One of the most profound organizational changes currently under way is the application of project-based structures within and between firms. This change is happening in both growth and mature industries. Several management scholars have taken interest in the reasons why firms adopt project-based ways of working. However, the effect of project-based organizing on the firm's H R M is a recurrent problem and a challenge to many companies. We develop a framework for the analysis of HRM in project-intensive firms. Based on a study of four companies and the transformation of their organizational structures and processes, we identify four managerial issues and a number of questions that must be addressed to improve HRM in project-intensive firms. © 2006 Wiley Periodicals, Inc.