The purpose of this study was to assess whether there are benefits to employees and firms associated with new forms of work organization and human resource and industrial relations practices. I examine a series of interrelated questions that may be summarized as follows. First, does participation in either total quality improvement teams or self-directed teams have benefits for workers, managers, and firms? If benefits exist, are they undermined by the negative effects of understaffing and job insecurity associated with downsizing? And finally, is there a coherent set of work organization, human resource, and industrial relations practices that provides mutual gains to employees and firms alike? The study utilizes a unique multi-level survey of 1,200 workers and managers in network and customer services from a regional Bell operating company to answer these questions.