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Purpose

The aim of the article is to analyse HR devolution from HR departments to the line. Two important problems are addressed. The first problem concerns the disregard for the changes in line management that comes with HR devolution. The second problem addressed deals with the lack of studies of organisational contingencies.

Design/methodolgy/approach

The paper presents and analyses an in‐depth case study of a radically projected firm within the Tetra Park group where a new HR‐oriented management role has been created to replace the traditional line management role. Based on the case study findings, the paper elaborates on the new approach to line management and how a new management role is moulded in the context of project‐based organisations.

Findings

Based on literature studies, the paper identifies four key challenges for HRM in project‐based organisations that are critical for the development of the new approach to line management in such settings. Based on case study observations, it analyses the creation of a new management role – the so called “competence coach” – in project‐based organisation within the Tetra Park group. It argues that the new approach adopted points to the need of breaking out of traditional conceptions of line management, and of developing the concept of an HR‐oriented management role that is a legitimate player in the HR organisation of a firm.

Originality/value

The paper provides a rich case description of a project‐based firm in a HRM perspective. The descriptions and the analysis give practical as well as theoretical implications of HRM issues that arise in project‐based firms, and of changes in line management as a way of developing the capabilities to handle these issues.

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