Summary The introduction of quality and productivity programmes involves extensive organizational change. This changes hierarchies and power relations in companies. This article studies the processes of organizational change in Brazilian firms. It discusses why and how change takes place and shows how different firms undergo processes of organizational transformation to very different degrees. The extent to which firms in Brazil are becoming skilling enterprises, constantly creating conditions for employees to grow, learn and take on responsibility, is assessed. It is argued that when Brazilian firms adopt new quality and productivity strategies, they become more technically competent and efficient, but do not create the organizational conditions which would ensure continual learning and improvement.