The purpose of the study is to examine the relationship among the compensation system, organizational climate, and job performance in Taiwanese textile industry. First, we purposed a research model and hypotheses based on literature review which was employing to clarify the theory concept and the association among research variables. Secondly, we got 131 valid samples from the conducting of a survey in the industry. The results showed that the compensation system and organizational climate had the main effect and the moderate effect respectively on job performance. We suggested that organizations should develop different compensation systems in order to obtain the different incentive consequence to employees in diverse attributions and job characteristics. Besides, organizations need to create a positive organizational climate while facing on the transformation of the industry and during skill upgrading.