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

(Jacob Rumans) #1

as plant operations, finance, and quality control, althoughpursuit
of excellencegoes beyond the technical and all of the operational
principles inevitably also affect the social relational principles and
vice versa.
We further speculate that some philosophical notions represent
terminal values of the business leaders whereas others represent
instrumental values for the purpose of achieving the terminal values.
Social harmony has been the ultimate goal of the Chinese people in
social life (Yang, 1995 ) and arguablysincerityandthe Golden Mean,
or evensocial responsibilityare in part means toward the end of
greater overall social harmony among individuals, social groups, and
organizational stakeholders. However, if one pushes the distinction
between the instrumental and the terminal values, pursuit of excel-
lence seems to be emerging as a new terminal value in addition to, if
not in place of, social harmony. Interestingly, it had the second highest
frequency of being mentioned and the terminology is new, modern,
ambitious, and inspiring, reflecting the aspirations of Chinese business
leaders to grow bigger and better global businesses, ones that last
for centuries if not eternally. That pursuit of excellence is held as a
terminal value may not be as explicit or as conscious as social har-
mony or social responsibility, but it seems to be as potent as, if not
more than, social harmony. The following is an example of how in
the mind of the business executive social harmony is a path toward
business success.
One case from the telecom company affiliated to China Network
Communications Corporation, mentioned earlier, provides strong
evidence for the importance of maintaining harmony. The CEO had
kept harmony among top and middle managers, who in turn fully
supported the CEO, which led to the successes of this company
during the dramatic organizational changes from 2002 to 2005. This
company had maintained a harmonious relationship with local gov-
ernment, which enabled the company to launch the Personal Handy-
phone System business in this location much earlier than in other
regions. Among all the affiliated companies of China Network Com-
munications Corporation, this company has been a role model (Zhang
and Wang, 2006 ). In our interview with the CEO, he attributed his
success significantly to his painstaking effort to build harmonious
relationships.


Chinese traditions and Western theories 261

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