Hi Ravi,
Relationship between entities, even between the same entity is defined by the nature of the business.
You said "a recursive relationship can be resolved by introducing another entity." and this isn't up to you to decide this is defined by how the business or real world entity is related.
If you state 'A (parent) employee can be related to zero, one, or many (child) employees. AND A (child) employee can have one and only one (parent) employee'. Then your entity EMPLOYEE must have a recursive relationship.
However if your business is:
If you state 'A (parent) employee can be related to zero, one, or many (child) employees. AND A (child) employee can have zero, one, or many (parent) employees'. Then your entity EMPLOYEE must have an associative entity.
I'm not certain where you got the 'resolved' idea. You only 'resolve' many to many relationships. There is no 'resolving' of a (zero), one to many relationship.
You model the business
If you have a many to many as in my second example, then you have two attributes that make up the primary key of the associative entity. The primary key of employee one (parent id) and the primary key of employee two (child id)
Hope that helps!
Vmusic