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The influence of employee empowerment on service quality and customer satisfaction is becoming very significant to the management in many service organizations. Empowerment is a panacea for many organization's ills when it is implemented with care. Managers and employees alike agree that empowerment is so crucial element in an organization. In the same line Organizations perceive empowerment as a strategy to develop employees and serve customers. If empowerment is great for customer service and employee motivation, why is empowerment not implemented effectively? Is the question that this thesis seeks to answer.