Please explain Ephesians 2:8-10, "by grace are ye saved through faith, not of works, for we are his workmanship, created in Christ Jesus unto good works."

In reading the context of this passage, we see in the 11th verse, that Paul is speaking to Gentiles who have converted to Christianity.  It is by God's gift of grace and not through our personal merit that salvation is offered to us (verse nine).  No one will ever be saved except as he accepts God's favor through Jesus Christ and cooperates with the divine arrangements and blessings.

NIV translates the tenth verse as follows:  "For we are God's workmanship, created in Christ Jesus to do good works, which God prepared in advance for us to do.” We are not saved by our works, but God is pleased when we strive to glorify Him through our works.