Abstract The purpose of this study was to investigate factors which influenced nurses' attitudes to cost effectiveness and quality management strategies in the Australian context. The study was conducted in a large teaching hospital using a random stratified sample (n = 132). Data was analysed using multivariate statistical techniques. Results indicated that, overall, the nurses surveyed had positive attitudes to quality management techniques since this was perceived as professionally positive. Attitudes towards cost effectiveness were notably less positive as the respondents perceived that cost effectiveness strategies were not congruent with professional practice. Analysis of nurses in the sample by employment categories revealed differing attitudes to these management interventions.