IJMSS Vol.04 Issue-06, (June, 2016) ISSN: 2321-1784 International Journal in Management and Social Science (Impact Factor- 5.276) A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories International Journal in Management and Social Science http://www.ijmr.net.in email id- irjmss@gmail.com Page 808 Effect of Compensation, Motivation and Organizational Climate on Employee Satisfaction: Study on Ethiopian Airline At Bahirdar district Tilahun Nigatu Abstract The purpose of this research is to know and examine whether their effect compensation, motivation and organizational climate on employee job satisfaction in Ethiopian Airline This type of research in this study is an explanatory research and research using quantitative approach with the survey method. This study will determine the effect of pre-defined variables that explain the effect of compensation, motivation and work discipline and employee performance on office Ethiopian Airline at Bahirdar district. This research was conducted at the office of Ethiopian Airline. Total population in this study is as many as20people. As the number of the population is low the researcher taken total 20 peoplebased on the censusmethod. Data collection techniques with survey method were using a questionnaire. Instruments used in collecting the data must meet two requirements, namely the validity and reliability. And the results are all valid and reliable. So that the instrument can be used in research methods analysis in this research is the analysis of descriptive and inferential statistical analysis was using the percentage and number of respondents ratio. This research result significant influence of compensation, motivation and organizational climate on job satisfaction with the value of 70%(14/20) compensation value, motivation with value of 20%(4/20) and organization climate with the value of8.10%(2/20)on employees job satisfaction. This case shows that both variables expressed Ho rejected. It can be concluded that there is significant influence compensation, motivation and organizational climate on employee job satisfaction in Ethiopian Airline at Bahirdar district. Keywords: compensation, motivation, organizational climate, job satisfaction Ethiopian Airline. 1. Introduction One way to improve performance management, motivate and improve the performance of employees is through compensation (Mathis & Jackson, 2002). James and Jones stated that climate organization that focused on the attributes of the organization that includes a description of the organization, and is measured based on the perception (Muchinsky, 1977). Geoƌge H. LitǁiŶaŶd Roďeƌt A. “tƌiŶgeƌ, Jƌ. ;ϭϵϳϲͿ states that the oƌgaŶizatioŶal Đliŵate ĐaŶ ďe seeŶ fƌoŵ ŵultiple diŵeŶsioŶs.