A gratuity is known to be the sum of money which is commonly given by the customer or client towards a certain third party sector that is the service sector workers who have performed their job with perfection. The service of the worker defines the money of the service or the basic price of the service which has been performed. In bars and restaurants, the gratuity has been given as the customer to the tip servers and also those gratuity has been given to taxi drivers that is the included with the ridesharing and to the hairstylist and then for the other workers that could depend on the location or the country it belongs to. To calculate the tip amount to get the total gratuity tipping calculator has been used. Giving the tip is generally unchangeable behavior in which the reward mechanism has been placed with the order and it has been differentiated when it can be refunded.
Custom and etiquette:
The custom has been varied between the countries and then with different settings. Because the tip is considered to be the purpose of the social customs and then the etiquette which has been mattered with its purpose of the amount. The procedure of tipping is considered to be the not expected one and then it could be considered as the part of discouragement or the insulting thing about some of the situations or in some of the places. Because in some of the places, tipping cannot be expected and accepted by the customers and it could be discouraged in the case. The specific range of the money has been considered to be the customary amount of a tip or it can be considered as the definite percentage of the bill which has been known as the detected quality over service which has been given to the customers.
Fixed service charges:
In some of the cases or among some of the group of workers the process of offering tips is considered to be illegal processing. In the case of the united states workers and then in the case of the police officers the process offering tip is regarded as bribery. Because in the case of police officer tipping is considered to be the offense. In some of the restaurants and then with the other similar places or establishments, a fixed percentage of the service charge has been added to the billing amount which has been the legal procedure. When the amount of pricing has been charged specifically for every service then there is no need for any of the expectations over the tipping.
View of the theoretical economy:
According to the view of the theoretical economy, the principal-agent problems have been solved by the gratuities. The situation has been noted as performing their job without having any of the bribery when an agent or the workers have been working for their principle with their job. In some of the cases, the managers of the workplace thought that the tips will be the credit for the efforts of the workers which has been provided as an incentive for the workers. And then in America, the studies of the practice have been suggested as part of discriminatory.