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. 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. It has engineers and consultants in over 170 countries and IBM Research has eight laboratories worldwide. IBM employees have earned three Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. As a chip maker, IBM is among the Worldwide Top 20 Semiconductor Sales Leaders. Contents [hide] 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  History IBM PC XT personal computer. Main article: History of IBM See also: Computing Tabulating Recording Corporation (CTR) and Herman Hollerith 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.  Current projects  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.  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.  alphaWorks Main article: alphaWorks alphaWorks is IBM's source for emerging software technologies. These technologies include: 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 processes. 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.  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.  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. 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 Butterfly.net, Inc. announced the Butterfly Grid, a commercial grid for the online video gaming market. 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 resources.  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.  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 mailing.  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.  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 1995. 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.  Corporate culture of IBM  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. 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.  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.  Uniform A dark (or gray) suit, white shirt, and a "sincere" tie 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.  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". 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. 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.  Open source IBM has been influenced by the Open Source Initiative, and began supporting Linux in 1998. 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. 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) 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).  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 (WWPMM). 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 Management. 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.  Corporate affairs  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). 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. 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. 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.  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%).  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. graphic designer Paul by the word "Beton Bold." Rand. "International". 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 disappeared.  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.  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.  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  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 (2005-10-25). 8. ^ Butterfly and IBM introduce first video game industry computing grid. IBM (2002-05- 09). 9. ^ IBM joins forces with game companies around the world to accelerate innovation. IBM (2006-03-21). 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 2-88046-750-0. 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. LWN.net. 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, 2007. 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.  Timeline For issues and trends that span particular time periods, see major events, trends, and technologies, below.  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). 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. 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. 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 culture.  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 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. 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. 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 U.S.  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." 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.  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). The major technical development of the 1960s was IBM's System/360 series.  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." 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. 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 ENIAC. 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.  1980–1989: Information revolution, rise of software and PC industries 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 vendors.)  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. 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 Rational.  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. The program has since then been implemented. 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. In 2003, IBM earned 3415 patents, breaking the US record for patents in a single year. 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. A 2003 Forbes article quotes Paul Horn, head of IBM Research, saying that IBM has generated $1 billion in profit by licensing intellectual property. 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. 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.  Major events, trends, and technologies  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. 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.  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  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  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 include: 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 coast) Instruments, e.g. medical instruments  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.  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.  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.  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: “ 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.  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 programming 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 Cowlishaw  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.  References 1. ^ IBM Archives: Frequently Asked Questions. 2. ^ IBM Archives: Charles R. Flint. 3. ^ officemuseum.com – early Hollerith history, with good photographs of period equipment 4. ^ http://www-03.ibm.com/ibm/history/history/decade_1930.html 5. ^ "IBM Archives: 1928" (history), IBM, 2006, www-03.IBM.com/IBM webpage: IBM- Archive-1928. 6. ^ http://www-03.ibm.com/ibm/history/history/decade_1940.html 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 News.com (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 (2004-12-01). 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 Contents [hide] 1 Human resources 2 Human resource development 3 Modern concept of human resources 4 See also 5 External links  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 useless. 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.  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 organization. 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.  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.  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 Summary 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 Abstract “If HR does not force its way into the heart of strategic planning in organizations, it will default to a 1 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 2 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 3 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 4 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 efforts.