International Business Machines Corp

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					International Business Machines Corporation (known as IBM or "Big Blue";
NYSE: IBM) is a multinational computer technology and consulting corporation
headquartered in Armonk, New York, USA. The company is one of the few information
technology companies with a continuous history dating back to the 19th century. IBM
manufactures and sells computer hardware and software, and offers infrastructure
services, hosting services, and consulting services in areas ranging from mainframe
computers to nanotechnology.[3]

Known through most of its recent history as the world's largest computer company, as of
2006, IBM has dropped to second behind Hewlett-Packard in total revenue (though not
profit). With over 350,000 employees worldwide, IBM is the largest information
technology employer in the world. IBM holds more patents than any other U.S. based
technology company.[4] It has engineers and consultants in over 170 countries and IBM
Research has eight laboratories worldwide.[5] IBM employees have earned three Nobel
Prizes, four Turing Awards, five National Medals of Technology, and five National
Medals of Science.[6] As a chip maker, IBM is among the Worldwide Top 20
Semiconductor Sales Leaders.


        1 History
        2 Current projects
             o 2.1 Project Big Green
             o 2.2 Eclipse
             o 2.3 alphaWorks
             o 2.4 Extreme Blue
             o 2.5 Gaming
             o 2.6 Open Client Offering
             o 2.7 UC2: Unified Communications and Collaboration
             o 2.8 Lenovo and InfoPrint: recent divestitures and joint ventures
        3 IBM Software Group
        4 Corporate culture of IBM
             o 4.1 Big Blue
             o 4.2 Sales
             o 4.3 Uniform
             o 4.4 Jams
             o 4.5 Open source
             o 4.6 Project Management Center of Excellence
        5 Corporate affairs
             o 5.1 Diversity and workforce issues
                     5.1.1 Gay rights
             o 5.2 Logos
             o 5.3 Board of directors
        6 Controversy
      7 See also
      8 References and footnotes
      9 Further reading
      10 External links

[edit] History

IBM PC XT personal computer.
     Main article: History of IBM
     See also: Computing Tabulating Recording Corporation (CTR) and Herman

The company which became IBM was founded in 1888 as the Tabulating Machine
Company by Herman Hollerith, in Broome County, NY. It was incorporated as
Computing Tabulating Recording Corporation (CTR) on June 15, 1911, and was listed on
the New York Stock Exchange in 1916. IBM adopted its current name in 1924, when it
became a Fortune 500 company.

[edit] Current projects
[edit] Project Big Green

       Main article: Project Big Green

In May 2007, IBM unveiled Project Big Green -- a re-direction of $1 billion per year
across its businesses to increase energy efficiency. New IBM products and services are
expected to reduce data center energy consumption and transform clients' technology
infrastructure into ―green‖ data centers, with energy savings of approximately 42 percent
for an average data center. Project Big Green outlines a five-step approach for clients to
dramatically improve energy efficiency. The initiative includes a new global ―green
team‖ of more than 850 energy efficiency architects from across IBM. As part of Project
Big Green, IBM is building an $86 million green data center expansion at its Boulder
location and will consolidate nearly 4,000 computer servers in six locations worldwide
onto about 30 refrigerator-sized mainframes running the Linux operating system.

[edit] Eclipse

       Main article: Eclipse (software)
Eclipse is a platform-independent, Java-based software framework. Eclipse was
originally a proprietary product developed by IBM as a successor of the VisualAge
family of tools. Eclipse has subsequently been released as free/open source software
under the Eclipse Public License.

[edit] alphaWorks

       Main article: alphaWorks

alphaWorks is IBM's source for emerging software technologies. These technologies

      Flexible Internet Evaluation Report Architecture - A highly flexible
       architecture for the design, display, and reporting of Internet surveys.
      IBM History Flow Visualization Application - A tool for visualizing dynamic,
       evolving documents and the interactions of multiple collaborating authors.
      IBM Linux on POWER Performance Simulator - A tool that provides users of
       Linux on Power a set of performance models for IBM's POWER processors.
      Database File Archive And Restoration Management - An application for
       archiving and restoring hard disk files using file references stored in a database.
      Policy Management for Autonomic Computing - A policy-based autonomic
       management infrastructure that simplifies the automation of IT and business
      FairUCE - A spam filter that verifies sender identity instead of filtering content.
      Unstructured Information Management Architecture (UIMA) SDK - A Java
       SDK that supports the implementation, composition, and deployment of
       applications working with unstructured information.
      Accessibility Browser - A web-browser specifically designed to assist the
       visually-impared, to be released as open-source software. Also known as the "A-
       Browser," the technology will aim to eliminate the need for a mouse, relying
       instead completely on voice-controls, buttons and predefined shortcut keys.

[edit] Extreme Blue

Extreme Blue is a company initiative that uses experienced IBM engineers, talented
interns, and business managers to develop high-value technology. The project is designed
to analyze emerging business needs and the technologies that can solve them. These
projects mostly involve rapid-prototyping of high-profile software and hardware projects.
Entry into ExtremeBlue is competitive for both interns and IBM employees.

[edit] Gaming
IBM's Wii "Broadway" CPU

Virtually all modern console gaming systems use microprocessors developed by IBM.
The Xbox 360 contains the Xenon tri-core chipset, which was designed and produced by
IBM in less than 24 months.[7] Sony's PlayStation 3 features the cell microprocessor
designed jointly by IBM, Toshiba, and Sony. Nintendo's seventh-generation console, Wii,
features an IBM chip codenamed Broadway. The older Nintendo GameCube also utilizes
the Gekko processor, designed by IBM.

In May 2002, IBM and, Inc. announced the Butterfly Grid, a commercial
grid for the online video gaming market.[8] In March 2006, IBM announced separate
agreements with Hoplon Infotainment, Online Game Services Incorporated (OGSI), and
RenderRocket to provide on-demand content management and blade server computing

[edit] Open Client Offering

IBM announced it will launch its new software, called "Open Client Offering" which is to
run on Microsoft's Windows, Linux and Apple's Macintosh. The company states that its
new product allows businesses to offer employees a choice of using the same software on
Windows and its alternatives. This means that ―Open Client Offering‖ is to cut costs of
managing whether Linux or Apple relative to Windows. There will be no necessity for
companies to pay Microsoft for its licenses for operations since the operations will no
longer rely on software which is Windows-based. One of Microsoft's office alternatives is
the Open Document Format software, whose development IBM supports. It is going to be
used for several tasks like: word processing, presentations, along with collaboration with
Lotus, instant messaging and blog tools as well as an Internet Explorer competitor – the
Firefox web browser. IBM plans to install Open Client on 5 percent of its desktop PCs.
PSA Peugeot Citroen in January 2007 signed an agreement with Novell to run Linux on
its 20,000 desktop PCs and 2,500 server computers.

[edit] UC2: Unified Communications and Collaboration

UC2 (Unified Communications and Collaboration) is an IBM and Cisco joint project
based on Eclipse and OSGi. It will offer the numerous Eclipse application developers a
unified platform for an easier work environment.
The software based on UC2 platform will provide major enterprises with easy-to-use
communication solutions, such as the Lotus based SameTime. In the future the
SameTime users will benefit from such additional functions as click-to-call and voice

[edit] Lenovo and InfoPrint: recent divestitures and joint ventures

IBM's PC division was bought by Chinese company Lenovo on May 1, 2005 for $655
million in cash and $600 million in Lenovo stock. On January 25, 2007, Ricoh
announced purchase of IBM Printing Systems Division for $725 million and investment
in 3-year joint venture to form a new Ricoh subsidiary, InfoPrint Solutions Company;
Ricoh will own a 51% share, and IBM will own a 49% share in InfoPrint.

[edit] IBM Software Group
This group is one of the major divisions of IBM. The various brands include:

      Information Management Software — database servers and tools, text analytics,
       and content management.
      Lotus Software — Groupware, collaboration and business software. Acquired in
      Rational Software — Software development and application lifecycle
       management. Acquired in 2002.
      Tivoli Software — Systems management. Acquired in 1995.
      WebSphere - An EJB development environment, container, and a series of pre-
       packaged applications, primarily for management interfaces and web commerce.

[edit] Corporate culture of IBM
[edit] Big Blue

Sign at entrance to IBM's secure headquarters complex in Armonk

Big Blue is a nickname for IBM; several theories exist regarding its origin. One theory,
substantiated by people who worked for IBM at the time, is that IBM field reps coined
the term in the 1960s, referring to the color of the mainframes IBM installed in the 1960s
and early 1970s. "All blue" was a term used to describe a loyal IBM customer, and
business writers later picked up the term.[11][12] Another theory suggests that Big Blue
simply refers to the Company's logo. A third theory suggests that Big Blue refers to a
former company dress code that required many IBM employees to wear only white shirts
and many wore blue suits.[13][11]

[edit] Sales

IBM has often been described as having a sales-centric or a sales-oriented business
culture. Traditionally, many IBM executives and general managers are chosen from the
sales force. The current CEO, Sam Palmisano, for example, joined the company as a
salesman and, unusually for CEOs of major corporations, has no MBA or postgraduate
qualification. Middle and top management are often enlisted to give direct support to
salesmen when pitching sales to important customers.

[edit] Uniform

A dark (or gray) suit, white shirt, and a "sincere" tie[14] was the public uniform for IBM
employees for most of the 20th century. During IBM's management transformation in the
1990s, CEO Lou Gerstner relaxed these codes, normalizing the dress and behavior of
IBM employees to resemble their counterparts in other large technology companies.

[edit] Jams

In 2003, IBM embarked on an ambitious project to rewrite company values. Using its
Jam technology, the company hosted Intranet-based online discussions on key business
issues with 50,000 employees over 3 days. The discussions were analyzed by
sophisticated text analysis software (eClassifier) to mine online comments for themes. As
a result of the 2003 Jam, the company values were updated to reflect three modern
business, marketplace and employee views: "Dedication to every client's success",
"Innovation that matters - for our company and for the world", "Trust and personal
responsibility in all relationships".[15]

In 2004, another Jam was conducted during which 52,000 employees exchanged best
practices for 72 hours. They focused on finding actionable ideas to support
implementation of the values previously identified. A new post-Jam Ratings event was
developed to allow IBMers to select key ideas that support the values. The board of
directors cited this Jam when awarding Palmisano a pay rise in the spring of 2005.[16]

In July and September 2006, Palmisano launched another jam called InnovationJam.
InnovationJam was the largest online brainstorming session ever with more than 150,000
participants from 104 countries. The participants were IBM employees, members of IBM
employees' families, universities, partners, and customers. InnovationJam was divided in
two sessions (one in July and one in September) for 72 hours each and generated more
than 46,000 ideas. In November 2006, IBM declared that they will invest $US 100
million in the 10 best ideas from InnovationJam.[17]
[edit] Open source

IBM has been influenced by the Open Source Initiative, and began supporting Linux in
1998.[18] The company invests billions of dollars in services and software based on Linux
through the IBM Linux Technology Center, which includes over 300 Linux kernel
developers.[19] IBM has also released code under different open-source licenses, such as
the platform-independent software framework Eclipse (worth approximately US$40
million at the time of the donation)[20] and the Java-based relational database management
system (RDBMS) Apache Derby. IBM's open source involvement has not been trouble-
free, however (see SCO v. IBM).

[edit] Project Management Center of Excellence

The IBM Project Management Center of Excellence (PM COE) is a program dedicated to
defining and executing the steps IBM must take to strengthen its project management
capabilities. Functioning as IBM's think tank, the PM COE combines external industry
trends and directions with IBM business, organizational, and geographic requirements
and insight. Upon this foundation deliverables (such as project management policy,
practices, methods, and tools) are developed.

All IBM Project Managers (PMs) on the Project Management track (dimension) must
complete either accreditation or IBM certification. Junior PMs (Associate PM and
Advisory PM) are accredited after self-assessment and authorization from supervisors.
Senior PMs (Senior PM and Executive PM) must go through a stringent IBM certification
process. By validating project managers' expertise and skills against consistent worldwide
standards, certification helps maintain customer confidence in the high quality of IBM
professionals and it recognizes IBM professionals for their skills and experience.

Becoming certified is public recognition of achieving a significant career milestone and
demonstrating expertise in the profession. Prior to applying for IBM certification each
individual must have:

   1. successfully passed PMI exam (i.e. be a certified PMP).
   2. verifiable documentation and approval for mastery/expertise in a well-defined set
      of PM skills.
   3. several years of PM experience spanning at least 3 verifiable projects within the
      immediate 5 years (including specific role, team size, and budget requirements).
   4. verifiable documentation and proof of at least one area of specialty.
   5. demonstrated the use of IBM's Worldwide Project Management Method
   6. completed extensive classroom and online education and testing.

IBM PM Certification is a well-defined review and verification process with many
intricate details. In its most simplified form, it broadly involves:

   1. Candidate preparing a detailed package with proof of above requirements.
   2. Package review, approval, and support by at least two levels of Senior
   3. Package review and re-verification by PM COE expert.
   4. Personal interviews with the PM COE Certification board.
   5. Candidates whose experience, skills, knowledge and education are deemed valid,
      verifiable and accurate, are certified by the board as either Certified Senior
      Project Manager (CSPM) or Certified Executive Project Manager (CEPM).

IBM PM Certification is a significant achievement for any IBMer. It is a deliberately
long process with multiple checkpoints designed to ensure the integrity, fairness and
validity of the certification.

[edit] Corporate affairs
[edit] Diversity and workforce issues

IBM's efforts to promote workforce diversity and equal opportunity date back at least to
World War I, when the company hired disabled veterans. IBM was the only technology
company ranked in Working Mother magazine's Top 10 for 2004, and one of two
technology companies in 2005 (the other company being Hewlett-Packard).[21][22]

The company has traditionally resisted labor union organizing, although unions represent
some IBM workers outside the United States.

In the 1990s, two major pension program changes, including a conversion to a cash
balance plan, resulted in an employee class action lawsuit alleging age discrimination.
IBM employees won the lawsuit and arrived at a partial settlement, although appeals are
still underway. IBM also settled a major overtime class-action lawsuit in 2006.[23]

Historically IBM has had a good reputation of long-term staff retention with few large
scale layoffs. In more recent years there have been a number of broad sweeping cuts to
the workforce as IBM attempts to adapt to changing market conditions and a declining
profit base. After posting weaker than expected revenues in the first quarter of 2005, IBM
eliminated 14,500 positions from its workforce, predominantly in Europe. In May 2005,
IBM Ireland said to staff that the facility was closing down by the end of 2005 and
offered a settlement to staff. The production moved to a company called Amkor in
singapore who purchased IBM's Microelectronics business in Singapore and is widely
agreed that IBM promised this Company a full load capacity in return for the purchase of
the facility. On June 8, 2005, IBM Canada Ltd. eliminated approximately 700 positions.
IBM projects these as part of a strategy to 'rebalance' its portfolio of professional skills &
businesses. IBM India and other IBM offices in China, the Philippines and Costa Rica
have been witnessing a recruitment boom and steady growth in number of employees. At
the same time, IBM ranked 8th among all companies who sponsored H1B work visas for
foreign professionals in 2006.[24]
On October 10, 2005, IBM became the first major company in the world to formally
commit to not using genetic information in its employment decisions. This came just a
few months after IBM announced its support of the National Geographic Society's
Genographic Project.

[edit] Gay rights

IBM provides employees' same sex partners with benefits and provides an anti-
discrimination clause. The Human Rights Campaign has consistently rated IBM at 100%,
the highest score, on its index of gay-friendliness since 2003 (in 2002, the year it began
compiling its report on major companies, IBM scored 86%).[25]

[edit] Logos

                           The logo that was                   In 1972, the horizontal
                           used from 1947 to The logo that was stripes now replaced
                           1956. The         used from 1956 to the solid letters to
                           familiar "globe" 1972. The letters  suggest "speed and
The logo that was used was replaced with "IBM" took on a       dynamism." This logo,
from 1924 to 1946. The the simple letters more solid, grounded as well as the previous
logo is in a form intended "IBM" in a        and balanced      one, was designed by
to suggest a globe, girdledtypeface called appearance.[28]     graphic designer Paul
by the word                "Beton Bold."[27]                   Rand.[29]

Logos designed in the 1970s tended to be sensitive to the technical limitations of
photocopiers, which were then being widely deployed. A logo with large solid areas
tended to be poorly copied by copiers in the 1970s, so companies preferred logos that
avoided large solid areas. The 1972 IBM logo is an example of this tendency. With the
advent of digital copiers in the mid-1980s this technical restriction had largely

[edit] Board of directors

Current members of the board of directors of IBM are:

      Cathleen Black
      Ken Chenault
      Juergen Dormann
      Michael Eskew
      Shirley Ann Jackson
      Minoru Makihara
       Lucio Noto
       James W. Owens
       Samuel J. Palmisano
       Joan Spero
       Sidney Taurel
       Charles Vest
       Lorenzo Zambrano
       Benjimen Jeld
       Shamir Christie.

[edit] Controversy
This article or section may contain original research or unverified claims.
Please improve the article by adding references. See the talk page for details.

It is alleged that, during World War II, IBM CEO Thomas J. Watson used overseas
subsidiaries to provide the Third Reich with punch card machines that could help the
Nazis to track down the European Jewry. IBM has never contradicted any of the evidence
highlighted in the numerous books and documentaries on the subject. More details can be
found here.

[edit] See also
       IBM OS/2
       IBM PS/2
       IBM PC-DOS
       IBM PC
       IBM System/360
       IBM System/370
       IBM ESA/390
       IBM System z9
       IBM PC compatible (or IBM PC clone)
       List of Computer System Manufacturers
       List of IBM acquisitions and spinoffs
       List of IBM products
       SCO v. IBM
       IBM Rochester
       IBM and the Holocaust

[edit] References and footnotes
   1. ^ a b IBM 4Q06 Quarterly Earnings Report. IBM. Retrieved on 2007-01-18.
   2. ^ a b IBM: Company Overview. Reuters. Retrieved on 2006-06-27.
   3.    ^ Nanotechnology & Nanoscience.
   4.    ^ IBM maintains patent lead, moves to increase patent quality (2006-01-10).
   5.    ^ Worldwide IBM Research Locations. IBM. Retrieved on 2006-06-21.
   6.    ^ Awards & Achievements. IBM. Retrieved on 2006-07-01.
   7.    ^ IBM delivers Power-based chip for Microsoft Xbox 360 worldwide launch. IBM
   8.    ^ Butterfly and IBM introduce first video game industry computing grid. IBM (2002-05-
   9.    ^ IBM joins forces with game companies around the world to accelerate innovation. IBM
   10.   ^ IBM and Cisco: Attempt to Unite the Communication Software Developers
   11.   ^ a b (2006) Postphenomenology: A Critical Companion to Ihde. State University of New
         York Press, 228. ISBN 0-7914-6787-2.
   12.   ^ (2004) Logos, Letterheads & Business Cards: Design for Profit. Rotovision, 15. ISBN
   13.   ^ The Essential Guide to Computing: The Story of Information Technology. Publisher:
         Prentice Hall PTR, 55. ISBN 0-13-019469-7.
   14.   ^ Smith, Paul Russell (1999). Strategic Marketing Communications: New Ways to Build
         and Integrate Communications. Kogan Page, 24. ISBN 0749429186.
   15.   ^ Samuel J. Palmisano (2004-04-27). Speeches. IBM.
   16.   ^ (December 2004) "Leading Change When Business Is Good: The HBR Interview--
         Samuel J. Palmisano". Harvard Business Review. Retrieved on 2006-11-26.
   17.   ^ IBM to invest $100M in new business areas (2006-11-14).
   18.   ^ IBM launches biggest Linux lineup ever. IBM (1999-03-02). Archived from the
         original on 1999-11-10.
   19.   ^ Farrah Hamid (2006-05-24). IBM invests in Brazil Linux Tech Center.
   20.   ^ Interview: The Eclipse code donation. IBM (2001-11-01).
   21.   ^ 100 best companies for working mothers 2004. Working Mother Media, Inc.. Archived
         from the original on 2004-10-17.
   22.   ^ 100 best companies 2005. Working Mother Media, Inc.. Retrieved on 2006-06-26.
   23.   ^ IBM settles overtime lawsuit for $65 million.
   24.   ^ IBM Sponsored H1B Visas in 2006.
   25.   ^ Corporate Equality Index Human Rights Campaign Foundation, (2002 -)
   26.   ^ "IBM Archives: International Business Machines (1924-1946)." Accessed January 16,
   27.   ^ "IBM Archives: IBM in transition (1947-1956)." Accessed January 16, 2007.
   28.   ^ "IBM Archives: IBM continuity (1956-1972)." Accessed January 16, 2007.
   29.   ^ "IBM Archives: IBM international recognition (1972- )." Accessed January 16, 2007.

[edit] Timeline
For issues and trends that span particular time periods, see major events, trends, and
technologies, below.

[edit] 1880s–1924: The origin of IBM
Tabulating Machine Corporation plant in 1893.

IBM's history dates back decades before the development of electronic computers when it
developed punched card data processing equipment. It originated as the Computing
Tabulating Recording (CTR) Corporation, which was incorporated on June 16, 1911 in
Endicott, New York, United States of America.

CTR was formed through a merger of three separate corporations: Tabulating Machine
Company (founded 1896 in Washington D.C.), the International Time Recording
Company (founded 1900 in Endicott), and the Computing Scale Corporation (founded
1901 in Dayton, Ohio, USA).[1] The key person behind the merger was financier Charles
Flint, who brought together the founders of these companies to propose a merger and
remained a member of the board of CTR until his retirement in 1930.[2]

The president of the Tabulating Machine Company at the time of the merger was Herman
Hollerith, who had founded the company and was a seminal figure in the industry. His
series of patents on tabulating machine technology, first applied for in 1884, drew on his
work at the U.S. Census Bureau from 1879-82. Hollerith was initially trying to reduce the
time and complexity needed to tabulate the 1890 Census. His transition to the use of
punch cards, in 1886, laid a foundation for generations of equipment and a core
component of what would become IBM.[3]

The companies that merged to form CTR manufactured a wide range of products,
including employee time-keeping systems, weighing scales, automatic meat slicers, and
most importantly for the development of the computer, punched card equipment. Over
time CTR came to focus purely on the punched card business, and ceased its involvement
in the other activities.

Thomas J. Watson Sr. became General Manager of CTR in 1914 and President in 1915.
In 1917, CTR entered the Canadian market under the name of International Business
Machines Co., Limited and in February 14, 1924, CTR changed its name to
International Business Machines Corporation. At the helm during this period, Watson
played a central role in establishing what would become the IBM organization and

[edit] 1925-1949: IBM's early growth
During the next twenty-five years, IBM's organization and product lines grew steadily.
Despite the Great Depression of the 1930s, IBM continued to develop and manufacture
new products, and after the Social Security Act of 1935 secured a major government
contract to maintain employment data for 26 million people. IBM's archive website[4]
describes this as "the biggest accounting operation of all time," and it opened the door for
a variety of other government contracts.

In 1928, IBM introduced a new 80 column rectangular-hole punched card.[5] This format
became the standard "IBM Card" that was used by the company's tabulators and
computers for many decades.

The rise of Nazi Germany and the onset of World War II had a profound impact on IBM.
Like many U.S. businesses, IBM had troubling early relationships with the German
military/industrial technocracy. This topic is addressed in more detail below (see IBM's
role in WWII and the Holocaust).

Browning Automatic Rifle

M1 Carbine

After America entered World War II, IBM played an active role in the U.S. war effort.
According to the IBM archive website:

When World War II began, all IBM facilities were placed at the disposal of the U.S. government.
IBM's product line expanded to include bombsights, rifles and engine parts – in all, more than
three dozen major ordnance items. Thomas Watson, Sr., set a nominal one percent profit on those
products and used the money to establish a fund for widows and orphans of IBM war casualties.[6]

In particular, IBM manufactured the Browning Automatic Rifle and the M1 Carbine.
Allied military forces widely utilized IBM's tabulating equipment for military accounting,
logistics, and other war-related purposes. There was extensive use of IBM punch-card
machines for calculations made at Los Alamos during the Manhattan Project for
developing the first atomic bombs; this has been notably discussed by Richard Feynman
in his book, Surely You're Joking, Mr. Feynman!. During the War IBM also built the
Harvard Mark I for the U.S. Navy, the first large-scale automatic digital computer in the

[edit] 1950–1959: Postwar recovery and the rise of business computing
IBM 7090 installation

In the 1950s, IBM became a chief contractor for developing computers for the United
States Air Force's automated defense systems. Working on the SAGE interceptor control
system, IBM gained access to crucial research being done at Massachusetts Institute of
Technology, working on the first real-time, digital computer (which included many other
advancements such as an integrated video display, magnetic core memory, light guns, the
first effective algebraic computer language, analog-to-digital and digital-to-analog
conversion techniques, digital data transmission over telephone lines, duplexing,
multiprocessing, and networks). IBM built fifty-six SAGE computers at the price of
US$30 million each, and at the peak of the project devoted more than 7,000 employees
(20% of its then workforce) to the project. More valuable to the company in the long run
than the profits, however, was the access to cutting-edge research into digital computers
being done under military auspices. IBM neglected, however, to gain an even more
dominant role in the nascent industry by allowing the RAND Corporation to take over the
job of programming the new computers, because, according to one project participant,
Robert P. Crago, "we couldn't imagine where we could absorb two thousand
programmers at IBM when this job would be over some day, which shows how well we
were understanding the future at that time."[7] IBM would use its experience designing
massive, integrated real-time networks with SAGE to design its SABRE airline
reservation system, which met with much success.

[edit] 1960–1968: The System/360 era

       See also: History of CP/CMS

IBM was the largest of the eight major computer companies (with UNIVAC, Burroughs,
Scientific Data Systems, Control Data Corporation, General Electric, RCA and
Honeywell) through most of the 1960s. People in this business would talk of "IBM and
the seven dwarfs", given the much smaller size of the other companies' computer
divisions (IBM produced approximately 70 % of all computers in 1964).[8]

The major technical development of the 1960s was IBM's System/360 series.[9]

[edit] 1969–1979: The System/370 era

In 1970, GE sold most of its computer business to Honeywell and in 1971, RCA sold its
computing division to Sperry Rand. With only Burroughs, UNIVAC, NCR, Control Data,
and Honeywell producing mainframes, people then talked of "IBM and the BUNCH."[8]
In April 1973 Honeywell v. Sperry Rand, a landmark U.S. federal court case, was
decided. That decision invalidated the 1964 patent for the ENIAC, the world's first
general-purpose electronic digital computer, thus putting the invention of the electronic
digital computer into the public domain.

Most of those companies are now long gone as IBM competitors, except for Unisys,
which is the result of multiple mergers that included UNIVAC and Burroughs, and
General Electric, which has re-entered the business in recent years.[citation needed] NCR and
Honeywell dropped out of the general mainframe and mini sector and concentrated on
lucrative niche markets, NCR's being cash registers (hence the name, National Cash
Register), and Honeywell becoming the market leader in thermostats. The IBM computer,
the IBM mainframe, that earned it its position in the market at that time is still growing
today. It was originally known as the IBM System/360 and, in far more modern 64-bit
form, is now known as the IBM System z9.

IBM's success in the mid-1960s led to inquiries as to IBM antitrust violations by the U.S.
Department of Justice, which filed a complaint for the case U.S. v. IBM in the United
States District Court for the Southern District of New York, on January 17, 1969. The
suit alleged that IBM violated the Section 2 of the Sherman Act by monopolizing or
attempting to monopolize the general purpose electronic digital computer system market,
specifically computers designed primarily for business. Litigation continued until 1983,
and had a significant impact on the company's practices. In 1973, IBM was ruled to have
created a monopoly via its 1956 patent-sharing agreement with Sperry-Rand in the
decision of Honeywell v. Sperry Rand, a decision that invalidated the patent on the

A key event at IBM in 1969 was the decision to "unbundle" software from hardware
sales. See unbundling software and services, below.

The major technical development of the 1970s was IBM's System/370 series.

[edit] 1980–1989: Information revolution, rise of software and PC

Please help improve this article by expanding this section.
See talk page for details. Please remove this message once the section has been expanded.
T-REX Corporate Center was originally one of IBM's research labs where the IBM PC
was created.

In the 1980s, IBM consolidated its mainframe business, and expanded the scope of
mainframes with the S/390 and ESA/390 series.

The original IBM PC (ca. 1981)

The company hired Don Estridge at the IBM Entry Systems Division in Boca Raton,
Florida. With a team known as "chess", they built the IBM PC, launched on August 12,
1981. Although not cheap, at a base price of US$1,565 it was affordable for businesses
— and it was business that purchased the PC. However it was not the corporate computer
department that was responsible for this, for the PC was not seen as a proper computer. It
was generally well-educated middle managers that saw the potential — once the
revolutionary VisiCalc spreadsheet, the killer app, had been ported to the PC as the clone,
Lotus 1-2-3. Reassured by the IBM name, they began buying the machines on their own
budgets to help do the calculations they had learned at business school.

In the midrange arena, IBM consolidated the market position its General Systems
Division had built in the 1970s with the System/3, System/32 and System/34. The
System/38, with its radical architecture, had experienced delays to its first customer
shipment since announcement in 1978. In 1982, IBM disbanded the organisation that had
meant the Data Processing Division sold only mainframes to large customers while the
General Systems Division sold only S/3x machines to small and medium-sized
customers. Instead, the new ISM (small and medium customers) and ISAM divisions
(large customers) could sell whatever they wanted from the entire IBM portfolio.

1983 saw the announcement of the System/36, the replacement for the System/34. And in
1988, IBM announced the AS/400, intended to represent a point of convergence for both
System/36 customers and System/38 customers. The 1970s had seen IBM develop a
range of BICARSA applications for specific industries: construction (CMAS),
distribution (DMAS) and manufacturing (MMAS), all written in the RPG II language. By
the end of the 1980s, with the sale of its MAPICS business, IBM had almost completely
withdrawn from the BICARSA applications marketplace. Because of developments in the
antitrust cases against IBM brought by the US government and European Union, IBM
sales representatives were now able to work openly with application software houses as
partners. (For a period in the early 1980s, a 'rule of three' operated, which obliged IBM
sales representatives, if they were to propose a third-party application to a customer, they
had also to list at least two other third-party vendors in the IBM proposal. This caused
some amusement to the customer, who would typically have engaged in intense
negotiations with one of the third parties and probably not have heard of the other two

[edit] 1990–1999: IBM's rebirth

IBM's traditional mainframe business underwent major changes in the 1990s, as
customers increased their emphasis on departmental and desktop computing. On October
5, 1992, at the COMDEX computer expo, IBM announced the first ThinkPad laptop
computer, the 700c. The computer, which then cost US$4350, included a 25 MHz Intel
80486SL processor, a 10.4-inch active matrix display, removable 120 MB hard drive, 4
MB RAM (expandable to 16 MB) and a TrackPoint II pointing device.[10] On January 19,
1993 IBM announced a US$4.97 billion loss for the 1992 financial year, which was at
that time the largest single-year corporate loss in U.S. history. Since that loss, IBM has
made major changes in its business activities, shifting its focus significantly away from
components and hardware and towards software and services.

Starting in 1995 with its acquisition of Lotus Development Corp., IBM built up the
Software Group from one brand, DB2, to five: DB2, Lotus, WebSphere, Tivoli, and

[edit] 2000 and on: Recent trends

In 2002, IBM strengthened its business advisory capabilities by acquiring the consulting
arm of professional services firm PricewaterhouseCoopers. The company has
increasingly focused on business solution-driven consulting, services and software, with
emphasis also on high-value chips and hardware technologies; as of 2005 it employs
about 195,000 technical professionals. That total includes about 350 Distinguished
Engineers and 60 IBM Fellows, its most-senior engineers.
A chart showing IBM's revenue and net income, 1980–2005.

A chart showing IBM's patent history, 1993–2005.

In 2002, IBM announced the beginning of a US$10 billion program to research and
implement the infrastructure technology necessary to be able to provide supercomputer-
level resources "on demand" to all businesses as a metered utility.[11] The program has
since then been implemented.[12]

IBM has steadily increased its patent portfolio since the early 1990s, which is valuable
for cross-licensing with other companies. In every year from 1993 to 2005, IBM has been
granted significantly more U.S. patents than any other company. The thirteen-year period
has resulted in over 31,000 patents for which IBM is the primary assignee.[13] In 2003,
IBM earned 3415 patents, breaking the US record for patents in a single year.[14]

Protection of the company's intellectual property has grown into a business in its own
right, generating over $10 billion dollars to the bottom line for the company during this
period.[15][16] A 2003 Forbes article quotes Paul Horn, head of IBM Research, saying that
IBM has generated $1 billion in profit by licensing intellectual property.[17]

In 2004, IBM announced the proposed sale of its PC business to Chinese computer maker
Lenovo Group, which is partially owned by the Chinese government, for US$650 million
in cash and US$600 million in Lenovo stock. The deal was approved by the Committee
on Foreign Investment in the United States in March 2005, and completed in May 2005.
IBM acquired a 19% stake in Lenovo, which moved its headquarters to New York State
and appointed an IBM executive, Steve Ward, as its chief executive officer. The company
retained the right to use certain IBM brand names for an initial period of five years. As a
result of the purchase, Lenovo inherited a product line that features the ThinkPad, a line
of laptops that had been one of IBM's most successful products.

As of 2004, IBM had shifted much of its focus to the provision of business consulting &
re-engineering services from its hardware & technology focus. The new IBM has
enhanced global delivery capabilities in consulting, software and technology based
process services - and this change is reflected in its top-line.[18]

On June 20, 2006, IBM and Georgia Institute of Technology jointly announced a new
record in silicon-based chip speed at 500GHz. This was done by freezing the chip to
−451°F (−268°C) using liquid helium and is not comparable to CPU speed. The chip
operated at about 350GHz at room temperature.[19]

[edit] Major events, trends, and technologies
[edit] IBM's role in WWII and the Holocaust
The neutrality and factual accuracy of this section are disputed.
Please see the relevant discussion on the talk page. This article has been tagged since 2007-01-29.
This article may require cleanup to meet Wikipedia's quality standards.
Please improve this article if you can.

In 2001, author Edwin Black published IBM and the Holocaust (ISBN 0-609-80899-0), a
book that documented how IBM's New York headquarters and CEO Thomas J. Watson
acted through its overseas subsidiaries to provide the Third Reich with punch card
machines that could help the Nazis to track down the European Jewry (especially in
newly conquered territory). The book quotes extensively from numerous IBM and
government memos and letters that describe how IBM in New York, IBM's Geneva
office and Dehomag, its German subsidiary, were intimately involved in supporting Nazi
oppression. The book also includes IBM's internal reports that admit that these machines
made the Nazis much more efficient in their efforts. A 2003 documentary film The
Corporation showed close-ups of several documents including IBM code sheets for
concentration camps taken from the files of the National Archives. Prisoner Code 8 was
Jew, Code 11 was Gypsy. Camp Code 001 was Auschwitz, Code 002 was Buchenwald.
Status Code 5 was executed by order, code 6 was gas chamber. One extensively quoted
IBM report written by the company's European manager during WWII declared ―in
Germany a campaign started for, what has been termed … ‗organization of the second
front.‘‖ The memo added, ―In military literature and in newspapers, the importance and
necessity of having in all phases of life, behind the front, an organization which would
remain intact and would function with ‗Blitzkrieg‘ efficiency … was brought out. What
we had been preaching in vain for years all at once began to be realized.‖

IBM has never contradicted any of the evidence or facts in the books or the many
documentaries, but claimed it has no real information on the period. Although, IBM
actively worked with the Hitler regime from its inception in 1933 to its demise in 1945,
IBM has asserted that since their German subsidiary came under temporary receivership
by the Nazi authorities from 1941 to 1945, the main company was not responsible for
their role in the latter years of the holocaust.[20] Shortly after the war, the company
worked aggressively to recover the profits made from the many Hollerith departments in
the concentration camps, the printing of millions of punchcards used to keep track of the
prisoners, the custom-built punchcard systems, etc. The company also paid its employees
special bonuses based on high sales volume to the Nazis and collaborator regimes. As in
many corporate cases, when the US entered the war, the Third Reich left in place the
original IBM managers who continued their contacts via Geneva. IBM has consistently
refused calls by Jewish, Gypsy, survivor, and veterans groups to apologize for its
involvement with the Nazi regime.

[edit] Evolution of IBM's computer hardware

The story of IBM's hardware is intertwined with the story of the computer industry –
from vacuum tubes, to transistors, to integrated circuits, to microprocessors and beyond.
The following systems and series represent key steps:
      IBM 70x
      IBM 70xx
      System/360
      System/3
      System/370
      IBM Series/1
      IBM 801 RISC processor
      PowerPC
      System/390
      AS/400
      RS/6000
      zSeries

[edit] Evolution of IBM's operating systems

IBM operating systems have paralleled hardware development. On early systems,
operating systems represented a relatively modest level of investment, and were
essentially viewed as an adjunct to the hardware. By the time of the System/360,
however, operating systems had assumed a much larger role, in terms of cost,
complexity, importance, and risk. There are several families of modern IBM mainframe
operating systems:

      OS family, including: OS/360, OS/MFT, OS/MVT, OS/VS1, OS/VS2, MVS,
       OS/390 z/OS
      DOS family, including: DOS/360, DOS/VS, DOS/VSE, z/VSE
      VM family, including: CP/CMS, VM/370, VM/XA, VM/ESA, z/VM
      Special purpose systems, including: TPF, z/TPF

IBM had important operating systems on other platforms as well, including:

      PC family, including: PC-DOS, OS/2
      AIX family, including: AIX
      Linux family, including: Linux for zSeries

[edit] Non-computer lines of business

IBM has largely been known for its dominance of the computer business. However, it has
had significant roles in many other industries. Major areas of non-computer operation

      Typewriters
      Tabulating and other office equipment
      Wartime armaments, such as manufacture of the Browning Automatic Rifle
      Real estate (at one time owning vast tracts of undeveloped land on the U.S. east
      Instruments, e.g. medical instruments
[edit] ROLM Communication Systems Division

        Telephone Systems, In 1984 IBM partnered with ROLM Communications based
         in Santa Clara, CA to develop digital telephone switches to compete directly with
         Northern Telecom and AT&T. Two of the most popular systems were the large
         scale PABX coined ROLM CBX and the smaller PABX coined ROLM Redwood.
         ROLM was later acquired by Siemens AG in 1990 and the ROLM name was
         eventually dropped by the mid 1990's and rebranded as Siemen's Hi-Com PBX's.

[edit] Federal Systems Division

A significant part of IBM's operations were dedicated to the support of the U.S. Federal
Government, with a wide range of projects ranging from the U.S. Census Bureau to the
Department of Defense to the National Security Agency. These projects spanned
mundane administrative processing to ultra-secret supercomputing.

[edit] IBM service organizations

IBM's early dominance of the computer industry was in part due to its strong professional
services activities. IBM's advantage in building software for its own computers
eventually was seen as monopolistic, leading to antitrust proceedings. As a result, a
complex, artificial "arms-length" relationship was created separating IBM's computer
business from its service organizations. This situation persisted for decades. An example
was IBM Global Services, a huge services firm that competed with the likes of Electronic
Data Systems.

[edit] Unbundling of software and services in 1969

In 1969, IBM "unbundled" software from hardware sales. Until this time, customers did
not generally pay for software; software was provided at no additional charge, generally
in source code form. This practice existed throughout the industry. Quoting from the
abstract to a widely-read IEEE paper on the topic:[21]

        Many people believe that one pivotal event in the growth of the business
        software products market was IBM's decision, in 1969, to price its software
        and services separately from its hardware.                                     ”
At the time, the unbundling of services was perhaps the most contentious point, involving
antitrust issues that had recently been widely debated in the press and the courts.
However, IBM's unbundling of software had long-term impacts. After the unbundling
event, IBM software was divided into two main categories: System Control Programming
(SCP), which remained free to customers; and Program Products (PP), which were
subject to a separate cost. This transformed the customer's value proposition for computer
solutions, giving a significant monetary value to something that, before, had essentially
been free. This helped enable the creation of a software industry.[22][23]
[edit] High-level languages

Early IBM computer systems, like those from many other vendors, were programmed
using assembly language. Computer science efforts through the 1950s and early 1960s
led to the development of many new high-level languages for programming. IBM played
a complicated role in this process. Hardware vendors were naturally concerned about the
implications of portable languages that would allow customers to pick and choose among
vendors without compatibility problems. IBM, in particular, helped create barriers that
tended to lock customers into a single platform.

IBM had a significant role in the following major computer languages:

      FORTRAN – for years, the dominant language for mathematics and scientific
      PL/I – an attempt to create a "be all and end all" language
      COBOL – eventually the ubiquitous language for business applications
      PL/S – an internal systems programming language proprietary to IBM
      SQL – a relational query language developed for IBM's System R; now the
       standard RDBMS query language
      Rexx – a macro and scripting language based on PL/I syntax originally developed
       for Conversational Monitor System (CMS) and authored by IBM Fellow Mike

[edit] IBM and AIX/UNIX/Linux/SCO

IBM developed a schizophrenic relationship with the UNIX and Linux worlds. The
importance of IBM's large computer business placed strange pressures on all of IBM's
attempts to develop other lines of business. All IBM projects faced the risk of being seen
as competing against company priorities. This was because, if a customer decided to
build an application on an RS/6000 platform, this also meant that a decision had been
made against a mainframe platform. So despite having some excellent technology, IBM
often placed itself in a compromised position. For UNIX zealots, this meant that IBM
lagged behind leaders like Sun Microsystems.

A case in point is IBM's GFIS products for infrastructure management and GIS
applications. Despite long having a dominant position in such industries as electric, gas,
and water utilities, IBM stumbled badly in the 1990s trying to build workstation-based
solutions to replace its old mainframe-based products. Customers were forced to move on
to new technologies from other vendors; many felt betrayed by IBM.

IBM embraced open source technologies in the 1990s. It later became embroiled in a
complex litigation with SCO group over intellectual property rights related to the UNIX
and Linux platforms.

[edit] References
   1. ^ IBM Archives: Frequently Asked Questions.
   2. ^ IBM Archives: Charles R. Flint.
   3. ^ – early Hollerith history, with good photographs of period
   4. ^
   5. ^ "IBM Archives: 1928" (history), IBM, 2006, webpage: IBM-
   6. ^
   7. ^ Wendover, Robert (2003). High Performance Hiring. Thomson Crisp Learning, 179.
       ISBN 1-56052-666-1.
   8. ^ a b W. Pugh, Emerson (1995-02-01). Building IBM, 296 - 297. ISBN 0-262-16147-8.
   9. ^ * E.W. Pugh, L.R. Johnson, and John H. Palmer, IBM's 360 and early 370 systems,
       MIT Press, Cambridge MA and London, ISBN 0-262-16123-0
       – extensive (819 pp.) treatment of IBM's offerings during this period
   10. ^ IBM's ThinkPad turns 10. CNET (2002-10-06).
   11. ^ Spooner, John G.; Sandeep Junnarkar (2002-10-30). IBM talks up 'computing on
       demand'. CNET.
   12. ^ Lamonica, Martin (2004-03-02). IBM fills in on-demand picture. CNET.
   13. ^ IBM maintains patent lead, moves to increase patent quality (2006-01-10).
   14. ^ IBM breaks U.S. patent record. IBM (2004-01-12).
   15. ^ John Teresko (2003-03-01). IBM's Patent/Licensing Connection. IndustryWeek.
   16. ^ Patent Licensing: Another Way to Enhance Return on Investment. Inc. (magazine)
       (2001-08-09). Archived from the original on 2002-07-16.
   17. ^ IBM's Path From Invention To Income. Forbes (2003-08-07).
   18. ^ Can Big Blue Succeed In BPO?. Wharton School of the University of Pennsylvania
   19. ^ Toon, John (2006-06-20). Georgia Tech/IBM Announce New Chip Speed Record.
       Georgia Institute of Technology.
   20. ^ IBM Statement on Nazi-era Book and Lawsuit. IBM (2001-02-14).
   21. ^ Burton Grad, "A Personal Recollection: IBM's Unbundling of Software and Services,"
       IEEE Annals of the History of Computing, Vol. 24, No. 1 (Jan-Mar, 2002), pp. 64-71.
   22. ^ Pugh, Emerson W. "Origins of Software Unbundling." IEEE Annals of the History of
       Computing, Vol. 24, No. 1 (Jan-Mar 2002): pp. 57-58.
   23. ^ Hamilton, Thomas W.IBM's unbundling decision: Consequences for users and the
       industry, Programming Sciences Corporation, 1969.

Human resources is a term in which many organizations describe the combination of
traditionally administrative personnel functions with performance management,
employee relations and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology. Human resources has at least two related
interpretations depending on context. The original usage derives from political economy
and economics, where it was traditionally called labor, one of four factors of production.
The more common usage within corporations and businesses refers to the individuals
within the firm, and to the portion of the firm's organization that deals with hiring, firing,
training, and other personnel issues. This article addresses both definitions.
The objective of Human Resources is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of human
resource managers to conduct these activities in an effective, legal, fair, and consistent
manner. Human resource management serves these key functions:

   1.    Hiring (recruitment)
   2.    Compensation
   3.    Evaluation and Management (of Performance)
   4.    Promotions
   5.    Managing Relations
   6.    Planning
   7.    Payroll


        1 Human resources
        2 Human resource development
        3 Modern concept of human resources
        4 See also
        5 External links

[edit] Human resources
Modern analysis emphasizes that human beings are not "commodities" or "resources",
but are creative and social beings that make class contributions beyond 'labor' to a society
and to civilization. The broad term human capital has evolved to contain some of this
complexity, and in micro-economics the term "firm-specific human capital" has come to
represent a meaning of the term "human resources."

Advocating the central role of "human resources" or human capital in enterprises and
societies has been a traditional role of socialist parties, who claim that value is primarily
created by their activity, and accordingly justify a larger claim of profits or relief from
these enterprises or societies. Critics say this is just a bargaining tactic which grew out of
various practices of medieval European guilds into the modern trade union and collective
bargaining unit.

A contrary view, common to capitalist parties, is that it is the infrastructural capital and
(what they call) intellectual capital owned and fused by "management" that provides most
value in financial capital terms. This likewise justifies a bargaining position and a general
view that "human resources" are interchangeable.
A significant sign of consensus on this latter point is the ISO 9000 series of standards
which requires a "job description" of every participant in a productive enterprise. In
general, heavily unionized nations such as France and Germany have adopted and
encouraged such descriptions especially within trade unions. One view of this trend is
that a strong social consensus on political economy and a good social welfare system
facilitates labor mobility and tends to make the entire economy more productive, as labor
can move from one enterprise to another with little controversy or difficulty in adapting.

An important controversy regarding labor mobility illustrates the broader philosophical
issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that this appropriation is similar to
colonial commodity fiat wherein a colonizing European power would define an arbitrary
price for natural resources, extracting which diminished national natural capital.

The debate regarding "human resources" versus human capital thus in many ways echoes
the debate regarding natural resources versus natural capital. Over time the United
Nations have come to more generally support the developing nations' point of view, and
have requested significant offsetting "foreign aid" contributions so that a developing
nation losing human capital does not lose the capacity to continue to train new people in
trades, professions, and the arts.

An extreme version of this view is that historical inequities such as African slavery must
be compensated by current developed nations, which benefited from stolen "human
resources" as they were developing. This is an extremely controversial view, but it echoes
the general theme of converting human capital to "human resources" and thus greatly
diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use
as "labor" in the using society.

In a series of reports of the UN Secretary-General to the General Assembly over the last
decade [e.g. A/56/162 (2001)], a broad intersectoral approach to developing human
resourcefulness has been outlined as a priority for socio-economic development and
particularly anti-poverty strategies. This calls for strategic and integrated public policies,
for example in education, health, and employment sectors that promote occupational
skills, knowledge and performance enhancement.

In the very narrow context of corporate "human resources", there is a contrasting pull to
reflect and require workplace diversity that echoes the diversity of a global customer
base. Foreign language and culture skills, ingenuity, humor, and careful listening, are
examples of traits that such programs typically require. It would appear that these
evidence a general shift to the human capital point of view, and an acknowledgment that
human beings do contribute much more to a productive enterprise than "work": they
bring their character, their ethics, their creativity, their social connections, and in some
cases even their pets and children, and alter the character of a workplace. The term
corporate culture is used to characterize such processes.
The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete in the
modern global economy have adopted a view of human capital that mirrors the modern
consensus as above. Some of these, in turn, deprecate the term "human resources" as

As the term refers to predictable exploitations of human capital in one context or another,
it can still be said to apply to manual labor, mass agriculture, low skill "McJobs" in
service industries, military and other work that has clear job descriptions, and which
generally do not encourage creative or social contributions.

In general the abstractions of macro-economics treat it this way - as it characterizes no
mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific
human capital" as defined in macro-economics is the modern and correct definition of
"human resources" - and that this is inadequate to represent the contributions of "human
resources" in any modern theory of political economy.

[edit] Human resource development
In terms of recruitment and selection it is important to consider carrying out a thorough
job analysis to determine the level of skills/technical abilities, competencies, flexibility of
the employee required etc. At this point it is important to consider both the internal and
external factors that can have an impact on the recruitment of employees. The external
factors are those out-with the powers of the organization and include issues such as
current and future trends of the labor market e.g. skills, education level, government
investment into industries etc. On the other hand internal influences are easier to control,
predict and monitor, for example management styles or even the organizational culture.

In order to know the business environment in which any organization operates, three
major trends should be considered:

      Demographics – the characteristics of a population/workforce, for example, age,
       gender or social class. This type of trend may have an effect in relation to pension
       offerings, insurance packages etc.
      Diversity – the variation within the population/workplace. Changes in society
       now mean that a larger proportion of organizations are made up of female
       employees in comparison to thirty years ago. Also over recent years organizations
       have become more culturally diverse and have increased the number of working
       patterns (part-time, casual, seasonal positions) to cope with the changes in both
       society and the global market. It is important to note here that an organization
       must consider the ethical and legal implications of their decisions in relation to
       the HRM policies they enact to protect employees. Employers have to be acutely
       aware of the rise in discrimination, unfair dismissal and sexual/racial harassment
       cases in recent years and the detrimental effects this can have on the employees
       and the organization. Anti-discrimination legislation over the past 30 years has
       provided a foundation for an increasing interest in diversity at work which is
       ―about creating a working culture that seeks, respects and values difference.‖
      Skills and qualifications – as industries move from manual to a more managerial
       professions so does the need for more highly skilled graduates. If the market is
       ‗tight‘ i.e. not enough staff for the jobs, employers will have to compete for
       employees by offering financial rewards, community investment, etc.

In regards to how individuals respond to the changes in a labour market the following
should be understood:

      Geographical spread – how far is the job from the individual? The distance to
       travel to work should be in line with the pay offered by the organization and the
       transportation and infrastructure of the area will also be an influencing factor in
       deciding who will apply for a post.
      Occupational structure – the norms and values of the different careers within an
       organization. Mahoney 1989 developed 3 different types of occupational structure
       namely craft (loyalty to the profession), organization career (promotion through
       the firm) and unstructured (lower/unskilled workers who work when needed).
      Generational difference –different age categories of employees have certain
       characteristics, for example their behaviour and their expectations of the

Recruitment methods are wide and varied, it is important that the job is described
correctly and any personal specifications stated. Job recruitment methods can be through
job centres, employment agencies/consultants, headhunting, and local/national
newspapers. It is important that the correct media is chosen to ensure an appropriate
response to the advertised post.

[edit] Modern concept of human resources
Though human resources have been part of business and organizations since the first days
of agriculture, the modern concept of human resources began in reaction to the efficiency
focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in
the United States started the human relations movement, which viewed workers in terms
of their psychology and fit with companies, rather than as interchangeable parts. This
movement grew throughout the middle of the 20th century, placing emphasis on how
leadership, cohesion, and loyalty played important roles in organizational success.
Although this view was increasingly challenged by more quantitatively rigorous and less
"soft" management techniques in the 1960s and beyond, human resources had gained a
permanent role within an organization.

[edit] See also
      Chartered Institute of Personnel and Development
      Employee engagement
        HR-XML
        Human resources in education
        Human Resource Management
        Human Resource Management Systems
        Job analysis
        List of human resource management topics
        OD Practitioner Network
        Organizational studies
        Portable Employer of Record
        Personnel selection
        Professional development
        Society for Human Resource Management
        Worldwide ERC (Employee Relocation Council)
        Human Resource Consulting
        Industrial and Organizational Psychology

Increased competition, changing workforce demographics and a shift toward knowledge-based
work are requiring companies to place an increasingly higher priority on improving workforce
productivity. Organizations are now looking to the Human Resources (HR) function to go beyond
the delivery of cost-effective administrative services and provide expertise on how to leverage
human capital to create true marketplace differentiation. Facing these challenges, many HR
organizations have been actively revamping to more effectively deliver the strategic insights the
business requires.
                                                                                       Back to top

“If HR does not force its way into the heart of strategic planning in organizations, it will default to a
technical and transactional dead end.”
— Helen Drinan, former president and CEO, Society for Human Resources Management
Improving the strategic capability of the HR organization is not, by itself, a new idea. Spurred on
by leading academics such as David Ulrich and Edward Lawler, organizations have worked for
the better part of the last decade to build more strategic capability into their HR departments.
However, the perceptions of many HR personnel and their internal customers suggest that most
have not reached this goal. A survey by the Society for Human Resource Management indicated
that only 34 percent of executives viewed the HR function as a “strategic partner.” A similar study
from the Chartered Institute for Personnel Development in the UK found that 56 percent of HR
professionals aspired to become “strategic partners,” yet only 33 percent currently perform this
role. These findings, coupled with our research, suggest that the migration toward a more
strategic HR organization remains, for many companies, a work in progress.
Competing in today's environment requires companies to focus on building a more responsive,
flexible and resilient workforce. To do so, organizations must do a more effective job of sourcing
talent, allocating resources across competing initiatives, measuring performance and building key
capabilities and skills. HR organizations that provide strategic guidance on these issues can
become proactive drivers of organizational effectiveness, rather than simply a supporter of these