Recent concern has been expressed over the reluctance of physicians in hospitals to take ‘resource management to their hearts’ (Pollitt et al. 1988, p. 232). This is important as physicians are increasingly becoming organization members with considerable economic and managerial involvement in hospitals. This paper provides some empirical evidence of differences which occur in physician behaviour once they become integrated into hospital management structures. Differences in physician managers' orientations to goals which focus on the organization as a system are compared to senior physicians in the same setting. In addition, a comparison is made between the attitudes and use of budgeting systems, a resource management strategy. The results indicate that changes in physician managers' orientation to management‐related goals and organization obligations are reflected in their budgeting beha