivated Moderately Motivated
The above table shows that the respondent employees, who received a daily average of PHP 100 or more in tips, were only moderately motivated (Mean = 3.60) while those who received a lower amount were highly motivated (Mean = 4.29). At the onset, this may seem surprising because money is said to be the main motivational factor for employees working in the foodservice industry (Wildes, 2008). However, money is an extrinsic reward and is less satisfying than intrinsic rewards such as personal satisfaction and career advancement (Szende, 2010). Based on Abraham Maslows Need Hierarchy Theory, as lower-order needs are satisfied, they cease to motivate because people will progress into satisfying the successively higher-order need (Berger, et. al., 2008). Perhaps those who were receiving a high average of amount in tips per day had already been able to satiate their lower-order needs and were pre-occupied in satisfying their higher-order needs. This could explain why more tips and management recognition to earn more of it did not necessarily equate to higher levels of motivation as money was no longer seen as a prime motivator. In support of the above theory, the results of this study also revealed that the top motivators for high daily average tip earners were their work schedule, opportunities for
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promotion, challenging and enjoyable duties, a sense of belongingness, and a workplace that is conducive for them to perform their tasks. None of which had anything to do with tips or other forms of monetary rewards.
Table 26 Relationship Between Average Tip Size per Day and Level of Motivation Point-Biserial Correlation Coefficient 0.055 *(rpb < 0.05) Significant Relationship Interpretation No Significant Relationship
As shown in the table above, the results of the Point-Biserial Correlation revealed that there was no significant relationship between the respondents average tip size per day and their levels of motivation. This was supported by an rpb coefficient of 0.055. From the ranking of the respondents levels of motivation based on tip-related factors and other identified job factors, it was found that their top motivators were challenging duties and enjoyable tasks at work, fair distribution and honest administration of tips, a sense of belongingness in the organization, good wages, and opportunities for promotion none of which pertained to the size of their tips. This means that the respondents motivation to perform at their best on the job was fueled by other jobrelated factors that had nothing to do with how much they received in tips.
Table 27 All Respondents Level of Motivation Based on Other Identified Job Factors Besides Tip Statement x I am driven to improve my performance on the job because I receive adequate income to support my needs. I am encouraged to perform well on the job because I like my work schedule. 4.52 4.33
Interpretation Highly Motivated Highly Motivated
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I am encouraged to perform well on the job because I am guaranteed of the security of my employment. I am driven to improve my performance on the job because my workplace is conducive for me to do my tasks. I am encouraged to perform well on the job because I am provided with the necessary resources to complete my job. I am motivated to perform better on the job because I am given enjoyable tasks at work. I am encouraged to perform well on the job because I am given challenging duties at work. I am inspired to do my best on the job because there are opportunities for promotion in this organization. I am motivated to perform better on the job because I feel a sense of belongingness in this organization. I am encouraged to perform well on the job because the people I work with demonstrate a people-centered attitude towards others. I am inspired to do my best on the job because management is supportive of my personal issues outside of work (e.g. death or illness in the family, domestic problems). I am inspired to do my best on the job because management is concerned about my welfare. I am encouraged to perform well on the job because management recognizes my contributions. Level of Employee Motivation (Based on Identified Job Factors Besides Tip)
4.41 4.38 4.31 4.50 4.57 4.45 4.55 4.29
Highly Motivated Highly Motivated Highly Motivated Highly Motivated Highly Motivated Highly Motivated Highly Motivated Highly Motivated
4.09
Moderately Motivated
4.36 4.43 4.40
Highly Motivated Highly Motivated Highly Motivated
The table above shows that, overall, besides tip, the respondent employees were highly motivated (Mean = 4.40) by other identified job factors such as good wages, satisfactory work schedule, job security, good and safe working conditions, necessary resources to complete their jobs, interesting work, career advancement, a feeling of involvement, and recognition for a job well done. However, they were only moderately motivated (Mean = 4.09) by managements support towards their personal issues outside of work, such as death or illness in the family or domestic problems.
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In most cases, when employees are facing personal issues, such as domestic concerns or death or illness in the family, they may need to absent themselves from work causing a shortage of manpower. Due to the nature of the restaurant business and its operational requirements, this is an employees need that the management of Restaurant X may sometimes overlook. The pressures of running a full-service dining establishment all year round, especially during its peak season, require the full force of a restaurants manpower to be present. Thus, management approval for emergency leaves may not have been easy for the respondent employees to get. This may be the reason why the respondents were only moderately motivated by management support towards their personal issues outside of work.
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SUMMARY AND CONCLUSION 1. The respondent employees demographic profile shows that a big majority (71%) of them were aged 20 to 29 years old, 76% were single, majority (55%) of them were male, 71% were without children or dependents, and three-fourths (76%) had either attended some college or had a college degree. Half (50%) of the respondents were earning a net income of PHP 9,000 to PHP 14,000 per month, three quarters (76%) had been employed by the respondent restaurant for less than a year, and a large majority (69%) of them had worked in the restaurant industry for less than one year. 2. When the respondent employees were grouped according to their demographic profile and their levels of motivation were measured, the results revealed that those who were aged 19 years old and below were highly motivated (Mean = 4.25) as well as those who were 30 years old and above (Mean = 4.50). The married respondents were highly motivated (Mean = 4.33) while their single counterparts were only moderately motivated (Mean = 4.19). When grouped according to gender, both males and females were found to be highly motivated (Mean = 4.22 and 4.24 respectively). Respondents who had attended some high school and completed high school or a vocational course were found to be highly motivated (Mean = 4.38) compared to the rest of the respondent population who were only moderately motivated those who had attended some college or completed college (Mean = 4.20) and those who had attended graduate studies (Mean = 4.19). Respondent employees who had children or dependents were highly motivated (Mean = 4.32) while those without were only
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moderately motivated (Mean = 4.19). Where net income per month was concerned, respondents who earned less than PHP 9,000 and made more than PHP 14,000 were all highly motivated (Mean = 4.24 and 4.54 respectively). Regardless of the number of years the respondent employees had worked for Restaurant X, all of them were found to be highly motivated respondents employed by the participating restaurant for less than one year (Mean = 4.23) and those employed by them for one year or more (Mean = 4.21). When respondents were grouped according to the number of years they had worked in the restaurant industry, those who had been restaurant workers for a year or more were all found to be highly motivated respondents who had worked in the restaurant industry for one to five years (Mean = 4.33) and more than five years (Mean = 4.67). Meanwhile, those who had worked for less than a year in the restaurant business were only moderately motivated (Mean = 4.12). 3. Among all the groupings done by demographic profile, the results of the ANOVA revealed that only one trait made a significant difference in the respondents levels of motivation the number of years they had worked in the restaurant industry. This was supported by a probability value of 0.017. More specifically, the significant difference in their levels of motivation was found when respondents were asked to rate their level of motivation based on the statement, I am motivated to outperform my co-workers so I can receive more tips. The results showed that those who had been employed in the restaurant business for more than five years were highly motivated (Mean = 4.57). On the other hand, respondent employees who had worked
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in the restaurant industry for one to five years were neither motivated nor demotivated (Mean = 3.18); similar to those who had been restaurant workers for less than a year (Mean = 3.28). 4. On the respondent employees average tip size per day, most (83%) of them received amounts below PHP 100 (low tip earners) while less than one-fifths (17%) received PHP 100 and above (high tip earners). 5. When the respondents level of motivation was measured based on their average tip size per day, the findings revealed that, regardless of tip size, low tip earners were just as highly motivated as high tip earners low tip earners (Mean = 4.22) and high tip earners (Mean = 4.24). 6. The results of the T-Test showed that there was a significant difference in the respondents levels of motivation based on their average tip size per day. This was confirmed by a t-value of 0.033 when the respondents were asked to rate their level of motivation based on the statement, I am inspired to do my best on the job because management recognizes my efforts to earn tips. Those who received less than PHP 100, the low tip earners, were highly motivated (Mean = 4.29) while those who received PHP 100 or more, the high tip earners, were only moderately motivated (Mean = 3.60). 7. The results of the Point-Biserial Correlation revealed that there was no significant relationship between the respondents average tip size per day and their levels of motivation. This was supported by an rpb coefficient of 0.055. Their top motivators
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were found to be challenging duties and enjoyable tasks at work, fair distribution and honest administration of tips, a sense of belongingness in the organization, good wages, and opportunities for promotion none of which pertained to the size of their tips. 8. The respondents level of motivation based on other identified job factors besides tip was also measured. Overall, the entire population of respondent employees was highly motivated (Mean = 4.40). However, when asked to rate their level of motivation based on the statement, I am inspired to do my best on the job because management is supportive of my personal issues outside of work (e.g. death or illness in the family, domestic problems, etc.), all respondents were only moderately motivated (Mean = 4.09).
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RECOMMENDATIONS On the basis of the findings revealed and the conclusions made in this study, the researcher puts forth the following recommendations: 1. Having found that, regardless of tip size, low tip earners were just as highly motivated as high tip earners as supported by a mean of 4.22 by low tip earners and a mean of 4.24 by high tip earners the management of the respondent restaurant is encouraged to maintain its current policies and procedures in relation to the way tips are
administered at their establishment. 2. Among all of the identified job factors besides tip, management support towards personal issues outside of work (e.g.: death or illness in the family, domestic problems, etc.) was rated as the lowest motivational factor by all respondents. This was supported by a mean of 4.09 and interpreted as Moderately Motivated. Thus, it is recommended that the management of the respondent restaurant possibly evaluate its level of support towards these issues and work together in making a positive impact on their employees personal concerns outside of the job. This may help further boost their employees levels of motivation and enable them to perform their best at work. 3. The scope of this study was limited to only one of over a hundred branches of a single branded restaurant chain with local and international locations. It is recommended that future study and research include a bigger sample size to get a broader perspective of the entire organizations average tip size per day in relation to the level of employee motivation.
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REFERENCES Azar, O. (2004). The History of Tipping From Sixteenth-Century England to United States in the 1910s. Journal of Socio-Economics, 33, 745764. Azar, O. (2007). Why Pay Extra? Tipping and the Importance of Social Norms and Feelings in Economic Theory. Journal of Socio-Economics, 36, 250265. Azucena, C. (2001). Everyones Labor Code 2001 Edition. Rex Printing Company, Inc.. Bennett, A. (2006). Tipping Points. http://www.travelandleisure.com/articles/tippingpoints. Accessed on August 10, 2011. Berger, F., Brownwell, J. (2008). Organizational Behavior for the Hospitality Industry. Prentice Hall. Bessell, I., Dicks, B., Kepner, K., Wysocki, A. (2002). Understanding Motivation: An Effective Tool for Managers. University of Florida IFAS Extension. Brenner, M. (2001). Tipping for Success: Secrets for How to Get In and Get Great Service. Brenmark House. Chan, J. (1997). Law on Labor Standards and Social Legislation Annotated [Articles 1 210, Labor Code of the Philippines] 1st Edition. Chanrobles Publishing Company. Chandler, D., Coget, J., Lau, J., Shani, A. (2008). Behavior in Organizations: An Experiential Approach 9th Edition. McGraw Hill. Conlin, M., Lynn, M., O'Donahue, T. (2003). The Norm of Restaurant Tipping. Journal of Economic Behavior and Organization, 52, 297321. Curtis, C., Severt, D., Upchurch, R. (2009). Employee Motivation and Organizational Commitment: A Comparison of Tipped and Non-tipped Restaurant Employees. International Journal of Hospitality and Tourism Administration, 10, 253269. Davis, K., Newstrom, J. (2002). Organizational Behavior: Human Behavior at Work 11th Edition. McGraw Hill.
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Department of Labor and Employment (2009). Labor Code of the Philippines: Presidential Decree No. 442, As Amended. http://www.dole.gov.ph/labor_codes.php. Accessed on January 23, 2012. Department of Labor and Employment National Wages and Productivity Commission (2012). Summary of Current Regional Daily Minimum Wage Rates. http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html. Accessed on January 23, 2012. Department of Tourism. What the Traveler Must Know About the Philippines. http://www.dotpcvc.gov.ph/Visitor%20Information/geninfo.html. Accessed on August 7, 2011. Dermody, M., Taylor, S., Young, M. (2004). Identifying Job Motivation Factors of Restaurant Servers: Insight for the Development of Effective Recruitment and Retention Strategies. International Journal of Hospitality and Tourism Administration, 5(3), 114. Diche, R. (2009). Relationship of Motivational Factors to Job Satisfaction of the Employees of Hotel A and Hotel B. College Thesis, St. Scholasticas College, Manila. Enz, C. (2001). What keeps you up at night? Key Issues of Concern for Lodging Managers. Cornell Hotel and Administration Quarterly, (42)2, 3845. Enz, C., Simons, T. (1995). Motivating Hotel Employees: Beyond the Carrot and the Stick. Cornell Hotel and Restaurant Administration Quarterly, 36, 2027. Guerrier, Y. (1999). Organizational Behaviour in Hotels and Restaurants: An International Perspective. John Wiley and Sons, Inc.. Kinicki, A., Kreitner, R. (2008). Organizational Behavior: Key Concepts, Skills, and Best Practices 3rd Edition. McGraw Hill. Kovach, K. (1995). Employee Motivation: Addressing A Crucial Factor in Your Organizations Performance. Employment Relations Today, 22(2), 93107. Lee, K. (2008). An Evaluation of the Tipping Distribution System of the Concierge Department in Makati Shangri-la Hotel, Manila in Relation to Job Satisfaction. College Thesis, St. Scholasticas College, Manila.
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Levy, S., Ritti, R. (2002). The Ropes to Skip and the Ropes to Know 6th Edition. John Wiley and Sons, Inc.. Lobb, A. (2001). Advanced Tipology. http://money.cnn.com/2001/10/07/pf/tipping. Cable News Network LP, LLP.. Accessed on August 8, 2011. Lynn, M. (2001). Restaurant Tipping and Service Quality: A Tenuous Relationship. Cornell Hotel and Restaurant Administration Quarterly, 42, 14-20. Lynn, M. (2006). Tipping in Restaurants and Around the Globe: An Interdisciplinary Review. Handbook of Contemporary Behavioral Economics: Foundations and Developments. M.E. Sharpe Publishers. Lynn, M., Kwortnik, R. Jr., Sturman, M. (2011). Voluntary Tipping and the Selective Attraction and Retention of Service Workers in the USA: An Application of the ASA Model. International Journal of Human Resource Management, 22(9), 1887 1901. Mariani, J. (2008). The International Guide to Tipping. http://www.esquire.com/theside/MARIANI/guide-to-tipping-031908. Hearst Communications, Inc. Accessed on August 7, 2011. McConnell, N. (2009). Mr. Pink Never Leaves a Tip: How Current Tip Credit and Tip Pool Guidelines Leave Employees at the Mercy of Employers. Penn State Law Review, 114 (2), 621-642. McDonald, M., Vallen, G., Van Hoof, H., Wiener, P. (2007). A Host of Opportunities: An Introduction to Hospitality Management 2nd Edition. Pearson Prentice Hall. McGinnis, C. (2011). Tipping is Not a City in China. http://www.bbc.com/travel/blog/20110630-tipping-is-not-a-city-in-china. BBC. Accessed on August 7, 2011. Mill, R. (1998). Restaurant Management: Customers, Operations, and Employees. Prentice Hall. Murphy, T. (2009). Etiquette 101. Cond Nast's Traveler, 44, (8), 10. Nelson, D., Quick, J. (2007). Understanding Organizational Behavior 3rd Edition. South Western Educational Publishing.
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Roberts, A. (2010). Tipping Tips. Scholastic Choices, (26)3, 22. Strianese, A., Strianese, P. (2003). Dining Room and Banquet Management 3rd Edition. Thomson Delmar Learning. Szende, P. (2010). Case Scenarios in Hospitality Supervision. Cengage Learning. Thomas, C. (2006). How to Open and Run a Successful Restaurant 3rd Edition. John Wiley and Sons, Inc.. Trasmonte, L., Villafuerte, B., Bon, N. (2010). Handbook on Workers Statutory Monetary Benefits 2010 Edition. Bureau of Working Conditions (BWC) Department of Labor and Employment (DOLE). United States Department of Labor (2010). Wages: Minimum Wage. http://www.dol.gov/dol/topic/wages/minimumwage.htm. Accessed on January 23, 2012. States Department of Labor (2010). Wages: Tips. http://www.dol.gov/dol/topic/wages/wagestips.htm. Accessed on January 23, 2012.
United
Valencia, S. (2001). Money Attitude as Related to Work Ethic and Intrinsic and Extrinsic Job Satisfaction. College Thesis, St. Scholasticas College, Manila. Wildes, V. (2008). Should I Stay or Should I Go? Motivation to Work in Foodservice. Journal of Foodservice Business Research, 11(3), 286994. Wood, R. (1997). Working in Hotels and Catering 2nd Edition. International Thomson Business Press.
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APPENDICES
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APPENDIX A NEGOTIATION LETTER

St. Scholasticas College 2560 Leon Guinto St., Malate, Manila, Philippines
July 9, 2012 Mr. X Branch Manager Restaurant X Quezon City, Philippines Dear Mr. X, Greetings! I am Grich B. De Vera, a senior student at St. Scholasticas College Manila taking up Bachelor of Science in Hotel and Restaurant Management. I am conducting research on average tip size and the levels of employee motivation of tipped employees in a particular restaurant. The main objectives of my study are: 1. 2. 3. To determine if there is a significant difference in the levels of motivation when respondents are grouped according to their demographic profile; To find out if there is a significant difference in the levels of motivation between respondents receiving low and high average tip size per day; and To determine if there is a significant relationship between the respondents average tip size per day and their level of motivation.
In this regard, I am seeking your approval and permission for me to conduct an on-site, real-time survey questionnaire among your tipped employees so I may generate substantial information for my research. Respondents who complete the surveys and leave no questions unanswered will be given a small token of appreciation for their involvement in my study. Rest assured, the identity of your organization and all information gathered from your employees will be kept in strict confidence and will be used only for study purposes. The final results of my study will also be shared with you so that you may use my research findings as you deem beneficial to your organization. Your positive response and willingness to participate in my research will be highly appreciated. For queries and clarification, please feel free to contact me at 887-5230, (0918) 963-8334, or at grich.devera@yahoo.com. Sincerely yours, Grich B. De Vera Student Researcher Noted by: Amelia C. Tuble, Ph.D. Thesis Adviser
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APPENDIX B RESEARCH INSTRUMENT

Good day! I am Grich B. De Vera, a senior student at St. Scholasticas College Manila taking up Bachelor of Science in Hotel and Restaurant Management. I am conducting a study on tips and employee motivation. This research requires me to administer a survey among tipped employees in a particular restaurant to generate substantial information. May I request for a few minutes of your time to participate in this survey by answering below questions? If you are able to complete the entire survey and leave no questions unanswered, you will receive a small token of appreciation for your involvement in my study. Your support and participation will be highly appreciated. Rest assured, your personal details and responses to this survey will be kept confidential. Thank you.
I. Demographic Profile For the items listed below, please place a check mark answer. Age 19 Years Old and Below 20 29 Years Old 30 39 Years Old 40 49 Years Old 50 Years Old and Above Gender Male Female No. of Children / Dependents 12 34 5 or More None Take Home Pay / Net Income per Month
*Excluding Tips *Less Taxes & Other Mandatory Deductions (i.e. SSS, Pag-IBIG, PhilHealth)
in the box that corresponds to your
Marital Status Single Married Widowed / Divorced / Separated
Educational Attainment Some High School High School Vocational Some College College Graduate Studies
Below PHP 9,000 PHP 9,000 PHP 14,000 PHP 14,001 PHP 19,000 PHP 19,001 PHP 24,000 Above PHP 24,000
Average Tip Size Received per Day Below PHP 100 PHP 100 PHP 200 PHP 201 PHP 300 PHP 301 PHP 400 PHP 401 PHP 500 Above PHP 500
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Tenure No. of Years Worked For Current Employer Less than 1 Year 1 5 Years 6 10 Years More than 10 Years
Tenure Total No. of Years Worked In the Restaurant Industry Less than 1 Year 1 5 Years 6 10 Years More than 10 Years
II. Motivation The statements listed below pertain to job factors on employee motivation. Please rate them according to the degree to which each statement applies to you. Kindly place a check mark in the column under the number that corresponds to your answer. 5 4 3 2 1 Strongly Agree Moderately Agree Neither Agree nor Disagree Moderately Disagree Strongly Disagree 5
1
I am driven to improve my performance on the job because I receive adequate income to support my needs. 2 I am motivated to report for work every day because I know that I will receive tips. 3 I am encouraged to perform well on the job because I like my work schedule. 4 I am inspired to do my best on the job because I receive tips.
5 6 7 8 9 10 11
I am encouraged to perform well on the job because I am guaranteed of the security of my employment. I am inspired to do my best on the job because of the size of my tips. I am driven to improve my performance on the job because my workplace is conducive for me to do my tasks. I am motivated to outperform my co-workers so I can receive more tips. I am encouraged to perform well on the job because I am provided with the necessary resources to complete my job. I am encouraged to deliver good customer service so that I may receive bigger tips. I am motivated to perform better on the job because I am given enjoyable tasks at work.
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12 13 14 15 16 17 18 19
20
21
22 23 24 25 26
I am driven to improve my performance on the job because the tips I receive make me feel appreciated. I am encouraged to perform well on the job because I am given challenging duties at work. I am motivated to acquire new knowledge and skills that will help me increase my tips. I am inspired to do my best on the job because there are opportunities for promotion in this organization. I am encouraged to perform well on the job because management allows employees to receive tips. I am motivated to perform better on the job because I feel a sense of belongingness in this organization. I am inspired to do my best on the job because management recognizes my efforts to earn tips. I am encouraged to perform well on the job because the people I work with demonstrate a people-centered attitude towards others. I am driven to improve my performance on the job because management provides me with training to help me increase my tips. I am inspired to do my best on the job because management is supportive of my personal issues outside of work (e.g. death or illness in the family, domestic problems). I am encouraged to perform well on the job because the tipping policies in my organization are fair and unbiased. I am inspired to do my best on the job because management is concerned about my welfare. I am motivated to perform better on the job because tips are handled honestly in my organization. I am encouraged to perform well on the job because management recognizes my contributions. I am motivated to deliver good performance on the job because tips are distributed fairly among all employees in my organization. END
If you have completed this survey questionnaire and left no questions unanswered, please approach the researcher or the survey administrator for your special token of appreciation.
Thank you for your time and for your participation in this survey.
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Average Tip Size in Relation to Level of Employee Motivation

Grich B. De Vera October 2012

St. Scholasticas College

______________________________ Rufino C. Oliva, MBA Panel Chair

Yummy F. Mangondaya, BST Panel Member

Maria Cristina D. Dizon, MSHRM Panel Member

______________________________ Victoria N. Naagas, MBA, MSTS Director, I-HOTELEIRES

St. Scholasticas College

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The researcher can never THANK YOU enough.

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