After outlining the structure of the Capital Territory Health Commission in Canberra, Australia and detailing the origins of the field study within this sytem, the problem of morale within work environments is examined. This examination reviews local research as well as overseas studies and in particular looks at the relationship of morale to both quality of work life and quality of life generally. The question of work within the local health system is then investigated in detail using questionnaire and search workshop procedures. The findings from these two approaches both support and confirm each other, thereby providing a comprehensive picture of the quality of work life within the local health system. From the results of these investigations the systemic nature of the morale problem within the health system is noted and discussed. The recommendations for remediation proposed from within the system are examined and evaluated. The study then explores the issue of potential conflict between bureaucratically organised systems and the delivery of effective health services. The study also confirms the place of power, trust and communication in changing morale. One conclusion is that continuing workshop and action research methods could be of use in helping the health service meet future objectives.