<![CDATA[Healthcare organizations require effective managerial capabilities to balance service quality, operational efficiency, and organizational sustainability. However, professional expertise alone may not ensure effective managerial performance, as its value depends on how organizations use human capital within their processes. This study examines the effects of communication skills and compensation on managerial performance, focusing on human capital effectiveness as a mediating mechanism among hospital leaders. A quantitative explanatory research design was employed using data collected through electronic questionnaires from 200 hospital leaders recruited through snowball sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), including measurement model assessment, structural model evaluation, and bootstrapping-based mediation analysis. The findings indicate that communication skills positively and significantly affect human capital effectiveness, whereas compensation has a small, significant negative effect. Human capital effectiveness positively and significantly influences managerial performance. However, communication skills and compensation have no significant direct effects on managerial performance. Human capital effectiveness significantly mediates the relationship between communication skills and managerial performance, but not the relationship between compensation and managerial performance. The study highlights the importance of effective human capital utilization, communication development, and aligned compensation practices in strengthening hospital management.]]>
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