The author brings forth here the˚\nchanges that were evident in the˚\nmacroeconomic conditions of the˚\ncountry in the preceding decade˚\nand how they affected organizational˚\nactors. It was found that˚\nsuch changes had a profound˚\nimpact on the human resource˚\nmanagement practices of the˚\nfirms as well as on the industrial˚\nrelations climate of the country.˚\nWork arrangements have evolved˚\ndrastically in the past ten years˚\nand have challenged the existing˚\nnorms within the firm and also˚\nbrought the industrial relations˚\nclimate under strain. The article˚\ntraces how different human resource˚\npractices have changed to˚\nadapt to the dynamic exogenous˚\nenvironment.