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The U.K.’s public sector modernization agenda has significant implications for human resource (HR) practices and how they contribute to organizational performance. Through 4 case studies of large, local authorities, this article considers how the externally imposed performance assessment process of best value review is affecting HR practices in local government and to what extent these are being developed to support the high-performance model reflected in central government performance interventions. It also explores whether these are helping or hindering approaches to the organizational development required to build the internal capability necessary for delivering local authorities’ future improvement plans.

The U.K. government is seeking to transform the quality of the National Health Service (NHS) through a process ofmodernization. It is generally thought by government and managers within the service that improving the job satisfaction of employees is an important mechanism for delivering modernization. On the basis of job satisfaction surveys carried out within 2 NHS hospitals, this article suggests that instead of being a driver for improvement, employee perception of job satisfactionmay be acting as a barrier tomodernization. The article then discusses the possibility that there may be structural tensions between the imperatives of modernization and the wish to improve job satisfaction.