Oriental Thinking and Management Wisdom

——Chinese Management Wisdom from the

Comparative Perspective

Professor of History in School of Humanities,

Tsinghua University
Professor of EMBA courses in Tsinghua
University SEM
Dr. Zhang Guogang
 I. Oriental Thinking from the
Comparative Perspective
Changes, History, Odes, Rituals, Spring
and Autumn, Four books and Chinese
Confucian classics philology——13 classics of Confucianism
include Changes, History, Odes, three Rituals,
three Spring and Autumn Confucianism,
Four Mencius, Classic of Filial Piety and Er Ya.
Parts
of There are 16 types, including history
History
books, annals, the whole course,
Study separate histories and others.

Philosophy There are 19 types, including Mo Tzu,

law, agriculture, etc.

Literature Songs of Chu, sylloge, Lyric, etc.

Such as Songs of Chu, Full Collection of
Tang Poems, etc.
 The Evolution of Ideology
• 771BC The Establishment of Qin Dynasty
• 221BC Qin Dynasty unification
• 206BC The demise of Qin Dynasty
• 195BC Liu Bang worshiped Confucian temple
• 140BC Emperor Wu of Han only Confucianism (the Five Classics)
• The West (Indian Buddhism) Neo-Confucianism( the Four Books)
• The West (the European and American culture)
The late Ming Dynasty and the Heyday of Qing Dynasty、 The May
4th Procession of 1919 and the Cultural Revolution
• Marxism-Leninism, Maoism; Deng Xiaoping Theory, Three
Represents and Scientific Outlook on Development (construction of
core values)
 Benevolence, People-oriented Thought,
Faith, etc.
• These thoughts and ideas have their own national
features and everlasting value of times, no matter
in the past or at the present. These thoughts and
ideas keep pace with the times with the time going
by as well as have its own continuity and stability.
We are born to be Chinese. The fundamental is
that we Chinese have special spirit and oblivious
values. Socialist core values that we advocate can
demonstrate inheritance and sublimation of
Chinese excellent traditional culture. (A speech by
President Xi Jinping in Beijing University on May 4th)
 Scripture Reading and History Reading

• Zeng Guofan: There are two ways

of reading. If you want to cultivate
your moral character, then read
scripture; if you want to learn
practical thought, then read
history.
• Zeng Guofan: “I think,
Comprehensive Mirror for Aid in
Government, written by Sima
Guang is the best one among books
about practical thought, written by
other great thinkers of the past.”
• Explore the reason of development
and exercise the power of an
emperor.
 • Focus on nature
System of Human • Focus on realistic life and
Knowledge society
• Focus on supernature (religion
and theology)
 The East and the West in Axial Age

The German philosopher Karl Jaspers put forward “the Axial Age” for
the first time in his book The Origin and Goal Of History. The
phenomenon of breakthrouh in human culture, which emerged in
China, the West and India in around 500 BC is called“the Axial Age”.
The area where “the Axial Age” emerged is near 30 degrees north
latitude, that is, in the range between 25 degrees and 35 degrees north
latitude.

Egypti Mesop Chines

Greek Indian
an otamia e
Civiliz Civiliz
Civiliz Civiliz Civiliz
ation ation
ation ation ation
 1.1 Chinese Civilization from the
Comparative Perspective
• Hellenic culture: science and philosophy
• Culture in West Asia, South Asia and North Africa:
theology and religion
• Chinese culture: realistic life and historical
intelligence
• Yizhuan: “People in the world pursue uniformity, but
they think in a diversified way. They can achieve the
same goal with different ways.
 The Feature of National History: National
Governance Structure
• (city-state)、（Feudalism）、(federation)
• the system of tribal elders (chiefdoms)

• centralism: the system of prefectures and counties, the

resident (fellow villager or townsman)
• rites and music culture: system (rites), enlightment
(music)
• system construction: electoral system, tax system, etc.
 Conclusion: Comparison between the East
and the West
• Chen Shimei (Xue Pinggui) and Yu Lian
• Zhaojun married Xiongnu and Henry VIII married
Katherine (a Spainish princess)
• The Belgian Government (400 days) and Beiyang
Government
 Feature of Sinology: Economic Activities

• Fan Li: By analyzing the supply and demand of market, people

can know the price. Goods that are expensive to some degree
will lower, vice versa. When the price is high, then sell goods;
when the price is low, then buy goods. In this way, money can
flow smoothly like water.
• Shi Ji:Biographies of Merchants is a book to record
“merchants” (economic) activities of famous people.
“Merchants” mean that people conduct business through the
production and exchange of goods so as to make profits. It also
includes all kinds of handicraft, agriculture and fishery, mine
and smelting industry. ( Fan Li is the richest among
businessmen while Zigong is the most virtuous among
merchants.)
 Paper-money in the Northern Song
Dynasty and the Southern Song Dynasty
Paper Currency in Yuan Dynasty and Ming
Dynasty
 Conclusion: Comparison between the East
and the West
• land transactions • hardened structure of
• currencies (copper coins the real estate
and paper money) • gold coins, silver coins
• Polarization of wealth (the desire for money
leads to social after the Crusades
instability: government
monopoly,
nationalization of
mineral resources, the
essence of restraining
commerce)
 The Traditional Age: Political and Social
Problems

• 1. It is official-oriented and technology is not top priority;

centralism under the imperial power lacks restraint; when a
man in power dies, all the political measures he made will
cease.
• 2. The control of the nation over economy twists market
discipline. The absence of legal system provides some
unguarded space for power intervention.
• 3. The pan-morality, the absence of religion, the cruelty of
competition, Jungle Law which claims that working hard can
win, and the collapse of nobal spirit, all of these breed ruffian
culture and bring some difficulties to social management.
 1.2 The Evolution of China and the World

The world in the The world in the

eyes of Chinese eyes of Europeans

What is Greenwich Mean Time?

The Immigration of Original Indo-
Europeans
China in Asia

Asia

China

Pacific
Ocean
Cape of Good Hope and Calicut
 58. The World Explorations before 1600
Portugal and its land The fourth voyageof Columbus from 1502 to 1504
Spain and its land The route used by other Spanish to explore
The UK and its land The route discovered by the British
France and its land The voyage of William Barents in 1596
The route that was used by Portuguese to explore The voyage of Jacques Cartier in 1534
The firts voyage of Columbus in 1492 The route used by Marco Polo from 1271 to 1295
 Europe-dominated Colonial Order

• 1550-1850: The West shocked the world through its adventure

spirit, technology, military and economic advantages. There
are three types of “colonies”:
• The transplantation government: America, Canada and
Australia ( The real “colonies”)
• The sending government: India, Hong Kong and Burma
(colony)
• The puppet government: China and Iran (semicolony)

• Japan: honouring the king and drive off the barbarians;

leaping from Asia to Europe
 Pre-war and Post-war

• Colonial order: “the Eight-Power Allied Forces”

• Britain, France,Germany,Italy, the United States, Japan,
Russia and Austria.
• Modern order: “G8” in the West
• Britain, France, Germany, Italy, the United States, Japan,
Russia and Canada.
 America-led Order after the World War II

• The world order today:

• The World Bank, IMF, The Bretton Woods
system, The UN, WTO, OECD, NATO, G7(G8),
etc
• The universal value system in America and the
military alliance system in America
 The World Today and the Trend

• Get out of middle-income trip from 1960 to 2013:

• Africa: Equatorial Guinea
• America: Puerto Rico
• Europe: PIGS
• Asia: Japan, Korea, Hong Kong, Macao, Taiwan and
Singapore
 West-dominated World（1945-1990）

• A. (western mode, lacking legal order): India,

Philippines and Thiland
• B. (the order dominated by US army or powers):
Japan, Korean, Hong Kong and Singapore
• C. (non-western order, starting reform): China,
Soviet and eastern Europe(turn)
• There are more than 200 countries in the world,
most of which belong to A. (Color Revolution is
aimed to get into this type.)
 The Basis of Modern Civilization:
Freedom and Order
• the border of freedom: normal operation of the society
• limitation of order: guarantee the citizens' rights
• The former requires citizens to alienate rights and the
acceptance of specification has been restrained.
• The latter requires government to restrain power and the
acceptance of supervision has been restrained.

• Obama was interviewed by a journalist from Australian

Broadcasting Corporation:
(The essence: I'm on boat while you're in water)
 1.3 Realistic Reconsideration on Chinese
Way

• authoritarian order • procedural order

• meritocracy • democratic politics
• efficiency (positive • Restraints
and negative)
 Three Preconditions of Procedural Order
(Rule of Law)
• democratic accountability mechanism: put power into the cage of
institution
• social order on the rule of law: let the rule of law become a habit for
people
• governing capacity and economic development: counteract the
result from low-efficiency
• Fu Shan: three points of outstanding political institution:
• powerful governing capacity for government (counteract the low-
efficient decisions)
• social order on the rule of law (let the rule of law becom the habit
of the whole community)
• democratic accountability mechanism (put power into the cage of
institution)
 The Dual Significance of Democracy

• value siginificance: • tool significance:

people-oriented science and rational
• Admiration of God and decision-making (the
Protection of People: balance between the
“What God sees is from long-term benefits and
what people see; what the current benefits)
God hears is from what
people hear.”
 Three Obstructions of Chinese Road to
Modernization
• Obstruction from invested gainers (system and mechanism)
• Adaptation and challenges of western order ( universalism and
characteristic)
• Obstruction from established interest groups in the west (rising
and suppressing)

• Operational mechanism of modern society

• Political power: supervision and balances
• Social management: legal order
• Markert economy: spirit of contract
 The Way: Connect with the World Islands

• One Belt One Road: connect with the world islands

• On September 7th, 2013, President Xi Jinping put
forward in Kazakhstan that we should work together to
build “Silk Road Economic Belt” and expand regional
cooperation from point to area.
• On October 3rd, 2013, President Xi Jinping put forward
in Indonesia that China is willing to strengthen maritime
cooperation with ASEAN and work together to build
“Maritime Silk Road” in the 21st century.
Mackinder (1902): “The World Islands”
Railway and land power
 Chinese Management Wisdom from the
Comparative Perspective

• I. The state of the benevolent: leadership

quality
• II. The style of a gentleman: the art of
leadership
• III. The doctrine of the mean: working
methods
 I. The State of the Benevolent: Leadership
Quality
• What is benevolence?
• Fan Ch'ih asked about benevolence. The Master
said, "It is to love all men." (Confucian Analects: Yan
Yuan)
• Mencius said that “people should have
benevolence in inner heart and do things with
righteousness”: Benevolene is the safest house for
people; righteousness is the right way for peole. If
you abandon the safest house and the right way, it
must be pitiful. (Mencius: Li Lou)
 1.1 The Basis of “Benevolence”:
Filial Piety
• Filial piety and fraternal submission! -- are they not the root
of all benevolent actions? (Confucian Analects: Hsio R)
• “ Filial piety is the root of (all) virtue.” (Xiao Jing) “A man with
benevolence can be called a human being. It is the most important for people
to love their parents. (The Doctrine of the Mean)
• “To govern a nation must be committed to the root first and then deal
with trifles. ”The root doesn't mean the farming. Instead, it means people. To
be committed to people means making people rich rather than poor and
increasing the population. That is so-called the root. To be committed to the
root, filial piety should be the top priority.” (Lv's Commentaries of History)
• Xiao Jing: “It commences with the service of parents; it proceeds to the
service of the ruler; it is completed by the establishment of character.”
“Let him be final and kind to all;-- then they will be faithful to him.”
(Confucian Analects: Wei Chang)
• Mencius: “To love wonderful things is the nature of
human”
• The Book of Rites: “food and sex are basic human
desires.”
 Social Restraint Mechanism

• Law • heteronomy • Freedom

• Morality • Self-discipline • Openness

• Religion • commandment • Enlightment

 1.2 Main Idea of “Benevolence”: Loyalty
and Forgiveness
• The Master said, "Shan, my doctrine is that of an all-pervading unity."
The disciple Tsang replied, "Yes." The Master went out, and the other
disciples asked, saying, "What do his words mean?" Tsang said, "The
doctrine of our master is to be true to the principles of our nature and the
benevolent exercise of them to others, -- this and nothing more."
• Tsze-kung asked, saying, "Is there one word which may serve as a rule of
practice for all one's life?" The Master said, "Is not RECIPROCITY such
a word? What you do not want done to yourself, do not do to others."
• “Now the man of perfect virtue, wishing to be established himself,
seeks also to establish others; wishing to be enlarged himself, he seeks
also to enlarge others.” That said, to help others realize their goals
equals to help ourselves achieve our goals. “The superior man seeks
to perfect the admirable qualities of men, and does not seek to perfect
their bad qualities.”
 The Ancient Rules of Engaging in
Business in China
• People meet their needs through business. (If you find needs, then
you achieve half of success; if you meet the needs, then you achieve
success.
• Small profits or being honesty won't make you lose money.
• A real man makes profits with benevolence; a true gentleman
makes money with righteousness.
• A case: Chen Shouting
• To help others realize their goals equals to help ourselves
achieve our goals: To do business, we should fix our eyes on customers.
We need to have more understanding of customers, provide better service
for customers and solve problems from the perspective of customers every
day. This is a sceret of business success.
 Make the Boat Afloat or Sink
• If you take people's happiness as your happiness, then they will
regard your happiness as their happiness; if you take people's
sadness as your sadness, then they will regard your sadness as
their sadness. If a man worries the woes of the people and shares
the happiness of the people, he's likely to become an emperor.
(Mencius: King Hui of Liang)
• Why Jie and Zhou lost the throne is that they lost the support from
people. Why they lost the support from people is that they lost
public mind. There is a way of winning the throne: to get the
support from people; there's a way of getting the support from
people: to gain public mind; there's also a way of gaining public
mind: that is, to meet their needs and not putting what they don't
like on them. That's it. (Mencius: Li Lou)
• Do things by following one's heart; be a man in an opposite
way.
 1.3 The Requirement of “Benevolence”：to
Subdue One's Self and Return to Propriety
• “To subdue one's self and return to propriety, is perfect virtue.”
"Look not at what is contrary to propriety; listen not to what is
contrary to propriety; speak not what is contrary to propriety;
make no movement which is contrary to propriety." (Confucian
Analects: Yan Yuan)
• Requirements of “to subdue one's self”:"There are three things
which the superior man guards against. In youth, when the physical
powers are not yet settled, he guards against lust. When he is strong
and the physical powers are full of vigor, he guards against
quarrelsomeness. When he is old, and the animal powers are
decayed, he guards against covetousness." (Confucian Analects: Ji Shi)
• Comment: “Ritual” is social moral and legal framework
The significance about “to subdue one's self”: to overcome one's
weakness; to control one's desire; to restrain one's impulse
 The Qian Diagram: The Mode of Growth

The Qian Yuan Heng Li Zhen

Shang Jiu: highlight dragon's shame

Jiu Wu: flying in the sky
Jiu Si: fire in the hole
Jiu San: Junzi needs to work hard and stay alert all day long.
Jiu Er: a dragon appears in the field
Chu Jiu: a sentence from the Book of Changes

From the Book of Changes

 Emotional Intelligence

• Five dimensions of Emotional Intelligence:

• Self-consciousness: the ability to experience one's own feeling
• Self-managment: the ability to manage one's own emotions and
impulse
• Self-motivation: the ability to keep fighting when facing
confrontations and failures
• Empathy: the ability to experience others' feelings
• Social skills: the ability to deal with others' emotions

• Conclusion: A talented man must be knowledgeable and

phlegmatic ; a wise man must be intelligent and placid. (If
you want to manage others, you need to manage yourself
first.)
 II. The Accomplished Scholar is not a
Utensil: The Art of Leadership
• "The accomplished scholar is not a utensil." (Confucian
Analects: Wei Chang)
• Zhu Xi said, “Untensils have their own function and can
not connect with each other. People with virtue are always
knowledgeable. They can learn more than one skill.”
• "The superior man cannot be known in little matters; but he
may be intrusted with great concerns. The small man may not
be intrusted with great concerns, but he may be known in little
matters." (Confucian Analects: Wei Ling Kung)
• Comment: The comparison between Liu Bang and Xiang
Yu. An epitaph of Carnegie: Here lies a man who can make
people who are smarter than him surround him.
 2.1 The Cultivation of Leadership:
Three Points
• The firsrt one is benevolence; the second one is intelligence;
the third one is force.
• Indecision of an old woman can not be call the benevolent. A
benevolent man should amend politics, promote indoctrination,
cultivate everything and maintain people's living.
• An intelligent man is not a person who pays too many taxes. Instead, an
intelligent man must know morality and justice, distinguish what is safe
and what is dangerous, discover the talent and the foolish and know
right from wrong.
• A man with force is not a person who can make boundary through
violence. Instead, he must do things in a moral way, make decisions
without any doubt and he can not be induced by a mean man.
• Only if there exist these three points, can a nation prosper; if one point is
omitted, the nation will decay; if two points are omitted, the nation will be
in danger; if three points are all omitted, the nation will disappear.
 Body and Soul

• satisfying of the spirit • satisfying of the bod

• the spirit • material
• the significance • benefits

• characteristic of • characteristic of
dedication acquirement
• giving • possession

• religious aspect • aspect of safety

(ideological aspect)
 The Aspect of Leadership

A foolish emperor governs a nation with his abilities.

An ordinary emperor governs a nation with the
efforts of all peole.
A wise emperor governs a nation with the
intelligence of all people.
—— Han Feizi
 The Aspect of Leadership

Management: courage, original , value, leadership

Middle-level: communcation, coordination, efficiency,

management

Basic level: specialty, diligence, performance, conduct

Emperor Taizong of Tang:How can you achieve success if you only govern
a nation with your own ability rather than by using wisdom and strength
of all people?
Therefore, you must distinguish the importance of a position, discover able
man, and give them salary according to their strengths and weaknesses.
 Quality Required in Different Levels

courage

personal
relationship

business

basic level middle level management

 Senior Managers: Management by
Exception
• Taylor: The Principles of Scientific Management
• Routine (daily work):
• human resource and mechanism
• Routine:
• major plans of human resource and major decisions

Emperor Taizong of Tang: How can you achieve success if you only
govern a nation with your own ability rather than by using wisdom and
strength of all people? Therefore, you must distinguish the importance
of a position, discover able man, and give them salary according to their
strengths and weaknesses.
 Middle Managers: Communication Skills

• Understand the purpose of leaders;

• Confirm one's understanding with leader;
• Decompose and specify goals as well as form procedures
for work;
• Decompose assignments and arrange them to proper
employees as well as make and check working plans;
• Communicate with employees and work together so as to
do a good job;
• Summarize the results of work with employees;
• Encourage subordinates and admit their performances
 Basic Managers: Unity of Knowledge and
Practice
• You must study it broadly, investigate it in detail, deliberate on it carefully,
discern it clearly and practice it universally. Where there is a lack in your
understanding, or your study has not yet reached the point where it is effective,
don't just leave it. When there is something you have investigated, or
investigated but not understood, don't just
leave it. If someone else gets it in one try, I will try one hundred times. If
someone else gets it in ten tries, I will try one thousand times. If you are able
to follow this Way, then even if you are stupid, you will become enlightened.
Even if you are weak, you will become strong. (The Doctrine of the Mean)
• Some people know something when they're born; some people know
something by learning; some people know something after they meet with
some trouble. The result is the same: they all finally know something. Some
people are willing to practice; some people practice for some benefits; some
people are forced to practice. But they all practice at last. (The Doctrine of
the Mean)
• Comment: Do not be an armchair strategist.
 What id Leadership?

• Leadership: grasp the direction and raise the vision.

Besides,leaders can exert their influence on
employees so as to make employees be willing to
work hard to realize goals.
• Hard influence: institute: to shape one's behavior
• (fire rule: openness, fairness, justice)
• Soft influence: culture: to shape one's inner spirit
• (Liu Bei and Zhuge Liang: Be loyal and devoted to the last)
• Liu Bang employs Han Xin.
• A nation must prosper if the
emperor is leisure while his
courtiers are busy.
• A nation must decay if the
emperor is busy while his courtiers
are leisure.
 2.2 Use People According to Their
Capacity: The Way of Using People
• "The superior man is easy to serve and difficult to please. If you try to please him
in any way which is not accordant with right, he will not be pleased. But in his
employment of men, he uses them according to their capacity. The mean man is
difficult to serve, and easy to please. If you try to please him, though it be in a
way which is not accordant with right, he may be pleased. But in his employment
of men, he wishes them to be equal to everything." (Confucian Analects: Tsze-Lu)
• Comment: What does “Use People According to Their Capacity” mean?
• Respect talents and make use of their advantages. (Meng Changjun, Feng Xuan and
opportunists)
• If you want to make use of people's advantages, then you need to tolerate their
weaknesses: if water is so clean, there will be no fish; if people are so prudent,
there will be no friend. (Fang Xuanling)
• Even if you doubt someone, he can be employeed; if you use someone, you need
to doubt him, too. (Restraint)
 “Micro-power” of Using People

• Therefore, a wise emperor uses talents as if a skillful carpenter

makes carpentry. He uses the straight wood as a thill, the long
wood as a pillar and the short wood as an arch. These woods
have their own function no matter they are short, long ,straight or
crooked. A wise emperor uses people like this. He uses the
scheme of a smart person, strength of a rude person, force of a
courageous person and discretion of a timid person. He uses all
types of talents no matter they are smart, rude, courageous or
timid. Therefore, there are no abandoned materials for an
excellent carpenter; there is no useless talent for a wise emperor.
• Use the foolish
• Use the greedy
• Use people who once made mistakes
 How to Manage Exceptional Talents?
• Emperor Wu of Han: “A special business needs to rely on extraordinary people. So some
horses can run if people ride on it and kick someone if they stand. But these horses can
run for thousands of miles a day. Some smart people are satirized by the folk, but they
can achieve success, too. There are some horses that are hard to control and there are
some uninhibited talents. Why are they difficult to control? Actually, it depends on how
people manage and use them.
• Cao Cao: Some people have bad reputation, some people are satirized by the folk, and
some people are regarded as heartless and unfilial. But they have a gift for governing a
nation and ruling military. You should recommend those people and do not leave them
out.
• Sima Guang: People woth talents and morality can be a sage; people without talents and
morality can be a fool; people who focus more on morality than talents can be a
gentleman; people who focus more on talents than morality can be a mean man. If a sage
and a gentleman can not be used, then use a fool rather than a mean man.
• Emperor Taizong of Tang: People do not need to have both conduct and talent. I'd like to
take advantage of strengths and avoid weaknesses.
 Talent-selecting Standards

• have both ability and morality

• focus on morality
• focus on ability
• focus on managing
• no need to have both conduct and talents
 The Mode of Restraint: Use both
Tyrant and Emperor
• Legal aspect

• Institute aspect ( normalization; law)

• Cultural aspect ( inductivity; rite)

privacy
• Personal cultivation
natural disposition (aptitude)
 Give the Full Scope to Talents
• Industrial department——be down-to-earth and do not call for empty talks
• Public relation department——talents who can deal with troubles in a fast
way.
• Cooperation project(cohesion)——be good at coordinating benefits of all
parties
• Supervisor——perfectionist
• Financial department——self-disciplined and rigid performer
• R&D department——be good at thinking and an innovator
• Comment: “A good horse can take adventures, but it is weak in
plowing compared with a cow; a solid car can load much. but it is weak
in crossing a river compared with a boat. By give up strenths but using
weaknesses, a man can not get better development. A man is born to
win. But he needs to find out proper things to do.
 Questions

• 1.Talk about your understanding of “Sinology” from the

comparative perspectve. And talk about your understanding of
Chinese way from the perspective of Chinese characteristics.
• 2. Talk about requirements of traditional culture on leadership
quality from “benevolence (filial piety, loyalty and forgiveness,
restrain one's selfishness)”.
• 3. Talk about how to improve leadership from “he accomplished
scholar is not a utensil”.
• 4. Talk about the relation between “morality” and “ability” in
selecting talents from the perspective of “ Use People According to
Their Capacity”.