ABSTRACT The state of technology in any organization has a significant influence on the quality and quantity of production of its goods or services. But despite this, technology is prone to constant change which organizations have to monitor, manage and cope with. Manufacturing industry that will like to be competitive and profitable should ensure that employees are trained and involved in the management of technological change for organizational survival. But most organization tends to undermine the contribution of employee in managing technological change, the outcome of which are low profitability and performance. This paper examines how employee relation could be employed for technological change management. It also seeks to determine effective method of using technological innovation for improved performance in the Nigerian manufacturing industry. Two hypotheses were formulated to determine the relationship between technological change and employee skill; and between technological change and employee performance. Question based on the hypotheses were formulated and 1256 questionnaires were distributed to selected 30 manufacturing industry in beverages, textile, steel, cement and chemical industry in Nigeria. Findings reveal that employee relations do not have significant relationship with technological change. The paper recommends that employee relation should be considered in the management technological change for profitability, competitiveness and survival of the Nigerian Manufacturing industry. Keywords:Technological Change, Employee Performance, Manufacturing Industry.