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PurposeWith the growing interest in service orientation research, the concept has been demonstrated to be a defining factor in the creation of superior customer service and value. The purpose of the paper is to evaluate service orientation as a socially constructed variable, empirically examine its relationship with measures of organization performance, and offer implications for management.Design/methodology/approachThis study was conducted to conceptualize and measure service orientation as an element of organizational culture, understand the linkage between service orientation as a strategic choice and organizational performance, and measure service orientation utilizing a multi‐informant approach.FindingsThe data indicated that organizational service orientation in banking is positively correlated with employee commitment, longevity, and esprit de corps, consumer products performance, service quality image, and banking profitability.Research limitations/implicationsThe study had five principal limitations: the relationships were tested in one industry, the study was cross‐sectional, the researchers were dependent on self‐reported data, the incidence of low job performance may have affected other relationships in the study, and the number of strategic units was relatively small.Practical implicationsOrganizational commitment and esprit de corps are important facets of an organization's culture that lead to longevity, higher service quality and profits.Originality/valueThis study is a step forward in investigating the organizational service orientation/organizational performance relationship in the arena of banking.

Firms with a strong service orientation ± that is, those whose organizational policies, practices, and procedures support service excellence ± often have a competitive edge in mature Western markets. In transitional economies, however ± such as within the newly opened markets of Central and Eastern Europe ± the impact of service orientation on current and future firm performance is largely unknown. Particularly, in areas where service quality has lagged, enhancing service orientation might catapult a firm's competitive standing ahead of the pack. On the other hand, boosting service orientation in markets where demand continues to outpace supply may add unnecessary cost, and little visible short-term gain. In this study, the SERV*OR scale, a measure of organizational service orientation, was administered to 105 employees from two Slovenian banks ± a newly established private bank and a large, older, state-supported bank. The private bank outperformed the state bank in service orientation and in financial performance, lending support to the idea that service orientation may enhance rather than detract from firm performance in transitional markets.

Purpose -The paper's purpose is to provide background and practical exercises for management to gain a perspective on the nature of true employee empowerment. Design/methodology/approach -After a brief overview of the nature of empowerment, a series to training exercises offers insight into how employee empowerment in the tourism industry can create deeper investment in the corporate mission and greater customer service. The exercises also examine approaches for management to avoid. Findings -Employee empowerment results from recognizing the employee's ability to be organization's eyes and ears. Originality/value -This discussion and set of exercises provides management with the opportunity to test their instincts against realistic situations of employee empowerment in the context of service failure.

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