This article examines the automation processes University libraries and the new managerial issues coming on in this technological era. A survey was used ascertain the library automation practices in University libraries and to determine important managerial functions for working with library staff. All the university libraries including faculty libraries were deemed as the study population. The results showed that library catalogue had been computerized in most of the University libraries (89.25%). Acquisition, circulation, serials controls, theses and dissertations processing, selective dissemination of information and interlibrary loans were identified as the processes that need improvements with new technology. The study further indicated that shared motivating vision, open communication, participative management, appropriate staffing and training were important strategies for working with library staff motivating them to provide efficient and effective service in the new technological environment. Keywords: Library automation, library management, change management, human resource management, university libraries doi: 10.4038/jula.v11i0.325 Journal of the University Librarians Association of Sri Lanka (Vol. 11) 2007 p.98-110