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The rapid changes in the business environment have necessitated organizations to invest in their human resources. The thrust area for most medium scale organizations today is productivity, quality, competitiveness and efficiency. This has resulted in top management developing a serious interest in the optimal utilization of human resources. It is against this background that there is mounting enthusiasm for Human Resource Development climate to play a strategic role in organizations. The present scenario demands new strategies and innovative approaches from the top management of the organization. Employees have to respond positively for the changing needs and facilitate the required change.