Adam Smith Theory and the Differences between Leadership and Management

Management
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My Reaction to Leadership
I consider myself a leader, so when I learned about leadership, two questions came to my mind: What does leadership mean, and what is my leadership philosophy. The topic altered my perspectives on leadership and what type of a leader I was and wanted to be. During the lecture, I learned of my strength, and I presently know how to use this strength to conquer challenges and make a step closer to the leader I want to be. Firstly, none of us is perfect because perfection is not easily attainable (Bogdanova & Kuzmina, 2018). It is something that needs a long time to obtain (Pandya et al., 2017). Reflecting on being a leader is the first step to becoming a great leader. The reflections are the starting steps to becoming the leaders we want to be. I learned that leaders should deploy storytelling into the way they lead others. Leaders can do this by talking about their own stories, displaying their authenticity, and simultaneously providing their followers a chance to share their own stories (Pandya et al., 2017).
Storytelling is beneficial because it helps the whole entity learn and improves leadership development within others in the entity (Bogdanova & Kuzmina, 2018). Throughout the leadership lesson, concepts, perspectives, and ideas that resonated with me the most were ethics, transformational and authentic leadership, followership, art, and storytelling. A leader who concentrates on these areas will create compelling and creative leadership, bring real change, and be respected. When I thought of the question, what does leadership mean to me? I started to think of how leaders should behave, what skills they should have, what leadership skills I admire the most, the failed attempts I have experienced as a leader. Through these reflections, I learned how many leadership experiences had framed my views on leadership and my thoughts on becoming a leader. I realized that it is important to critically reflect and analyze how authentic you are as a leader. I think reflecting on your ability as a leader is essential. I believe that to improve leadership skills, and leaders have to learn, grow and reflect continuously.
What I Learned from Adam Smith Theory
I find the concept of the invisible hand by Adam Smith interesting because it contradicts what the general public thinks about government intervention and the regulation of the economy. In his books, The Theory of Moral Sentiments and an Inquiry into the Nature and Causes of the Wealth Nations, Adam defines the concept of the invisible hand as the unintended or indirect benefits for society that results from the operation of a free market economy (DuPont & Durham, 2021). Adam is considered to have discovered and choreographed modern economic theory in the late 18th Century and was a critic of the extensive government regulation of the economy. I find it interesting that he even defended smuggling and described it as a legitimate and natural part of the economy. Additionally, the supply-side Milton Friedman School of economic thought (DuPont & Durham, 2021), however, those theories are contrary to the 19th century demand-side Keynesian economic theories that became dominant in framing the economic policies of Western governments from the 1930s.
Adam's theory entails the foundation of his belief that widespread government intervention and regulation of the economy are neither beneficial nor necessary (DuPont & Durham, 2021). Adam argues that individuals operate freely in a free economy, formulating decisions mainly focused on their self-interest, coherently taking actions that profit the society as a whole (Liu, 2018). Despite that, the profitable results were not the objective of those actions. In other words, the "Invisible Hand" argument is that the system of free enterprise enhances society in general even though it is not the intent of any economic agent (Liu, 2018). The essential point is that the morality of the market prohibits only fraud and force; it does not necessitate individuals to do good to others. Nonetheless, when all transactions are volitional to both parties, that is precisely what we anticipate to occur. This is because the summation of the benefits ...