This study examines how shop managers’ attitudes toward customers are transferred to sales employees, and thus affect customer performance. We surveyed shop managers, sales employees, and customers in five department stores in Seoul, South Korea, in June 2021 to determine the relationships among service orientation, customer orientation, customers’ perceptions of sales employees’ authenticity, and customer performance. We found that sales managers’ service orientation positively influences sales employees’ service and customer orientation. Furthermore, this orientation positively correlates with customers’ perceptions of sales employees’ authenticity, thereby improving service performance and customer loyalty. Few studies have examined how institutional-level capacity and attitudes influence employees within organizations and how this, in turn, affects service performance. Thus, this study theoretically and empirically explores how sales managers’ attitudes and sales behaviors are transferred to sales employees and how this affects customer performance. The research findings fill a gap in the current understanding of customer performance in the service industry.