The restructuring of health care delivery systems and the redesign of nursing roles is creating dramatic changes in the work environment for nurses. Empirical evidence supports the relationship between work environment and job satisfaction of nurses. However, in order for research to be applicable to practice settings, more information is needed on the specific components of the work environment most salient to nurses. Therefore, the purpose of this study was to determine the effect of the organizational and unit work environment on nurses' job satisfaction. The results of this study indicate the importance of relationships in the work setting. A cohesive peer group may compensate for other frustrations from the work environment, and a supportive manager may buffer nurses from effects of less desirable environments.