SUMMARYThe current chapter looks at a grossly overlooked aspect affecting employee dignity in the workplace -the physical environment. While the knowledge economy has grown tremendously in the last four decades, researchers have not paid much attention to the new needs of the physical workspace despite the fact that office buildings represent the second largest financial overhead after human resource. At the same time, the physical space is a critical element in the organization of the processes, activities and ultimately the power structure of any organization.Dignity in itself has not been in the center of management and organizations research, either. The few scholars who have written on the subject have mostly relied on writings in philosophy, sociology, political science, and law. We use their deconstruction of dignity into matters of identity, autonomy, dependency, seriousness, and trust to link the concept to the studied effects of the office physical environment on employees.The chapter presents an overview of the different elements of the workspace environment that have been subject of interest to researchers and their effects on employees. The characteristics of the physical environment are organized in three broad groups: (i) the office structure and layout (e.g., enclosed offices vs. open plans, the presence of other barriers, the size), (ii) the office décor and design (e.g., furniture and equipment), and (iii) ergonomic aspects such as lighting, noise, temperature, and air. Their effects are expressed at multiple levels and encompass broad outcomes ranging from individual physical and psychological wellbeing to job satisfaction to team cohesion and organizational performance. The important point is that employees are almost never consulted on their preferences for elements of the office design and that there is no recognition for the need for different solutions for different types of employees and contexts. This state of affairs brings the question of employee dignity into the picture.The chapter concludes by linking the elements of the physical environment of the 21 st century office to the concepts of power and dignity. We make three basic points. First, the knowledge economy is increasingly dependent on knowledge workers who are narrowly specialized and hence tend to have different needs in the workplace. Second, decisions about the physical environment are extremely complex and giving agency to employees in these decisions is crucial because of knowledge workers' high demands of autonomy. Third, due to this complexity, a systems approach is best suited to abet the understanding of the place of the physical workspace in a constantly evolving organic system of people and organizations. We suggest that such an approach taking into consideration the physical