The human resource has immense potential. The role of economic development of any nation depends on the degree of effective mobilization of these resources. The economic planning envisaging material progress should count on the role of human labour for harnessing the physical resource of the economy .As human resources from the basis of very existence of life on the earth of late, the government of India has set up an Independent Ministry of HRD to carter to the all around development of human resource.
Labour, as a factor of production has certain characteristics that set it apart from others while land and capital has no mind of their own, labour dose have it. The physical presence of labour combines with his attitude carves out a special place for labour in the production process.
The attitude of labour toward the worker holds the key for his performance and unless a labour is enthusiastic , committed and devoted ,the fruit of his abilities innate acquired and developed can not be repeated. It can be said without any hesitation that all industrialist should realize that “one can buy a man’s time the physical presence at a particular place , even few muscular movements, but enthusiasm , initiatives, loyalty and devotion to duty can not be bought”. Labour marks a distinction from other factors of production on two counts. a) Management, supervision, organization, co-ordination and such other functions owe their origin to labor. b) Unlike capital, which is a depreciating assert, labour is doubtedly an appreciating assert, contributing more and more to productivity with the advancement in experience and expertise.
When labour occupies such as prominent place and has a pivotal to play, it is necessarily may be imminent to provide for its performance through creation proper industrial atmosphere. Thus the workers performance depends upon the physical and mental capabilities, which is in turn depends on various factor like working and living condition, education, health, hygienic and sanitation. In view of the several peculiarities of Indian Labour composition, Migratory nature, low level of living etc., the importance of these welfare activities need explict emphasis.
Labour is an asset of every company. The needs of the labour must be satisfied in order to meet the goals of the organization. Any organization would be effective only when there is high degree of co-operation between the labour and management. Management seeks co-operation between the labour force by providing welfare facilities. These welfare facilities go a long way stimulating interest in the workers to produce their full capacity and pay a good return to management in the long run. Therefore, labour welfare activities act as motivators
And the rest in the higher productivity and the profit . It also enables the worker employed in industries to perform their work in healthy congenital surrounding conductive to good health & high morale
Any attempt to increase the productivity of efficiency of labour can bear fruit only if the workers are given the right type of environment and are provided with those basic amenities of life which have direct bearing on his physical efficiency. Thus plan of labours welfare regard as an important part of scheme for rising efficiency of labour.

The term 'labor welfare' is one which tends itself to various interpretations and it has not always the same significance in various countries. As pointed out by the Royal Commission on Labor, the term 'welfare' as applied to the industrial workers “is one which must necessarily be elastic, baring a somewhat different interpretation in one country form another, according t the different social custom the degree of industrialization and the educational development of workers.” therefore, it is not easy to define the term precisely. Different interpretations are given to the term welfare activities by different people. One definition confines it to voluntary efforts on the part of the employers to provide employees the best conditions of employment in their factories. The other view is that it is anything for the comfort and improvement-intellectual or social-of the employees over the above the wages paid which is not the necessity of the industry nor required by law.