| Enterprises in China are facing to a more serious competition. Most of enterprises are concerning about how to get continuous advantage in this furious competition. New version of Chinese Labor Law published values long-term employment, which seems to add stress on enterprises in such serious competition. However, on other perspective, it hints that employee engagement should be trained. Better job characteristics and psychological capital are a potential option to these enterprises.The research of employee engagement is always the hot topic of human resource management, and there are many articles or papers discussing of it. This paper focuses on the way how job characteristics help improve employee engagement through employees’psychological capital. By reviewing previous work on job characteristics, employees’psychological capital and employee engagement, the author puts forward a research model including seven basic hypotheses.Traditional researches on employee engagement focus on a single level. This paper tries to examine the effect of job characteristic on employees’ job and organization engagement, and investigates the mediating influence of employees’ psychological capital through a Hierarchical Linear Model (HLM). Results based on a sample of394employees from25state-owned enterprises in China. The results of research show that, at the level of organization(level-2), job characteristics have positive effects on the employees’ psychological capital, the job and organization engagement of employees in state-owned enterprises; at the level of individual(level-1), employees’ psychological capital partly plays a cross-level mediated role among job characteristics, employees’job and organization engagement in some degree. |