Tujuan dari penelitian ini adalah untuk membuktikan pengaruh aktivitas performance management dan rewards terhadap employee engagement, employee engagement terhadap workplace optimism dan workplace optimism terhadap kinerja individu. Penelitian ini dilakukan di salah satu Divisi PT Heavy Equipment yang bergerak di bidang penjualan alat berat. Jumlah responden adalah 279 karyawan. Sebelum disebarkan, kuesioner penelitian telah diuji validitas dan reliabilitas menggunakan SPSS. Pengolahan data untuk membuktikan hipotesis yang telah dirumuskan menggunakan metode Structural Equation Model (SEM) Lisrel 8.7.  Dari hasil yang di dapatkan menunjukkan aktifitas performance management dan rewards berpengaruh signifikan dan positif terhadap employee engagement, employee engagement berpengaruh signifikan dan positif terhadap workplace optimism, dan workplace optimism berpengaruh signifikan dan positif terhadap kinerja individu.

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Purpose of this paper is to prove the influence of performance management and rewards on employee engagement, influence of employee engagement on workplace optimism and influence of workplace optimism on individual performance. This research conducted in one of Division of PT Heavy Equipment a heavy-duty machine dealer. There are 279 respondent who joining in this research. Data processing for questioner pre-test using SPSS, and for hypothesis testing using Structural Equation Model (SEM) on Lisrel 8.7. The results show that performance management activity and rewards do have significant positive influence on employee engagement. The employee engagement has significant positive influence to create workplace optimism, and workplace optimism significantly influences the individual performance.