The Purpose of this study was to identify management-related factors contributing to personnel satisfaction in hospital wards. The sample population consisted of the employees of 15 hospital wards in four medical departments. The wards were classified into two categories on the basis of the satisfaction of the personnel with the management: ‘satisfied wards’ (seven wards with a highly satisfied personnel, n = 124) and ‘other wards’ (eight wards, n= 186). The employees of ‘satisfied wards’ reported more innovative activities and continuous quality improvements, more possibilities to participate in decision-making, more efficient communication within the ward and between other units, and more managerial activities for promoting the well-being of the staff compared with the personnel of ‘other wards’. According to the ratings of the nursing directors, the quality of patient care in the ‘satisfied wards’ was higher, but there were no differences in cost-effectiveness between the study groups.