Leadership and Management in China: Philosophies, Theories, and Practices

(Jacob Rumans) #1

To facilitate successful implementation of his reform, Deng decided,
first of all, to bring about the nation’s recovery from the decade of
stagnation and destruction of the Cultural Revolution. He established
the key policy of economic development and opening to the outside
world at the Third Plenum of the Eleventh CCP Central Committee in



  1. Different from Mao’s people’s commune system, Deng’s policy
    allowed farmers to manage their own piece of land and to directly
    benefit from their own labor according to a system of distributed
    responsibility, thus greatly arousing the enthusiasm of rural China.
    Scientific management methods were adopted to improve the effi-
    ciency of state-owned enterprises and to allow the emergence of
    priva te enter prises. Luo ( 2005 ) believe s that Deng’s challenge to what
    had been mistakenly perceived as genuine Maoist thoughts opened up
    people’s minds, instilled confidence, and facilitated a broad-based
    economic recovery.
    In addition to bringing about the recovery of China’s domestic
    economy, Deng set a new vision by addressing China’s relationship
    with the outside world differently from Mao’s epoch. During the
    Cultural Revolution and for many years before that, China largely
    isolated itself from the Western world. Yet to build China’s economy,
    Deng decided that China could not afford to ignore developments in
    science and management that were happening in the Western world.
    In many of his speeches, Deng emphasized the importance and the
    benefits of opening to and learning from the outside world. In his
    speech, ‘‘Use the intellectual resources of other countries and open
    wider to the outside world’’ (Deng, 1994 ), for instance, he addressed
    China’s earnest need to attract foreign experts and resources to
    develop its own major projects, and the need to be flexible to facilitate
    the import of foreign resources. Deng perceived that opening to the
    outside world to exploit international opportunities for a strong China
    was ‘‘a matter of strategic importance’’ (Deng, 1994 : 43).
    Third, Deng’s reforms aimed to improve the efficiency of the
    government and administration. For a long time in the history of
    the CCP, party leaders had enjoyed lifelong tenure, with promotion
    largely determined by seniority. These traditional practices had led to
    invetera te inertia an d lethargy in the governm ent (Lu o, 2005 ). As
    early as in his speech of 1961, ‘‘Promote large numbers of young
    technicians’’ (Deng, 1992 : 267–268), Deng emphasized the import-
    ance of ‘‘professional and technical competence’’ as the main criterion


Leadership theories and practices of Mao and Deng 223

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