Category: Commerce Notes PPT

The memorandum of association acts as the foundation of every company. It explains all the rules and bubbles powers of the owner in your systematic formal representation. It has a broad scope. As it is very important for every organisation, we will try to understand more about moa. Let us discuss the meaning of the memorandum of association and its aims, features, and many more.

Memorandum of Association of a Company 

Memorandum of association of the company deals with all aspects of that particular organisation such as the operations delegation of duties and policies, principles, etc. The memorandum of association of any company is formed or designed by considering the objective of a particular firm. In the year 2013, section 399 of the companies act, designed to form an MOA, which is the public document and needs to get aware of this moa to all employees of an organisation. 

What is Meant by MOA?

The memorandum of association definition explains that all the powers and the rights should be mentioned in this public document and no one should depart from the contract as well as not to Violet the rules and regulations specified in the moa. If anyone violates, they can be termed as ultra vires of the company and immediately can void them. This is the simple and straight away definition of the memorandum of association of any company. It is completely under legal survival. All the papers are strictly verified and are tested by the moa in company law.

Types of MOA

Based on their form, there are five main types of memorandum of association and they are as follows: 

1. Table A – if shares end up limiting a company. 

2. Table B – if a guarantee limits a company. 

3. Table C – if a guarantee along with share capital limits a company. 

4. Table D – if it is an unlimited company. 

5. Table E – if it is an unlimited company and has a share capital.

Contents of MOA

The contents of the memorandum of the association consist of different clauses. Each clause plays a vital role in the organisation. Let’s see all the classes in a detailed manner as given below,

1. Name Clause:- the name clause of moa specifies that the titles of all the private limited companies should end with ‘private limited’. On the other hand, the titles of all the government companies should end with ‘limited’.

The companies under section 8 of the act, may need not to follow these rules. These companies can be identified by certain words like-

• Association

• Federation

• Foundation

• Confederation

• Forum 

• Chamber

• Council

• Electoral trust.

2. Registered Office Clause- indicates the state of the registered office where the organisation is located exactly. It is very important to specify the branch of the registered office where the organisation got registered.

3. Object Clause: this segment of the memorandum of association explains the motto of the organisation and its activities. After a few months if there is a change in activities and operations, then the head of the institution needs to change the name of that organisation within 6 months. Otherwise, it will become an offence.

4. Capital Clause: it concentrates on the capital invested by two or more shareholders of one company. We need to furnish the information regarding the amounts of share between the shareholders and how they formulated their rules etc. in the memorandum of association.

5. Liability Clause: it is another important class of memorandum of association. Here we need to explain the liability of the members either limited or unlimited in the firm.

If the company is limited by shares, it needs to specify the amounts held by the shareholders and whether they are paid or unpaid. All these aspects need to be mentioned clearly in the MOA.

If the company is restricted by guarantees, the Moa specifies that all contributors with a bonus have equal rights. Even during the winding up of a company, both assets and liabilities which include all the expenses while demolishing the firm need to be distributed equally.

6. Association Clause: It is the last but not least, class of the memorandum of association. Here one should mention the exact idea and goal of the owner of the company.

Amendment of MOA

If any of the following changes take place, then it means that the memorandum of association needs to be amended: 

• If an alteration takes place in the name of business. 

• If any changes happen in the office of registration. 

• If an alteration takes place in the object clause of the business. 

• If an alteration takes place in the authorised capital of the business. 

• If any kind of adjustments are made in the legal liabilities of the business members.

The procedures to be followed for making any types of amendments in the memorandum of association have been mentioned in the 13th clause of The Companies Act, 2013. 

Conclusion

Hence it is clear that the memorandum of association is the fundamental public agreement of all kinds of organisations that involves the operational activities, rights, powers, etc. From the definition of a memorandum of association, we can understand that it is important to check the format and all clauses without any fail. And the memorandum of association of your company should be verified and attested by the moa of company law.

The Modern Organization Theory describes organizations as an open social system that interacts with the environments to survive, known as the Systems Theory Approach. The System Theory Of Management approach is an external factor which measures the effectiveness based on long-term sustainability or growth.

 

A significant application of Systems Theory is in Business Organizations to elucidate a particular approach to management.. The Modern Organization Theory was not originally a business theory but was proposed during the 1940s.

 

Modern Organizational Theories is divided into two major types – Systems Theory and Contingency Theory. In this article, you will comprehend Systems Theory and its contributions and criticisms in a detailed manner.

 

System Theory of Management

The Systems Theory was proposed during the early 1960s. The Theory holds a conceptual and analytical base, and thus the system presents a great significance on the empirical research data.

 

In simple words, Systems Theory considers organizations as a network of systems. A system can be either an organized or complex whole, that is, it can be referred to as a combination or an assemblage of things or parts that comprise a complex unitary whole.

 

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A system comprises different parts known as the subsystems, which are interrelated to one another. Further, the various subsystems are arrayed based on a particular scheme so that the complete system is more than a summation of the various parts. This ensures the system’s efficient functioning and secures every system with a boundary that separates it from its environment.

 

Organizational Systems and Its Environment

There are two types of organizational systems:-

Open Systems: Open Systems interact with their environment, and all living systems fall under this category.

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Closed Systems: Closed Systems hold no interaction with their environment, and all non-living systems fall under this category.

 

An organization is said to be an Open System if it incessantly interacts with its environment. Therefore, to understand the working of an organization, one must identify its boundary and through the organization’s interaction with its environment as an input-output model. An organization’s inputs are information, energy, and materials that an organization takes from its environment. The input consumed is then transformed with machines and people’s help and then supplies the output to the environment. 

 

An organization comprises multiple subsystems like Social subsystem, Technical subsystem, and more. A few of these subsystems are independent and do not rely on the interlinking through any other processes. 

 

Hence, the Systems Theory involves the study of an organization and identifies four major factors- 

• The nature of Interdependence between the parts of the system

• The strategic parts

• The lists of the goals that the system is trying to approach

• The list of any systems or processes which link the parts of the systems together 

 

Contributions of The System Theory of Management

1. Systems Theory offers an open-view of an organization and presents the recognition of its environmental interface. 

2. Systems Theory of Management is adaptive and dynamic 

3. Systems Theory adopts a multi-dimensional and multilevel approach, and therefore, it considers both the micro and macro aspects of the environment.

4. Cybernetics is another significant contribution to Systems Theory as it is the science of communication and controls the man-machine system.

5. The Theory is drawn from several disciplines like Economics, Sociology, Engineering, Psychology, etc.

6. The Systems Theory is descriptive, not normative or prescriptive, and the Theory is also probabilistic and not deterministic and significantly emphasizes the lateral relationships over vertical relationships.

 

Criticism of The Systems Theory

1. The Systems Theory does not present any framework which does not apply to all the organizations.

2. The Theory is not modern but is a synthesis of all the research contributions of previous theories.

3. The Systems Theory is too abstract to be practical and does not specify any precise and specific relationships between the social systems and the organization.

4. The Theory is an amalgamation of multiple Theories like Contingency Theory, Decision Theory, and more and not a unified theory.

Modern Organization Theory – Systems Theory

Understanding the Modern Organization Theory- Systems Theory seemed to be a difficult task before you could put your hands on the above content. 

However, understanding and comprehending something are two entirely different things. Students might have got the required knowledge related to the topic. 

But, to test that, you need to attempt some papers so that you get to know whatever you’ve learnt. 

Let’s dive into some easy steps that can be followed to prepare for the topics of the subject. 

• Be Consistent: One of the most important steps that the students shall keep in mind while preparing for anything is being consistent. To start with, you have to create specific and realistic goals, make a schedule for yourself, set reminders for yourself and make sure to reward yourself whenever you complete something. The benefits of being consistent are many and the ones who try to maintain it surely scale heights. Students shall remember that it is important to keep going even when you make mistakes and also, it is very important to take breaks so that you’re able to improve your productivity levels when you start again. The game doesn’t change overnight and that is why it is important for you to give it some time to see appropriate changes.

• Be Passionate: Once you follow a passionate approach, you get what you want. You just need to be crazy about your dreams, your goals, and be very focused. Students shall understand that to convert dreams into reality, you don’t just need to have goals but you need to have that hunger for it. Having a passion doesn’t only mean to have a wish or a desire but also, real targets. While preparing, you need to set a goal for yourself and try your level best to achieve it. You should keep cheering yourself up and make your hunger for your dreams evident.

• Work Hard: The biggest truth of life is that you don’t get anything without hard work. It is the master key to success. Nothing is easy, everything has its own consequences. Some people would like some subject, some would like the other. You cannot be good at everything. Make a schedule for yourself but keep in mind that the schedule made by you should be realistic and according to your habits. There would be many times that your limiting beliefs would pull you behind but to be successful, you have to convince yourself to keep moving ahead despite the hurdles that come along the way.

• Be Persistent: You can skyrocket your productivity by being persistent and that can be done when you plan things. The best way to do it is by planning tasks for each day in advance. With this, you shall also focus on achieving your daily targets. Of course, there will be many obstacles on your way but with proper discipline, you can sail through them. Apart from this, it is also important to maintain a positive and motivated mindset so that you’re able to take control of your actions. After you define your goals and wants, you shall be able to outline and develop your action steps.

• Push your Limits: Another important step that you should include while preparing is pushing your limits up. Keeping a healthy competition with yourself is a great way to do so. This would help you to beat the targets and observe your study patterns. Thereafter, you can use these observations to improve your next plan of action.

Consider the situation, where we tell you to live in the same room throughout your life. However, we provide you with ample food, clothing, and all your demands. Will you be able to live your life that way? No, you won’t. You would want to get out and move around. That is the endless nature of human wants. We, humans, use many commodities in our daily life. However, while purchasing anything, have you ever wondered whether you want it or is it a desire. Right from the time of civilization, human beings have been relying upon several sources and elements. The survival of humans involves several wants, the most important being food, shelter, clothing, etc. With innovation and technology, the wants are ever-increasing. All of these are directly related to the economy. This helps in understanding the demand and supply of commodities.

Nature and Classification of Human Wants

Human wants are endless even when provided with every need. In terms of Economics, wants to refers to something that individual desires, which is not something that the individual cannot live without. Want is non-essential in nature. With changes in innovation and technology, wants are ever-increasing. Although wants are not needed to sustain life unlike needs, it helps to understand the demand and supply of various commodities.

Classification of Human Wants

Human wants can be classified into various categories depending on various bases in Economics, which are as follows:

Want for things that can be bought by paying a price in money or currency are economic wants, such as they want for a diamond necklace.

Want for non-material qualities of human life such as peace, equality, acceptance, etc., are called non-economic wants.

Individual wants refer to the wants of one specific person who may not be wanted by anyone else. Such wants vary from one person to another.

Collective want refers to those wants which are required by a commodity such as a hospital or a school. 

Necessities refer to the want of products or services essential for survival. Examples of such wants are food, clothing, and housing. Out of these are the wants that improve the efficiency of humans and improve the quality of life such as food, better house, etc.

Comfort refers to those products or services that help in making life satisfactory. A human can live without these comforts but they help make life easier for them such as AC, cars, etc.

Luxuries are those products that provide humans with a sense of entitlement. They make humans feel better about themselves. These are products and goods that humans don’t need but are mostly meant for showing off. Some examples are jewellery, expensive cars, electronic goods, etc.

The classification of human wants varies on several bases and these are as follows.

• Economic and Non-Economic Wants: Economic wants are related to commodities and can be satisfied using money. While non-economic wants are something which money and goods cannot suffice, like peace, affection, etc.

• Individual and Collective Want: Individual wants are those which are required by one specific person. For example, you want a school bag, you want to eat chocolates and such other wants. On the other hand, collective wants are those which are required by a community as a whole. For example,  a school, hospital, etc., are collective wants. Again, if you want your country to win the match, it is collective rather than individual want.

• Necessities, Comforts, and Luxuries: Necessities are those commodities that are essential for human survival. These are the most important wants, including clothes, food, shelter, etc. Among the necessities are the wants which help in increasing efficiency. These include diet foods, a better home, etc. These are a result of the habits and customs of humans.

Comforts are those commodities that help in making life more satisfactory. These are neither necessarily required nor are urgent wants. One can also live without comforts. Some of these items include ACs, purchasing clothes for some special occasions, etc. Luxuries are goods and commodities that provide humans with a sense of entitlement. They allow humans to hold prestigious positions. They are expensive stuff and need not essentially be a part of our living. Some of them include cars, jewellery, and other commodities.

Characteristics

There are several characteristics of human wants, they can be stated as follows:

• Iterative Wants: Some commodities in life are required on a daily basis which may not be essential for many other individuals. For example, insulin is only required by diabetic patients.

• Changing Want with Age: Humans want different things at different stages in life. A kid would want to play with a toy while a teenager would want to play with a PlayStation.

• Gender-Specific Wants: Gender plays a vital role in wanting different products. For example, want for a fancy dressing item will vary for men and women.

• Geographic Variation of Wants: People living in hotter regions will want coolers and ACs but people living in hill stations would want temperature regulators. This type of want is quite self-explanatory.

• Health Specific Want: People in need of medicines and medical facilities would want better access to facilities of services such as high-end health care facilities. Personal preferences or biases might also play a role here.

The nature of human wants varies depending on several parameters. These further describe the characteristics of human wants. Some of the characteristics are as follows.

• Iterative Wants: Some commodities are required on a daily basis. These include food, water, and others. These fall under iterative wants. However, these vary from person to person. Example: Some need to take medicines on a regular basis, others don’t. 

• Variation of Wants with Age: Adults have completely different wants from of kids. While a 25-year old wants a stable job and life, a 2-year old is satisfied and happy with toys. 

• Gender Wants: Depending on their needs, likes, and dislikes, gender plays an essential role along with age. Example: Often girls would want fancy clothing, and boys will want to ride a bike. 

• Geographic Variation Wants: For those living in northern parts, they would have a good room heater while those living in desert lands would want an AC. Geography plays an important role in what people want and why.

• Wants vary with Health: Those who are fit, do not require any medicines, but for the unfit ones, hospitals and good nutrition are a want.

Conclusion: 

At the end of it all, the economy is completely related and revolves around human wants. It helps the government in understanding the demand-supply and chain. Are you wondering what are the prime reasons for the skyrocketing human wants? This is usually because of the following reasons.

These factors highly contribute to the ever-rising human wants.

Wants never end, the more you give, the more people want. This article helps you understand the types and characteristics of wants in a more elaborate manner. Look it up and understand the content thoroughly for your exams.

Taking down notes is an important activity for students. There are different reasons behind taking down notes in a classroom. However, the most common reason is recalling the information gathered and to prevent forgetting the important points. Note making styles are crucial, especially when students are getting ready for their exams. So, note-making helps them greatly with their exam preparation. 

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Taking down a note in the correct way is not as easy as it sounds. It is not that you simply jot down everything that you hear. Note writing format is all about summarizing the core concepts as precisely as possible in your own words. 

What are the Advantages of Note Making ?

At a glance, note making helps you in the following ways.

Therefore, understanding the note making format is pivotal for all as it helps us in many ways.

What is the Format of Note Making?

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The question here is how to implement note making. There is not one, but many formats available for note making. 

Outline: The outline method is one of the best and popular note making methods among college students. It helps in structuring the notes in the right way, and this further helps in saving significant time for editing and reviewing. When it comes to note making format, the outline method plays an important role, especially for the newbies. This method is the easiest and, thus, is preferred by many. You can also add bullet points to represent various topics and subtopics.

Split: Split is also a good method for note making. In this method, a blank page of your notebook is divided into a couple of columns (split). The first column consists of the standard notes, and the other follows the summary. This is one of the most common note making formats used during lectures.

Diagram: In the diagram method, notes are represented by various free-hand drawings based on the subject. The primary topic is connected to related ideas. This method is easy to understand because of visual communication.

Mindmap – A map usually works here to present the main points. Images and texts are parts of this Note writing format. Here the information is linked in a proper sequence. It is similar to a flowchart.

Prompt Format – Question and answer are usually highlighted here in this note writing format. The idea here is not to make the notes lengthy. This is an easy way for the revision of the notes.

How does Note Making Work? 

As you read through this section, you will get a clear idea of note making. 

The Generic Format of Note Making 

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This may not be a piece of useful advice for many, but writing down examples in the notes can also help a lot. If you do not know how to do note making or if you are looking for an easy note making format, make sure to include the examples in a couple of ways. Also, you should add-

What are the Procedures of Note Making? 

Maintaining a simple procedure for note making is important for the understanding of students. The procedures of note making include reading the passage carefully and underlining the sentences which you feel are important. This will help in making headings and subheadings. To get a fair idea, you can also make a rough note, initially. An important point to remember is, organizing the points logically and in a sequence. When re-writing the note in your own language or words, make sure that idea or message is not changed. This clarifies how to implement note making.

Important Points for Note Making 

As a thumb rule, you do not have to think much when taking down notes. Just have a fair idea of the methods, so that note making becomes easier based on the situation and purpose.

Note making is a technique of  recording important points from a lecture, meeting or reading. There are three main note making styles: outlining, mind mapping and spider diagrams. Each has its own advantages, procedures and important points. Let’s take a look at each style in more detail.

Outlining is the most popular note taking style. It involves breaking down information into headings and subheadings with key words and phrases. Advantages of outlining include that it is easy to follow, helps you focus on the topic and can be used for revision purposes. The procedure for outlining is as follows:

Mind mapping is  a useful tool to use when you have a lot of information to process. It involves drawing an image that contains the main topic in its centre and radiating out other images/ideas branching off from it. The advantages to mind mapping are that it is great for visual learners, helps you think more creatively, aids memory retention and can be used as revision notes or presentations.

spider diagrams  are similar to mind maps, but use lines instead of circles. They are good for visualising information and seeing relationships between ideas. Advantages of spider diagrams include that they are easy to create, can be adapted as you go along and help with problem solving.

Importance of Note Making

It is important to note take because it helps with memory retention. It also allows you to focus on the lecture, meeting or reading without getting distracted by your surroundings. Finally, it can be used as revision notes and help turn information into knowledge which will stay in your brain for longer and  improve your grades.

Here are Some Benefits of Note Making

1. Note Making allows you to understand and retain information.

Note making is a skill that we all use in everyday life, whether it’s from watching a movie or TV show, reading the newspaper or listening to someone speak at an event., you will become better equipped for future learning contexts where these skills are required of you. These include lectures at university/ college , meetings with colleagues and presentations . In addition, practice makes perfect – if you keep up with this task over time while regularly applying the same techniques each time (outline headings before going into detail; draw images instead of words), eventually it will be second nature.

2. It helps you focus on the task at hand.

When we are taking notes, our minds are focused on what is being said in front of us and not wandering off. This is especially beneficial when attending long lectures where it’s easy to get lost if you’re not concentrating fully on the speaker. Furthermore, having concise and well-organised notes will help reduce any anxiety or stress that may come with preparing for an assessment.

3. You can use them for revision.

The best way to learn and remember information is to revise it regularly. This involves reading over your notes, highlighting the key points and practising exam questions. Not only will this method help you get a better grade on exams but it’ll also free up more time.

Best ways to Study Note Making:

There are a few things you can do in order to maximise your learning when it comes to taking notes.

• Get into the habit of making notes on a daily basis, even if it’s just for five minutes. This will help improve your skills and make the task less daunting when it comes to actual assessments.

• Outline headings before going into detail; draw images instead of words. As mentioned earlier, this will help with memory retention and understanding/ recalling information at a later stage .

• Try different note taking techniques (e.g mind mapping, spider diagrams) until you find one that works best for you. Everyone learns differently so what may work for someone else might not work as well for you . 

• Take practice exams and revise your notes regularly. This will help embed the information in your mind and improve your grades on final assessments.

For successful business performance, any organisation must emphasise on the Human Resource. It is their performance based on which the company furthers the organisational goals and objectives. Thus, operative functions of HRM are of great importance as it is the HR Manager who tackles the department and fulfils the objectives. The operative functions of the HR manager ensure the organisation functions properly.

What are the Operative Functions of HRM?

Before we delve deeper into the operative functions of the HR manager, let us enlighten you about the introduction to operative functions. The term operative functions refer to the particular tasks, functions or duties that are vested in the department of human resource by the organisation itself. In other words, the personnel department is entrusted with these tasks. The tasks include employment of workforce, development of the human resource, integration, compensation and maintenance of the workforce of the organisation. In this section of introduction to operative functions, we must remind you that the functions of the HR manager are varied including advisory functions and management functions apart from operative functions.

Operative Functions of Human Resource Management

The HR Managers are not directly associated with management functions such as controlling, staffing, planning, directing, organising etc. In the following section, we describe the operative functions of human resource management in detail.

1. Recruitment

One of the main operative functions of HR is taking care of recruitment. Workforce or human resource is the most important sector that an organisation depends upon for the final product produced from the available resources. This calls for identifying the requirement of personnel properly. HR Managers estimates how much manpower the firm requires by analysing the existing workforce and the workload. After acquiring the candidates with desired qualification and/or experience, they delegate responsibilities. The selection, placement and employment take place under the recruitment process.

2. Compensation

Employees look for financial support while they work in an organisation. One of the operative functions of human resource management is to ensure that workers working at the same level and delivering the same outputs receive equal compensation. Here compensation is the payment that the employees receive in exchange for the work they do. The compensation must be equitable and sufficient.

3. Development

The operative functions of HR do not mean acquiring new workforce and doing away with the old staff. The HRM needs to upgrade the existing staff and develop them. Arranging for training and development of the staff is important for the overall growth of the firm. The training sessions develop the workers, make them acquitted with the changing norms and help them adapt to the work environment too.

4. Workplace Environment

While personal and professional development of the employees and the whole workforce is of utmost importance, enabling them to function in a productive work environment is equally important. One of the managerial and operative functions of HRM is to ensure the organisational goals are met and steady productivity is maintained. For this, good maintenance of the workplace, providing a productive ambience, etc. are necessary.

5. Relationship Building

While performing the managerial and operative functions of HRM, the managers also build a relationship with the workers across industries by joint consultation, bargaining or acting as a mediator if disputes occur. The labour enactments knowledge comes in handy in these cases.

6. Motivation

Employees need to be continuously motivated so that they give in full effort to achieve the prior set goals. If at any point in time they feel demotivated, the HR manager should be there to guide them and motivate them in whatever way necessary- monetary or non-financially. Occasional incentives motivate workers and ensure more efficiency in the work to be delivered.

These are more or less the operative functions that HRM performs in an organisation. Though these are not the management functions, the operative functions are integrally associated with them. So, an HR Manager needs to be aware of all aspects of the organisation despite the workforce being his/her only responsibility.

Before talking about people as a resource, we have first to define People As Resources. By people as a resource, we mean to say the people who form a part of the workforce and play a significant role in the economic growth by contributing to the productive resources of the country. Thus, along with various other resources, a country also needs people who can put those resources to good use and increase production. Investment in human capital is done through training, education, and healthcare, making the workforce more productive and hence more beneficial for the economy. This is how we define people as a resource. Now let us learn about People As Resource class 9.

Human Resource Development 

Human resource development refers to the program of improving the productivity of a company and increasing its productivity along with employee satisfaction. Human resource development is very important for employees and extremely beneficial for the country and the economy as a whole. By providing facilities like education, healthcare, formal and informal training, the productivity of workers would improve. A healthy worker is much more productive as compared to a worker who remains sick and is absent from work. Similarly, through training, workers can acquire new skills, and this would help them increase production. This is a brief summary of People As Resources and how it can be improved.

Economic Activities

Now to explain people as a resource, we have to divide the economic activities into three basic parts. The first category includes primary activities, which are the economic activities that are related to horticulture, poultry farming, fishing, quarrying, mining, and animal husbandry. The natural resources are very easy to extract, and there is no need for any change or modification. The second class of economic activities is secondary activities. The secondary activities are associated with natural resources, but they would need to be altered. Secondary activities include industries that may be agriculture-based industries or industries that manufacture various goods from raw materials. The tertiary activities form the backbone of the economy. Such activities include banking, transport, and various such services that do not lead to direct production but are essential for the economy. 

Economic and Non-Economic Activities 

An activity that is performed with the purpose of selling either a commodity or a service is simply referred to as economic activity. They are done by people to fulfill their needs in daily life. For example, any kind of profession, business, or employment can be termed as an economic activity. People are usually involved in those for the purpose of earning. It helps them live a satisfactory life. 

Non-economic activities include everything that a person does apart from economic activities. Any time that is spent doing any act with family or friends can be termed as non-economic activity. Religious activities such as worshiping are also included in this category. 

Acts that are not done for the purpose of earning anything are known as non-economic activities. For example, a person helping underprivileged people. 

Market and Non Market Activities

The economic activities can be classified according to the production goals as well. Thus, they can be divided into market and non-market activities. When a producer produces something for sale in the market, it is called market activities. A farmer producing grains or a producer producing certain goods are all examples of market activities. The non-market activities are certain products or services which are not produced for sale in the market but for self-consumption. Food crops are an example of non-market products which are produced only for self-consumption and not a sale. 

Quality of Population

We cannot explain people as a resource without describing the quality of the population. The most important parts of the population’s quality are the literacy rate, health, and skills. If people remain illiterate, they would find it difficult to adjust to new production techniques and would not be able to contribute much to the economy. On the other hand, educated citizens can make the best use of the resources, can educate and actively contribute to the development of the country. Similarly, if people are unhealthy, they would be less productive because of increased absenteeism and the lesser ability to work. Similarly, if workers are provided training, which may be formal or informal, that would improve their productivity and help in increasing the production of the economy. 

Did You Know?

There is a difference between the terms of human resource development and human resource management. Human resource management is considered to be a part of human resource development, which is a larger system in an organization. Human Resource Management is a function that deals with the demands of the organization. At the same time, human resource development is seen as an essential function that seeks to improve the economy’s condition as a whole. People as a resource or human resource can be seen as the people who constitute the organizations and industries in the economy. 

The Issue Of Unemployment

Definition of Unemployment

Unemployment can be defined as the inability of a willing person to find work. A skilled person who is looking for a job and has all the necessary qualifications is unable to secure some work for himself is said to be unemployed. In other words, unemployment is the condition where people belonging to the working-age are incapable of finding an occupation for themselves. 

The rate of unemployment in India for people above the age of fifteen is around 10%. This rate varies when different factors are involved. For example, the unemployment rate of women is more as compared to men. Similarly, more people are unemployed in rural areas as compared to urban areas. 

Unemployment is the Biggest Problem

Unemployment is a bane and it can be called the biggest problem of any country. It is a waste of the human resource of a nation. It leads to many problems such as an increase in the rate of poverty and a decrease in the health of people. It is a crisis which if left unmanaged can lead to social unrest. Unemployed people can easily get involved in doing illegal things. They can also create an extra burden upon their families and the government. Therefore it is extremely important to manage the situation of unemployment in India.  

Kinds of Unemployment

Unemployment can be classified into various categories. Based on the area it can be either rural unemployment or urban unemployment. Rural unemployment can be further divided into two types i.e. seasonal unemployment and disguised unemployment.

The urban areas of India are facing a unique situation. There are a lot of people that have completed their education and are unemployed. This is mainly because every year many people graduate from colleges but the employment opportunity is not generated at the same rate. This is known as educated unemployment. It is common in urban areas usually.

Seasonal unemployment can be explained as the phenomenon where people are employed only during some season in a year. This can be better explained with the example of agricultural laborers that work only in the busy season such as sowing and harvesting. This type of unemployment occurs mostly in rural areas. However, in rare scenarios, it can be found in urban areas as well.

Disguised unemployment is common in densely populated countries. This is the condition when more people are hired to do work that can be easily managed by a lesser number of people. Even if some people are removed, there would be no negative effect or impact on their productivity.

Solved Example

1. What is the Difference Between Human Resources and All Other Types of Resources?

Ans: Human resources are commonly considered more important than other resources like capital, land, or labor. It is the workers who finally put the resources to use, and while all other resources are passive and have to be used, human resources are active and are useful by themselves. This is the basic difference between the two.