As relentless cost pressures force organizations to achieve maximum value for money from people management, relations between personnel and the line are being transformed. There is now a clear trend for individual managers to be more involved in recruitment and reward decisions, and day-to-day development of staff. Personnel expertise can be bought in or brought in as needed, while in-house departments can adopt a directive, supportive (internal consultant), or strategic approach. This report describes exactly what changes are taking place, why they are taking place, and the likely long-term impact. Based on in-depth interviews with senior personnal and functional managers in 27 "typical" and "innovative" British organizations, it examines in detail: the background to the current debate; new roles for personnel; the planning and implementation of the change process; problems arising when responsibilities are rellocated; and comparative material from France, Germany, Japan, the USA and seven other countries.