Chinese Management Approaches History and Recent Developments

Nico Schuster Comenius University in Bratislava, Faculty of Management

Abstract: It is no secret that things often work differently in China than what we are used to in the Western world. This paper aims to discuss how traditional Chinese beliefs, values and cultural norms impact Chinese Management styles. The paper outlineswhy Confucianism can be considered a management approach and howChinese culture influences decision-making, relationship, and change management.Furthermore, the paper highlights some recent developments related to technological advancements and Covid19 and their interplay with managerial approaches Literature sources have been researched based on theirtimely relevance for the topic and their broad acceptance

Keywords: Management, China, Culture

I. Introduction

China is the world's most populated nation, which has advanced economically despite the multiple trade wars it faces. Although still considered a developing country, China's rich culture, leadership practices, and philosophies have facilitated its development. Child and Warner (2003) link the state's growth to establishing the national Communist regime in early 1949, noting that the latter's managerial and corporate behaviour has enhanced its significant performance. Besides, scholars maintain that China's economic reforms under Deng Xiaoping's leadership proved vital in raising the country's per capita gross domestic product (GDP) by roughly 10 percent annually (Chris &Ingyu, 2020). Accompanied by Confucianism, which has dramatically occupied the Chinese mainstream philosophy, the nation has established pragmatic rules to guide its management practices and attain success. Based on these aspects, some authors consider China a unique country whose management relies on Confucian values, differentiating it from other nations globally. Drawing from various scholars, although China has adopted software engineering and integrated the Confucian culture into its cross-culture conflict management during the COVID-19 pandemic, its notorious management approaches entail Confucianism, collectivism, relationship management, and change management.

II. Confucianism

It is China's most traditional management approach that has shaped the country's growth. According to Child and Warner (2003), Confucianism applies "three bonds of loyalty," including "loyalty to the ruler, filial obedience, and fidelity to wife and husband" (p. 7). When looking at China's economic success, scholars often question if the nation's Confucianism exists separately from the Western culture and its application can overcome the rapid development's unintended consequences. Before answering these questions, it is crucial to define Confucianism. Based on the concept's founders' argument (Confucius and Mencius), every individual has natural kindheartedness and requires the practice of goodness to promote instinctive passion, especially for those who are suffering (Chen & Lee, 2008). Despite the disagreement between Xunzi and Mencius on assumptions regarding human goodness, the two emphasized virtuous human characters' cultivation to maintain love and extend affinity to other human beings.

What then is the Confucianism approach in China? The management aspect discourages individualism and encourages relationalism. Although Confucianism has individualist beliefs, such as self-enhancement, self-development, and introspection, such motives should escalate into promoting rational principles that promote stability and growth. Wittmann (2012) indicates that the management approach operates under five virtues: "benevolence/charity, righteousness/justice, propriety/rituals, wisdom/knowledge, and fidelity/trust" (p. 38). In his view, Confucius believed that government ought not to focus solely on legislation but moral education, which is critical in facilitating propriety. When defining management, Robbins and Coulter (2012) argue that it entails "coordinating and overseeing