Topic > Adam Smith's influence on contemporary management

Dr. George Crowley's publication, “Adam Smith: Managerial Insights from the Father of Economics,” reaffirms the belief that Adam Smith's Wealth of Nations continues to remain influential in modern management practices. By allowing economies to be fluid, Dr. Crowley argues that societies are better off when businesses and consumers are free to pursue free market opportunities without borders or restrictive interference from government. Contemporary businesses are more complex and globally interconnected than at the start of the industrial revolution. Fundamentally, managers face similar challenges as their eighteenth-century colleagues, but more dynamics occur in the twenty-first-century economy. Academic scholars continue to debate Adam Smith's theories, but as Dr. Crowley correctly establishes, Smith's economic principles provide a blueprint for management decisions today. Adam Smith's The Wealth of Nations was published in 1776, coincidentally the same year as the Declaration of Independence, and is considered by many economic scholars to be the initial framework of capitalism. Smith's “invisible hand” metaphor explains how individual motivation, a strong workforce, and a decentralized market are the driving forces of economic prosperity. According to Dr. Crowley: The invisible hand succeeds in aligning individual incentives with social prosperity. An important consideration in determining whether incentives will be aligned, therefore, is the extent to which the “hand” is able to operate freely. …When institutions allow the invisible hand to align interests, wealth is created; when the rules of the game get in the way, however, it creates less desirable outcomes. Contemporary manager...... at the center of the paper ......cing: risks, challenges and potential solutions. Management Information Systems, 26(4), 312-326.Plowman, D. (2010). Work and 'the wealth of nations'. Public Policy Forum: AJournal Of The Oxford Round Table, 6(4), 1-13. Network. 12 February 2014. Pouder, R.P. (2011). The impact of outsourcing on firm value: new insights. SAMAdvanced Management Journal (07497075), 76(2), 4-13. Network. February 12, 2014. Ross, John. “Key Trends in Globalization.” “Key Trends in Globalization” NP, June 22, 2011. Web. February 12, 2014.Sen, A. (2010). The Economists' Manifesto. New Statesman, 139(4998), 29-30. Web.14 February 2014.Smith, E. (2009). Industry-specific human capital and profit distribution. Working Paper Series (Federal Reserve Bank of Atlanta), (21), 1-28. Network. February 13, 2014. Zupan, M. A. (2011). THE VIRTUES OF FREE MARKETS. CATO Journal, 31(2), 171-198. Network. February 12. 2014.