The existence of periodic overproduction crisis is a main characteristic of the market economy system.
In general, the more than an economy can produce, the better as the GDP (Gross Domestic Product) figures increase, there is economic growth and high income and employment figures .
But if an excessive quantity of production is offered in the markets in relation to the amounts demanded, there will be situations of excess supply. If such situations cannot be balanced, a big crisis arises, as producers will have large unsold stocks, factories with an enormous capacity if compared to the amount they can sell according to the demand, and much more workers than they need.
In this situation many plants have to close down, workers are fired and sometimes even the whole business goes bankrupt.
The contradiction happens because high production figures are not leading to economic growth or recording positive figures. Alternatively, an overproduction crisis takes place with the very negative consequences described above.
Leadership characteristic that can help motivate workers -
- Self-awareness
- Self-regulation
- Motivation
- Empathy
- Social skills
<h3>Why is emotional intelligence important to leaders and managers?</h3>
Someone needs to hold it together when the workplace erupts, or when negative emotions simmer just below the surface, creating a toxic working environment. A leader with high Emotional Intelligence can also help to foster a workplace culture that doesn’t become toxic in the first place.
As Chris Underwood’s feature on the vital role of emotional intelligence points out, leaders with high EQ can celebrate team balance and diversity, motivate and influence people as well as make decisions using critical thinking and positively influence strategy.
To learn more about EQ from given link
brainly.com/question/15585184
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