The paper delineates the challenges faced by HRM and its role effectiveness in the present day scenario particularly in the Indian context. The challenges identified are Vision Penetration, Building Organisational Capabilities Internal Environment, Job Design and Organisational Culture, Change in Industrial Relations,Increasing Size of Workforce, Equalitarian Social System, Changing Psycho-Social System, Satisfaction of Higher Level Needs, Technological Advances, Computerised Information System and Management of Human Relations. Whatever might be the change in any field, the prime element is “human beings”, who should not be brushed aside as normal or simple factors.The discussion clearly brings out the fact that the whole transformation on HRM practices portrays a travel from idealism to realism and from the ‘employees” ascending the status of “co-owners” to match the galloping changes in the sphere of people management practices per forced by the objective of harnessing the best talent, a scarce component commanding an unparalleled demand.