We outline the design and development of a diagnostic tool for use in health care organisations to assist in benchmarking the management of human resources. Key areas of focus were the way in which employees perceived their work roles, work loads, satisfaction with their work life and their views of clients, peers, front line supervisors and senior management. Using a cross-section of metropolitan and regional health services, the study used focus groups and large-scale survey research to capture data on these employee perceptions. Principal component analysis identified a series of ‘factors’ associated with the key elements found within human resource management (HRM) frameworks. The diagnostic tool we developed offers a way of measuring employees’ perceptions of their work environment and offers managers within large health care service organisations a potentially useful tool for benchmarking human resources.

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