How does extracurricular activities like picnics, social gatherings, concerts, buffets, sports activities motivate the employees of a firm?

This increase the employer-employee relationship......which boost motivation of work in the organisation.

YES,,, WHEN THE EMPLOYEE WILL SPEND BEST OF TIME WITH COMPANY ,,THEY WILL FEEL ATTACHMENT LIKE FAMILY,,,, THESE KIND OF ACTIVITIES PROMOTE HARMONY AND GOOD FEELING WITH EACH OTHER.

- friendly working environment

- motivation to employees

- good inter-departmental relationships

- raises self-esteem

They come much closer and share their personal things during these social gathering , which not only help the HR to understand their social requirements but also to each employees when they mingle with them not for business / official purpose but on different plains.