This paper traces the changes in management of employee discipline with regards to the changing business environment of India. The focus is upon the shifting trend in employee discipline from a transactional and economic orientation to a relational and behavioural orientation. In the context of handling employee discipline, it is contended that in the pre-liberalization period the approach frequently adopted was a judicial one which, in the post-liberalization period gave way to a more humanistic one. The paper also notes the positive changes that have been observed in quite a few organizations. In conclusion, the paper states the need to sustain the pace of changes that have been initiated within the domains of employee discipline in the context of changing global business environment.
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