Marginal Musings: A Dialogue Between Humanities and Management - A Collection of Management Essays by Liu Wenrui

Author: Liu Wenrui
Publisher:
Publish Date: 2006-08-01
Features:
1. The influence of social organizations on Chinese management originates from its own social organizations. The basic form of these organizations in ancient times was the family and blood ties, while in the contemporary era, it is the "danwei" (work unit). Chinese social organizations have never completely severed their ties with the family and blood structure. This is evident in ancient times, as well as in the "Four Great Families" and various factions during the Republic of China, all of which bore a strong family and bloodline color. In contemporary times, if we analyze the organizational structure of the "danwei" solely, its essence is the isomorphic amplification of family and bloodline organizations. From the emphasis on loving the factory like one's own home in enterprises to the enduring term "parent official" for government officials, all reflect this isomorphism. Members of the danwei rely on it as much as they rely on their families, and everything depends on the "organization." The isomorphism between the danwei and the family has placed Chinese managers in an organizational environment that has not been tempered by industrialization and has not shed its warm, familial facade. Precisely because of this isomorphism, in various organizations across China, the majority of managers have not received rigorous modern organizational management training. As long as they possess the qualities of a good "parent," they are considered fully competent for management needs. A few who have mastered advanced management theories, techniques, and methods find in practice that the so-called "science" they has no practical value. Not to mention believing in Simon or Drucker would lead to, even believing in Taylor or Fayol would be useless. The only viable and realistic choice is to align with traditional "political arts." In this organizational environment, Chinese management has always been dominated by inherent social habits. The idea of governing factories with Romance of the Three Kingdoms, guiding the state with The Analects, and conducting business with The Art of War reflects this traditional inertia to some extent. In such an environment, even when new ideas and methods are "introduced," it is impossible to break free from the framework of "Chinese body, Western application." The introduction and implementation of Drucker's ideas, as well as the distortion of "Management by Objectives" (MBO) in China, have made Chinese MBO far removed from Drucker's original intent, which is one typical manifestation of this "Chinese body, Western application." However, the need for modernization has made management reform a matter that cannot be ignored. Thus, the hybridization of modern and traditional has created a unique characteristic of Chinese management. Some scholars have vividly termed this characteristic "the adolescence of management." Although the scholar who proposed this view limited the "adolescence of management" to the private sector, a closer analysis reveals that from government organizations to state-owned enterprises and institutions, despite their considerable "age," they have not undergone the metamorphosis from a natural and planned economy to a market economy. In the tide of building a market economy, neither the government nor state-owned enterprises have passed through this "adolescence of management," and compared to private enterprises, they face similar problems. During the process of modernization, this "adolescence of management" has come into sharp conflict with modernization. Due to the interweaving of tradition and modernity in social organizations (including government, public institutions, and enterprises), management also faces the contradiction between familialization and specialization. The various organizations in China today contain both traditional and legalistic elements, with the latter often concealing traditional content under formal regulations. Organizations operate relying on personal relationships rather than strict rules. This uncodified but pervasive blood, kinship, and geographical ties (or their disguised patriarchal relationships) make patriarchal management effective. Practices such as seeking favor, leveraging connections, forming quasi-blood ties through paternalistic superior-subordinate relationships, establishing quasi-kinship through gift-giving, and constructing quasi-geographical ties through alumni associations and friendship circles are all indispensable in actual management. "Handling public affairs as private matters" has become a universal principle. Any manager who achieves success in China understands the intricacies of this system, leading to the folk saying "connections are productivity." The rent-seeking costs incurred to build these connections alone reached 30 billion yuan annually in the mid-1990s, and estimates suggest they are now around 100 billion yuan per year. However, Chinese society has indeed changed, and the "danwei" is no longer the same as the "family." The transition of the state and society to a market economy, the transformation of government functions, and the demand for the legalization of management behavior have all surpassed the experience and capabilities of traditional officials. The rapid expansion of the state's social service functions has left those accustomed to old methods struggling to cope. The growing autonomy of the public and the establishment of the concept of taxpayers have made leaders familiar with control methods but not contractual methods difficult to manage. Especially in the economic sphere, the scale of enterprises may exceed the capacity of managers, the market environment faced by enterprises may render managers' official habits obsolete, and the demands of modern management may leave managers with insufficient experience and knowledge reserves. Therefore, how to achieve management transformation in sync with social transformation during this period, ensuring that managers not only adapt to social needs but also promote organizational transformation, is a crucial issue in the development of Chinese management studies. Since the reform and opening-up, the changes in Chinese society, particularly in social organizations, have far outpaced the speed of managers' relearning. Professional technical personnel (not professional managers) are beginning to play an increasingly important role in various social organizations, and "governing with technology" has become an official authoritative orientation. However, most technical personnel still work under traditional managers, and the problem of "outsiders leading the insiders" is becoming increasingly severe. As outsiders in management, these professionals lack the motivation to transform into insiders, and the selection of managers still prioritizes politics over management. In this context, the loyalty of professionals to science and technology may challenge the authority of traditional managers, weakening personal-dependent loyalty. If managers do not transform in time, it may lead to serious conflicts or even a management crisis. P31-33