This paper used Social Exchange Theory as a lens for comparing the impact of the supervisor-subordinate relationship on public and private nurses' perceptions of morale and affective commitment. Many OECD countries are experiencing nurse shortages and this theoretical framework proved insightful into factors contributing to turnover. The findings suggest that private sector nurses are significantly more satisfied with their supervision, enjoy greater morale and are more committed to their organisations. However, both groups were only slightly satisfied with their supervisor-subordinate relationships, implying that present management practices are not ideal for promoting effective workplace relationships. Implications for healthcare management are discussed.