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An increasing range of competition is now held among hospitality organizations and the only way to maintain a stable or increasing market demand is through delivering quality services that exceeds or at least meets customers' expectations. The present study is an attempt to investigate the relationship between employees' positive and negative behaviors, customers' perception of service quality and overall customer satisfaction. This study investigates the role of the Positive Organizational Behavior (POB) concept of emotional competence for the effective management and customers’ assessments about its impact on customer satisfaction in public sector banks. Here researcher tested employees’ emotional competence is related to both service employees’ and customers’ state positive affect. Results of the current study revealed that all employees' behaviors, either negative or positive, are significantly affected to the customers' overall satisfaction. A total of 100 service encounters involving all are customers of a bank were assessed.

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