The researcher tried to examine the effect of customer orientation of service employees onrncustomer satisfaction in the private banking sector based on the four dimensions of COSErnproposed by Hennig (2004) i.e Technical skills, social skills, motivation and perceived decisionrnmaking authority. A quantitative research design was applied whereby descriptive andrnexplanatory types were selected to describe about COSE and customer satisfaction and tornresearch the causal relationship of COSE to that of customer satisfaction. A sample ofrn424individuals that are customers of the selected banks Tier I branches were selected byrnconvenience sampling method and sample data by applying a structured questionnaire written inrnAmharic.The analysis was performed using descriptive and inferential statistics by using SPSSrnversion 20 software.The finding shows that all dimensions of COSE positively and strongly affectrncustomer satisfaction. Among the dependent variables motivation was found to have the greatestrneffect on customer satisfaction followed by perceived decision making authority while their meanrnscores show the lowest among the variables. Therefore, it is advisable for the banks to work more onrnmotivating and developing the decision making capabilities of their employees. In addition,rnconsidering the inevitability of the high effect of COSE dimensions on customer satisfaction, banksrnshould bear in mind these factors during recruitment and training of their employees