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

(Jacob Rumans) #1

executive from a private company said that his father’s influence on
him had extended beyond personal style to business philosophy. His
father, being a leader of a state-owned company for thirty years,
related to the executive how the state-owned business failed because
of (a) poor management of returns on investment/assets (or financial
control) and (b) failure to establish brand names. The father’s experi-
ence taught the son a lesson about scientific management – systematic
accounting and diligent marketing are critical in running a business,
which made his electrical engineering company very successful in the
market.
Some interviewees who were about fifty years old reported that
they were deeply influenced by their experiences during the Chinese
Cultural Revolution in the 1960s and 1970s. One of the interviewees
related his experience in the countryside during the 1960s and up to



  1. He was one of a large number of young people from cities who
    were sent to the poor areas in remote rural China and settled there as
    peasants. The executive witnessed many youths losing their personal
    integrity and dignity in order to get better treatment or to have
    the opportunity to return to the cities from which they came. This
    experience led him to the realization of the importance of sincerity
    and respect for human dignity, which he strongly emphasized in his
    company.
    Some business leaders attributed their philosophical insights to the
    influence of some seemingly small and insignificant things. An inter-
    viewee liked to play golf, and discovered an analogy between man-
    aging a company and playing golf. First, to play golf well, one must
    have good body balance and strength and a calm mind. Second, it is
    more important to hit the golf ball to exactly the right place than just
    to hit it a long distance. From this insight, he realized the importance
    of having an organization that is in harmony and balance, as well as
    the importance of achieving ‘‘fit’’ for each employee in the organiza-
    tional processes and systems. From playing golf, he also claimed to
    have recognized the need to have stable growth and development.
    These insights have allowed him to respond to market needs and
    opportunities in a steady manner and to think carefully before taking
    actions.
    Two interviewees were educated abroad and two other interviewees
    had worked in Hong Kong for several years. This direct exposure to
    Western societies greatly influenced them. One of them had studied in


254 Zhi-xue Zhanget al.

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