The Human Resources in Government project examined the impact of extensive downsizing and restructuring in Canada's public service sector and sought innovative ways of making Canada's governments "employers of choice." The project focused on Canada's federal government and the governments of Alberta, Manitoba, Ontario, and Nova Scotia. The project's main finding was that Canada's government agencies must become more flexible, knowledge-intensive, and learning-based workplaces. The project established that, as of the late 1990s, the five governments studied had not moved very far on creating the conditions enabling more innovative approaches to work organization and human resource management. Although training and information technology were generally in place, some of the governments and work units studied were lagging behind. Although innovative workplace practices were progressing at a fairly impressive pace when compared to the private sector, there remained a large untapped potential for organizational reform to improve the quality of working life and contribute to workforce renewal. The importance of building knowledge-based organizations, implementing creative recruitment and retention strategies, creating rewarding work environments, and resolving compensation dilemmas was emphasized. (A discussion of the design and methodology of the Human Resources in Government Project is appended. Fifty-seven endnotes and the names/addresses of the project's advisory committee members are included.) (MN)