Abstract
This research examines the roles of psychological capital and job satisfaction in individual employee performance, mediated by work engagement, at a private hospital. The research was conducted at a private hospital, with a total of 200 respondents selected through purposive sampling. This study uses the structural equation modeling-partial least square (SEM-PLS) method as a data analysis tool. The results of the study indicate that work engagement is directly influenced by both job satisfaction and psychological capital. Furthermore, contextual performance is influenced by both job satisfaction and psychological capital. Task performance, on the other hand, is influenced by work engagement, psychological capital, and job satisfaction. Additionally, counterproductive work behavior is influenced by work engagement. Moreover, the indirect effects of psychological capital and job satisfaction significantly affect task performance and counterproductive work behavior but do not affect contextual performance. Based on these findings, it is crucial for the hospital to prioritize psychological capital and job satisfaction as primary factors affecting the quality of employee performance.