Human resource management (HRM) is carried out with the active involvement of line managers and HR department in an organisational context. The present study aims at assessing the sources of conflict between HR department and line managers. Based on the information collected from 210 line managers, the study concludes that promotion decisions, salary, employee transfers, managing attrition, and handling employee grievances are the top five sources of conflict between HR department and the line managers. Overall, it is observed that there is a moderate level of conflict between HR department and line managers. The study further finds differences in the sources of conflict based on nature of business, ownership, functional areas, and level of management of line managers.