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The article argues that the recent restructuring of the public service sector has provided employing units–local authorities, executive agencies and hospital trusts–with new and important choices in approaches to employment relations. It presents a model for use in the evaluation of the way this strategic choice has been exercised. Suggesting that such restructuring has explicitly been based upon private sector organizational forms, the model draws heavily upon a framework developed in the context of similar analysis in multi-divisional companies. It therefore looks at how first- and second-order strategic choices linked to organizational purpose, structure and control relate to employment relations decisions within the context of a range of external influences and constraints. Three strategic employment relations decisions are examined:management styles; the role and structure of the corporate personnel function …