Answer to question no:1

1_a) Management:

Management is a process with a social element. It requires the efficient use of resources combined with
the guidance of people in order to reach a specific organizational objective. It involves responsibility to
achieve the objectives and to fulfill specific organizational purposes through economical and effective
planning and regulation. It’s about taking charge and ensuring focus is placed on the things and aspects
o business that help achieve the vision and the goals.

1_b) Functions of management:

There are different functions of a management and these functions are controlled by the manager.
These functions are given below:-

Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that
the organization’s goal is to improve company sales. The manager first needs to decide which steps are
necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales
staff. These necessary steps are developed into a plan. When the plan is in place, the manager can
follow it to accomplish the goal of improving company sales.

Organizing: After a plan is in place, a manager needs to organize her team and materials according to
her plan. Assigning work and granting authority are two important elements of organizing.

Staffing: After a manager discerns his area’s needs, he ma11y decide to beef up his staffing by
recruiting, selecting, training, and developing employees. A manager in a large organization often works
with the company’s human resources department to accomplish this goal.

Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She
must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the
manager to coach, assist, and problem solve with employees.

Controlling: After the other elements are in place, a manager’s job is not finished. He needs to
continuously check results against goals and take any corrective actions necessary to make sure that his
area’s plans remain on track.

1_c) Role of management in the economic development of Bangladesh:

In Bangladesh the role of management in the field of economic development specially in business is
undeniable and vast.A group of unarranged machine a body of unorganized workers and a pile of
unassembled material do not make a factory.The role of management is discussed below:-

#In family life:- To guide family life appropriately and to bring happiness in life. Management plays an
important role. If the head of the family perfomd his functions properly only then family will be happy.

#In social life:- Man lives in society. Proper management is required to direct the social life in right way.
If the head of the society and influential people have knowledge on the principle and process of
management then they can perform their work properly.
#In state management:- All the works of state is related with management which should be known to all
political leaders and government employee.

#In business:- The success of business is totally dependent on developed management.

#In manufacturing:- The role of management is great in industrial production. At each stage of
production good management is necessary.

#To create environment:- To create good environment in social,economical, business as well as in all
sectors management is very important as it keeps good relation between the workers and institution.

#Appropriate utilization of resources:- The proper and balanced utilization of resources of an institution
is assured by good management.

#Cost reduction:- Appropriate management reduces cost.

Answer to question no:2

2_a) Personal management:-

➢In general,the management of personnel’s working in an institution is

called personal management. In broad sense,supervision and control of all

matters related to personnel,necessary planning and determination of

strategy for the direction and proper utilization of manpower of an

institution is called personnel management.

According to Edwin B Flippo,”The planning , organization,direction &

controlling of recruitment,development,wage

administration,centralization,preservation & separation process to achieve

personal ,organizational and social goal”.

2_b) Principle of personal management:-

1. Principle of selection:Personal management prepares proper principle for personnel

selection of the institution. Wrong personnel selection is difficult to correct.

2. Principle of promotion & demotion:Personnel management gives promotion &

demotion depending on the efficiency of the personnel. Transfer, lay off, dismiss

etc.are all includes in it.

3. Principle of job Evaluation:Personnel Management follows principles of job

evaluation to determine the relative value of the job,As a result, personnel

recruitment,salary determination becomes easier.

4. Principle of salary personnel evaluation: To test the excellence of merit of

personnels in an instituion,this principle is needed.This makes decision relating to

personnels easier.

5. Principle of salary & Wage Determination:This is prepared by the personnel

management of the instituion.It makes coordination with the ability of institution

and the need of personnels.

6. Principle of training: This is employed by the personnel management to

increase the skill & ability of personnels.This increase skill and result in

development of personnel.

7. Principle of personnel welfare: It enables the personnels to perform their job

attentively with satisfaction.

8. Principle of Mutual Relation: It dictates the relation of personnels with

management and owner and declares the mode of communication between

them.

9. Principle of Information Exchange: Information exchange and discussion with

personnels working in the institution, removes doubt and increases relation.

10. Principle of flexibility: Personnel management should be flexible in the

preparation of various principles relating to personnel. This makes future problem

easily solvable.

2_c) Recruitment:-

➢Recruitment refers to the process of identifying, attracting, interviewing,

selecting, hiring and onboarding employees. In other words, it involves

everything from the identification of a staffing need to filling it.

Recruitment sources:-

➢ Recruitment source can be divided into two

❏Internal sources

❏External sources

❏ (A) Internal Sources:

❏Best employees can be found within the organisation… When a vacancy arises in the organisation, it
may be given to an employee who is already on the pay-roll.

Internal sources include promotion,labour organization, transfer and in certain cases demotion.

1. Promotion: The employed workers are given promotion and by this way the higher vacant ranks
are fulfilled.As a result there is no complexity in selection of workers.and there is also no doubt
about their responsibility.

2. Labour organization: In case of recruitment labour organization play a vital role.Strong labour
organization can supply the eligible and fittest worker.

(B) External Sources:

All organisations have to use external sources for recruitment to higher positions when existing
employees are not suitable. More persons are needed when expansions are undertaken.

Method of External sources:

1. Advertisement:To fulfill the vacant position there is opportunities to advertise in the

newspapers. This system is used to fulfill the middle level positions of the organization.

2. From the agent: The recruitment is done by the representative and the conductors I some
countries.recruiting agencies do this type of works.

3. Casual Callers:Those personnel who casually come to the company for employment may also be
considered for the vacant post. It is most economicalmethod of recruitment. In the advanced
countries, this method of recruitment is very popular.
 4. Central Application File:A file of past applicants who were not selected earlier may be maintained.
In order to keep the file alive, applications in the files must be checked at periodical intervals.

5. Former Employees:In case employees have been laid off or have left the factory at their own, they
may be taken back if they are interested in joining the concern (provided their record is good).

2_d)Advantages and disadvantages of internal sources:-

The Following are The Advantages of Internal Sources:

1.Improves morale:.When an employee from inside the organisation is given the higher post, it helps in
increasing the morale of all employees. Generally every employee expects promotion to a higher post
carrying more status and pay (if he fulfills the other requirements).

2.No Error in Selection:When an employee is selected from inside, there is a least possibility of errors in
selection since every company maintains complete record of its employees and can judge them in a
better manner.

3.Promotes Loyalty:It promotes loyalty among the employees as they feel secured on account of
chances of advancement.

4.No Hasty Decision:The chances of hasty decisions are completely eliminated as the existing employees
are well tried and can be relied upon.

5.Economy in Training Costs:The existing employees are fully aware of the operating procedures and
policies of the organisation. The existing employees require little training and it brings economy in
training costs.

6.Self-Development:It encourages self-development among the employees as they can look forward to
occupy higher posts.

Disadvantages of Internal Sources:

(i) It discourages capable persons from outside to join the concern.

(ii) For posts requiring innovations and creative thinking, this method ofrecruitment cannot be
followed.

(iii) If only seniority is the criterion for promotion, then the person filling the vacant post may
not be really capable.
 (iv) It is possible that the requisite number of persons ppossessin qualifications for the vacant
posts may not be available in the Organisation.

Answer to question no:3

3_a) Economics:-

The word 'Economics' has derived from the Greek words 'oikonomia’ which means household
management. The word 'Economics’ was first used by Aristotle.

Economics maybe defined as a social science concerned with the production, distribution, and
consumption of goods and services. It studies how individuals, businesses, governments, and nations
make choices about how to allocate resources. It may also defined as human activities which are
directed to fulfil unlimited wants of human being by using limited resources.

3_b) Different concepts of Economics:-

Economics can be defined according to various concepts given by various economists. Till now there are
three concepts of economics given by economists. These are given below:-

#Classical concept:- It was given by Adam Smith who concerned with regarded as the father of
economics. According to Adam Smith, “Economics is an enquiry into the nature and causes of wealth
Demand schedule refers to a tabular representation of the relationship between price and quantity
demanded. It demonstrates the quantity of a product demanded by an individual or a group of
individuals at specified price and time.of nations''. Afterwards this concept was discarded as it is very
limited in description and according to this concept, economics is a science of getting rich which is not
acceptable.

#Neo-classical concept:- It was given by Alfred Marshall. According to him “political economy or
economics is a study of mankind in the ordinary business of life; it examines that part of individual and
social action which is most closely connected with the attainment and with the use of the material
required of well being”.

In other words, economics is in one side a study on wealth and on the other and more important side a
part of the study of human.

#Modern concept:- Modern concept was described by Cairn Cross. According to him “Economics is a
social science studying how people attempt to accommodate scarcity to their want and how their
attempts interact through exchange”.

Again according to Fisher, “Chief purpose of economics is to forth relation of wealth to human
rights and welfare”.

According to Pigou , “It is a study of the part of social welfare that can be brought directly and
indirectly into relation with a measuring root of money”.
3_c) Demand curve on the basis of demand schedule is given below:-

Demand schedule:-

Demand schedule refers to a tabular representation of the relationship between

price and quantity demanded. It demonstrates the quantity of a product
demanded by an individual or a group of individuals at specified price and time.

Figure:-01

Here fig -1 shows the individual schedule of product A.

Demand curve:-
Demand curve shows a graphical representation of demand schedule. It can be
made by plotting price and quantity demanded on a graph. In demand curve,
price is represented on Y-axis, while quantity demanded is represented on X-axis
on the graph. R.G Lipsey has defined demand curve as “the curve which shows
the relationship between the price of a commodity and the amount of that
commodity the consumer wishes to purchase is called Demand Curve.”
 Figure:-02

In figure -2 points a,b,c,d and e demonstrates the relationship between price and quantity demanded at
different price levels. By joining these points, we have obtained a curve, DD, which is termed as the
individual demand curve. The slope of an individual demand curve is downward from left to right that
indicates the inverse relationship of demand with price. That is how we draw demand curve from
demand schedule.

Answer to the question no:04

4_a)Marketing:

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.

According to the Philip Kotler “marketing as “Satisfying needs and wants through an exchange
process”.[16] and a decade later defines it as “a social and managerial process by which individuals and
groups obtain what they want and need through creating, offering and exchanging products of value
with others”.

4_b)Difference between between customer and consumer:-

1)The buyer of goods or services is known as the Customer.

And The user of goods or services is known as a Consummer.

2) In customer,Resale or Consumption only

But No resell in consumers.

3) Price is paid by the customer Not necessary;

Price may or may not be paid by the consumer

4) The TYPE Of customer are individual or Organization

But consumer are Individual or group of people

4_c) Description of Marketing Process:

5 Steps of Marketing Process:-

Marketing is the process by which companies create value for customers and building strong customer
relationships to capture value from customers in return. 5 step process of the marketing framework
wherein value is created for customers and marketers capture value from customers in return.

1)Understanding The Marketplace And Customer Needs And Wants.

2)Designing A Customer-Driven Marketing Strategy.

3)Constructing an integrated marketing plan that delivers superior value.

4)Build Profitable Relationships.

5)Capturing Value From Customers.

4_d) Discussion on the concept of marketing:-

5 different concepts of marketing that each have a specific function in a holistic marketing strategy. The
concepts are:

1)The Production Concept

2)The Product Concept

3)The Selling Concept

4)The Marketing Concept

5)The Societal Marketing Concept

The Five Marketing Concepts Described

The five basic marketing concepts are a key part of putting together any new marketing campaign.
Here’s what you need to know.

1)The Production Concept

The production concept is the most operations-oriented than any of the other marketing concepts on
this list. It speaks to the human truth that we prefer products that are easily available and inexpensive.

2)The Product Concept

The product concept is not so much about the production and business output but focuses more on the
customer.
Potential customers favor products that offer quality, performance, or innovative features.

3)The Selling Concept

The selling concept is the bread and butter of marketing efforts as it believes that people will not buy
enough of a business’s product so businesses need to persuade them to do so.

Of course, in today’s marketing, we know that selling is not the way to full marketing success. We more
so find this marketing concept popular in the days of WWII where there was aggressive advertising to
promote people to buy bonds and different products.

4)The Marketing Concept

The marketing concept is the concept of competition. It is a marketing concept that believes that the
success of a business depends on the marketing efforts that deliver a better value proposition than its
competitor.

This concept focuses on the needs and wants of target marketing as well as delivering value better than
its competition. Through marketing, it’s your goal to be the preferred option compared to your
competitors. Competitive advantage is key!

5)The Societal Marketing Concept

The societal marketing concept is the most progressive and modern-day applicable marketing mindset
to have. It is a marketing concept that believes in giving back to society by producing better products
that help the world be a better place.

Answer to question no:05

5_a) Training:-

Training is teaching, or developing in oneself or others, any skills and knowledge or fitness that relate to
specific useful competencies. Training has specific goals of improving one's capability, capacity,
productivity and performance. It forms the core of apprenticeships and provides the backbone of
content at institutes of technology (also known as technical colleges or polytechnics). In addition to the
basic training required for a trade, occupation or profession, training may continue beyond initial
competence to maintain, upgrade and update skills throughout working life. People within some
professions and occupations may refer to this sort of training as professional development. Training also
refers to the development of physical fitness related to a specific competence, such as sport, martial
arts, military applications and some other occupations
5_b)Describe the objective of training:-

Ans The objectives of training are as follows:

(i) To provide job related knowledge to the workers.

(ii) To impart skills among the workers systematically so that they may learn quickly.

(iii) To bring about change in the attitudes of the workers towards fellow workers,
supervisor and the organisation.

(iv) To improve the productivity of the workers and the organisation.

(v) To reduce the number of accidents by providing safety training to the workers.

(vi) To make the workers handle materials, machines and equipment efficiently and
thus to check wastage of time and resources.
(vii) To prepare workers for promotion to higher jobs by imparting them advanced skills.

5_c) Discuss about various methods of training:-

Many methods of training are available- each has certain advantages and disadvantages. Here we list
the different methods of training…you can comment on the pros and cons and make the examples
concrete by imagining how they could be applied in training truck drivers.

1. Technology-Based Learning:
Common methods of learning via technology include:
Basic PC-based programs

Interactive multimedia – using a PC-based CD-ROM

Interactive video – using a computer in conjunction with a VCR

Web-based training programs

The forms of training with technology are almost unlimited. A trainer also gets more of the
learner’’s involvement than in any other environment and trainees have the benefit of
learning at their own pace.

Example: In the trucking industry one can imagine interactive multimedia training on
tractor-trailers followed by a proficiency test to see how well the employee knows the truck.

2. Simulators
Simulators are used to imitate real work experiences.

Most simulators are very expensive but for certain jobs, like learning to fly a 747, they are
indispensable. Astronauts also train extensively using simulators to imitate the challenges
and micro-gravity experienced on a space mission. The military also uses video games
(similar to the “shoot-em-up” ones your 14-year old plays) to train soldiers.

Example: Truck drivers could use simulators to practice responding to dangerous driving
situations.

3. On-The-Job Training
Jumping right into work from day one can sometimes be the most effective type of training.

Here are a few examples of on-the-job training:

Read the manual – a rather boring, but thorough way of gaining knowledge of about a task.

A combination of observation, explanation and practice.

Trainers go through the job description to explain duties and answer questions.

Use the intranet so trainees can post questions concerning their jobs and experts within the
company can answer them.

On-the-job training gives employees motivation to start the job. Some reports indicate that
people learn more efficiently if they learn hands-on, rather than listening to an instructor.
However, this method might not be for everyone, as it could be very stressful.

Example: New trucking employees could ride with experienced drivers. They could ask
questions about truck weigh stations, proper highway speeds, picking up hitchhikers, or any
other issues that may arise.

4. Coaching/Mentoring
Coaching/mentoring gives employees a chance to receive training one-on-one from an
experienced professional. This usually takes place after another more formal process has
taken place to expand on what trainees have already learned.
Here are three examples of coaching/mentoring:

Hire professional coaches for managers (see our HR.com article on Understanding Executive
Coaching)

Set up a formal mentoring program between senior and junior managers

Implement less formal coaching/mentoring to encourage the more experienced employees

to coach the less experienced.

Coaching/mentoring gives trainees the chance to ask questions and receive thorough and
honest answers – something they might not receive in a classroom with a group of people.

Example: Again, truck drivers could gain valuable knowledge from more experienced drivers
using this method.

5. Lectures
Lectures usually take place in a classroom-format.

It seems the only advantage to a lecture is the ability to get a huge amount of information to
a lot of people in a short amount of time. It has been said to be the least effective of all
training methods. In many cases, lectures contain no form of interaction from the trainer to
the trainee and can be quite boring. Studies show that people only retain 20 percent of
what they are taught in a lecture.

Example: Truck drivers could receive lectures on issues such as company policies and safety.

6. Group Discussions & Tutorials

These most likely take place in a classroom where a group of people discuss issues.
For example, if an unfamiliar program is to be implemented, a group discussion on the new
program would allow employees to ask questions and provide ideas on how the program
would work best.

A better form of training than lectures, it allows all trainees to discuss issues concerning the
new program. It also enables every attendee to voice different ideas and bounce them off
one another.

Example: Truck drivers could have group discussions and tutorials on safety issues they face
on the road. This is a good way to gain feedback and suggestions from other drivers.

7. Role Playing
Role playing allows employees to act out issues that could occur in the workplace. Key skills
often touched upon are negotiating and teamwork.

A role play could take place between two people simulating an issue that could arise in the
workplace. This could occur with a group of people split into pairs, or whereby two people
role play in front of the classroom.

Role playing can be effective in connecting theory and practice, but may not be popular with
people who don´t feel comfortable performing in front of a group of people.

Example: Truck drivers could role play an issue such as a large line-up of trucks is found at
the weighing station and one driver tells another that he might as well go ahead and skip
the whole thing. Or role play a driver who gets pulled over by a police officer and doesn´t
agree with the speeding charge.

8. Management Games

Management games simulate real-life issues faced in the workplace. They attract all types of
trainees including active, practical and reflective employees.

Some examples of management games could include:

Computer simulations of business situations that managers ´play´.

Board games that simulate a business situation.

Games surrounding thought and creativity – to help managers find creative ways to solve
problems in the workplace, or to implement innovative ideas.

Example: In a trucking business, managers could create games that teach truckers the
impact of late deliveries, poor customer service or unsafe driving.

9. Outdoor Training
A nice break from regular classroom or computer-based training, the usual purpose of
outdoor training is to develop teamwork skills.

Some examples include:

Wilderness or adventure training – participants live outdoors and engage in activities like
whitewater rafting, sailing, and mountain climbing.

Low-impact programming – equipment can include simple props or a permanently installed

“low ropes” course.

High-impact programming – Could include navigating a 40-foot “high ropes” course, rock
climbing, or rappelling.

Outgoing and active participants may get the most out of this form of training. One risk
trainers might encounter is distraction, or people who don´t like outdoor activities.

Example: As truck drivers are often on the road alone, they could participate in a nature-
training course along with depot personnel to build esprit de corps.

10. Films & Videos

Films and videos can be used on their own or in conjunction with other training methods.
To be truly effective, training films and videos should be geared towards a specific objective.
Only if they are produced effectively, will they keep the trainees attention. They are also
effective in stimulating discussion on specific issues after the film or video is finished.
 Films and videos are good training tools, but have some of the same disadvantages as a
lecture – i.e., no interaction from the trainees.

A few risks to think about – showing a film or video from an outside source may not touch
on issues directly affecting a specific company. Trainees may find the information very
interesting but irrelevant to their position in the company.

Some trainers like to show videos as a break from another training method, i.e. as a break
from a lecture instead of a coffee break.

This is not a good idea for two reasons. One: after a long lecture, trainees will usually want a
break from any training material, so a training film wouldn´t be too popular. Two: using films
and videos solely for the purpose of a break could get expensive.

Example: Videos for truckers could show the proper way to interact with customers or
illustrate preventive maintenance techniques.

11. Case Studies

Case studies provide trainees with a chance to analyze and discuss real workplace issues.
They develop analytical and problem-solving skills, and provide practical illustrations of
principle or theory. They can also build a strong sense of teamwork as teams struggle
together to make sense of a case.

All types of issues could be covered – i.e. how to handle a new product launch.

Example: Truck drivers could use case studies to learn what issues have been faced in the
trucking industry in the past and what they could do if a similar situation were to occur.

12. Planned Reading

Basically planned reading is pre-stage preparation to more formal methods of training.

Some trainees need to grasp specific issues before heading into the classroom or the team-
building session.
Planned reading will provide employees with a better idea of what the issues are, giving
them a chance to think of any questions beforehand.

Example: Here we may be stretching if we think that truckers are going to read through a lot of material
the training department sends them.
Conclusion
Many avenues exist to train employees. The key is to match the training method to the
situation. Assess each training method implemented in the organization and get feedback
from trainees to see if they learned anything. Then take the results from the most popular
and most effective methods to design a specific training program.

Answer to question no:06

6_a) Control and budgetary control:-

Ans: Control :Control is a function of management which helps to check errors in order to
take corrective actions. This is done to minimize deviation from standards and ensure that
the stated goals of the organization are achieved in a desired manner.

According to modern concepts, control is a foreseeing action; earlier concepts of control

were only used when errors were detected. Control in management includes setting
standards, measuring actual performance and taking corrective action In decision making

Budgetary Control : Budgetary control is financial jargon for managing income and
expenditure. In practice it means regularly comparing actual income or expenditure to
planned income or expenditure to identify whether or not corrective action is required.

6_b) Characteristics of Control:

Following characteristics of control can be identified:

1. Control is a Managerial Process:

Management process comprises of five functions, viz., planning, organizing, staffing,
directing and controlling. Thus, control is part of the process of management.

2. Control is forward looking:

Whatever has happened has happened, and the manager can take corrective action only of
the future operations. Past is relevant to suggest what has gone wrong and how to correct
the future.
3. Control exists at each level of Organization:
Anyone who is a manager, has to involve into control – may be Chairman, Managing
Director, CEO, Departmental head, or first line manager. However, at every level the control
will differ – top management would be involved in strategic control, middle management
into tactical control and lower level into operational control.

4. Control is a Continuous Process:

Controlling is not the last function of management but it is a continuous process. Control is
not a one-time activity, but a continuous process. The process of setting the standards
needs constant analysis and revision depending upon external forces, plans, and internal
performance.

5. Control is closely linked with Planning:

Planning and controlling are closely linked. The two are rightly called as ‘Siamese twins’ of
management. “Every objective, every goal, every policy, every procedure and every budget
become standard against which actual performance is compared.

Planning sets the ship’s course and controlling keeps it on course. When the ship begins to
veer off the course, the navigator notices it and recommends a new heading designed to
return the ship to its proper course. Once control process is over its findings are integrated
into planning to prescribe new standards for control.

6. Purpose of Controlling is Goal Oriented and hence Positive

Control is there because without it the business may go off the track. The controlling has
positive purpose both for the organization (to make things happen) and individuals (to give
up a part of their independence for the attainment of organizational goals).

6_c) Advantage s of Budgetary Control:-

Budgetary control has become an important tool of an organization to control costs and to
maximize profits. Some of the advantages of budgetary control are:

1. It defines the goals, plans and policies of the enterprise. If there is no definite aim then
the efforts will be wasted in achieving some other aims..
 2.Budgetary control fixes targets. Each and every department is forced to work efficiently to
reach the target. Thus, it is an effective method of controlling the activities of various
departments of a business unit.

3.It secures better co-ordination among various departments.

4.In case the performance is below expectation, budgetary control helps the management in finding up
the responsibility.

5. It helps in reducing the cost of production by eliminating the wasteful expenditure.

Answer to question no:07

7_a) Elasticity of supply::

Responsiveness of producers to changes in the price of their goods or services. As a general

rule, if prices rise so does the supply.

Elasticity of supply is measured as the ratio of proportionate change in the quantity supplied
to the proportionate change in price. High elasticity indicates the supply is sensitive to
changes in prices, low elasticity indicates little sensitivity to price changes, and no elasticity
means no relationship with price.

Also called price elasticity of supply.

USAGE EXAMPLES::

The elasticity of supply can be demonstrated by the company’s willingness to open another
factory to increase production if needed.

It is important to know the elasticity of supply so that you can break down when you will
need another shipment.

We had to take a look at our elasticity of supply and see what we needed to do because we
were having a few problems.
7_b)Supply :: Supply is a fundamental economic concept that describes the total amount of
a specific good or service that is available to consumers.

Difference between Supply and Stock :

7_c) There are 5 types of elasticity of supply.These are given below :

1. Perfectly Inelastic Supply

A service or commodity has a perfectly inelastic supply if a given quantity of it can be
supplied whatever might be the price. The elasticity of supply for such a service or
commodity is zero. A perfectly inelastic supply curve is a straight line parallel to the Y-axis.
This is representative of the fact that the supply remains the same irrespective of the price.

The supply of exclusive items, like the painting of Mona Lisa, falls into this category.
Whatever might be the price on offer, there is no way we can increase its supply.

2. Relatively Less-Elastic Supply

When the change in supply is relatively less when compared to the change in price, we say
that the commodity has a relatively-less elastic supply. In such a case, the price elasticity of
supply assumes a value less than 1.

3. Relatively Greater-Elastic Supply

When the change in supply is relatively more when compared to the change in price, we say
that the commodity has a relatively greater-elastic supply. In such a case, the price elasticity
of supply assumes a value greater than 1.

4. Unitary Elastic
For a commodity with a unit elasticity of supply, the change in quantity supplied of a
commodity is exactly equal to the change in its price. In other words, the change in both
price and supply of the commodity are proportionately equal to each other. To point out,
the elasticity of supply in such a case is equal to one. Further, a unitary elastic supply curve
passes through the origin.

5. Perfectly Elastic supply

A commodity with a perfectly elastic supply has an infinite elasticity. In such a case the
supply becomes zero with even a slight fall in the price and becomes infinite with a slight
rise in price. This is indicative of the fact that the suppliers of such a commodity are willing
to supply any quantity of the commodity at a higher price. A perfectly elastic supply curve is
a straight line parallel to the X-axis.

Answer to question no:08

8_a) Industrial conflict :: Industrial conflict a term which refers to all expressions of
dissatisfaction within the employment relationship, especially those pertaining to the
employment contract, and the effort bargain. The many different kinds of industrial conflict
may be divided into two broad classes—informal and formal.
8_b)Labour welfare :: Labour welfare relates to taking care of the well-being of workers by
employers, trade unions, governmental and non-governmental institutions and agencies.
Welfare includes anything that is done for the comfort and improvement of employees and
is provided over and above the wages.

Scope of labour welfare ::

8_c)Trade union :: A trade union is an association of workers forming a legal unit or legal
personhood, usually called a “bargaining unit”, which acts as bargaining agent and legal
representative for a unit of employees in all matters of law or right arising from or in the
administration of a collective agreement.

Employers join trade Union because of :::

1. Greater Bargaining Power

The individual employee possesses very little bargaining power as compared to that of his
employer. If he is not satisfied with the wage and other conditions of employment, he can
leave the job. It is not practicable to continually resign from one job after another when he
is dissatisfied. This imposes a great financial and emotional burden upon the worker. The
better course for him is to join a union that can take concerted action against the employer.
The threat or actuality of a strike by a union is a powerful tool that often causes the
employer to accept the demands of the workers for better conditions of employment.

2. Minimize Discrimination
He decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature.
The personal relationships existing between the supervisor and each of his subordinates
may influence the management. Thus, there are chances of favoritisms and discriminations.
A trade union can compel the management to formulate personnel policies that press for
equality of treatment to the workers. All the labor decisions of the management are under
close scrutiny of the labor union. This has the effect of minimizing favoritism and
discrimination.

3. Sense of Security
The employees may join the unions because of their belief that it is an effective way to
secure adequate protection from various types of hazards and income insecurity such as
accident, injury, illness, unemployment, etc.

The trade union secure retirement benefits of the workers and compel the management to
invest in welfare services for the benefit of the workers.

4. Sense of Participation
The employees can participate in management of matters affecting their interests only if
they join trade unions. They can influence the decisions that are taken as a result of
collective bargaining between the union and the management.

5. Sense of Belongingness
Many employees joins a union because their co-workers are the members of the union. At
times, an employee joins a union under group pressure; if he does not, he often has a very
difficult time at work. On the other hand, those who are members of a union feel that they
gain respect in the eyes of their fellow workers. They can also discuss their problem with’
the trade union leaders.

6. Platform for self-expression

The desire for self-expression is a fundamental human drive for most people. All of us wish
to share our feelings, ideas and opinions with others. Similarly the workers also want the
management to listen to them. A trade union provides such a forum where the feelings,
ideas and opinions of the workers could be discussed. It can also transmit the feelings, ideas,
opinions and complaints of the workers to the management. The collective voice of the
workers is heard by the management and give due consideration while taking policy
decisions by the management.

7. Betterment of relationships
Another reason for employees joining unions is that employees feel that unions can fulfill
the important need for adequate machinery for proper maintenance of employer-employee
relations. Unions help in betterment of industrial relations among management and workers
by solving the problems peacefully.