The study relating to the Interpersonal relations and work motivation in Public Sector Human resource management is concerned with a very wide field of activities. This is does not concern itself with providing with merely welfare activities for the workers. This includes any activity which gives the workers confidence in the management and improves their morale and efficiency. Hence, under this, can be included all those activities for the management which are connected with recruitment, terms of employment, wages, industrial relations, welfare activities, prevention of accidents, education and training, joint consultation, research human resource development etc. Among the various factors affecting industrial efficiency, the most important ones are technical factors, economic factors, organisational factors, geographical factors, psychological factors and so on. How important a role the psychological factors play in determining the efficiency in an industry is evident from the fact that in industrially advanced countries, many of the industrial corporations employ professionally trained psychologists on full time basis. The psychological factors usually exercise their impact in an indirect manner. These factors help the workers to strengthen their aptitude for a particular work, offer a suitable outlet to the instinctive behavior of the workers, provide necessary incentives and disincentives and make factory environment pleasant and agreeable.