to understand traditional Chinese culture but also had to know
Western management theory. A business executive needed to use West-
ern management theories flexibly and creatively with the specific
Chinese situation.
One CEO of a company talked about his change of management
philosophy in recent years. His business is in manufacturing central
air-conditioning machines, non-electric chillers, and energy-saving
control systems. He embraced Western management practices for their
rationality, depersonalization, and efficiency. He instituted strict
management procedures and work discipline in his company, which
he believed had ensured the quality of the company’s products, and
enhanced the company’s reputation both in China and abroad. How-
ever, the strict operating procedures alienated the company’s employees,
especially its managers. Middle managers regarded the management
system as harsh and most left after working for the company for only
two years. The high turnover prompted the executive to realize that
relying solely on Western scientific management is not workable. He
said, ‘‘I have a better understanding of Western culture and values
compared to Chinese culture. Now, I am rectifying some inadequacies.’’
He changed his management philosophy to give more consideration
to human needs. He is currently revising his company’s operating
systems. ‘‘In the past, I emphasized having a strict operating system.
Now, I emphasize workability. We need to have a system that works.’’
The ability to learn and to reflect contributes to the formation
of management philosophies
Executives form their management philosophy through their observa-
tions of and reflections on their and others’ management practices.
We were impressed that as a group, the Chinese business executives
that we interviewed put emphasis on learning, whether through obser-
vation, reflection, reading, or conversing. One of the executives said
that he persisted in keeping a diary on what he learnt. After every
business trip, he would reflect and write down the outstanding prac-
tices of companies from the same industry. This helped his company to
come up with new products. He reported that his notebook contained
more than 500 million words. Through reflecting, these executives
abstracted patterns from problems and solutions and became more
aware of their own thoughts and feelings, hence their greater willing-
ness and ability to articulate their management philosophies.
266 Zhi-xue Zhanget al.