For reasons well known, change has always been uncomfortable to business systems. There is some resistance and resentment whenever changes are made in the existing setup more so in the case of technological change. New technologies have often brought structural changes to the business systems which affect their cultural complexion as well. In recent years, there has been a stream of new innovations in manufacturing and management such as Just In Time (JIT), Flexible Manufacturing Systems (FMS), Computer Integrated Manufacturing (CIM), and Total Quality Management (TQM) that promise to bring about a competitive edge in the market place. This paper studies the implications of one such innovation, viz., FMS to a developing country such as India. The management issues crucial to the successful implementation and maintenance of such systems have been broadly identified.