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Recent literature on management underscores how new people‐centred management policies help to deal with new uncertainties. This article reviews recent findings which advocate wider support for post‐bureaucratic entrepreneurial management environments, focusing on respect for the dignity of individuals and for proactively developing individual skills and self esteem. A new moral contract among employees and their organization is shown to be essential for fundamental change, which can be fostered in an organization where there is a genuine belief in the ability of the individual, rather than in the organization per se. New relationships based on strong emotional commitments can release enormous entrepreneurial potential. Older bureaucratic styles of management exerting excessive control over individuals cannot cope with the increasing pace of unpredictable and ever‐changing demands. Psychological pacts between management and frontline staff, founded on trust and intra‐organizational relationships, result in greater organizational commitment from all staff.

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