traditional chinese thinking on hrm practices: heritage and transformation in china

Traditional Chinese Thinking on HRM Practices

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Traditional Chinese Thinking on HRM Practices Heritage and Transformation in China

Li Yuan Renmin University of China, China

© Li Yuan 2013

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Contents

List of Tables viii

List of Figures ix

Preface x

Acknowledgements xiii

1 Introduction 1 China’s economic competitiveness 1 Particularity of Chinese HRM 2 Chinese traditional thinking and its derived core values 6 Structure of the book 10

2 Western HRM and HRM in China 13 Western HRM theories and practices 13

The rise of HRM 13 The definition of HRM 15 Dominant HRM models 17 HRM and personnel management 21 HRM practices 24 Critical perspective on HRM 35

HRM in China 37 Rise of HRM thinking in China 37 HRM research studies in China 40 Research on Chinese culture and its influence on HRM 43

Conclusion 45

3 Philosophical Underpinnings of HRM Theory 49 Introduction 49 Individualism 52

Individualism and its philosophical pedigree 52 Individualism–collectivism 54 Individualism and HRM 58

Meritocracy 60 Meritocracy and the American Dream 60 Meritocracy and its philosophical bases 63 Meritocracy and HRM 66

vi Contents

Reason and instrumental rationality 67 What is rationality? 67 Rationality and its epistemology traditions in Western philosophy 69 Rationality and HRM 72

Short-termism 75 Short-term orientation and Western philosophy 75 Representation of Western short-termism in art, medicine and business 77 Short-termism and HRM 81

Conclusion 84

4 Re-examining Traditional Chinese Thinking 85 Chinese history: outline and implications 85

Timeline of Chinese history 86 Summary of Chinese ancient history 92

Key features of Chinese traditional thinking 93 Holistic, naive thinking 93 Fuzzy, processual thinking 103 Indirect and long-term thinking 111

Conclusion 118

5 Chinese Traditional Values – Implication for HRM in China 119 Introduction 119 He (harmony ) and collectivism 120

He (harmony ) 120 He and Chinese organization 125

Zhong Yong ( ) 126 Zhongyong , the Doctrine of Mean 126 Zhongyong and Chinese organization 129

Hierarchy, seniority and loyalty (Zhong ) 130 Hierarchy 131 Seniority 135 Loyalty ( ) 135 Hierarchy, seniority, loyalty and Chinese organization 136

Renqing and Guanxi ( ) 139 Renqing ( ) 139 Guanxi ( ) 143 Guanxi , Renqing and Chinese organization 146

Face ( Mianzi and Lian ) 147 Mianzi and Lian 147 Three characteristics of face 151

Contents vii

Face and Chinese organizations 153

Conclusion 154

6 Research Findings and Analyses 155 The role of Chinese traditional thinking 157

He (harmony ) 159 Zhongyong (the Doctrine of Mean ) 164 Hierarchy, seniority and loyalty 171 Guanxi / Renqing 177 Face ( Mianzi and Lian ) 186

Discussion and managerial implications 192

7 Conclusion 205 East–West comparisons 207 Summary of the main findings of the research 208 Chinese HRM style and its importance 210 Limitations of the research and suggestions for future studies 212

Appendices 214

1 Informant Pseudonyms and Background 214

2 Endnotes with Original Text and Quotations 215

Notes 223

References 229

Index 259

viii

List of Tables

2.1 Guest’s stereotypes of personnel management and human resource management 23

3.1 Individualistic and collectivist societal norms (adapted from Hofstede, 2001a) 56

3.2 Key differences between collectivist and individualist societies: work situation (adapted from Hofstede, 2001a) 59

4.1 Simple ideograms 95 4.2 Compound ideograms 95 4.3 Phonograms 95 6.1 Findings and the managerial implications 204

ix

List of Figures

1.1 Cultural determinants of individual Chinese values (adapted from Redding’s model, 1990) 5

2.1 Michigan model of HRM 17 2.2 Harvard model of HRM 18 2.3 The Guest model of HRM 19 2.4 The Warwick model of HRM 20 2.5 Seven-point plan and five-fold grading system 25 4.1 Pictographs 94 4.2 Yin–Yang symbol 105 4.3 The ba gua (eight trigrams ) 107

x

Preface

A BBC programme titled ‘The Chinese Are Coming’ (February 2011) presented the amazing economic growth in China and its major influ-ence on the whole world. The programme showed that China’s rapid rise has changed the old structure of the world; the Chinese workforce is one of the most cost-effective in the world, and it is disciplined, thrifty, hard at work, and up-and-coming, which turns this country into a formidable competitor or a reliable commercial partner. So, more and more Western companies want to establish direct business relationships with Chinese partners, and more and more researchers are beginning to pay attention to Chinese business, in particular to Chinese manage-ment. It is therefore crucial to understand Chinese specificities in order to communicate properly and establish lasting business relationships, and to understand how Chinese firms manage their people to achieve performance outcomes.

Although Chinese HR practices have been gradually affected by Western influences, the HRM systems in China have some distinctive or even unique characteristics. Most research on Chinese management is about ‘what’ and ‘how’ issues – I mean, about the current situations of Chinese management – and it enumerates the differences between Chinese management and other countries’ management, but researchers seldom ask ‘why’: that is ‘why does Chinese management have its peculiarities? Why does it have superiority in today’s world?’ This ‘why’ question is what I have been interested in. It is important to study what has been taken for granted or overlooked in the Western literature. So my aim is to investigate Chinese HR practices from a cultural and philo-sophical perspective, and to answer this ‘why’ question through both inside-out and outside-in approaches. Given the continuing success of the Chinese economy in the past three decades, this book also aims to examine whether there are any lessons that Western firms can learn from the Chinese approach to people management, an approach which is deeply embedded in Chinese traditional thinking and its core values.

Basically, organization is a product of culture. Different beliefs, values, customs – different ways of thinking – influence how people design and manage their organizations. The underlying traditional thinking and values passed on through generations over two millennia of Chinese history are likely to have contributed to the development of a distinctive

Preface xi

way of managing people and personnel systems inside China (Zheng and Lamond, 2009), but because HR research in China has often been based on the Western HRM framework, knowledge of Chinese tradi-tional thinking appears to be largely missing from contemporary studies of HRM in China (especially for researchers in the West). If researchers only put emphasis on the phenomenon of Chinese management, they cannot understand Chinese management in depth. To understand Chinese management, Chinese people, ‘the Chinese way of doing things’, and ‘the way of managing people inside China’, one must look deeply into the underlying Chinese traditional thinking, which is the core of Chinese culture. This book may help readers gain a better understanding of the Chinese style of management and may contribute to further developing management and organization theories in the Chinese context.

Chinese traditional thinking comprises unique features that might be described as holistic and na ï ve , fuzzy and processual , indirect and long-term , and as an approach that translates into an adherence to five core values: He (harmony ), Zhong Yong (the Doctrine of Mean ), Hierarchy, Superiority and Loyalty ( ), Guanxi and Renqing (personal connections, relationship and human sympathy/favour ) and Face ( Mianzi and Lian ), which have significantly affected contemporary Chinese HR practices.

Semi-structured personal interviews were conducted with 21 senior and middle/top-level male and female Chinese managers. The findings of the research are presented in narrative form through in-depth direct statements made by interviewees to provide authentic examples of how Chinese managers conceptualize and practise Chinese traditional thinking and core values in HR management. The research shows that the penchant for harmony is responsible for the steady and smooth development strategies of Chinese organizations; a relatively mild approach to personnel reforms; harmonious interpersonal relation-ships; nominal performance appraisal systems; and the importance of leaders as role models. The principle of Zhong Yong accounts for the pref-erence for modest and reserved people in recruitment and selection; the harmonious and balanced relationships between superiors and subor-dinates; a relatively mild, lenient and gentle leadership style; and the soft, flexible and conflict-free style of communication and negotiation in Chinese HRM practices. Because of the norms of hierarchy, seniority and loyalty, in HR practices there are clear distinctions between supe-riors and subordinates. The leader of an organization tends to play a paternalistic role with paramount authority; promotion by seniority

xii Preface

and loyalty is still very common; senior employees who have shown loyalty to superiors are more likely to get the opportunities for training and development. The overlap between formal and informal relation-ships ( Guanxi ) is pervasive in Chinese organizations; the line between work and personal life is somewhat blurred; Guanxi and Renqing often intervene in recruitment and selection, promotion and reward systems, performance appraisal systems, and in training and development. The influence of face explains the widespread phenomenon of indirect communication, mild criticism and equivocal responses; good relation-ships between superiors and subordinates are maintained by properly giving and saving face ; face work can be used in reward, dismissal and punishment.

xiii

Acknowledgements

I would particularly like to thank Professor Robert Chia for his inspira-tion, guidance and encouragement over the years. Grateful thanks also to Dr Jing Cai and Professor Robin Holt, who have been so generous in their advice, critical comments and ongoing support throughout my research.

I am deeply indebted to the many participants who allowed me to interview them for this research and gave their time generously. Their responses made this research possible and interesting. I thank them for their candour and trust in me. My thanks go to Professor Han Zhen at Beijing Normal University, who provided me with excellent advice for my research; to my friend Edwin Campbell, who gave his assist-ance during the writing of the book; and to many Chinese friends who helped me with the arrangement of interviews in Beijing, Shanghai and Xinxiang. I would like to express my gratitude to all of them.

Finally, I thank my parents for their tremendous support and under-standing. My deepest and most heartfelt thanks must go to my husband, Han Rui, without whose love and continual support this book would have been impossible. This book is dedicated to him, with love.

1

China’s economic competitiveness

With a population of over 1.3 billion inhabitants, the People’s Republic of China (PRC) is the most populous country in the world. It was once insignificant in the global economic arena, despite its large population. The Third Plenary of the Eleventh Central Chinese Communist Party Congress ( ), held in December 1978, is regarded as the turning point in the history of the People’s Republic of China, as it witnessed the inauguration of China’s economic reform. A series of economic reforms since then have led to a ‘socialist market economy with Chinese characteristics’ ( ).

Since then, China’s economy has undergone unprecedented rapid growth, and the role of China in global, economic and political affairs has increasingly moved towards centre stage. The average gross domestic product (GDP) of China increased more than tenfold from the late 1970s (when China opened its doors) to 2006, making the Chinese economy the fourth largest in the world after the United States, Japan and Germany ( China Daily , 2007). According to the list of countries ranked by GDP in 2009 – based on estimates from the World Bank, the International Monetary Fund and the CIA World Factbook – China became the third-largest economy in the world after the United States and Japan. Then, in mid-2010, China became the world’s second-largest economy, surpassing Japan and second only to the United States ( China Daily , 2010). In 2012, while the world economy was experiencing deep recession in this difficult year, China’s economic growth reached 7.7 per cent, above the government’s 7.5 per cent full-year target ( China Daily , 2013). It is estimated that in 2013 China’s economy will grow much more rapidly than other major economies because of its structural

1 Introduction

2 Traditional Chinese Thinking on HRM Practices

strength and its superior mechanisms for dealing with economic downturn, which 2012 again demonstrated ( China.org.cn , 2013). Among all developing countries, China has been the recipient of the largest foreign direct investment (FDI) because of its current and expected future strong economic growth, great potential business opportunities and cheap labour ( Xinhua News , 2007); and its accession to the World Trade Organization (WTO) in late 2001 has further accelerated China’s market-oriented economic reforms.

From the ‘world factory’ to ‘world market’, from ‘made in China’ to ‘created in China’, China has contributed, and will continue to contribute, to the world economy. There is no previous burst of economic activity that has been so dramatic anywhere in the world, recently or histori-cally, as China has maintained annual growth at figures between 7 and 11 per cent for three decades. These significant economic developments have, in turn, resulted in major changes in the management of Chinese enterprises and ‘hold considerable implication for human resource (HR) practices in the nation with the largest workforce in the world’ (Zhu, 2005: xvi).

Particularity of Chinese HRM

The impressive economic growth and commercial importance as well as its intrinsic particularity (cultural, political and economic) make China’s business and management a focus of interest for an increasing number of domestic and foreign researchers and managers who try to discover how Chinese organizations manage to generate such apparent efficiency and effectiveness. Zheng and Lamond (2009) state that if China’s rapid rise is a miracle, it did not happen overnight, and the underlying tradi-tional wisdom passed on through generations over the millennia of Chinese history may have contributed to developing distinctive ways of managing people inside China.

HRM is seen as an essentially American concept, finding its fullest exemplification in non-unionized multinational firms (Guest, 1992: 12), and overlapping with practices found elsewhere in enterprises in many capitalist economies. Most HRM theories derive from a non-universal tradition of scientific rationality, meritocracy, individualism and short- termism (see Chapter 4). For much of the literature on HRM, an ‘ideal’ HRM model appears to contain elements that are drawn from practices in a number of Western countries, especially the United States. These elements generally include: an integration of HRM with business strategy; the close involvement of line managers; high levels of mutual

Introduction 3

commitment between employer and employee; performance-related payment systems; agreements on flexible working arrangements; and a diminishing significance of the role of trade unions (Storey, 1992; Guest, 1992). This ‘ideal’ model is often used with presupposed national and cultural characteristics (Easterby-Smith, 1995: 35), as Warner argues that theories and models of HRM may not be comprehensively applied, let alone fully understood, outside the cultural context in which they developed (that is, in the United States), and ‘if [they] diffused outside this [context], [they] may not be analysed without conceding limited knowledge/ managerial/software transfer’ (Warner, 1993: 46). So, merely applying Western concepts to analyse what has been going on in Chinese HRM, ranging from management strategies and policies to work attitudes and behaviour patterns, presents a number of difficulties.

It is a controversial issue as to whether standardization of production technology is causing worldwide homogenizing of organizational processes, managerial practices and behaviour in organizations, and some researchers observe that the apparent global assimilation is superficial (Kerr, 1983; Redding, 1990). Beneath the homogenization,

the cross-national variety in the world of the mind remains as undis-turbed as ever. Economic progress does not appear to radically alter the original values which shape the rules whereby a person cooper-ates with others. Organisations which may look the same are not the same when you get very close. (Redding, 1990: 239)

The HRM system in China has some distinctive or even unique char-acteristics. The process of its formation and transformation has been marked by some ingrained factors related to the deep-rooted traditional culture and value systems as well as historical evolution. Undoubtedly, with increasing global competition and the influence of multinational companies’ management practices, the Chinese economy has been gradually affected by Western HRM dimensions – ‘key aspects such as individual fixed-term contracts, individual performance evaluation, individual career development, downsizing and retrenchment, freedom to hire and fire, strategic role of HRM and so on’ (Zhu et al., 2007: 763) have been increasingly adopted by Chinese people-management systems.

However, according to Warner (2008: 771), China’s reformers did not uncritically adopt foreign models; ‘they have implanted overseas economic management practices since the late 1970s [, ... but] they did so by incorporating them into the Chinese “way of doing things”’.


Redding (1990: 116) states that although for over a hundred years Chinese business has been influenced by Western technologies and theories and practised with a vast amount of international coopera-tion, its typical organizational system has retained its basic character. Therefore the growing role of China in the world economy arouses more and more researchers’ interest to uncover what exactly is the ‘Chinese way of doing things’, especially as it is known to be very different from that of the West (Warner, 2008: 788). Nonetheless, most research on Chinese management tend to start from a Western perspective, directly addressing what and how issues, with less concern about why (Liu, 2009: xiv). There are some questions that need further thought: Why do the Chinese have a different way of doing things compared to the West? What is the fundamental explanation of this?

From its geographic size, its population and its long history, to its levels of social complexity and the emerging-market nature of its socialist economy, China is enormous on all counts, and all of these paint a confusing picture for foreigners (Wright et al., 2008: 800). Jacques (2009) states that the Western media has mistakenly paid too much attention to the Chinese communist government and China’s alleged economic and military threat to the Western world, while in fact the real challenge is the rise of Chinese culture. Although often regarded as extremely diffi-cult to comprehend, Chinese cultural characteristics appear as constants against this multifaceted setting. Even if the characteristics of political or economic systems provide plausible explanations for the cross-national differences in terms of management issues, Osigweh and Huo (1993: 106, 107) believe such an explanation seems ‘anecdotal’ and ‘hard to generalize’, because ‘political or economic systems may change quickly and dramatically’ while ‘culture tends to change at a slower pace than political/economic structures’. Zhu et al. (2007: 764) also point out that the state policies on industrial relations and labour market regulations which are strongly associated with the people-management systems shift from time to time, but the cultural value of a state is relatively constant. To a large extent, individual experience is predicted by national origin and the common values of a given society; ‘the self – what people think and feel, what holds their attention, how they know and understand, and what counts as knowledge – is culturally conditioned’ (Bailey et al., 1997: 606). Thus, cultural characteristics can be seen as more stable, reliable and inclusive explanatory factors for the ‘Chinese way of doing things’ than political/economic structures. Redding (1990: 42) explains it more clearly: ‘[B]efore we understand, however, the nature of organ-izing in Chinese society, we must first understand the basic unit of

Introduction 5

organisation – the Chinese person. Such an understanding can only come from seeing the culture matrix in which he/she is embedded’.

The reason why the Chinese organizational system has retained its basic character for so long despite significant economic and political reforms in past decades, according to Redding (1990: 116–117), lies in three main forces, all of which derive from Chinese culture and history. These three forces are: the sense of insecurity, which derives from a historical combination of the insecurity of wealth in a society lacking a fully reliable system based on equal rights, and the exclusive trust based on in-group membership; hierarchy, which rests on a long Confucian tradition sponsoring familism and authoritarianism; and personalism, which denies the emergence of a rational, objective and neutral bureauc-racy. It is undeniable that the forces of modernization have inevitably seeped into the old traditions, but ‘modernization has not yet radi-cally affected the most fundamental aspects of organizing’ (Redding, 1990: 117). Redding’s three original forces could find their origins in the Chinese traditional approach that is characterized by holistic/ naïve , fuzzy/ processual and indirect/ long-term thinking. Beneath the sense of insecurity there are Chinese processual thinking and long-term orien-tation – everything is unfixed and in ceaseless change, and, therefore, any good fortune cannot be guaranteed to last. Acceptance of hierarchy derives from the Chinese holistic view, as it emphasizes the holistic harmony: the social hierarchy is an extension of the natural order, and the entire social harmony could be maintained by obeying the social hierarchy. Personalism originates from fuzzy thinking, which involves a multivalent, multi-valued and nonlinear worldview that is not so keen on something ‘logically correct’ but prefers something more in accord with human nature. In order to research Chinese organizations, we

Social structuresFamilyNetworksEthnicity

Chinese traditional thinkingConfucianismTaoisTT mBuddhismMilitary and political thinking

Rules for action

Core valuesHe (Harmony)ZhongyongHierarchy, seniority andloyaltyGuanxi and i RenqingFace

Figure 1.1 Cultural determinants of individual Chinese values (adapted from Redding’s model, 1990)


must begin with Chinese traditional thinking, which underpins Chinese culture. Also, it is necessary to point out that undoubtedly the culture itself is not the sole contributor to the total explanation of management with Chinese characteristics, but it is a significant one.

Chinese traditional thinking and its derived core values

As one of the oldest civilizations, China has a recorded history span-ning 4,000 years that has outlived the other great empires in Eurasia – including the Egyptian, Roman, Byzantine, Arabian, Ottoman and Tsarist–Soviet (Deng, 2000: 1). Joseph Needham (1956), a renowned sinologist, started his research and writing on the history of Chinese science and technology by explaining Chinese history, geography and culture in depth, as knowledge of these fields is considered to be the fundamental basis of science and technology. Without knowing Chinese history, traditional thinking and its derived core values, trying to understand Chinese HRM practices would be like studying the human body by merely examining the skin rather than the heart or brain (Liu, 2009: xiv).

It is an over-simplification to characterize Chinese traditional culture as being merely based on Confucianism, and it shows a lack of under-standing of the Chinese cultural system, which is constituted by various philosophical and historical threads (Paton and Henry, 2009). ‘Chinese traditional thinking’ refers, in general, to the thinking that prevailed in China from the Pre-Qin period until the mid-nineteenth century Opium War, a way of thinking with Confucianism at its core, mixed first with Taoism and later with Buddhism, and also combined with ancient military and political strategic thinking (Zi, 1987: 443; Liu, 2009; Louie, 1986; Tang and Li, 2008), which had its roots in a social system that stemmed from primitive clan society and went right up through the slave and feudal societies in China. Any new interpretation of Chinese culture owes its inspiration to a return to this original pure well-spring (de Bary, 1959: 47). There are three features of ancient Chinese thinking: holistic and naїve thinking; fuzzy and processual thinking; and indirect and long-term thinking, which respectively correspond to the West’s abstract and scientific thinking ; binary and static thinking; and direct and short-term thinking. Chinese traditional thinking continually provides a moral, intellectual and social nexus for the Chinese psyche, which even the ten-year-long Cultural Revolution was unable to exor-cise (Cheng, 1986). In what follows, I will briefly describe each of these three attributes.

Introduction 7

The first feature of Chinese traditional thinking is holistic and naïve . ‘Naïve thinking’ here refers to a way of thinking which is not detached, atomistic and abstract. It is rather subjective, relational and concrete . Most of the Western philosophers, from Plato and Aristotle to the twentieth-century philosophers, endeavoured to pursue the universal law of the world and wanted to find the truth and ideals to explain the world. As the result of chasing the ‘Truth’, Western thinking is characterized by Aristotelian binary logic, foundationalist and black-and-white symbolic logic that applies its bivalent ideology universally and without reflection (Alon, 2003: 3). Western thinking has a strong tendency to focus on the measurable, bivalent terms of foundational ‘Truth’ and is less concerned with the holistic and plurivalent phenomena. By contrast, the Chinese have no concept of ‘Truth’ (Munro, 1969; Graham, 1970; Hansen, 1985). Chinese thinking emphasizes holistic harmony, simplicity and dialectic change.

The second feature is fuzzy and processual thinking. Unlike Western logical, binary and static thinking, the Chinese use fuzzy and changing thinking to understand the nature of the human being and the world. Chinese traditional thinking, especially Taoism (for example, the concept of yin and yang ), involves a multivalent, multi-valued, nonlinear world-view and fuzzy shade of gray between black and white that sees paradox and contradiction as normal, valuable, experiential, coherent common sense (Lowe, 2003: 7). Due to the Western desire for fixity, universality and certainty, the eternal and the unchanging are viewed as the essential features of ultimate reality. By contrast, Chinese fuzzy thinking stresses not only that everything is unfixed, temporary and there are always manifold possibilities, but also that the process of change is imma-nent and everything is in the process of changing (Chia, 2003). What is more, unlike the Western philosophical tradition, which seeks fixed principles and rules, Confucian, Taoist and Buddhist thinking devalues adhering to any specific viewpoint and idea, as it could cause people to sink into a particular orientation, which then renders them biased and obstructs their ability to evolve. By not discriminating against anything in advance and spurning all prejudice, one is able to give free rein to the power of immanence and to identify oneself.

Indirectness and long- termism , the third feature, can be found in the oblique attack recommended by ancient Chinese military treatises (Xu and Shi , Qi and Zheng ): the technique of using circumlo-cution, hints in politics; the set of associative implications of a sentence in addition to its literal sense often used in traditional literature; the essence of shadowboxing (Tai Ji) and the game of I-go and those habitual


expressions full of connotations and euphemism in people’s normal life. This indirectness can not only be used as a strategy and a powerful form of expression, but it is true wisdom for the Chinese to fit effectively into the actual situation of a given time instead of dwelling on abstract and theoretical ideas (Jullien, 2000). Chinese holistic , fuzzy and processual thinking, which lays stress on the unfixed and everlasting changing experience of realization and takes every bit of experience as a node of the whole life chain, together with the indirect and reserved living wisdom, accounts for the long-term orientation.

Because of traditional thinking, the practical implementation of rational–legal authority has never been able to spread widely in China, just like the problem of science, which arguably has the same ultimate determinant in the lack of rationality. According to Fung (1922), China has no science because it does not need any in accordance with its own value standards. While the West tried to know nature and to control and conquer it through rational science, which can guarantee certainty, China tried to know what is within human beings themselves and to find their perpetual peace. The reason why China has not developed a scientific tradi-tion like the West is that all philosophies in China are the most human and the most practical, rather than abstract and rational. Weber (1951: 227, 241) argues that a rational economy and a technology of modern occidental character was out of the question in China, as it has a crude, abstruse concept of the unity of nature but lacks natural scientific knowl-edge; the economic and managerial forms of association or enterprise in China lacked ‘rational matter-of-factness, impersonal rationalism, and the nature of an abstract, impersonal, purposive association’. These three features – holistic and naïve , fuzzy and processual , and indirect and long-term thinking – manifest themselves in terms of five core values, which are: He ( harmony); Zhongyong ( doctrine of mean); hierarchy, seniority and loyalty ( ); Guanxi and Renqing ( personal connections and relationship, favour); and Face ( Mianzi and Lian). These are the five core values that are derived from Chinese tradi-tional thinking and define Chinese culture. Through this set of core values that underlie social interaction amongst Chinese people, Chinese traditional thinking is revealed and preserved. Beneath the communist veneer of the People’s Republic these values are still very much alive today (Redding, 1990: 41), and by exploring the origins of these values, their apparent constancy and tenacity and their particular relevance to current organizational life should be understood.

The Chinese stress the maintenance of the collective and the continu-ation of harmonious relationships between members within it, rather

Introduction 9

than the interests of the individual. He in Chinese refers both to the harmony between human beings and nature and the harmony within human society. It has long been valued in Chinese culture, and the emphasis on harmonious society has been recognized as one of the most significant characteristics of Chinese culture (Hwang, 1987). Although both Confucianism and Daoism stress harmony, in practice, the Confucian harmony is more prevalent in China (Antoniou and Whiteman, 1998; Chen, 2001, 2002; Chen and Chung, 1994; Chen and Starosta, 1997; Hwang, 1987, 1997, 1998; Kirkbride, Tang and Westwood, 1991; Knutson, Hwang and Deng, 2000). Confucian harmony is ‘the basic and overlapping goal of familial, organisational, communal, and political lives’ (Ip, 2009: 466), and individuals find meaning and dignity in the maintenance of harmony in their social context. In HRM prac-tices – unlike individualism, which stresses formal job design, individual achievement, competitiveness and merit-based hiring and promotion – collectivists emphasize group achievement, group harmonization, cooperative behaviours, informal appraisals and situational HRM strate-gies (Bernardin and Russell, 1993; Gomez-Mejia and Welbourne, 1991; Hofstede, 1984, 2001; Ramamoorthy and Carroll, 1998).

Zhongyong is a more practical value that is closely related to harmony, occupying a pivotal place in Chinese thinking, and it represents all the features of Chinese holistic, indirect, changing and fuzzy thinking. Zhongyong suggests the fundamental Confucian ideal of balance, modera-tion and appropriateness (Li, 2004; Liu, 2009). This ideal can never be overstated in the Chinese way of life, no matter the social, political or personal context: all have been profoundly influenced by this mentality for over two millennia (Liu, 2009: 52). The principle of Zhongyong signifi-cantly affects Chinese management style, such as in the way communi-cation and negotiation occurs; the relationship between employees and managers and among employees; and the leadership style.

The Confucian social hierarchical order provided the philosophical basis for the maintenance of the family structure and, in turn, of the state itself (Redding, 1990: 47). As a ‘high power distance’ culture (Hofstede, 1984, 2001), the Chinese have a strong sense of vertical order in their behaviour and attitudes. Due to the principles of Li , the ‘Five Cardinal Relationships’ ( ) and the ‘Three Bonds’ ( ), loyalty and seniority in Chinese culture are highly respected. In Chinese organizations, managers want clear distinctions between themselves and subordinates (Lockett, 1988); employees show respect for hierarchy and accept the hierarchical nature of the superior–subordinate relationship (Jiang and Cheng, 2008); they are often expected to behave appropriately in accordance with their


social roles (Farh and Cheng, 2000) and to fulfil role expectations and obligations during personal interactions (Shore et al., 2004).

Since there is no ultimate authority, such as a supra-mundane God, to give the Chinese people grounds for supporting themselves as separate individuals, their piety is towards specific people, especially those in close proximity rather than any distant sacred religious ideal (Redding, 1990: 62). The self is embedded in social relationships, inextricable from them, and the social web is part of the person. In the case of the Chinese, this takes us into the question of Guanxi , Renqing and Mianzi and Lian . Unlike in the Western context, trust and commitment play a key role in interpersonal relationships (Morgan and Hunt, 1994; Wang et al., 2008); what guides relational exchange behaviours in China is Guanxi , which is a kind of reciprocal obligation and mutual assurance. A salient feature of Chinese culture is the pervasive role of Guanxi , as delicate fibres that are woven into every Chinese individual’s social, political and business life (Brunner and Koh, 1988; Brunner et al., 1989; Lee and Lo, 1988; Liu, 2009; Tsui and Farh, 1997). In HRM practices, the characteristics of Chinese management place great emphasis on a ‘relationship-oriented’ management philosophy (Liu, 2009; Shen, 2008). In organizations, the overlap between a formal relationship and an informal relationship ( Guanxi ) is much more pervasive in the Chinese context than in the West (Chen et al., 2004; Yg and Huo, 1993), and successful organizational life is based on the building and mainte-nance of the appropriate Guanxi (Redding, 1990). In Confucian society, face is both a goal to achieve noble personhood and a means to ensure the harmony of interpersonal relationships and the proper social order (Chang and Holt, 1991; Jia, 2001). In HRM practices, face largely influ-ences the communication between superior and subordinate, and these practices provide an overarching strategy to maintain one’s face within the group.

Structure of the book

To explore in depth the Chinese cultural and philosophical concepts which underpin Chinese HRM practices, it is necessary to bring them into a comparative context. Chapter 2 provides, as a prelude, an over-view of dominant Western HRM theories, the main HR practices, and critical perspectives on HRM and HRM in China. It can be seen that the development of HRM depends on the changing economic circumstances of the past decades, but also it is deeply influenced by the Western way of thinking, which is characterized as ‘rational, objective and universal’.

Introduction 11

As Legge (2005) claims, the language of HRM celebrates a range of very WASP (White, Anglo-Saxon Protestant) values. Research into Chinese culture and its influence on HRM shows that a majority of empirical studies adapt Western theories and conceptual frameworks to apply in the Chinese context (Cooke, 2009), although more and more researchers (e.g., Tsui, 2006; Quer et al., 2007) call for more indigenous studies to examine China’s unique intellectual roots, mental models, relationship paradigms and axiomatic foundations – studies that can explain Chinese phenomena. While there are a number of studies on Chinese culture which are characterized by collectivism, power distance, Confucianism, Guanxi and face , and their influence on HR practices and Chinese behav-iour patterns, most of them are hypotheses-led and driven by Western methods (Cooke, 2009).

Chapter 3 examines the underlying philosophy of HRM. Meritocracy , individualism , rationality , and short-termism can be seen as the philosoph-ical underpinnings that account for the features of modern Western organizations – emphasizing intelligence and individual efforts, high-lighting individual recognition and rights, adopting scientific manage-ment systems and focusing on short-term return.

Without knowing China’s history, traditional thinking and its derived core values, trying to understand Chinese HRM practices would be like studying the human body by merely examining the skin rather than the heart or brain (Liu, 2009: xiv). Chapter 4 briefly introduces Chinese history, and elaborates the three features of ancient Chinese thinking: holistic and naїve thinking; fuzzy and processual thinking; and indirect and long-term thinking, which respectively correspond to the Western abstract and scientific thinking; binary and static thinking; and direct and short-term thinking. Chinese traditional thinking has provided a moral, intellectual and social nexus for the Chinese psyche over the past millennia.

Chinese traditional thinking is revealed and preserved through a set of core values which underlie social interaction amongst Chinese people. Five key values that are derived from the traditional Chinese way of thinking are detailed in Chapter 5. These values are: He ( harmony), Zhongyong ( the doctrine of mean), hierarchy, seniority and loyalty ( ), Guanxi and Renqing ( ), Face ( Mianzi and Lian). These five key values are selected because in organizational relationships, they fundamentally affect social inter-action within organizations; they differ from other values, notably Western ones, though the differences may be less than with other Asian countries; they have persisted over time. 1 Further explorations of the


implication of these values for HRM in China are also presented in this chapter.

Findings of the research are presented in narrative form through in-depth direct statements of interviewees to provide authentic examples of how Chinese people conceptualize and practise Chinese traditional thinking and core values in HR management. Despite what appear to be apparent contradictions in how informants describe these traditional values through their personal experience, when the context is examined closely a similarity and predictable patterns in the role of Chinese tradi-tional thinking in HR practices emerge. Chapter 6 provides the findings from 21 managers regarding their perceptions of the role of Chinese traditional thinking and its derived core values in contemporary Chinese HR practices.

Finally, Chapter 7 provides a conclusion to this book. The effectiveness of the conceptual framework, the comparisons between East and West, and the research findings are revisited. The initial research questions are explicitly answered, and limitations of the book and suggestions for future research are outlined.

13

China’s economic environment, profound cultural values and its rela-tively new international position have aroused the interests of many people and organizations, including researchers, managers and govern-ments (Godkin et al., 2005), and there has been increased research interest in its management and in human resources during the past decades. However, it is noted by some writers (e.g., Chiu, 2006; Cooke, 2009; Poon and Rowley, 2007) that a relatively large proportion of empirical studies on HR practices in China are characterized by a lack of Chinese theory. Many of the studies that have a stronger theoretical focus tend to ‘use Western theories/conceptual models in the field as a bench mark or a starting point to investigate practises in China’ (Cooke, 2009: 20). As Poon and Rowley (2007: 148–149) argue, researchers have mainly used mostly Western management theories to explore their research in Chinese firms. It seems like an attempt to force Western theory to fit into the Chinese context, rather than searching for new concepts to explain the similarities and differences between Chinese and Western ones, recognizing the underlying cultural and philosophical dimensions. To explore in depth the Chinese cultural and philosophical concepts which underpin Chinese HRM practices, it is necessary to bring them into a comparative context. Thus, it is necessary to start with a general introduction of Western HRM theories and practice and HRM research and practices in China as a prelude.

Western HRM theories and practices

The rise of HRM

The term ‘human resource management’ first appeared explicitly in the textbook literature in the mid-1960s in the United States (Strauss,

2 Western HRM and HRM in China


1992). For the next 15 to 20 years the terms ‘personnel management’ and ‘human resource management’ largely coexisted and were often used interchangeably (Kaufman, 2007). Beginning in the early 1980s, HRM quickly spread beyond North America, where it originated, and was trans-planted to Europe, Asia, and other parts of the world. In the twenty-first century, not only has the idea of HRM spread across the world, it is deemed to be and is practiced as a fundamental part of business, and it is the subject of a large quantity of academic and practitioner research literature (Kaufman, 2007). The rise of human resource management can be explained by a series of economic, political, social and technological changes in the latter part of the twentieth century (Poole, 1999).

First of all, the major stimulus for the emergence of HRM in the United States in the 1980s came from a set of external pressures on industry (Guest, 1990). Globalization and increasingly open markets led to concern over the motivation and commitment of workforces (Poole, 1999). The 1980s were marked by the intensification of competition (Sission, 1989; Blyton and Turnbull, 1994), and the U.S. and European economies were being challenged by overseas competitors by their modern technology and relatively cheap labour (Beardwell et al., 2004). Two issues are empha-sized: one is ‘the productivity of the American worker’ and the other is ‘the declining rate of innovation in American industries’ (Devanna et al., 1984: 33). The old models of how to manage productivity growth and change seemed to be no longer working and, consequently, the desire was born to create a work situation free from conflict, in which both employees and employers worked in unity towards their same goal: the success of the organization (Fombrun, 1984: 17). In this context HRM appeared to offer something new (Guest, 1990). It is argued that competitive advantage could best be achieved through better utilization of human resources, integrated with technological advances, financial control systems and marketing (Guest, 1987).

Secondly, one of the most important reasons for HRM’s rise was the major pressure experienced in product markets during the recession of 1980–1982, combined with a shifting power balance in the wider indus-trial relations system that reduced the influence of trade unions in the United States and most Western countries (Poole, 1999; Beardwell et al., 2004). The changing economic and political climate in the United States and the United Kingdom has resulted in some reduction in trade union pressures on management (Guest, 1987). Consequently, emphasis has transferred from collective and adversarial issues associated with tradi-tional Industrial Relations (IR) to individual, cooperative issues that are associated with HRM.

Western HRM and HRM in China 15

Thirdly, rapid technological changes led to changes and development in skills and aptitudes of modern workforces in order to make sure that firms were able to maintain an adaptable and flexible workforce (Poole, 1999). Changing technology and structural trends in industry provided the opportunity for more flexible and demanding jobs for the workforce, which had become better educated, with higher expectations and more demands (Beer et al., 1985; Guest, 1987). The globalization of markets, facilitated by ‘IT-induced speeding up of worldwide communication’, has accompanied the emergence of international companies (Legge, 2005). All these trends require a new form of human resource manage-ment to deal with these changes.

The definition of HRM

Although the notion of HRM has been debated considerably, as Storey (1989) points out, the term HRM is covered by managerial theory, and its fundamental philosophy and character are difficult to define, so we need to explore the definition of it to understand and analyse the theory and practices of HRM. Here we will mainly choose the definition drawn from both U.S. and U.K. sources. 1

As a field of study, human resource management originated in the United States in the early-to-mid 1980s. One of the first explicit statements of the HRM concept was made by Fombrun and colleagues (1984). They empha-sized that managers should pay the same attention to human resource issues as to other functions such as finance, marketing and production, and they asserted that the organizational structure and the HR system should be managed congruently with organizational strategy. Similarly, Foulkes (1986) indicates that effective human resource management must be related to the overall strategy of the organization. In contrast, Beer, another founding father of HRM, and colleagues (1984), indicate the need to create a longer-term perspective in managing people and in the consideration of people as potential assets rather than merely a variable cost. HRM involves ‘all management decisions and actions that affect the nature of the relationship between the organization and employees’ (Beer et al., 1984: 1). Walton (1985) stresses that the new HRM model enhances mutuality: mutual goals, mutual influence, mutual respect, mutual rewards and mutual responsibility, a state that exists when manage-ment and employees are interdependent. This mutuality will lead to the commitment of employees to accept management’s values and goals and will yield both better performance and better human development.

Some British definitions can be contrasted with the American defini-tions. According to Hendry and Pettigrew (1986), there are two themes in


the term ‘strategic HRM’. The term ‘strategic’ here stresses that employees are a ‘strategic resource’ for achieving ‘competitive advantage’. ‘Human resource’ suggests that people are a valued resource, a critical investment in an organization’s current performance and future growth. In a series of articles (1987, 1989a, 1989b, 1990, 1991), Guest proposes that the main dimension of HRM involves the goal of integration, of employee commit-ment, of flexibility/adaptability, and of quality, and he goes about trying to find evidence to support the connections between HR outcomes and organizational objectives. He argued that the key HRM policy goals are only likely to be fulfilled if they are integrated into business strategy and fully supported by line managers at all levels (Guest, 1990). The defini-tion of HRM by Storey (1995) is that by using an integrated array of cultural, structural and personnel techniques, HRM seeks to achieve competitive advantage through high commitment management and high performance work systems. Boxall and Purcell (2000) provide a broader definition: HRM includes anything and everything associated with the management of employment relationships in the firm.

The most outstanding similarity among these definitions above is that they all deem the people, not any other resources, to be an organiza-tion’s most valued asset and they treat the contribution of individual employees as key to organizational success (Zheng and Lamond, 2009). The key differentiation between good and poor performers is the quality of the employees an organization employs and the extent to which these employees are motivated and committed to making an effective contribution to organizational targets. In other words, ‘people make the difference’ (Armstrong, 2006: 781).

Theoretically, the management of people is similar to the management of other resources within organizations but, practically, what makes it different is the nature of the resource – people. People in organiza-tions endowed with a range of abilities – including aptitudes, skills, and knowledge – and with personality traits, such as gender, role perception and different backgrounds, have the ability ‘to evaluate and question management’s actions, and their commitment and cooperation always have to be won’ (Bratton and Gold, 1999: 12). HRM emphasizes the importance of a concern for people that means attracting, retaining, developing and motivating the right sort of employees. But this concern is focused not only on the business needs but also on the employees themselves. Winstanley and Stuart-Smith (1996) suggest four principles to show concern for people: respect for the individual, mutual respect, procedural fairness and transparency.

Other common themes among these definitions are: HR policies should be integrated with organizational business plans; an appropriate culture


and climate should be developed; through the individual’s and team’s contribution, the organizational performance should be improved.

Dominant HRM models

Michigan model of HRM

The Michigan model, proposed by Fombrun and colleagues (1984), stresses the interrelationship and coherence of HRM activities; it also emphasizes the importance of aligning overall corporate strategies with the HR strategy and structure. It is known as the ‘matching model’ or ‘best-fit’ approach to HRM. It also claims that employees can be treated as resources like any other business resources, and they can be managed in a similar way to other materials and equipment.

The Michigan model identified four key HR activities that compose the HRM cycle: selection, appraisal, rewards and development ( Figure 2.1 , shaded).

The Michigan model offers the general picture of key HR practices and interactions among them, but it is often criticized by its weakness for depending on a rational and mechanical form of organizational deci-sion making while ignoring the reality that organizational strategies are often subjective, intuitive and political. It lacks concerns about situa-tional factors, different shareholder interests and other complex issues.

The Harvard model of HRM

The Harvard model was proposed by Beer and colleagues (1984), and it suggests a softer, more humane side of HRM when compared to the Michigan model. The Harvard model argues that employees should be viewed as fundamentally different from other resources and cannot be treated in the same way.

Selection Performance

Humanresource

development

Appraisal

Rewards

Figure 2.1 Michigan model of HRM


The Harvard model consists of six basic components:

Situational factors. Textual variables influence management’s choice 1. of HR strategy. Stakeholder interests. It recognizes that there are a variety of 2. ‘stakeholders’ in the corporation, including shareholders, employees, government and community, and the various interests either explic-itly or implicitly affect the organizational strategies. HRM policy choices. It emphasizes that HR management’s decisions 3. and actions should recognize the interaction between constraints and choices. HRM is the outcome of situated choice making. Human resource outcomes. It assumes the outcomes are high 4. commitment and productivity. Long-term consequences, including individual wellbeing, organiza-5. tional effectiveness and societal wellbeing. Feedback loop. It connects outputs to the organization and stake-6. holders. ( Figure 2.2 )

The Harvard model is more flexible than the Michigan model, as it emphasizes the importance of stakeholders, who could influence the

StakeholderinterestsShareholdersManagementEmployee groups

GovernmentCommunityUnions

SituationalfactorsWorkforce characteristicsBusiness strategy and conditionsManagement philosophyLabour marketUnionsTask technologyTTLaws and social

values

HRM policyChoicesEmployee influenceHuman resource flowReward systemsWork systemsk

HRoutcomesCommitmentCompetenceCongruenceCost effectiveness

Long-termconsequencesIndividual well- beingOrganizational effectivenessSocietal well- being

Figure 2.2 Harvard model of HRM


corporation strategy making, and managers are portrayed as situated choice-making actors.

The Guest model of HRM

The Guest model was proposed by David Guest (1989, 1997). It is based on the assumption that HRM distinctively differs from traditional personnel management, and it emphasizes the effective and positive utilization of human resources. Guest points out that HRM integrates human resources into strategic management, and it seeks behavioural commitment to organizational goals. The HRM process works better in organizations with an ‘organic’ structure. It has six components: HRM strategy, HRM practices, HRM outcomes, behaviour outcomes, perform-ance outcomes and financial outcomes ( Figure 2.3 ).

This model supposes that superior individual performance will be achieved if HRM practice is applied in a coherent form, with high commitment and high-quality flexibility as its normative goals. The Guest model clearly describes the field of HRM and classifies the inputs and outcomes. It also extends our understanding about the nature of HRM and the link between HRM and performance. It claims this link can be empirically tested by case-based and survey-based study. However, Guest’s model is criticized for its idealism. It may simply be

Figure 2.3 The Guest model of HRM

HRM strategy HRM practices HRMoutcomes

Behaviour outcomes

Performance outcomes

Financialoutcomes

Differentiation

Selection Effort/

Motivation

High:

Productivity

Profits

(innovation) Training Commitment Quality

Innovation

Focus (quality)

Appraisal Cooperation

Rewards Quality Low: Return on investment

Cost(cost-Reduction)

Job design

Involvement

Status andsecurity

Flexibility

Involvement

Organizationalcitizenship

AbsenceLabour turnoverConflict

Customer complaints


an ‘ideal type’ creating somewhat unrealistic condition for HR practices (Keenoy, 1990). Moreover, it presents a collective approach to managing employee relationships, an approach that is inconsistent (Bratton and Gold, 1999), and the employee relationship is viewed as being between the individual and the organization.

The Warwick model of HRM

The Warwick model was developed by Hendry and Pettigrew (1990), and it extends the Harvard framework. This model views HRM as a perspec-tive on employment systems and closely connected with the overall business strategy. Beardwell and Holden (1994) believe that this model attempts to create a theoretically integrative framework, which encom-passes all styles and modes of HRM and also concerns economic, social, political and technical influences on organizational strategy. It explores employee relations with various approaches to strategic management (Boxall, 1992).

This model has five components: outer context, inner context, business strategy content, HRM content and HRM context ( Figure 2.4 ). Hendry and Pettigrew focus on mapping the context, identifying the inner context (organizational context) and external context (environmental

SocioeconomicTechnologicalPolitical-legalCompetitive

Inner context

CultureStructurePolitics/leadershipTask-technologyBusiness outputs

Business strategyContent

HRM content

ObjectivesProduct-market

Strategy & tactics

RoleDefinitionOrganizationHR outputsHRM context

HR flowsReward Work systemsEmployee relations

Figure 2.4 The Warwick model of HRM


influences), and they analyse how HRM adapts to the changes in context. Thus the model supposes that those organizations achieving an align-ment between the internal and external contexts will perform better.

HRM and personnel management

In the 1980s, personnel management was gradually replaced by the new term ‘human resource management’. To some managers and academics, the new term seemed to offer an attractive management model with its focus on employment administration, industrial relations, legal expertise and welfare (Watson 1977, Legge 1989, Guest 1990). A number of academics welcomed HRM with enthusiasm, establishing new university chairs and courses for it and writing textbooks on the subject, as ‘HRM offered new hope for those who had begun to despair of the long-term potential of industrial relations and personnel manage-ment as an important academic subject (Guest, 1990: 139)’. The view of HRM as a new and distinctive approach has gained the agreement of most excited practitioners and attracts the attention of management academics (Storey 2001; Marchington and Wilkinson, 2005).

However, for others, HRM remains an elastic, ambiguous and elusive concept (Storey, 1989). They argue that there is little new in HRM, or that it is just a re-labelling of personnel management (Legge, 1995; Gennard and Kelly, 1997), or as Armstrong (1987) puts it, ‘old wine in new bottles’. Fowler (1987) also points out that, there is nothing new about the view that when employees are treated as responsible adults, they contribute their best, and this view has been at the heart of good personnel practices for decades. Apart from the subtle conceptual distinction, for some academics there seems little substantive differ-ence between HRM and personnel management practices. Guest (1987) argues that a number of personnel departments have become ‘human resource departments’ without any obvious changes in roles and, in many cases, the policies stay much the same: ‘[A] change in title may be no more than a symbolic gesture and a possible statement of intent (Guest, 1990)’. Legge (2005) contends that, actually, in the United States ‘human resource management’ is used as one interchangeable term with ‘personnel management’.

According to Legge (2005), it is amenable to identify the similari-ties and differences between HRM and personnel management by examining the normative models of both. From this perspective, the similarities between the two are: both models emphasize the impor-tance of integrating personnel/HRM practices with organizational goals; operate personnel/HRM firmly in line management; emphasize


the importance of individuals fully developing their abilities for their own personal satisfaction to make their ‘best contribution’ to organi-zational success; identify placing the ‘right’ people in the ‘right’ jobs as an important means of integrating personnel/HRM practices with organizational goals.

Regarding the differences, Beer et al. (1985) indicate that HRM is the transformation from the traditional practices of personnel with the new term for unchanging practices. But they still offer a set of basic assumptions that can be identified as part of the HRM transformation. These assumptions are:

HRM is proactive and holistic, and it emphasizes system-wide inter-1. ventions, fit, planning and culture change; Personnel management is reactive, and it emphasizes piece meal interventions in response to specific problems. To HRM, people are social capital and are capable of development; 2. while to Personnel, people are variable cost. HRM seeks power equalization for trust and collaboration, while 3. Personnel seeks power advantages for bargaining and confrontation. HRM hightlights trust and commitment while Personnel stresses effi-4. ciency and power. HRM is goal orientation; Personnel is relationship orientation. 5. HRM emphasizes participation and informed choice; Personnel 6. emphasizes control from top.

Similarly, although the concept at the centre of HRM admittedly remains problematical, Storey (1989) claims that in stereotyped form it can be compared with personnel management: rather than being marginal-ized, the human resource management function becomes recognized as a central business concern; HRM is integrated into line management; its aim shifts from seeking compliance to seeking commitment; a tendency to shift from a collective orientation of the management of the work-force to an individualistic one. Guest (1987) proposes the sharp compar-ison of what he terms personnel management and HRM ‘stereotypes’ ( Table 2.1 ), accepting the inherent limitations in making comparisons between HRM and personnel management. He claims that there is a danger of comparing a normative/ideal view of HRM with a descriptive view of personnel management, because a normative view of personnel management may not differ very much from a normative view of HRM and that is why, in most text books, the titles are interchangeable. Thus he suggests the major assumptions in certain literature can better be


described as stereotypes, referring to a pattern of conventional ideas in the literature making it easier to highlight the differences.

According to Legge (2005), the differences between the normative models of the two are: Firstly, personnel management is, to a certain extent, isolated from the overall management system, but HRM focuses more on the systematic development of ‘the management team’. Secondly, in the HRM model, personnel policies are not just passively integrated with business strategy but are more proactive as an integral part of strategy. Thirdly, HRM models emphasize that the manage-ment of the organization’s culture is the central activity for senior management.

However, some academic viewpoints hold that the term HRM is increas-ingly used in business as an alternative to personnel management, not because of the substantial differences between these two, but because HRM theoretically expresses senior management’s preferred organiza-tional values (Legge, 2005) and the 1980s socio-economic cultural image (Keenoy and Anthony, 1992). Guest (1990) asserts that the popularity of HRM lies in its underlying values, which have a strong appeal for

Table 2.1 Guest’s stereotypes of personnel management and human resource management

Personnel management

Human resource management

Time and planning perspective

Psychological contract

Control systems

Employee relations perspective

Preferred structures/ systems

Roles

Evaluation criteria

Short-termreactivead hocmarginal

Compliance

External controls

Pluralistcollectivelow trust

Bureaucratic/mechanisticcentralizedformal defined roles

Specialist/professional

Cost minimization

Long-termproactivestrategicintegrated

Commitment

Self-control

Unitaristindividualhigh trust

Organicdevolvedflexible roles

largely integrated into line management

Maximum utilization(human asset accounting)


many managers, especially American ones, as these values represent the ‘American Dream’. Keenoy and Anthony (1992) contend that HRM is just a ‘meta-narrative’ locating, informing and legitimizing managerial prac-tices in a time of rapid economic restructuring, and that the ‘messages’ carried by HRM are much more important than the specific devices it employs – just as Fowler (1987) indicates that the real differences between HRM and personnel management is ‘not what is, but who is saying it’.

HRM practices

Normally, recruitment and selection, training and development, performance appraisal, and remuneration and reward are deemed the four key HR activities that mainly comprise the HRM system (e.g., Fombrun et al., 1984; Lundy and Cowling, 1996; Paul et al., 2011; Price, 2004) so, departing from these four aspects, I will draw a general picture of HRM practices in the real world.

Recruitment and selection

Due to the continuing skills shortage and the so-called ‘demographic time bomb’, the increased competition for qualified workers has made the recruitment and selection function even more important. The aim of recruitment and selection is to identify as many potential candi-dates as possible and attract their attention to the job prospects at the company. Ensuring the selection of the right people to join the workforce has become increasingly crucial as the emphasis on people as the main source of competitive advantage has grown. One of the HR experts’ main tasks is to recruit the right applicants and select the most qualified ones who best fit the organization and the job. Recruitment and selection involves making predictions about future behaviour so that decisions can be made about who will be most suit-able for a particular job (Newell, 2006). Recruitment and selection, to some human resource managers, might be the most important link for a successfully integrated HRM system (J.S. Lord, 1989). These aspects are directly related to a number of human resource manage-ment activities.

According to Beardwell and Wright (2004), the key stages of a system-atic approach to recruitment and selection can be summarized as defining the vacancy, attracting applicants, assessing candidates and making the final decision, The recruitment process usually begins with a detailed job description and job specification (J.S. Lord, 1989), which is the key element in the traditional repertoire of personnel managers as they set out the basic details of the job, defining its overall objectives, specifying


the main activities and tasks to be carried out as well as the alleged relationship and any other special requirements – and thus ensure the organization is seeking the right people with the right skills to do variety of tasks (Compton et al., 2009). A common format for personnel speci-fication is Alec Rodger’s Seven Point Plan (1970), and the alternative format is Munro-Fraser’s Five-Fold Grading System (1971) ( Figure 2.5 ). The two forms rely heavily on personal judgement to specify the human qualities associated with successful performance (Newell and Shackleton, 2000: 115), a process in which some requirements might be expressed as essential and some as desirable. Both are somewhat dated now, and the traditional person specification has given way to a focus on competencies (Boam and Sparrow, 1992).

Roberts (1997: 6) defines competence as ‘all work-related personal attributes, knowledge, experience, skills and values that a person draws on to perform their work well’. Competency-based recruitment and selection involves the identification of a set of competencies that are seen as important to the organization, and each competency can be divided into different levels, which can be matched to the requirements of a particular job (Beardwell and Wright, 2004). Unlike a conventional job description, which defines certain jobs in terms of a stable collection of discrete tasks, competency-based recruitment is forward-looking and strategic (Iles and Salaman, 1995). It is believed that the competence approach is a more strategically focused HRM, which can help achieve ‘vertical integration’, ‘horizontal integration’ (Sparrow and Bognanno 1993) and ‘internal and external integration’ 2 (Mabey and Iles, 1993).

Most organizations use both internal and external sources to generate a sufficient number of applicants. Specifically, when assessment is used for development purposes, recruitment will be internal and typi-cally based on information gathered from appraisals to decide which

Seven-Point Plan Five-Fold Grading System

Physical characteristics Impact on other people

Attainment Qualifications and experience

General intelligence Innate abilities

Special aptitudes Motivation

Interests Adjustment

Disposition

Circumstances

Figure 2.5 Seven-point plan and five- fold grading system


individuals have the potential to be developed (Newell, 2006). Internal recruitment, often involving promotion, may be the better option, as it reduces information uncertainty as candidates can be directly observed in the workplace and may also already have firm-specific knowledge (Staffsud, 2003). When an organization has exhausted its internal sources of applicants, it has to resort to external sources. Although external recruitment is expensive and often does not produce the quality of candidates required, companies often need to recruit externally. A number of methods are available for external recruitment, such as media advertising, employment agencies, employment database, head-hunters, college recruitment and so on.

Legislation promoting equality of opportunity has stressed the impor-tance of using reliable and valid selection procedures, and emphasis increasingly has been placed on ensuring the selection process is fair to the applicants. Basically, the selection methods include: screening interview, application form, telephone screening, employment test, interview and so forth. The selection process is a series of steps which is a combination of selection methods, and applicants pass through those steps. The methods an organization chooses depends on the budget available, on the number of applicants considered necessary and on the current size of the labour market concerned (Torrington et al., 2002). As Ivancevich (1992) puts it, selection is viewed more than simply relying on intuition, and the selection techniques are designed to increase the rate of successful employees selected.

According to Beardwell and Wright (2004: 224), one of the key developments within the recruitment and selection process is the increased use of technology: the Internet has emerged as a new recruit-ment medium, and the availability of software to aid the selection process is also increasing. The use of more sophisticated techniques for tests 3 can be seen as an attempt to improve the objectivity of the selection process and to reduce the scope for bias and prejudice. The objective of making rational decisions implicitly underpins selection and assessment – ‘the objective has been to make this decision as objective and rational as possible in order to select the “right” or “best” person for the job’ (Newell, 2006: 66). Psychometric perspec-tive has dominated the field for some time (Newell and Shackleton, 2001, CIPD survey, 2002). However, it is noted that HR professionals have less influence on selection criteria in practice than in theory (Lupton 2000). Increased legislation and the application of tech-niques have not made recruitment and selection methods entirely objective or just (Taylor, 2006). Some researchers and practitioners


about questioned the fundamental aspects of this seemingly objec-tive approach (Atkinson, 1984; Hesketh and Robertson, 1993; Marchington et al., 2003; Newell and Shackleton, 2001; Searle, 2003). Iles and Salaman (1995: 219) argue that the psychometric approach appears to value individualism (individual performance is predicted by individual attributes) managerialism (top management defines the major criterion of performance) and utility (cost-benefit analysis of the monetary benefits conferred on organizations in using different selection procedures), and the criteria of this approach have not in fact been established by neutral, scientific interests, but rather by political, social and legal pressures (ibid.: 221).

Training and development

In the new economic landscape, where change is constant and speed, flexibility, creativity and innovation are the most crucial determining factors for sustained competitiveness and business success (Bartlett and Ghoshal, 2002), the capability of companies and organizations to train and constantly develop their people are vital to providing a critical source of competitive advantage (Galanaki, Bourantas and Papalexandris, 2008). The human element is increasingly emphasized, mainly due to this element’s intangible characteristics: knowledge, skills and attitudes (Wright et al., 1994; Kamoche, 1996; Barney and Wright, 1998) and its organizational knowledge (Bassi et al., 1998; Lee and Yang, 2000; Bollinger and Smith, 2001). These attributes are more and more valuable.

Among all the personnel activities, training is the main activity for developing these resources and for producing qualified, flexible and well-prepared employees (Bartel, 1994; MacDuffie and Kochan, 1995). Training is seen as an essential tool to develop production processes that are based around teamwork and ‘multi-skilled’ employees (Blyton and Morris, 1992). Moreover, training increases the extent to which employees feel valued by the company (Storey and Sisson, 1993). As such, it is argued that the development of both cognitive and non- cognitive abilities among the workforce enhances its flexibility and adaptability to changing work circumstances and also encourages employee motivation and commitment towards organization goals (Rainbird, 1994; Keep and Mayhew, 1996; Heyes and Stuart, 1996).

The interrelationship between training and recruitment strategies is usually a very close one (Keep, 1989), because organizations have the choice of either training its existing employees or recruiting experienced labour from outside. According to Aston and Felstead (1995: 235), a company


which fails to train will find itself reliant on the external labour market, and ‘hence in a position in which it is unable to regard labour as anything but a cost[,] ... [A] company which does train is more likely to protect its investment ... ’. Because of the competitive labour market, the organization increasingly faces the problem of losing talents to other rivals, and mean-while, the task demands are always unstable because of the frequently changing technology and market conditions, so employees have to keep acquiring more knowledge and learning new skills to meet the current effectiveness requirement. It is argued that employees be encouraged to become lifelong learners, as part of a business strategy to retain competi-tive advantage (Stern and Sommerlad, 1999; Keep and Rainbird, 2000).

The historical antecedent of training is the apprentice system. In many crafts, training was given to enable apprentices to work for a period of time under the supervision of a master craftsperson and, even-tually, the apprentices learned the skills required and could produce the products by themselves (Wilson, 2005). Nowadays, training is important for both new and present employees because by providing the opportu-nities for employees to acquire job-related skills, attitudes and knowl-edge, employers could reach the target of improving current or future performance of employees.

Most training process systems comprise four main steps (Marchington and Wilkinson, 2005): identifying training and learning needs; devising a learning plan; delivering training and evaluating outcomes. Identifying training and learning needs involves analysing corporate, occupational and individual needs to acquire new skills or knowledge to improve the existing competencies. Then the training content should be defined and a learning plan devised. The learning objective specifies the attitudinal, behavioural or performance outcomes to be achieved (Harrison, 2002: 284). According to Harrison (2002) and Reid and colleagues (2004), the most helpful objectives are those not only describing the kinds of behav-iour to be achieved, but also the conditions under which that behaviour is expected to occur, and the standards to be reached in that behaviour. When implementing the training, the trainer should ensure that the most appropriate methods are selected to enable trainees to reach the objectives they need. The effectiveness of training should be monitored during the process and, finally, what leaning targets have been achieved have to be evaluated: thus the training programme can be improved in the future.

The choice of training method is determined by a range of factors, including costs, benefits, characteristics of the learning group, applica-bility of method and the culture of the organization as well as its stra-tegic goals (Marchington and Wilkinson, 2005). Basically, there are two


training approaches for employees. The first is on-the-job training, which is probably the most widely used method of training. The employee is placed in the real work situation and trained by experienced employees or supervisors. It is the direct and immediate way to develop and prac-tice various skills needed by an organization. The employee works, learns and develops further skills at the same time. On-the-job training can be provided by managers, supervisors, team leaders or colleagues, but it is important that the trainer should be good at instructing, coaching and mentoring, because employees can be strongly influenced by the quality of the trainer during on-the-job training (Armstrong, 1999). The second is off-the-job training, which can be done in vocational school, organi-zation centres or elsewhere. It helps employees acquire advanced skills and knowledge which will directly or potentially improve their perform-ance at work. Off-the-job training can be provided by external educators, training consultants or guest speakers, and mostly by members of the organizational training department.

Currently, there is general agreement about the importance of training: however, the investment by companies in training activities is still very low (Aragon-Sanchez et al., 2003). There are some reasons: for example, firms tend to cut down on training in times of recession; firms are concerned about the lack of time, as the job still has to be done; and firms may have inadequate information about the economic returns from training ( Lloyds, 2002). Among these reasons, the main reason why firms do not train is simply because of their short-termism and that they do not evaluate the impact of training on company profits (Aragon-Sanchez et al., 2003; Keep, 1989). Although the overall training figures have risen since the 1980s, this has been achieved, according to Grugulis (2006: 109), by shorter training courses more evenly distributed. He argues that duration is not a proxy for quality, but it is unlikely that fundamental changes can be achieved in less than five days. 4 Western managers have been criticized for their obsession with profit maximization and a concentration on short-term benefits (Mamman and Saffu, 1998), and these factors are compounded by stock market and takeover pressures, which materially affect industry’s ability to invest in long-term projects, such as training and development, at the expense of short-term profit margins (Dore, 1985; Fifield, 1987; Keep, 1989).

Performance appraisal

Performance appraisal (PA) is a method by which the job performance of an employee is evaluated. It is also known as performance evaluation,


performance review, personnel rating, employee appraisal and so on. The appraisal systems once were typically designed by the HR function, and required that each line manager evaluate the performance of the staff by completing an annual report and discussing it with them. But now, performance appraisal has become a ‘general heading for a variety of activities through which organizations seek to assess employees and develop their competencies, enhance performance and distribute rewards’ (Fletcher, 2001).

PA is aiming to improve current performance and provide feedback on performance to employees: identify training needs; make individuals know their potential and how to improve it; facilitate communication between subordinates and superiors; and form the basis for personnel decisions: salary increases, promotion, reward or punishment (Torrington et al., 2002). In recent years appraisal has become a key feature compel-ling organizations to gain competitive advantage through continuous performance improvement (Bratton and Gold, 1999).

PA’s history is not long. It originated from the time of World War II, when it emerged as a distinct and formal management procedure used in the evaluation of work performance. But the practice of appraisal is a very ancient art if it is considered in a broader sense, because it seems universal and inevitable for people to judge others. As Dulewicz (1989) points out, ‘a basic human tendency is to make judgement about those one is working with as well as oneself’. However, according to Gold (1999), PA is arguably the most controversial and least appreciated part compared to other activities in HRM, because it seems that managers dislike making judgements about the worth of their employees and may feel guilty about being critical of them (Levinson, 1970). Employees see no point in PA, either, because the feedback will have a potentially strong impact on employees’ self esteem, which might lead to demorali-zation and demotivation within the organization (Ebrahim, 2005; Gerst, 1995; Iles, 2001; Starcher, 1992).

Without a structured appraisal system, people may tend to judge the performance of others informally, naturally and even arbitrarily (Archer North, 1998) and, consequently, serious motivational, ethical and legal problems can occur in the workplace. The far left of an appraisal chart continuum is characterized by subjective opinion, feelings and beliefs, and the far right is characterized by data and measurements, which represent ‘fact’ – so, Lawrie (1990) thinks the goal of an appropriate PA is to move from subjective feeling to objective fact.

However, this objective ‘fact’, which represents rationality and efficiency, shows that PA is a controlled approach, proving that the performance of


employees is under control. Longnecker and colleagues (1996) found that, behind the mask of rationality and objectivity, bosses engage much in the process, and they think objectivity and rationality are difficult to achieve because the PA process is actually an emotional one, and employee rela-tionships are managed within a political environment within organiza-tions. Barlow (1989) indicates that PA’s aim is to make rational and static relationships between managers and employees, which are ambiguous and complex. So, due to the explicit or implicit control or, say, political orientation, in reality the PA process may not be so effective.

According to Longenecker’s long-scale survey (1997), the three most common reasons for failure of an appraisal system are: unclear performance criteria or an ineffective rating instrument (83 per cent); poor working relationship with the boss (79 per cent) and the appraiser lacks information on the appraiser’s actual performance (75 per cent). Indirectly, some factors may be unique elements in the performance appraisal process, including: organizational culture, value and climate, organization goals, HR strategies, workforce composition, external economical and cultural factors, technological advances and so on. (Levy and Williams, 2004).

Much research has tried to find a way to mitigate the negative outcomes of appraising employees and, in recent years, a 360-degree appraisal, which was previously named multi-resource feedback , has proved more valid (Hogetts et al., 1999; Borman, 1998; Edward and Ewen, 1996). This approach to appraisal prefers to use a whole range of sources from which feedback can be collected about any individual (Torrington et al., 2002). The sources include immediate line managers, peers, subordi-nates, customers and employees themselves. And the feedback is usually presented to the individual in the form of graphs and charts showing comparative scores from different feedback groups.

This all-round feedback enables individuals to receive the different views of others, and they can also compare others’ views with their own view about themselves. Thus they can be made aware of their strengths and weaknesses and improve their self-awareness. But as Torrington and colleagues (2002) point out, 360-degree appraisal has to be handled very carefully in the appropriate organizational climate. If it is not built on the constructions of development goals and used to fulfil those goals, the process may be de-motivational and may be viewed nega-tively. Moreover, Fletcher and colleagues (1998) claim that, although 360-degree feedback is certainly fairer because it does provide more viewpoints on an individual’s performance, the different rating groups tend to provide their feedback from their own subjective standpoints.


The reliability of 360-degree appraisal has been accused of being no better than traditional top-down appraisal. Moreover, there is insuffi-cient research proving the positive link between multi-source feedback and performance improvement (Fletcher, 2001).

Remuneration and reward

According to Bratton and Gold (1999), in most theoretical HRM models pay is a central piece of the principle of the employment relationship. Pay is one of the most obvious and visible expressions of the employ-ment relationship, as Hegewisch (1991) states; it is the main issue in the exchange between employees and employers. Remuneration and rewards management is directly related to the other HRM activities. In the recruitment process, pay can be the key factor that attracts quali-fied and suitable people to the organization. It can also help to reduce the turnover rate. Employees’ performance and development are easily influenced by pay, and in most organizations pay indirectly relates from the result of the performance appraisal.

It is agreed by most academics and management practitioners, however, that it is difficult to evaluate the use of pay/rewards systems in pursuit of HRM goals. As Beer and colleagues (1984) affirm, one of the most difficult HRM tasks for general managers is to design and manage the rewards system. Managing rewards systems faces increasing chal-lenges because of economic and social factors. Global competition and pressure at work drive managers to improve productivity, the quality of products and the service, while reducing wage costs. Meanwhile, managers have to ease any underlying tension in the employment rela-tionship, showing more attention to the notion of ‘fairness’ regarding the pay and working conditions for employees.

The theoretical foundations for remuneration and reward, according to Beardwell and Holden (1994), are:

Maslow’s hierarchy of needs, which means that if managers try to 1. increase employees’ motivation, they should not only meet the basic needs of employees but should also consider the higher-level psychological and social needs. Herzberg’s two-factor theory of motivation, which states that the 2. ‘hygiene factors’ at work in a good organizational environment do not motivate employees, but the absence of them are de- motivational. Real motivational factors are: interesting and meaningful work, recognition, responsibility, personal growth and so on.


Porter and Lawler’s model of motivation, which suggests that motiva-3. tional factors are mainly based on the value that employees place on the reward, and it provides a more dynamic theoretical foundation for most rewards systems.

These motivation theories give managers a clue to finding what motivates employees and how to motivate them, and then to devise programmes to meet their needs. So the main targets of remunera-tion and reward management for an organization are (Bratton, 1999): firstly, attract and retain suitably qualified employees to the organi-zation; secondly, maintain or improve employee’s performance, and improve productivity; thirdly, the rewards system should comply with pay legislation.

A rewards system consists of financial rewards, including fixed and variable pay and employee benefits. These two parts compose the total remuneration. Fixed pay refers to the basic salary or wage that consti-tutes the rate for the job, and it can be expressed as a weekly, hourly or annual rate. Variable pay is the addition to basic pay; it includes bonus, incentives, commissions, individual performance-related pay and so on. Other indirect pay refers to employee benefits, such as pensions, sick pay and so on, and non-financial rewards, including personal growth, recognition, and responsibility and so on.

Beardwell and Holden (1994) propose that the factors which influence the level of pay include: the worth of a job, such as the job’s respon-sibility, skill requirement and importance; the quality of individuals, for example one’s age, experience, skills and so forth; the state of the labour market and unemployment levels; the remuneration policy of companies; government intervention and so forth. These factors can be divided into internal factors and external factors to the organization. The internal ones mainly depend on the organization’s culture and values. For example, some organizations give prerogative rights to older and experienced employees, and some rewards or salary increments would be automatically paid to employees when they reach a certain age. However, as Lupton and Bowey (1983) argue, this kind of rewards system may bring about complacency and a ‘safe’ attitude, which may reduce employees’ creativity and enthusiasm for work.

The types of payment relate to the nature of the effort made by employees at work in relation to the rewards. ‘Payment by time’ means that pay is determined by the numbers of hours in attendance at the place of work. It is used when some occupations cannot be measured by performance and, as Shaw and Shaw (1982) claim, time payment


recognizes people’s desire for a constant and predictable income. But they also point out that time-based systems increase the responsibility of managers to ensure that performance standards are met. ‘Pay by result’ (PBR) refers to the link between payment and quantity and/or quality. It may reflect the tradition of ‘scientific management’ because employees’ work activities can be standardized and analysed. PBR enhances manage-ment control over pay and work efforts. Millward and colleagues (1992) suggest that managers use PBR systems as an alternative to light supervi-sion and monitoring. Actually, employees have more freedom with their work, with the opportunity to achieve high earnings. But more studies have shown that it is too simplistic to define the relationship between reward and effort using PBR systems, and several others suggest moti-vational variables should also be considered in the payment systems (Beardwell and Holden, 1994).

Performance related pay (PRP) is a system in which an individual’s level of salary is mainly dependent on a performance appraisal (Swabe, 1989). PRP not only considers individual output but also other factors, including contribution to team work, quality, flexibility and so on (Kinnie and Lowe, 1990). The main advantages of PRP are as follows. Firstly, it can help in recruitment and retention. As Kessler and Purcell (1992) put it, PRP sends the ‘right message’: that by rewarding highly, organizations can keep those they want to keep, and rewarding lowly those they are happy to lose. Secondly, PRP can encourage the organi-zational culture of performance-oriented awareness, which represents a spirit that is dynamic, entrepreneurial and flexible (Kessler and Purcell, 1992). Thirdly, the power of trade unions can be weaken by a PRP system, because it focuses more on individual performance rather than on collective bargaining.

Individual PRP and the growing use of PA, as Robbins (1990) points out, shows the desire by organizations to develop a culture, a ‘system of shared meaning’, which is individually oriented. Since the PA process is designed to shape individual behaviour and assist in the process of management control, when contingency pay is linked to the appraisal system it also exhibits this kind of control, as it provides a mechanism to communicate and reinforce organizational culture and values, thus cultivating employee’s loyalty and commitment (Legge, 2005).

According to Beardwell and Holden (1994), payment systems do not operate in a vacuum, and it affects, and is affected by, all aspects of the employment relationship. So the design of the payment system ‘should not only be integrated with other human resource management policies but should also reflect and perpetuate the overall strategic and cultural


objectives of the company’. Furthermore, organizations should also pay enough attention to different individual motives.

Critical perspective on HRM

The critical perspective argues that there are inherent contradictions within the concept of normative HRM as derived from its foundation in two different United States based models. The two models were combined into a normative model of HRM, which incorporates the policy goals of employee commitment to the organization’s goals based on the soft concept of HRM, as well as strategic integration of HRM with the organization’s goals, based on the hard concept of HRM (Guest, 1989a; Storey and Sisson, 1993).

The concept of hard and soft HRM is central to the argument of the critical perspective of HRM, and they have been used by many commen-tators to categorize approaches of managing people according to prin-ciples termed ‘ developmental humanism ’ and ‘ utilitarian instrumentalism ’ (Storey, 1987; Hendry and Pettigrew, 1990; Legge, 1995). The hard HRM essentially emphasizes ‘the quantitative, calculative and business-strategic aspects of managing the headcount resources in as “rational” a way as for any other economic factor’ (Storey, 1992, Legge, 2005). Soft HRM, on the other hand, while still emphasizing the importance of integrating HR policies with business strategy, concentrates more on treating employees as valued assets, recognizing that performance and competitive advantage is achieved by ‘employees with superior know-how, commitment, job satisfaction, adaptability and motivation’ (Stone, 2008: 7).

For some commentators it is quite possible for companies to pursue both ‘hard’ and ‘soft’ versions simultaneously (Keenoy, 1990; Legge, 2005). The contradictions within HRM may lead to a gap between rhet-oric and reality, as organizations espouse a soft rhetoric but enact a hard reality (Blyton and Turnbull, 1994; Legge, 2005; Noon, 1994; Storey and Sisson, 1993; Truss, 2001; Watson, 2004). For Truss and colleagues (1997), even if the rhetoric of HRM is ‘soft’, the reality is almost always ‘hard’, with the interests of the organization prevailing over those of the individual. Storey and Sisson (1993) argue that the ideals of HRM fall short of reality, and Storey (2001: 6; my emphasis ) identifies that one of the fundamental assumptions or beliefs of HRM is that ‘the human resource ought to be nurtured as a valuable asset’. Blyton and Turnbull (1994: vii) assert that the ‘vocabulary of HRM has surpassed both its conceptual and empirical foundations and that rhetoric has outstripped the reality’. Further, Vaughan (1994) claims that while organizations


describe employees as their most valuable asset; organizational reality is characterized by impersonal economic rationalism.

The critical perspective proposes that HRM uses rhetoric to manipu-late employees, and the underlying logic of HRM is ‘one of obtaining a return from the employment of labour’ (Watson, 2004: 455). Guest (1990) suggests that the main impact of HRM in the United States may have been to provide a smokescreen behind which management could introduce non-unionism or obtain significant concessions from trade unions. Wilmott (1993) proposes that HRM rhetoric makes employees into ‘willing slaves’, as they believe that their organization will take care of them. Alvesson and Willmott (2002) argue that HRM rhetoric offers a less obtrusive and more effective means of control to manage employees inside. Vaughan (1994: 26) asserts that HRM rhetoric builds an image of employees united by a strong feeling of identity, but actually it gives the ‘sense of the impersonal economic rationalism that characterizes management thinking in the real world’. HRM uses rhetorical language to assert and legitimize managerial control through language that espouses shared commitment and individualism (Gratton et al., 1999).

Additionally, the hard–soft distinction not only confuses differences in intellectual or academic emphasis with variations in real managerial practice, but it leads to the consequence that a large amount of the HRM literature ignores the fact that ‘organizational arrangements generally, and HR strategies specifically, are outcomes of human interpretations, conflicts, confusions, guesses, and rationalizations, albeit with these aspects of human agency within a context of societal and political– economic circumstances’ (Watson, 2004: 453).

However, the critical perspective on HRM also arouses some criticism. According to Guest (1999) and Keenoy (1999), on the one hand, this view of HRM is derived from simplistic concepts of HRM and limited evidence (which may be biased), and on the other hand, this view is accused of concentrating on criticizsing HRM without providing a work-able alternative. Steyaert and Janssens (1999: 186) point out that the critical studies of HRM lack ‘a contribution to theoretical positioning since they provide no proposal to the question “what else to do?”’, and critical study ‘remains within and reproduces the existing frames’. Watson (2004) claims that mainstream academic HRM literature remains prescriptive, functionalist and uncritical.

From the very beginning, until now, numerous HRM theories have been constructed in order to search for best practices for firms, and these best practices are supposed to be effective in all situations. Examples of best HRM practices are characterized as ‘high performance’ (Combs


et al., 2006, Huselid, 1995), ‘high commitment’ (Arthur, 1994), and ‘high involvement’ (Guthrie, 2001). However, there seems to be no consistent conceptualization of what constitutes best HRM practices across organi-zations (Becker and Gerhart, 1996) and, also, there is no such perfect HRM theory/model which can be applied successfully in any contexts (Warner, 1993).

HRM in China

Rise of HRM thinking in China

With the beginning of economic reforms in the late 1970s, China moved from a highly centralized command economy to a more market-driven economy, whilst retaining its socialist one-party government system as well as its socialist ideology (Burns, 1999; Pye, 1999; Story, 2003). A market-oriented economic system with a mixed ownership structure has been introduced since then to complement complete central planning and public ownership and, consequently, to stimulate economic growth in China (Dong, 1992). China’s unique political and social environment, prosperous foreign direct investment (FDI), serial reforms launched by the national government, a continuous process of societal and economic transition and the ability to apply varied research approaches have made China an important player in international business and it has become, therefore, an attractive topic for management research (Zhu et al., 2008: 134). There has been a significant increase in the horizon of research about business and management and, specifically, on HRM in China during the last 20 years.

According to Shenkar and Von Glinow (1994: 56), there are three compelling reasons why China has become a focus of interest for research on management and organization, especially in the field of international and comparative management. Firstly, because China has the largest workforce in the world, so the current theories and methodologies cannot be regarded as universal unless they can explain the process and structure of China’s enterprises and its employees’ attitudes and behav-iours. Secondly, China ‘potentially represents the most serious challenge to paradigms developed in the West’, as China differs from Western countries in various aspects: cultural, social, political and economic systems. Thirdly, ‘the relevance of Western models becomes as much a practical matter as a theoretical issue’ as China gradually becomes an important part of the world economy. Thus, these studies on Chinese management have raised the possibility of testing the universality of Western theories in order to see whether or not they can fully explain or


predict organizational forms and employees’ behaviour in different envi-ronments. Moreover, studies about how and why Chinese management style differs from Western management should contribute to many areas of management and organizational theory (Stening and Zhang, 2007).

The Third Plenary of the Eleventh Central Chinese Communist Party Congress ( ), held in December 1978, was regarded as a turning point in the history of the People’s Republic of China, as it witnessed the inauguration of China’s economic reform. Two major components of the command economy – central planning and public ownership – were targeted for reforms. Reforms in planning – aimed to substitute the mandatory central planning system with a market- orientated system – and reforms in ownership sought to change the predominance of public ownership and to establish various forms of ownership (Dong 1992; Talas, 1991). Since then, the proportion of state-owned enterprises (SOEs) has subsequently fallen from being the majority to being a minority and, correspondingly, the number of non-state-owned firms – consisting of JVs (Joint Ventures), TVEs (Township and Village Enterprises), WOFEs (Wholly Owned Foreign Enterprises), joint stock companies and privately owned domestic businesses – has risen. SOEs in China implemented a form of personnel management ( ) under the old planned economy system to organize employees, a system they had partly borrowed from their Soviet counterparts (Warner, 1995, 2008). The old personnel system was characterized by the so-called ‘three old iron’ ( ): life-time employment (the ‘iron rice bowl’ ), centrally administered wages (the ‘iron’ wage ) and state-controlled appointment and promotion of managerial staff (the ‘iron’ chair ). This enterprise-based system of ‘life-time employment’ and ‘cradle-to-grave’ community is believed to be associated with ineffective people– management and has been eroded since market socialism was introduced in the 1980s (Ding et al., 2000; Warner, 2008). In 1992, state-legislated personnel reforms, the so-called ‘Three Systems Reforms’ ( ), involved the introduction of labour contracts, performance- related rewards systems and contributory social insurance (see Ng and Warner, 1998).

Chinese managerial practices at the firm level tended to develop in parallel with international standards, primarily with management approaches from America, Europe and Japan (Warner, 2008). As a more market-based management strategy, HRM has been introduced incremen-tally since the middle of the 1980s (Child, 1994; Warner, 1995, 1999, 2000, 2004). HRM was initially introduced as an academic concept in China by joint teaching-arrangements between Chinese and foreign universities and management practices in foreign-owned enterprises, and it has been


disseminated by the increasing presence of Multi-national Companies (MNCs) and JVs in China. However, Warner (1993) suggested that, in spite of its rapid change, China would still be realistic to ‘think more than twice’ before adopting HRM practices in most Chinese enterprises. Child even forthrightly pointed out: ‘[T]his concept of human resource management is not found in Chinese enterprises. It is represented neither in the struc-tures of management or, by and large, in its practices’ (Child, 1996: 157).

A decade on, accompanied with the deepening political and economic reforms in the state sector, the growing influence of MNCs and JVs, with their Western practices, and China’s accession to the WTO, increasing the number of companies in a China that was becoming more conscious of the need for effective HRM (Cooke, 2005: 173). A Human Resource Development report for China (Lin, 2006) collected data from 1,883 Chinese enterprises and demonstrated that the majority of Chinese organi-zations have adopted most HRM practices from the West. Although a level of resemblance with Western HR practices has been used in many organi-zations in China, for example, as Cooke (2005) observed that with more sophisticated recruitment and selection methods, increasing emphasis on training and development, more diverse methods of financial reward relating to performance and more emphasis on enterprise culture, it is indisputable that HRM in China does carry its own distinctive features, as the practices from traditional institutions and customary culture still play a significant role in Chinese workplaces (Tsui et al., 2004). Some empir-ical evidence has demonstrated that the applicability of Western HRM to Chinese local subsidiaries was questionable (e.g., Björkman and Lu, 1999), and some historic and empirical observations showed that Chinese HRM practices have unique characteristics that are different from its Western counterpart (e.g., Child, 1994; Warner, 1995, 2000). Some cases showed that Chinese local enterprises seemingly adopt Western managerial prac-tices while somehow still maintaining their traditional personnel ways (Braun and Warner, 2002). Some cases also demonstrate that multi-na-tional corporations in China tend to increase their adaptive capabilities by absorbing localized HRM practices (Child, 2000). Zhou and colleagues therefore concluded that Chinese HRM could be characterized by a mix-up of old and new, indigenous and exogenous practices (Zhou et al., 2012).

The translation of HRM into Chinese is Renli Ziyuan Guanli ( ), which means ‘Labour force resources management’. Although

personnel management ( ) was viewed as a term from the planned economy era and a reminder of something related to the central admin-istrative regulations, and some Chinese experts believe that the wording change, from ‘personnel management’ to HRM, has revealed that


Chinese enterprises are undergoing changes in their personnel concept ( People’s Daily Online , 20 May 2004: 1), these two terms are still often used as synonyms and are treated as if they mean the same; and the older form of personnel management is still very common, especially in state-owned enterprises (SOEs) (Zhu et al., 2007: 755). The degree to which the new human resource management system may be implanted is constrained by the Chinese context, particularly by cultural and constitutional heritage (Ding et al., 2000: 219).

HRM research studies in China 5

A number of comprehensive reviews on general organization and management studies have been undertaken over the last 20 years in China (e.g., Lau, 2002; Li and Tsui, 2002; Peng et al., 2001; Quer et al., 2007; Shenkar, 1994; Tsui et al., 2004), but they do not specifi-cally deal with HRM in China. Six review papers on HRM in China have been found: Cunningham and Rowley (2007), Cooke (2009), Kim and colleagues (2010), Poon and Rowley (2007), Zheng and Lamond (2009) and Zhu and colleagues (2008). Cunningham and Rowley’s (2007) review focuses on the importance and development of Chinese small and medium-sized enterprises (SMEs) and Chinese HRM. Poon and Rowley (2007) only reviewed research articles from two leading academic jour-nals, the International Journal of Human Resource Management and the Asia Pacific Business review . Kim and colleagues (2010) reviewed articles between 1992–2008 in major academic journals in both English and Chinese, specifically focusing on the relationship between HRM and company performance. Zhu and colleagues (2008) review furnishes a broad perspective of HRM in China, which is based on analysis of 182 articles published from 1979 to 2005. They identified China-related HRM in terms of the major categories of research and practices (HRM, strategic HRM, and industrial/labour relations), ownership types and research methods. Through the review of 265 articles found in 34 major business and management journals in the period of 1998–2007, Cooke (2009) provides an overview of research studies on HRM in China in the last decade. The review projects the trajectory of ‘China’s economic and social reform in recent decades and documents the consequential changes in workers’ identity and status, employment terms and condi-tions and organizational commitment’ (Cooke, 2009: 6). Zheng and Lamond (2009) reviewed the empirical studies on HRM practices in China published in 26 leading international journals during the years 1978–2007. They critically evaluated developments in the field of HRM in China in the past three decades, and also examined the research


methods that have been used in the empirical inquiries, the journals in which these researches have been published, and also who has made the most contribution in the field of Chinese HRM studies.

Zhu and colleagues (2008) divide the research on HRM in China into three stages: in the first ten years, from 1979 to 1989, articles about HRM in China are a holistic view of the topic, and their results lack specific solutions or predictions. In these early stage articles, the status of HRM was merely regarded as an element of management and often was not defined in a specific way (136). Articles from the 1990s on HRM in China focused on ‘HRM and specific HR practices, HRM’s effect on workers, and HRM’s overall effectiveness in the Chinese context. The major theme running through these articles hinged upon the degree of accept-ance of Western HRM practices’ (137). From 2000 onwards, knowledge transfer and its effects on Chinese management and Chinese HR prac-tices continued to be a research focus, and although several articles still focused on the overall effect of HRM, they included ‘a more detailed analysis of individual HRM practices and of the consequences of those practices on HRM’ (139). These topics include: the role of leadership (e.g., Law et al., 2000; Ling et al., 2000; Selvarajah and Meyer, 2008; Wang and Schneider, 2003; Zhang and Ng, 2009); recruitment (Clouse, 2006; Han and Han, 2009; Huang et al., 2001); organizational justice (Leung et al., 2001); bargaining power (Björkman and Lu, 2001; Luo, 2001); unemploy-ment (Mok et al., 2002; Price and Fang, 2002); employee stock ownership (Chiu, 2003; Tseo et al., 2004); organizational commitment (Wang, 2004; Yu and Egri, 2005); performance appraisal (Hempel, 2008; Leung and Kwong, 2003; Taormina and Gao, 2009); employee motivation (Chiu et al., 2002; Mok and Yeung, 2005; Wright et al., 2008), and so on.

Cooke (2009: 11–15) groups the range of topics about HRM in China into ten broad themes:

Industrial/employment relations, trade union, labour process/1. management control, state-owned enterprise reform, and labour market reform; Training and development, organizational learning, leadership, 2. management development and entrepreneurship; Traditional aspects of HR practices; 3. Strategic HRM; 4. Organizational behaviour; 5. Transfer of HR practices in MNCs /JVs; 6. Expatriate management; 7. Cross-country/region comparative studies of HRM; 8.


HRM in Chinese MNCs overseas; 9. Women in employment and management. 10.

These studies have been informed by a variety of theoretical perspectives, including ‘institutional theory, cultural perspectives, organizational psychology, organizational behaviour theories, strategic management theories, political economy, sociological views, industrial relations, crit-ical management studies, gender perspective and more recent interest in social capital and exchange theories’ (Cooke, 2009: 20).

It is noted by some writers (e.g., Chiu, 2006; Cooke, 2009) that they find a relatively large proportion of these empirical studies to be descrip-tive and lack theoretical contributions. Many of the studies that have a stronger theoretical focus tend to ‘use Western theories/conceptual models in the field as a bench mark or a starting point to investigate practises in China’ (Cooke, 2009: 20). Despite that adapting Western theories and conceptual frameworks may be a useful starting point to guide the investigation of HR issues in China; it is undoubted that researchers need to test the utility of these theories and models in the Chinese context. Tsui (2006) and Whetten (2002) argue that besides the ‘outside-in’ approach, which uses the Western theories and models to study the selected phenomenon in China, scholars should give more emphasis to an ‘inside-out’ approach, which is interested primarily in the unique and indigenous issues within the Chinese context and is less interested in comparing China to other contexts. ‘Given China’s unique cultural, social, historical, and political mosaic, there is a need to explore the possibility of unique Chinese organizational and management models’ (Tsui, 2006: 5). Quer and colleagues (2007: 374–375) suggest that Chinese management researchers should be more self-confident in exploring local issues and developing indigenous theories to explain the Chinese phenomenon, as Western theories may have limited explana-tory power. In Tsui’s words: ‘The field of Chinese management research direly needs more theory-building studies and less pure application of Western theories’ (Tsui, 2006: 5). This ‘inside-out’ approach requires an in-depth knowledge of the context (Tsui, 2004, 2006; Whetten, 2002), that is to say, Chinese management scholars should deeply understand the Chinese cultural and instructional underpinnings upon which Chinese theories are founded. In fact, it has already been noted by a number of researchers that the Chinese culture has played a significant role in the emergence of a hybrid form of HRM (e.g., Chen and Wilson, 2003; Child, 1991; Easterby-Smith et al., 1995; Tsui, 2006; Warner, 1991, 1993; Wright et al., 2008; Zhu and Warner, 2004, Zhou et al., 2012).


Research on Chinese culture and its influence on HRM

There are three approaches in examining the cultural influence on HRM in China. The first one is comparative study (e.g., Child, 1991; Bailey et al., 1997; Earley, 1994; Easterby-Smith et al., 1995; Hui et al., 2004; Osigweh and Huo, 1993), which dominate the China HRM empirical research in the top-tier journals (Zheng and Lamond, 2009). Through contrast and comparison, the differences can be highlighted, as the cultural and institutional framework underpinning HRM practices in China is quite different from their counterparts in the West. For example, by exam-ining the HRM practices in 30 Sino-foreign joint ventures, Child (1991) finds that it is the deep-rooted cultural factor that influences manage-ment in China. Unlike their foreign counterparts, Chinese manage-ment emphasizes control from above, combined with a reluctance of Chinese managers and employees to accept responsibility (97); Chinese management lack systematic, regularly applied rules and procedures (97); Chinese staff prefer a personal network which relies heavily on the functioning of personal relationships, rather than formal communica-tion (p. 100). Through a direct comparison of HRM practices in matched Chinese and U.K. companies, Easterby-Smith and colleagues (1995) conclude that the main differences in HRM between these two countries appear in the ‘softer’ areas, including appraisal, rewards systems, the process of assessing potential and the basic stance of unions towards management, where relationships are important. They believe these differences link to ‘cultural factors such as greater concern for relation-ships, for harmony and the preservation of “face” in China’ (Easterby-Smith, 1995: 56). Based on comparisons between the Unitd States and the PRC, Osigweh and Huo (1993) investigated the influence of differing cultural characteristics on conceptions of employee responsibilities and rights. However, Zheng and Lamond (2009: 2212) assert that there are two limits of comparative studies in the China context: one is outside researchers who tend to take a ‘premature leap to casual paradigm’ without an in-depth analysis of all factors leading to the differences; another one is that the application of the Western instrument may cause the comparison to be inherently non-comparable.

The second approach is theory application . These papers are strongly theory-based, with sophisticated quantitative analysis, and they try to apply some Western theories and models in the Chinese context to test whether they work. By using Granovetter’s (1973, 1974) ‘strength-of-weak-ties’ hypothesis 6 to analyse the institution for assigning jobs in China, Bian (1997) finds that interpersonal networks are more helpful to Chinese people in finding jobs than are weak ties,


and both direct and indirect ties of exchange are used to obtain help from intermediaries who are strongly tied to the ultimate helpers. Bian and Ang (1997) find that Guanxi networks of exchange relations are common to China and Singapore. The survey data of their empirical study shows that job mobility of both China and Singapore tend to be channelled through Guanxi networks; job changers tend to find interme-diaries through Guanxi to connect with their ultimate helpers; helpers’ job status has positive impacts on job changers’ attained job status. Cheung and Gui’s (2006) study of Chinese working people in Shanghai shows that the principle of reciprocity in exchange theory is useful for explaining the contribution that strong ties and Guanxi play in acquiring job rewards. By using a sample of 242 supervisor- subordinate dyads from Chinese organizations, Zhang and Agarwal (2009) examined the medi-ating effects of organizational justice in predicting organizational citi-zenship behaviour and turnover intentions from HR practices, and they found that in Chinese organizations Guanxi plays a more important role in employees’ turnover intentions than do perceptions of procedural justice. Through a survey of 180 firms from nine cities in China, Law and colleagues (2003) found that the subordinate’s perception of top-level management is important to a firm’s performance, and a leader’s ability to navigate socially complex institutions is critical to his or her success in China’s interpersonal cultural orientation. Selvarajah and Meyer (2008) constructed a structural model to identify demographics factors that shape perceptions of what makes an excellent Chinese leader, and they confirmed that managerial behaviour was the most important factor determining leadership in China and that, despite the changes in the political and social systems in the last 60 years, the Chinese belief in Confucianism is still highly valued. Ma (2006) explored the Chinese negotiation styles and analysed Chinese culture’s impact on negotia-tion: due to the collectivistic position, Chinese are more likely to avoid direct conflict and, when confronting conflicts, to seek harmony and to maintain collectivity in the process of negotiation.

The third approach views Chinese organization as a cultural product , and examines how Chinese culture influences organizational behav-iour. These papers had been originally stimulated by Hofstede’s (1980) four dimensions of culture: Power Distance; Individualism versus Collectivism; Masculinity versus Femininity; and Weak versus Strong Uncertainty Avoidance (Peng et al., 2001: 100). For example, a survey of Chinese values was constructed and administered to subjects in 22 coun-tries by the Chinese Culture Connection (1987), which found that power distance, individualism and masculinity are significantly correlated with


Hofstede’s four dimensions. Besides, ‘Confucian work dynamism’ was proposed as a unique cultural factor that fundamentally indulgences organizational behaviour. According to Redding (1980, 1987, and 1990), Redding and Ng (1982) and Lockett (1988), the Confucian values – including the respect for age and hierarchy, family/group orientation and preference for Guanxi and Face – significantly affect the shape of Chinese organizations as well as their performance and problems. As the result of the Chinese family-group orientation, the stylized Chinese organiza-tions prefer a centralized structure in which decisions are made at the top (Lockett, 1988; Lu, 1996; Westwood, 1997). In Chinese organiza-tions, employees show respect for hierarchy and accept the hierarchical nature of the superior–subordinate relationship (Jiang and Cheng, 2008). Managers, especially in private organizations and SOEs, play a father-like role, and a direct and authoritarian leadership style is expected (Farh and Cheng, 2000). ‘Face’ is important for the superior–subordinate relation-ships (Redding and Ng, 1982). While Chinese subordinates should seek to protect and give face to the superior, the superior should also take care not to damage the subordinates’ face (Westwood, 1997). In Chinese organizations, the overlap between the formal relationship and informal relationship ( Guanxi ) is pervasive (Chen et al., 2004; Yg and Huo, 1993), and economic exchanges are more likely to be reinforced by personal connections rather than the typical Western ‘rational’, arms-length trans-actions (Yang, 1994; Yeung and Tung, 1996). Lockett (1988) indicates that Chinese culture partially undermines the adoption of Western manage-ment methods and handicaps the legitimacy of formal organization and policies. By examining the influence of Chinese culture architecture on motivating workplace behaviour for enhanced productivity in Chinese workplaces, Wright and colleagues (2008) found that although Chinese values certainly explain important aspects of workplace behaviour, an orientation to the practical and emotive side of life in the Chinese working place also subtly affects behaviour.

Conclusion

This chapter provides a general overview of Western HRM theory and practice and HR practices and research in China. It can be seen that the development of Western HRM depends on the changing economic circum-stances of the past decades, but also it is deeply influenced by the Western way of thinking which is characterizsed by ‘rationality, objectivity and universality’. As Legge (2005) claims, the language of HRM celebrates a range of very WASP (White, Anglo-Saxon and Protestant) values.


Specifically, the means of recruitment and selection recommended by prescriptive HRM texts emphasize predictability of outcome, rational–legal procedures and reliability can be seen as encouraging managers to ensure a rational calculation of employee numbers, selec-tion methods and performance measures, and to transform individual subjects into objects (Taylor, 2006; Townley, 1994); HR appraisal provides data for rational, objective and static decision making related to improving performance (Kleynhans et al., 2006) but, in real practice, the result might be ambiguous, complex and dynamic (Barlow, 1989). What is described as 360-degree feedback is designed to get more objective and accurate results but, as Fletcher (2001) points out, it might arouse more subjective points of view and may be no better than the traditional methods. Most HRM theorists adopt a universalistic assumption that greater use of specific employment practices will always lead to better (or worse) organizational performance (Delery and Doty, 1996). However, ‘the structurally and culturally bounded and micro-politically coloured choices managers made in the light of different organizational circum-stances’ sometimes are better than prescriptive HRM theories when it comes to the realities of HRM processes although the latter would not necessarily be ‘Wrong’ in any simple sense (Watson, 2008: 917).

Mintzberg (1989) argues that many management processes and structural designs can be related back to an assumption of an organization as a machine, and terms such as ‘getting organized’, ‘being rational’, and ‘achieving effi-ciency’ represent evidence of this domination. Like the Western philoso-phers, from Plato and Aristotle to those in the twentieth-century, who endeavoured to pursue the universal laws of the world and intended to find the truth and ideal to explain the world, the Western management theorists’ goal is to find a rational, efficient and stable model to explain the employment relationship. Most contemporary academic HRM research is prescriptive, positivist, managerial, functionalist and strategic (Keegan and Boselie, 2006; Watson, 2004; Watson, 2010), and the prescriptive intention of the HRM literature succumbed to overformal generalization that neglect the dynamism and complexities of real organizations (Watson, 2004). As Hendry and Pettigrew (1990) indicate, it is ironic ‘when HRM theorists have borrowed strategy concepts it has often been without regard to the actual behaviour of firms’, and they warn against ‘treating the design of HRM systems in an overly rational way’.

Therefore, there is no single coherent theory of HRM that holds up well under all circumstances (Beardwell and Holden, 1994), especially when it is applied in different cultural contexts. It cannot project itself as a ‘culturally neutral’ approach to the management of employees, and


international aspects of HRM cannot just be viewed as the derivative of the particular types of Western managerial culture.

China’s opening up of its economy and its institutional transfor-mation have significantly influenced most sectors of its industrial economy – directly through the establishment of MNCs (Multi-national Companies) and JVs and, indirectly, through the impact the competition and liberalization are having on SOEs and domestic private companies (Cooke, 2005: 4). In order to cope with employers’ exigent needs for competitive quality, adaptability and performance enhancement, and with employees’ new demands for labour protection, better pay and greater career prospects, human resource management techniques have been introduced. An increasing number of Chinese enterprises have tried to make a break from past personnel practices and moved towards convergence with Western HRM practices; however, the magnitude of convergence is significantly dependent on the Chinese context, (particu-larly the cultural and constitutional heritage) and on the organizational characteristics (such as size, age and ownership). While the adoption of Western HR theories and techniques in China is on the increase, it is admitted by many Chinese managers that certain Western HR tech-niques sound good in theory but prove difficult to implement in prac-tice in China (Cooke, 2005). This is because HRM is often embraced as an advanced management philosophy rather than as a reality, and the effectiveness of HRM will be reduced if it is prescribed uncritically without contextual concern. As a result of more widespread adoption of Western HR theories and techniques in China, a serious challenge to HR professionals as well as academics is unavoidable.

A majority of empirical studies adapt Western theories and conceptual frameworks to apply in the Chinese context (Cooke, 2009), although more and more researchers (e.g., Tsui, 2006; Quer et al., 2007) call for more indigenous studies to examine Chinese unique intellectual roots, mental models, relationship paradigms and axiomatic foundations that can explain the Chinese phenomena. While a number of research studies have worked on Chinese culture – characterized by collectivism, high power distance, Confucianism, Guanxi and face – as well as on its influence on HR practices and Chinese behaviour patterns, most of these studies are hypotheses-led and Western-method driven (Cooke, 2009). As Western HR practices have been increasingly adopted in China these past 20 years, it is necessary to consider whether these practices are merely purely Western practices or an adaptation of Western prac-tices in China. Are they ‘Chinese practices’ that have been redeveloped and transferred with Western jargon but with Chinese style? Or do they


follow a hybrid approach of old and new, of indigenous and exogenous? Another question, raised by Cooke (2009: 26), which is considered as the main purpose of this present research, is: Given the continuing success of the Chinese economy in the last three decades, are there any lessons that Western firms can learn from the Chinese approach to people management which, though little informed by contemporary Western HR theories, is deeply embedded in Chinese values and philosophy? To answer these questions, the author will take both the ‘inside-out’ and ‘outside-in’ approach to investigating HRM practices in China to find out the underlying traditional Chinese thinking and values which underpin the people management with Chinese characteristics.

49

Introduction

Chapter 2 gives a brief introduction of HRM theories and HRM practices. The HRM system provides a strong sense of equity and of a trustworthy exchange relationship, and assessment and promotion are alleged to mainly depend on an individual’s merits. We have also mentioned that the critics of HRM argue that the ‘soft’ HRM offers a smokescreen for ‘hard’ HRM to cover its unchanged reality, which emphasizes ration-ality, individualism, control and short-term orientation. In this chapter we will try to examine HRM’s underlying philosophy, which offers the fundamental theoretical support for it.

The concept of HRM originated in the United States, and it reflects ‘a kind of rugged individualism’ (Guest, 1990: 154). Actually, individu-alism has been seen as one of the most significant attributes of many Western societies 1 (Halevy, 1928; Hofstede, 2001a; Swart, 1962; Lukes, 1973). The basic ideas of individualism, according to Lukes (1973), include human dignity, autonomy, privacy and self-development. By 1840, individualism was supported by an economic doctrine and then became a political doctrine in most Western countries (Lindsay, 1930). The concept of individualism–collectivism is increasingly used as a defining feature of national culture. Triandis (1994) asserts that the individualism–collectivism cultural syndrome appears to be the most significant cultural difference among cultures. Nowadays, individualism has been recognized as a defining characteristic of Western culture in general and American culture in particular (Bellah et al., 1985). Therefore one of the main features associated with HRM is individualism (Sisson, 1990). Different from traditional personnel management, HRM lays less emphasis on formal and collective modes of management–employee

3 Philosophical Underpinnings of HRM Theory


relations, and represents a tendency that shifts to a more informal indi-vidualistic orientation (Storey, 1989, 1992); for example the individual appraisal, individual goal setting, individual performance-related pay system and direct communication with the individual are the paradigm of individualistic HRM techniques.

As essentially an American concept, HRM’s values embody the consistent themes of the ‘American Dream’ (Guest, 1990, 1992), which endorses an image that everyone gets an equal opportunity and should be able to achieve success as far as he/she works hard enough and is talented enough. The ideal of the American Dream is closely tied to the principle of meritocracy, and in a general way the American Dream is seen as the fulfilment of meritocracy (McNamee and Miller, 2004). Meritocracy refers to an ideal that the appointments of individuals are based upon demonstrated intelligence, ability and efforts (merit). The American Dream represents the cultural ideal of white Anglo-Saxon Protestants (WASPs), an ideal which originated from the Protestant reli-gious sects (McNamee and Miller, 2004). In the late 1970s, organizational theories were predominantly under the influence of the application and extension of ‘functionalist sociology’, which is guided by assumptions that the world is composed of objective and pre-existing entities, such as structures, categories and dynamics (O’Doherty, 2007: 25). For struc-tural functionalism the social world is essentially objective and predict-able, and its social relations tend towards natural order and meritocracy; the recruitment and mobilization of the social ‘workers’ depends on the calculable standards of individual achievement. In HRM practices, scientific selection rather than social process selection dominates (Ile and Salaman, 1995): By the use and efficacy of techniques such as interviewing, psychometric testing, or biodata analysis, the merits of employees are tested and classified. Besides, various evaluation systems and rewards systems are based on meritocracy, such as performance reviews, results appraisal and pay for performance/pay for skill.

It is a basic assumption of the Western intellectual and moral tradi-tion that rationality is a central value (Kekes, 1989). The connota-tions of ‘rationality’ are objectivity, abstraction and detachment; and rationality acts as a symbol of all that the Western philosophy tradition holds precious (Lloyd, 1998). There are two epistemological traditions in Western philosophy – rationalism and empiricism – and these two traditions originated from Greek philosophical thought (Morrison, 1995), such as that of Socrates, Plato and Aristotle. This rational ancient Greek thought deeply influenced the development of modern Western

Philosophical Underpinnings of HRM Theory 51

thinking, including its depictions of intelligence and consciousness (Anthony, 2006). The philosophers of the Enlightenment of the seven-teenth and eighteenth centuries proposed that valid knowledge rested on deductive reasoning, or positivism (Legge, 2005: 317), and reason was chosen as the highest of human attributes. They argued that knowledge can only be derived from constructing general laws or by directly observable phenomena. The history of HRM reflects the rising interest in improving the control of skilled and motivated employees, in a professional and scientific way of managing human resources, and in the contribution of HRM (which as the organizational machine) to the organization’s success – all of these show the dominant rationality in HRM. The rational search for efficiency through systems, and the resultant danger of dehumanizing the organization, presents a perma-nent challenge to the advocates of the power of ‘good human relations’ (Redding, 1990: 238) – soft HRM.

‘Uncertainty-avoiding cultures foster a belief in an absolute Truth, whereas uncertainty-accepting cultures take a relativistic stance’ (Hofstede, 2001a: 363). Hofstede (1991, 2001a) proposes that the short-term thinking is derived from the Western notion of certainty. Western countries foster a belief in an absolute truth and certainty, but the long term is very uncertain, so uncertainty only can be avoided in the short term. The ancient Western philosophers believed that the basis of reality is a unity, seeking rational explanations for existence and events and pursuing absolute truth; therefore the three emphatic goals of Western philosophy have been truth, rational necessity, and the good (Brightman, 1952). By using the tools of reason, logical analysis and conceptual clarification, Western philosophy tries to replace what is uncertain and doubtful with something more stable and coherent (Cottingham, 1996: 2), even if this certainty can only be maintained in the short term. The philosophical tradition cultivates Western people to prefer direct, certain, visible and short-term engagement in dealing with the affairs of the world, including such as art, medicine, politics, busi-ness and even in personal relationships. The obsession with certainty, efficiency, predictability and quantity disillusioned Western culture (Schneider, 1993). The long-term perspective of HRM – viewing an organization’s people as investments for the future – sits uneasily with the prevailing short-termist ideology of business in Western world. To many critics, one of the main shortcomings of the current management approach is concentration on the bottom line and short-term profits (Lumley, 1989; Voos, 1987).


We will now try to analyse the underlying philosophy of HRM from four aspects: individualism, meritocracy, rationality and short-termism.

Individualism

Individualism and its philosophical pedigree

‘Individualism’ has been attributed as a national trait of most of the Western peoples: American, English, Canadian, Netherlander, Italian, and so on, each singled out as individualist par excellence (Hofstede, 2001a; Swart, 1962). Lindsay believed that all modern political theory, except the theories of Bolshevism and Fascism, is individualistic (see Lukes, 1973). Elie Halevy (1928) even asserted that ‘in Western society, individualism is the true philosophy’. From the Roman law to Christian morality; from Rousseau and Kant to Bentham; and from a methodolog-ical to a practical doctrine, the term ‘individualism’ implies the idea that society is the product of individual wills. According to Swart (1962), the introduction of an individualistic mentality into Western civilization can be ascribed to the diversity of causes: Christianity and Protestantism in particular, the Germanic invasion of the Roman Empire, the rise of the bourgeoisie and capitalism, the Renaissance, the philosophy of the Enlightenment.

Although ‘individualism’ is a product of modernity, the same idea can be traced back to early times. The ancient Greek Sophist, Thrasymachus, argued in Plato’s Republic that the individual has the right to fight to secure self-interest. Also in Book II of The Republic , Glaucon (one of Plato’s older brother and his interlocutor) claimed that the state is as a contract among self-interested individuals for mutual safety. Moreover, the hedonistic philosophy of the Epicureans posited that individual happiness is the chief good of life. However, most ancient philoso-phers regarded egoism as an undesirable and unnatural trait, and it was elevated as a basis for morality only in the modern era.

‘Individualism’, like ‘socialism’ and ‘communism’, is a nineteenth-century word. The term ‘individualism’ grew out of the framework of European social thought which emerged during the Enlightenment and the French Revolution (Morrison, 1995). The Age of Reason was the beginning of an open society in which individuals were free to pursue individual happiness and liberty. Descartes’s ontology identified the human essence with reason, and this essence is not only embodied in each individual mind, but it is also fully independent of the external world. The autonomy of rational ego in Descartes’s works is in a form of Reason with a capital R, which means that individual human reason


is able to design rational social order, guaranteeing the best for every single person and, also, it is able to find the means by which they are to achieve it. The Cartesian view of Reason as being available to individual human mind implies that everything achieved by man is the direct result of individual human reason.

Generally, before the mid-nineteenth century, large collective bodies such as the church and guilds dominated social life, controlled trade and regulated occupations, and their authority and proprietary powers were not only over individuals but they determined a people’s place in society. Joseph de Maistre and Henri Saint-Simon were deemed the first thinkers to use the term ‘individualism’ to criticize the extoling of the individual over the dominance of social institutions that arose after the French Revolution (Swart, 1962). Individualism is the name given to the overall progress detaching societal institutions, politics and economy from indi-viduals. It is a cultural principle which encompasses Protestantism, the bourgeoisie and the Enlightenment, and it brought a historically neces-sary demand for freedom. It developed with an irresistible force and dissociated in religion, economy and intelligence from the traditional structures and authority. It was the natural product of the Industrial Revolution and the growth of capitalism or democracy (Lukes, 1973).

The basic ideas of individualism, according to Lukes (1973), include human dignity, autonomy, privacy and self-development. The Christian grounds for equal respect is that all men are equally children of God. Luther and Calvin both stressed individual salvation and the right of the individual to commune directly with God. During the Renaissance, the idea of the individual’s supreme worth was openly proclaimed. In the American Declaration of Independence and in the French Declaration of the Rights of Man , the recognition of the inherent dignity and the equality and the rights of humanity were first declared. In Kant’s The Moral Law (2005), the idea of human dignity reached its most impressive and systematic expression. He argues that man, generally every rational being, exists as an end unto himself, not merely as a means for arbitrary use by another’s will. Countless modern thinkers hold the same idea; they assert that the individual is an end, and society is only a means (Lukes, 1973).

The idea of autonomy was first clearly expressed by Saint Thomas Aquinas, as he argued that everyone should examine his own actions by the knowledge he receives from God. Spinoza and Kant are the two philosophers who had the systematic idea of autonomy. Spinoza indi-cated that a free man is an active, self-determining, and self-thinking being who is not controlled completely by external forces (Younkins, 2006). At the heart of Kant’s moral theory is the position that rational


human wills are autonomous. Along with Rousseau, Kant believed that a state is free when its citizens are bound only by laws that are in some sense of their own making. He argued that the idea of freedom cannot be separated from the concept of autonomy, and these two combine together to be the universal principal of morality (Paul, 1998, 2004). Autonomy implies a condition of the individual that should be increased or maximized, and it is the value central to the morality of modern Western civilization.

The notion of privacy refers to the individual, who is a private entity within a public world, someone who should be left alone by others and be able to do whatever he chooses, as long as he does not harm others; and the individual is the sovereign of his own body and mind (Mill, 2002). Privacy in its modern sense means an individual’s thoughts and actions should be free from public interference and intrusion, and it is perhaps the central idea of liberalism (Lukes, 1973). To Mill (2002), the doctrine of individuality is to pursue and develop oneself in one’s own path, free from social pressure. According to Marx (1970), man’s self-realization exists as an inner necessity, a need, and an individual’s self-development is achieved through community with others.

Otto Gierke pointed out that, among all modern ‘Natural Law’ theo-rists, from Hobbes to Kant, the ultimate and only source of group authority is the previous sovereignty of the individual (see Lukes, 1973). Society itself is no longer universal but exists only as a derivative of the individual (Seligman, 1992), and the community is a mere union of the wills and powers of individuals. Individuals are perceived as a given, with the given interests, wants, needs, and so on; while state and society are perceived as sets of social arrangements which respond more or less adequately to individuals’ requirements. However, the notion of a totally independent individual was held by a great number of nine-teenth-century thinkers to be a typically superficial and narrow dogma of the Enlightenment (Lukes, 1973): from Hegel and Marx and their respective followers to Saint-Simon and his disciples, from Augusto Comte and the Positives to Durkheim, all these thinkers believed that not only does man constitute society, but it is society which constitutes man, and an individual cannot be isolated from society. As Marx (1970a) puts it, ‘man is not an abstract being, squatting outside the world. Man is the human world, the state, society’.

Individualism–collectivism

The development of the concept of individualism–collectivism can be traced back as far as nineteenth-century classical sociology, when the


German sociologist Ferdinand T ö nnies first introduced the distinction between Gemeinschaft and Gesellschaft in 1887 (Wagmer and Moch, 1986). Gemeinschaft refers to an association in which individuals are regulated by common mores, and the community is nurtured through shared, group-oriented kinship or tradition. On the contrary, Gesellschaft describes an association in which the individual’s self interests over-ride the larger associations’ interests, and society should be developed through complementary, self-interested exchange. Durkheim (1933) once proposed two distinct forms of social cohesion: one is organic solidarity, which is based on the complementary satisfaction of different interests; and the other is mechanical solidarity, which is based on the collec-tive satisfaction of shared interests. Similarly, Weber (1947) observed two different types of relationship: one is temporary interpersonal rela-tionship motivated by self-interested gain; and the other is a relatively permanent group relationship supported by traditions and a joint sense of connectedness. Adapted from Weber, the distinction between indi-vidualism and collectivism was introduced into contemporary theories by Parsons (Parsons and Shils, 1951), who proposed two dimensions of collectivity orientation versus self-orientation. Consequently, individ-ualism–collectivism has appeared in the discussion of the relationship between individuals and their work groups and organizations (Wagmer III and Moch, 1986), and in Hofstede’s (1980) cross-cultural comparison of business organization.

Although individualism–collectivism is increasingly discussed at an individual level, reflecting differences within people of the same national culture, it is still important to use individualism–collectivism as a defining feature of national culture. The dimension of individualism–collectivism has been judged by cross-cultural psychologists to be one of the most concise, coherent, integrated and empirically testable aspects of cultural variation (Kim et al., 1994). Triandis (1994) asserts that the individualism–collectivism cultural syndrome appears to be the most significant cultural difference among cultures. Greenfield (2000) sees it as the ‘deep structure’ of cultural differences, as if there are numerous cultural differences; this one seems to be both historically and cross-culturally important. Almost a hundred publications per year now use this dimension in discussing cultural differences (Triandis, 2001). Additionally, individualism and collectivism might be meaningful dimensions of organizational culture as a consequence of the fact that all organizations are embedded within societal cultures, which are likely to have an ambient influence on organizations embedded within them (Hofstede, 1985; Robert and Wasti, 2002).


Individualism and collectivism were introduced by Hofstede (1985, 2001a) to the psychological literature as one dimension of cultural-level variable of his famous four fundamental cultural dimensions (i.e., Power Distance; Individualism versus Collectivism; Masculinity versus Femininity and Uncertainty Avoidance). In a broad sense, indi-vidualism refers to an orientation towards the self as an autonomous individual bounded by one’s own skin, while collectivism refers to an orientation that an individual is a social entity embedded in a broad society. Individualism and collectivism have been used as a construct to contrast Western cultures with East Asian cultures (Hofstede, 2001a; Triandis, 1995). Highly individual cultures believe the individual is the most important unit, and highly collectivistic cultures believe the group is the most important unit (see Table 3.1 ). Historically, individualism was considered by many Western cultures as an expression of the freedom of citizens, since it emerged out of the struggle against monarchical and aristocratic authority and arose from the pursuit of democracy. Nowadays, individualism has been

Table 3.1 Individualistic and collectivist societal norms (adapted from Hofstede 2001a)

High individualistic cultures Highly collectivist cultures

People taking care of themselves or their immediate family only;

Expect absolute loyalty to group (nuclear family, extended family, caste, organization);

Self-orientation; Collectivity orientation;‘I’ consciousness; ‘We’ consciousness;Identity is based on the individual; Identity is based on the social

system;‘Guilt’ cultures; ‘Shame’ cultures;Low-context communication; High-context communication;Emotional independence of individual

from institutions or organizations;Emotional dependence of individual

on institutions and organizations;Emphasis on individual initiative and

achievement: leadership ideal;Emphasis on belonging: membership

ideal;Everyone has a right to a private life; Private life is invaded by institutions

and organizations to which one belongs;

Self-started activities; Activities imposed by context;Value standards should apply to all:

universalism;Value standards differ for in-group

and out-group: particularism;Autonomy, variety, pleasure, individual

financial security;Expertise, order, duty, security

provided by organization or clan;‘Modern’ or ‘Postmodern’ society. Traditional society.


recognized as a defining characteristic of Western culture in general, and American culture particularly (Bellah et al., 1985). On the other side, collectivism may be rooted in societies in which basic survival conditions depended on shared group values, in-group cohesion and obedience to group aims (Zha et al., 2006). Individualism is very high in the United States, Great Britain, and in some British-influenced coun-tries, such as Australia and Canada 2 (Hofstede, 1980, 2001a); and other countries in Africa, Asia and Latin America, which have contrasting cultural syndromes and have been identified as collectivist (Hofstede, 1980; Triandis et al., 1990).

Definitions of individualism–collectivism are broadly constructed and vary among researchers (Noguchi, 2007). Hui and Triandis (1986) found considerable agreement among social scientists for the belief that indi-vidualists share only with their immediate nuclear family, are less willing to subordinate their personal goals to those of a collective, are willing to confront members of their in-groups, feel personally responsible for their successes and failures and experience separation and distance from their in-groups. In contrast, collectivists give high consideration to the impli-cation of their own behaviour for others, share material and nonmate-rial resources with others, emphasize harmony within the group, share both good and bad outcomes with others and feel that they are part of their in-group’s life. Triandis (1995) suggested that four attributes define individualism and collectivism. The first one is ‘the meaning of the self’: the definition of the self is interdependent in collectivism and independent in individualism. The second one is ‘the structure of goals’: personal and communal goals are closely aligned in collectivism but not in individualism. The third one is ‘behaviour is a function of norms and attitudes’: collectivists give more weight to norms as deter-minant of their social behaviour while individualists give more weight to attitudes. And the fourth one is ‘focus on the needs of the in-group or social exchanges’: collectivists pay much more attention to the needs of members of their in-groups, while individualists pay attention to the advantage and costs of relationships. Markus and Kitayama (1991) developed the concept of independent self and interdependent self, and they assumed that Westerners would have more of an independent self and East Asians would have more of an interdependent self. Kim (1994) stated that individualism is characterized by internal attributes, a discrete boundary between the self and others, while collectivism places emphasis on deep dependence on context in communication, shifts in behaviour depending on the situation, sensitivity to hierarchy, internal constraints and harmony within the in-group.


Individualism and HRM

It has been suggested by several authors (e.g., Adler and Jelinek, 1990; Bernardin and Russell, 1993; Gomez-Mejia and Welbourne, 1991; Hofstede, 1984; Sekaran and Snodgrass, 1986) that human resource management practices are culture specific, and that individualistic and collectivistic culture endorses and encourages different HRM practices as well. As Hofstede (1984: 81) puts it, ‘management deals with a reality that is man-made. People build organizations according to their values, and societies are composed of institutions and organizations that reflect the dominant values within their culture. Organization theorists are slowly realizing that their theories are much less universal than they once assumed: theories also reflect the culture of the society in which they were developed’.

The concept of HRM originated from the United States, and it is regarded as ‘a kind of rugged individualism (Guest, 1990: 154)’. According to Guest, HRM shows the belief in the potential for human growth, which is based on the ideas of McGregor’s (1960) theory Y, Maslow’s (1943) hierarchy of needs and Herzberg’s (1966) motivator-hygiene theory. Although these theories lack empirical support, they reflect the common value in the United States: the opportunity for progress or growth, based on individual achievement. In HRM, this translated into a view that business owners should be as free as possible to run their busi-nesses the way that they want, and that individuals have to take indi-vidual responsibility for their life situation (Brewster, 2007). The reward system emphasizes individual performance-based rewards and the U.S. ‘hire-and-fire’ mentality.

Sisson (1990) suggests that one of the main features associated with HRM is individualism. The HRM normative models, especially those ‘soft’ ones, put more emphasis on the importance of treating employees as valued assets. Different from traditional personnel management, HRM puts less emphasis on formal and collective modes of manage-ment–employee relations, and represents a tendency that shifts to a more informal individualistic orientation (Storey, 1989, 1992). Bacon and Storey (1993) contend that individual performance-related pay and pay-for-knowledge constitute the paradigm of individualistic HRM techniques that symbolize attempts by management to move towards an ‘individually orientated’, rather than a union-orientated organiza-tional culture. The underlying feature of modern HRM ‘appears to be the secular drift towards “individual” aspects such as individual appraisal, individual goal setting, individual pay system, direct communication with individual. ... ’ (Bacon and Storey, 1993: 665).


According to Hofstede (2001a), management in an individualist society is the management of individuals, and employees in an individu-alistic culture are expected to act rationally according to their own inter-ests, and work should be organized according to both the employees’ self-interest and employer’s interest. Employees are supposed to behave as ‘economic men’, and their aim is to meet their own economic and psychological needs. Contrary to the aim of a collectivist entity, in which an individual would intend to keep the group needs and goals foremost in his/her mind, the individualist entity emphasizes individual needs over group needs (see Table 3.2 ). In an individualistic culture, it is considered suitable for HRM to emphasize job design and focus on individual achievements, individual incentive schemes, merit-based selection and promotion, competitiveness, autonomy and a formal appraisal process with feedback about performance (Ramamoorthy and Carroll, 1998).

With regard to the specific HRM practices in an individualist culture, the spirit of individualism can be reflected in the selection procedure, the

Table 3.2 Key differences between individualist and collectivist societies: work situation (adapted from Hofstede, 2001a)

Individualist society Collectivist society

Employees supposed to act as ‘economic man’;

Employees act in the interest of their in-group, not necessarily of themselves;

Hiring and promotion decisions should be based on skills and rules only;

Hiring and promotion decisions take employees’ in-group into account;

Family relationship seen as a disadvantage in hiring;

Relatives of employers and employees preferred in hiring;

Employer–employee relationship is a business deal in a ‘labour market’;

Employer–employee relationship is basically moral, like a family link;

Poor performance reason for dismissal; Poor performance reason for other tasks;

Employees’ commitment to organization high;

Employees’ commitment to organization low;

Employees perform best as individuals; Employees perform best in in-groups;Training most effective when focused at

individual level;Training most effective when focused

at group level;Preferred reward allocation based on

equity for all;Preferred reward allocation based on

equality for in-group, equity for out-group;

In business, task and company prevail over personal relationship;

In business, personal relationship prevails over task and company;

Belief in individual decisions. Belief in collective decisions.


appraisal system, the reward system and so forth. It is more prevalent to use a cognitive ability test in the hiring process in the United States and United Kingdom than in most countries (Bernardin and Russell, 1993). The primary purpose of the selection test is to measure the ability of the individual to perform well in the position on offer. The main criteria for the selection in an individualistic entity are emphasizing individual rights, individual interests and job compatibility (Ramamoorthy and Carroll, 1998). The formal appraisal systems are relatively more prevalent in the individualistic countries than in collectivist countries (Kim et al., 1990). Individualism places more emphasis on formal performance appraisal systems, and it is also emphasized as a necessity to set clear performance objectives, involving employees in the progress of target setting, perform-ance evaluation and feedback processes (Murphy and Cleveland, 1991). Individualism orientation is related to a preference for equity, and it stresses a pay-for-performance relationship, while collectivism is related to a preference for equality in rewards (Ramamoorthy and Carroll, 1998). In the individualist organization, if incentives or bonuses are given, these should be linked to the individual’s perform-ance (Hofstede, 2001). In an individualistic culture, the employees are not tied by any long-term agreement, and they are not expected to have any commitment to the organization beyond the scope of the employ-ment contract (Gomez-Mejia and Welbourne, 1991). Gomez-Mejia and Welbourne (1991) suggest that a collectivist orientation may be more associated with job security, loyalty to the organization and a greater emphasis on the social network inside the organization; an individu-alist orientation may be more associated with personal achievements and goals that may result in employees constantly looking to further their own career goals and opportunities for growth with less loyalty to the organization. An individual in the individualistic culture chooses or continues to be a member of a group or organization, as long as the group is instrumental in attaining individual goals and needs that cannot be attained by working alone (Wagner, 1995). When the indi-vidual’s and the group’s goals are in conflict, or when the group cannot meet the needs of individual, the individual feels free to leave the group to pursue his/her own goals.

Meritocracy

Meritocracy and the American Dream

The term ‘meritocracy’ is a satirical invention of Young (1958), who wrote the classic satire or fantasy, the Rise of the Meritocracy , which was


about a future society that could not endure the perfect meritocracy it created. Young imagines a society in the twenty-first century in which all rewards and assignment of jobs are based on merit. All the social barriers to meritocracy, such as social status and family background are removed from the influential factors of education or career, since the testing system for intelligence and ability is so well developed that predictions of performance can be accurately made. Rewards are proportional to merit. Although there are vast inequalities in the benefits and rewards which accompany jobs, these rewards are justified because they provide incentives or ensure efficiency and productivity. Without the irony, the term is now applied to the advanced capitalist systems of reward alloca-tion and status attainment (Scully, 1997), usually to distinguish them from aristocratic determinants, by which birth or family background establish an individual’s status (Bell, 1972).

Scully (1997) defines meritocracy as a social system of a government or other organization wherein merit is the basis on which appoint-ments are made and rewards are distributed to individuals. It legiti-mizes existing status differences among individuals and groups through emphasizing that the abilities and efforts of individuals are responsible for social status, and it ensures that the positions of highest authority are occupied by those of the greatest merit. A meritocracy relies on three principles (Daniels, 1978): firstly, merit is a well defined and measur-able basis for selecting and rewarding individuals; secondly, individuals should have an equal opportunity to display and develop their merits; thirdly, the stratified level of rewards, such as income or status, should represent the rank to which individuals can achieve. In a broad way, ‘inputs’, such as ability and effort, and ‘outputs’, such as contribution or performance, are variously seen as appropriate bases of merit. Therefore, to the proponents, meritocracy is fair in that individuals have the opportunities to advance and receive rewards according to their merito-rious contributions, and it also plays a role as incentives (Sen, 2000): it motivates people, as it is presumed that a system of remunerating activi-ties according to the good they do generates competition. Functional sociologists argue that by directing the most talented people into the most functionally important positions, meritocracy enhances a society’s efficiency (Sen, 2000).

The Puritan values of individual ‘frugality, industry and prudence’ were integrated into the core of the early emerging American culture. During the Colonial Period, Benjamin Franklin advised his readers on the The Way to Wealth , and the key to wealth was industry; Abraham Lincoln insisted that the greatness of the American Union was that industry


allowed all men to prosper; in the midst of industrialization following the Civil War, the ‘rags to riches’ (Horatio Alger, 1832–1899) legend became a cornerstone of American society, and people believed that anyone could succeed if they worked hard (Warshauer, 2003). Franklin’s practical maxims, Lincoln’s ideal just and prosperous system, and the commitment to industry illustrated by Alger’s tales were further solidi-fied in the American mind by the addition of the Protestant work ethic. The commitment to personal industry, combined with the Protestant ‘work ethic’, caused people to believe that hard work allowed one to not only achieve financial success, but also through the success, reveal God’s grace (Warshauer, 2003). In the period after World War I, consumption was redefined, not as an evil of self-indulgence but as just reward for hard work. People worked hard not simply to be the elect of God but, increasingly, for ‘self-enhancement’ (McNamee and Miller, 2004: 6).

In The Meritocracy Myth , McNamee and Miller (2004) assert that the principle of meritocracy is closely tied to the idea of the American Dream. The American Dream was first expressed by James Truslow Adams in 1931 in his The Epic of America , and it showed that citizens from every rank felt that they could achieve a ‘better, richer and happier life’ (Cullen, 2004), and also ‘that dream of a land in which life should be better and richer and fuller for every man, with opportunity for each according to his ability or achievement’ (Kamp, 2009). McNamee and Miller (2004) believe that people understand the idea of the American Dream, in a general way, as the fulfilment of the promise of meritocracy and the fulfil-ment of individual freedom and the chance to succeed. Although the endorsement of meritocracy is not evenly distributed among Americans, ‘family background’, ‘social relationships’ and ‘discrimination’ are also deemed relevant factors that influence people’s social status and social rewards, and the overall pattern is clear (McNamee and Miller, 2004: 2): most Americans not only believe that meritocracy is the way the social system should work, but they also believe that meritocracy is the way the system does work.

Ideologies provide a socially acceptable explanation of the kind and extent of inequality within society (Jost and Brenda, 2001; Brown, 2002). For example, in slave societies, slave owners used the idea of ‘innate supe-riority’ as the ideology to justify their ownership of slaves; in feudal soci-eties, the aristocracy used ideology of ‘birthright’ and ‘the divine right of kings’ to justify their power and privilege over other human beings. According to McNamee and Miller (2004) the American Dream repre-sents an ideology of inequality, which is justified by meritocracy. The United States is regarded as the land of opportunity, and many people


there believe that they will be able to get out from the system what they put into it; the lazy, shiftless and indolent people fall behind, and those who are most talented and hardest working get ahead. Individuals in the United States presumably can achieve success by hard work and self-improvement, from the ‘log cabin to the White House’. Americans adhere to a cultural worldview in which social rewards and status are assumed to reflect individual merit and hard work (Kluegel and Smith, 1986). The ideology of meritocracy persuades people to believe that ‘you may not be held responsible for where you start out in life, but you are responsible for where you end up. If you are truly meritorious, you will overcome any obstacles and succeed’ (McNamee and Miller, 2004: 3). Therefore, it does not matter whether the ideology is objectively true or not, what matters is that people accept it and act on it. Inequality is deemed to be fair, according to the ideology of meritocracy, because everyone presumably has adequate opportunities to succeed and success is determined by individual merit.

Thus, the belief that status in society is based on a particular notion of merit (McCoy and Major, 2007), or say the notion of meritocracy, is the central feature of the American Dream. Not only in the United States, according to Scully (1997: 284): ‘[M]eritocracy is accepted as a fair and legitimate principle and deeply woven into the culture and political rhetoric in many advanced capitalist societies and organisations’.

Meritocracy and its philosophical bases

In The Rise of the Meritocracy , Michael Young describes meritocracy as a work of Enlightenment, in which a mental zone of relative freedom for the talented and the literate is created (Goldthorpe and Jackson, 2008), and this system builds a strict relationship between individual merit and the social positions that individual obtained. Meritocracy advocates the importance of a meritorious hierarchy in the social and political landscape. In this system, it is believed that individual merit is calculable, measurable and assessable. Although in Young’s story it was originally conceived as a disease, it later was more widely perceived as desirable and conceptually reasonable. Society is like a living system, and all people within it need to find their rightful place within its strata. Importantly, the correct place also defines the functional contribution that a person can offer to society as a whole, that is, place and function should be identical.

In the late 1970s, organizational theories were predominantly under the influence of the application and extension of ‘functionalist sociology’, guided by assumptions that the world was composed of objective and


pre-existing entities like structures, categories and dynamics (O’Doherty, 2007: 25). The underlying premise of the functionalist paradigm is that if social institutions exist they must have some useful function. The functionalist sociologists claim that societies naturally allocate resources according to contribution, and give the feature of Western society, whose characteristics predispose it to an economic orientation (Deutsch, 1975). Equity has been viewed as the innately dominant scheme of distribu-tion, that is, that rewards basically match functional contributions.

Talcott Parsons, who developed ‘functionalist sociology’, believed that the ranking of people in hierarchies of prestige and the distribution of material rewards reflected the contributions individuals make to the real-ization of common social values. Davis and Moore (1945) viewed a class structure as being inevitable for society, and the unequal rewards reflect the functional importance of social activities. They argued that economic inequalities serve to make sure that the most qualified people fill the most important positions; pay is related to talent and to the investment that individuals devote to gaining skills and qualifications. Durkheim (1958) claimed that by calculating the value an individual generates, society does the allocation and distribution of property. Similarly, Spencer (1976: 186) articulated the idea of meritocracy: ‘Justice ... means preservation of the normal connection between acts and results. ... The superior shall have the good of his superiority; and the inferior the evil of his inferiority’. Saunders (1990) has more recently endorsed the view of functionalism that some kind of inequality is inevitable and useful for society. He argues (1994) that the existence of a long-range downward mobility from the service class and upward mobility from the working class indicates that people get the jobs they deserve. He claims that the inequality is caused by the distribution of talents to individuals, such as IQ, rather than by class privilege. Using his words: ‘[It is] a society which is probably much more meritocratic than is generally believed by sociologists[;] unequal talents do get reflected in unequal rewards’ (1994: 109).

One of the key characteristics of modern societies is the move from ascription to achievement as a primary basis of social selection (Parsons and Bales, 1956; Blau and Duncan, 1967; Kerr et al., 1960). Ascriptive characteristics are deemed not to be relevant to the judgment of an indi-vidual’s merit and are inevitably replaced by achievement criteria, which are designed to make the allocation of occupational positions more effi-cient. Sampson (1981) argues that during the Enlightenment Western culture established the ‘calculable standards of individual achievement’ as the basis of rewards. Also, this argument reflects the preference for


equity over equality, which is embedded in the particular historical and cultural patterns that are presently dominant in Western civilization (Lerner, 1977). The sociologists concur (especially the functionalists), that rewarding achievement is the dominant ideology of capitalism (Rubinstein, 1988). By stressing the achievement norms, Gouldner (1970: 63) portrays the transition from aristocratic to bourgeois culture: ‘The middle class standard of utility implied that reward should be proportioned to men’s personal work and contribution. The usefulness of men ... should control the station to which they might rise’.

One of the prominent features of modern capitalism is the increasing dominance of bureaucratic organization (Rubinstein, 1988). Meritocracy and bureaucracy are tightly linked (Heckscher and Donnellon, 1994), and the growing dominance of bureaucracy confirms that modern society is a meritocracy. One of the defining features of a bureaucracy is that rewards are distributed according to the established rules, in which merit always plays a central role. The discourse of meritocracy conveys the worldview in which there are low-paid peons, highly paid stars, and a large number of contenders in the middle competing for a limited number of rewarding positions. Individuals are urged to work hard to gain rewards, and the sum of their efforts will generate productivity.

However, in post-industrial society 3 the criteria of merit are increas-ingly based on educational degrees and professional certificates rather than on other qualifications. Status and income are stratified on the basis of technical skills and higher education, and few good opportu-nities are handed to those without such qualifications (Bell, 1972). As Bell argues, a majority of positions could have been acquired without a college degree or professional certification a hundred years ago, but nowadays ‘in medicine, law, accounting, and a dozen other profes-sions, one needs a college degree and accreditation, through examina-tion, by legally sanctioned committees of the profession before one can practice one’s art’ (Bell, 1972: 30). For many years before World War II, successful businesses were formed mostly by persons with ambition and ruthlessness rather than with education and skills. In modern society, education identifies and selects talented, intelligent, and motivated individuals and provides educational training according to individual merit, and ‘the amounts and kinds of education attained are taken as measures of merit and are used as criteria of eligibility for occupations and the material awards attached to them’ (McNamee and Miller, 2004: 95). Within modern corporations, managerial positions have become professionalized, and they are increasingly chosen from outside rather than promoted from below, with a college degree as the passport. The


presumption is that the more educated have either acquired produc-tive skills through their academic experiences or are at least relatively endowed with them (Kingston, 2006). Educational credentials thus are often presumed to identify merit.

Meritocracy and HRM

Legge (2005) argues that, in the United States, the early promoting of HRM, especially its ‘soft’ model, embodied more values than its widespread practical applications or its unequivocal success. The reason why there is so much hype and enthusiasm for HRM in the United States, as Guest’s (1990) analysis suggests, is that its values embody the consistent themes in the American Dream: ‘HRM is yet another manifestation of the American Dream and its popularity and attractiveness must be understood in this context’ (Guest, 1990: 139). There is a primary emphasis on the imple-mentation of employment legislation around issues of equal opportunity (Strauss, 1992). HRM shows a belief in the potential for human growth and also reveals the desire to improve the opportunities for people at work. Since both of these themes reflect an element of the American Dream, HRM can be seen as a contemporary manifestation of that dream.

Recruitment and selection are traditionally included in the first substantive section of HRM textbooks and given prominence as the first steps in building an organization or employing an individual. Typically, recruitment and selection are viewed from two different perspectives: the scientific selection and the social process selection, and the scientific perspective is strongly dominant in the HRM litera-ture (Iles and Salaman, 1995). The scientific perspective is based on the idea that recruitment and assessment deal with people who have relatively stable sets of capacities and skills, and it is possible to objec-tively investigate and measure these, thus making the whole process predictable. By the use and efficacy of techniques such as interviewing, psychometric texting, or biodata analysis, the merits of employees are tested and classified. Such treatment encourages managers to aim towards an ideal rational–legal (Jewson and Mason, 1986) recruitment and selection process. HRM in the general and contemporary Western world at large is characterized both by assumptions about knowledge-solving problems and producing certainty. The work world and human activities can be made the targets of rational ranking and classification (Townley, 1994).

It has become standard practice for HR in modern organizations, espe-cially the large-scale ones, to establish a performance appraisal/reward system in order to attract, retain and motivate employees. Various


evaluation systems and rewards systems are based on meritocracy, such as performance reviews, results appraisals and pay for performance/pay for skill. Organizations frequently implement formal and informal performance evaluations to measure and reward their employees’ merit and contributions to the company, and consequently to advance major employees’ career outcomes, such as training opportunities, promotions, salary increases and so on (Cleveland et al., 1989). In a compensation study (Burke, 2005) by the Society for Human Resource Management, 69 per cent of HR professionals indicated that their organization offered incentive compensation or various bonuses based on performance. Similarly, according to the data from Hewitt Associates, more and more companies have been reported to rely on performance-related rewards to motivate employees (Miller, 2006).

The HRM system provides a strong sense of equity, of a trustworthy exchange relationship, since assessment and promotion depend on one’s capacity and one’s efforts to improve oneself. It is assumed that the elaborate HRM systems ensure people get what they deserve, and one’s position in the hierarchy is a reflection of one’s competence, in other words, one can get as far as ability and effort allow. People’s self-esteem and ambitions are closely connected to the HRM system and the organi-zational hierarchy. Employees are more inclined to accept hierarchy and comply with it when it is made credible by the HRM system, and when the meritocratic ideology simultaneously draws upon and reinforces it (Alvesson and Karreman, 2001). Through symbolizing meritocracy and encouraging an organizational culture in which the value of meritocracy is highly emphasized, the HRM system and practices could be the vital factor used to achieve a highly committed and compliant work force. But questions have been raised, such as whether the chosen measures of merit are themselves measurable and appropriate, and whether the compromised equality of opportunities are biased and how high and how steeply the reward curve should rise.

Reason and instrumental rationality

What is rationality?

Rationality has been one of the master concepts, subjects and objectives of philosophy and social science, especially economics and sociology, as well as political science and psychology (Zafirovski, 2003). It is a basic assumption of the Western intellectual and moral tradition that rationality is a central value (Kekes, 1989). First of all, it is necessary to define what rationality is. The Latin root of rationality is rationari, which


means ‘to think’ and ‘to calculate’ (Mcleish, 1993: 617); its meaning has very often been circumscribed in its cognitive- instrumental dimension, its connotations usually associated with the term ‘reason’.

The common sense (probably the oldest) definition is that rationality entails reasonable, intelligent, logical or knowledgeable thinking and acting (Simon, 1982: 405). According to Bartley (1987: 206), ‘Rationality is action and opinion in accordance with reason’. Robinson (1999) defines rationality as the means by which one might locate the reason behind the cause, and rationality is ‘not some add-on or ex post facto supplement to what is fundamentally an empirical enterprise. Rather, it is the overarching framework within which observations become inte-grated, meaningful, and systematic’ (Robinson, 1999: 85). Rohmann (1999) views rationality as the power of the intellect to comprehend, reflect, abstract, analyse and draw conclusions. According to the defini-tion of rationality in the Routledge encyclopaedia of philosophy, at the most basic level, rationality concerns the standards for truth, consist-ency and deductive/inductive inference (Simon, 1998).

The connotations of ‘rationality’ are of objectivity, abstraction and detachment, and it acts as a symbol of all that Western philosophy tradi-tion holds precious; ‘philosophy has appropriated to itself the aspirations and intellectual virtues associated with the rational’ (Lloyd, 1998: 165). Rationality is not simply a tool for acquiring knowledge or improving knowledge and human society, but also a crucial component of the self-image of human beings. ‘The word philosophy means the love of wisdom, but what philosophers really love is reasoning’ (Nozick, 1993: xi). It is the particular principal – ‘reason’ – which made philosophy unique, and it served almost as a mantra or a token of good faith and right-mindedness (Himmelfarb, 2005) in the most varied contexts. According to Nozick (1993), rationality is not merely the philosophers’ special love; it has been their special tool for discovering truth, a poten-tially unlimited one. By formulating theories and marshalling reason, philosophers support themselves and construct arguments against others. Even those sceptics (e.g., David Hume) who proclaim the limita-tions of reason all adduce reason for their views. Thus, ‘Proclamations or aphorisms are not considered philosophy unless they enshrine and delineate reasoning’ (Nozick, 1993: xi).

The notion of reason, which explains how people come to have beliefs about things and how these come to guide, or fail to guide, peoples’ actions, emerged under the influence of philosophical consideration, and it developed in full-blown form in Socrates, Plato and Aristotle (Frede, 1996). Since then, there has been a wavering in terminology such


as logos, logikon, nous, mens, ratio and so on. Habermas stresses that the idea of metaphysical rationality characterized ancient philosophical thought: ‘the logos of human speech and human thought is only a reflec-tion of, and subordinated to, the logos inherent in nature: this is true for Plato, for Aristotle, for all of them ... ’ (See Ni ż nik, 1998: 10). The Greeks believed that rationality fixed human distinctiveness and defined them: ‘Man is a rational animal’. 4 The capacity to be rational distinguishes humanity from other species. Since the Middle Ages, human unique-ness has been continually contracted, as Copernicus, Darwin and Freud asserted that human beings do not occupy a special place in the universe and are not always guided by rationality; yet, it is still the capability for rationality that continues to give humanity special status (Nozick, 1993). It is believed by Westerners that rationality provides humans with the power to investigate and discover what is to uncover; it enables humans to control and direct their behaviour through reasoning and the utilization of principles.

Besides its early and common definition that, as the rule of reason and logic, rationality gains extended definitions in the economic and sociological area (Zafirovski, 2003): firstly, rationality as purposeful-ness, instrumentality, and teleological means–end relations. For Weber (1968), rational action is purposeful or goal-oriented, involving the choices of means for attaining an end, and instrumental rationality refers to the use of rationality in order to achieve the practical purposes of the actor. Secondly, rationality as the pursuit of utility, pleasure and self-interest. According to early utilitarian classical economists, rational human action is guided by the ‘principle of utility’ (Bentham, 1970: 1), and by private/social rationality expressing an individual/community’s interests, well-being or happiness; Thirdly, rationality as economizing, efficiency and consistency.

Rationality and its epistemology traditions in Western philosophy

The history of philosophy since ancient Greece can be seen as the process of searching for the answers to the question: ‘What is knowl-edge?’ (Nonaka and Takeuchi, 1995). Despite the fundamental differ-ence between rationalism and empiricism, Western philosophers have generally agreed that knowledge is ‘justified true belief’, a concept first introduced by Plato (Nonaka and Takeuchi, 1995). Although the pursuit of knowledge in Western philosophy is heavily laden with scepticism, numerous philosophers have devoted themselves to discovering funda-mental knowledge without proof or evidence – the ultimate truth of knowledge without any doubt.


There are two epistemology traditions in Western philosophy – ration-alism and empiricism. Rationalism is ‘any view appealing to reason as a source of knowledge or justification’ (Lacey, 1996: 286), and it also refers to a theory ‘in which the criterion of the truth is not sensory but intellectual and deductive’ (Bourke, 1962: 263). According to this view, there exists a priori knowledge, independent of experience, as part of the rational nature of human beings. Absolute truth is deduced from rational reasoning grounded in axioms, for example, mathematics. On the contrary, empiricism asserts that knowledge arises from sense experi-ence. According to this view, everything in the world has an intrinsically objective existence. Empiricism emphasizes the role of experience and evidence, especially sensory perception, and all hypotheses and theo-ries must be tested rather than only relying on a priori intuition and reasoning. Experimental science is the classic example of this view.

These two traditions originated from Greek philosophical thought (Morrison, 1995). Socrates insisted that human beings can understand the outward world only through understanding themselves in the first place, and the only way to accomplish that is through rational thought. In The Republic , Plato argued that it is impossible for knowledge to exist in the realms of art and sense perception, but knowledge may be possible in the purely intellectual disciplines of mathematics and dialectic (Brown, 1988). For Plato, the physical world is a mere shadow of the perfect world of ‘ideas’, and the eternal, unchanging and perfect ‘ideas’ cannot be known by human beings through sensory perception, but only through pure reason.

Like Plato, Aristotle insisted that such knowledge, which he called ‘scientific knowledge’, must be eternal truth; but, unlike Plato, Aristotle was deeply interested in knowledge of the sensible world (Brown, 1988). He contended that the ‘idea’ cannot be isolated from a physical object, and it also cannot exist independent from sensory perception. However, he asserted that experiences have to be integrated into a rational schema, otherwise they are no higher than a mere buzz (Robinson, 1999). Aristotle argued that the human intellect at birth is a pure potentiality, and it is actualized through experience from which one can abstract universal knowledge through a syllogistic method of reasoning.

These rational ancient Greek thoughts deeply influenced the develop-ment of modern Western thinking, including its depictions of intelli-gence and consciousness (Anthony, 2006). The Platonic and Aristotelian ideas were inherited by the major philosophers of the seventeenth and eighteenth centuries. Unlike the pre-Enlightenment Age, in which knowledge arose from and was validated by dogma derived from divine


law and was characterized by unquestioned belief. Modern philosophy is characterized by critical questioning, derived from the rationalism of the Enlightenment. The Age of Enlightenment is typically known as ‘the Age of Reason’ or ‘the Age of Rationalism’. Reason, according to Kant, is when people cease depending on external authorities to make up their minds but think for themselves (Cooper and Burrell, 1988). The philos-ophers of the seventeenth- and eighteenth-century Enlightenment proposed that valid knowledge rested on deductive reasoning or posi-tivism (Legge, 2005: 317), and reason was chosen as the highest of human attributes. They argued that knowledge can only be derived from constructing general laws or directly observable phenomena. Observation and experimentation should, consequently, show whether or not the phenomena fit the theory. The truth of a proposition is approved by scientifically advancing results from testing, experiments and falsifying of the propositions. According to Legge (2005), deductive reasoning is seen as the vehicle for accumulating ever-greater knowl-edge of and control over the material world, and consequently gains increased efficiency and achieves continuous material progress.

The expediencies of reason were appropriated by positivists such as Saint-Simon (1760–1825) and Auguste Comte (1798–1857), who applied the ideas to the increasingly serious problems of government, administration and planning that had been aroused by the industriali-zation of society. Comte believed that all speculative philosophy would be replaced by the methods of natural science. As a scientific doctrine, on the one hand, positivism emphasized the reliability of observation as a basis for the theory of knowledge; on the other hand, it stressed the search for factual regularities which would lead to the formation of general laws. The influence of positivism on nineteenth-century European society was dramatic (Morrison, 1995). Through the techno-logical transformation of the entire world, these positivists transferred passive reason, mere thought, into active reason, the accomplished deed (Berman, 1983). Modernization appeared early on as the organiza-tion of knowledge expressed in terms of the needs of large-scale tech-nological systems.

Modern society has become pervaded by a narrow rationality ‘consisting of matching the most efficient means to “given” ends, which services an increasingly self-legitimating and totalitarian control over both society and nature’ (Benton and Craib, 2001: 46). This is ‘instru-mental rationality’ that, ‘in a world of uncertainty, constraints and opportunities, facilitates the choice of actions that will yield preferred outcomes, given competing alternatives’. The preferred outcome ‘is


usually that of “performativity”, or the optimization of input/output relationships’ (Legge, 2005: 318). Cooper and Burrell (1988) claimed that this kind of rationality has been expressed in prevailing institu-tions of modernism, industrialism and capitalism. Bell (1972) argued that modern (or post-industrial) society differs from previous societies in relying on knowledge that is essentially theoretical, and it is charac-terized by the technocratic and systemic. Theoretical knowledge offers a ‘methodological promise’ for management of the complex, large-scale systems which distinguish the modern world. The new intellec-tual technologies such as ‘information theory, cybernetics, decision theory, game theory, utility theory’ and so forth are the distinctive functions which are the definition of rational action and the identi-fication of the means for achieving it (Cooper and Burrell, 1988: 95). According to Bell (1972), social progress is motivated by the human quest for a ‘common tongue and unity of knowledge, for a set of “first principles” which, in the epistemology of leaning, would underlie the modes of experience and categories of reason and so shape a set of invariant truths’ (1974: 265).

Rationality and HRM

An undeclared assumption of many HRM theories was that HRM was scientific (Brewster, 1999). The universality of those theories was the same as the laws of natural science: ‘[R]elationships between the struc-tural characteristics of work organisations and variables or organisation context will be stable across societies’ (Hickson, 1986: 63). Moreover, the history of HRM reflects the rising interest in strict control of skilled and motivated employees, in a professional and scientific way of managing human resources, and in the contribution of HRM, as the organizational machine, to the organization’s success – all of these show the domi-nant rationality in HRM. HRM has progressed as a field over the last two decades by applying an analytical model that is designed and evaluated on the basis of rigorous scientific research. Most commentators on HRM have researched and written on it from the unquestionable perspective of positivism. Legge (2005) argues that the logic of positivism reigns in much of the research on HRM, to a greater or lesser extent, even when it is case-study based and methodologically fails to adhere to the strict cannon of positivism. According to Legge, Guest’s model (1987) can be taken as an example of positivism in action, which tries to develop a micro-theory about specific aspects of work behaviour that can be utilized in developing the outline of a theory of HRM. That the enlight-ened rational spirit of research and factual knowledge, argued Legge


(2005), is the instrument to achieving progress, is evident in Guest’s aim to ‘develop a set of testable propositions and finally to arrive at a set of prescriptive policies (Guest, 1987)’.

HR programs are developed and implemented in a standardized and universal fashion (Dipboye, 2005). As the mechanism of organization, the aim of HRM is to make organization more orderly and integrated. HRM, at the macro level, is usually depicted as a linear and rational process that starts with the identification of certain goals, and these then guide and control human resource practices. HR programs are designed to achieve these goals and are consequently evaluated on the basis of their accomplishment. At the micro level, HRM is often described as beginning with a careful and specific analysis of the work and organiza-tion (Dipboye, 2005), and an HR intervention is designed on the basis of the combination of knowledge, skills, abilities and other characteristics that are deemed to be the criteria that have been identified as important to an organization.

The conventional and most popular frameworks for integrating busi-ness strategy and HRM policy, according to Legge (2005), assume a clas-sical, rationalistic, top-down model of strategy making which can be seen as the characteristics of Anglo-Saxon culture and the values of the 1950s and early 1960s (Whittington, 1993). Here, strategies are presented as the consequence of the rationalistic, conscious, decision-making process, fully formulated, explicit and articulated, a set of orders for others in the organization to carry out. This integration model is normative rather than empirically grounded, and it suggests those HRM policies – especially those related to recruitment and selection, training and development, appraisal and rewards – ‘should “fit” either the stage of development arrived at or the strategic orientation/management style adopted in pursuing survival or growth’ (Legge, 2005: 140). Therefore, the external integration between business strategy and HRM firmly rests on rationalistic models of business strategy formation. Similarly, the notion of internal integration, which suggests that HRM policies should be mutually consistent and supportive of business strategy, asserts ‘values of coherence and logical ordering, the cornerstones of rationality’ (Legge, 2005: 339).

The concept of HRM strategy can be associated with different types of rationality and logic (Gestel and Nyberg, 2007). Paauwe (2004) proposes that there are instrumental rationality (which refers to the means to utili-tarian ends) and values-driven rationality (which refers to ethical, reli-gious and political or other ideas) that are particularly relevant in shaping HRM policies and practices. However, from an economic and manage-rial perspective, he argues, very often only the instrumental rationality


perspective is taken into account (Paauwe, 2004); and instrumental rationality can be seen as the underpinning idea of mainstream manage-ment theories and practices (Lehman, 2007). Instrumental rationality is applied when people calculate the most economical application of means to a given end benefit legitimation of action – ‘maximize outputs and minimize costs within a broad cost’ (Taylor, 1992: 5). Through instrumental rationality – imposing hierarchy, reducing environmental complexity, resolving ambiguity, channelling work into predefined paths and seeking out clear transmission of information – organizations make particular policies and strategies that are designed to maximize outputs and minimize costs. The conventional management application of instrumental rationality implies a neutral orientation which depends on distinguishing and detaching the application of rational process from individual morality and ideological commitment (Lehman, 2007). ‘Machines, professionals, and administrative hierarchies represent the physical, intellectual, and organisational manifestation of instrumental rationality’ (Lehman, 2007: 165).

HRM practice is theorized as having diverged into two lines: Hard (the Michigan School) and Soft (the ‘Harvard’ Model) (see Chapter 2.). But the distinction between these two has weakened in veracity as contemporary HR practices typically deploy elements of both the hard and soft models. Hard-models prioritize rational profit maximizing, reflecting a ‘utilitarian instrumentalism’ (Legge, 2005: 105); and, as Storey (1987: 6) puts it, in essence emphasizes the ‘quantitative, calculative, and business strategic aspects of managing the headcount resource in as “rational” a way as for any other economic factor’. In small contrast, Soft HRM places a higher value on the human resource as a valued asset, stressing its proactive capacity, motivation and commitment. Soft HRM purports to treat the indi-vidual as a whole and emphasizes well-being and family needs; however, the underlying instrumental exchange orientation casts these initiatives simply as more effective methods of motivation and control (Legge, 2005). The ‘hard’ and ‘soft’ versions of HRM, according to Legge (2005: 126), can be seen as rhetoric used to disguise the potential mismatches between a ‘hard’ external integration and the values of the ‘soft’ mutuality model. In the interests of business strategy with instrumental rationality, HR actions naturally appear to treat individuals as a variable cost rather than as a resource. Using Legge’s (2005) example, relating rewards closely to individual performance, transferring employees to other positions in the light of business requirements, is in fact providing them the opportunity to develop their competencies; however, when some employees prove unequal to the challenge, they have to be sacrificed in the interest of


the organization as a whole, and there are euphemistic terms provided – ‘outplacing’, ‘rightsizing’, ‘manpower transfer’ or ‘workforce reprofiling’. By doing so, redundancy is represented as a positive act. Thus, ‘Via the “Soft” model it persuade[s] employees to interpret in an appropriate light (as “empowerment” or “responsible autonomy”) the organisational changes induced by adherence to the “Hard” model (team surveillance, temporal flexibility, performance-related pay)’ (Legge, 2005: 129). A confirmation is provided by Truss and colleagues (1997): empirical work that, even if the rhetoric of HRM is ‘soft’, the reality is almost always ‘hard’. HRM systems symbolize the rationality which makes employees’ compliance the only reasonable response (Alvesson and Karreman, 2001). No matter how the rhetoric changes, its underlying instrumental ration-ality, which was raised by Max Weber almost ninety years ago, is still dominant in the modern world (Weiss, 1986).

Short-termism

Short-term orientation and Western philosophy

Hofstede (1991, 2001a) proposes that the short-term thinking is derived from the Western notion of the need for certainty. Western countries foster a belief in an absolute truth and certainty, but the long term is very uncertain, so the uncertainty only can be avoided in the short term. Hofstede’s findings confirm lower Long Term Orientation (LTO) scores in non-Chinese countries, and he claims that short-term-orien-tation cultures focus on truth and long-term-orientation cultures focus on virtue, and the latter cultivate virtues directed at the future, such as education, frugality and persistence (Hofstede, 2001a: 363).

Hofstede’s Uncertainty Avoidance Index (UAI) dimension has been defined as ‘the extent to which the members of a culture feel threatened by an uncertain or unknown situation’, and it stands for ‘the need for structure, social conformity, and absolute truth’ (Hofstede, 2001b: 15). Strong UAI cultures eschew ambiguous situations, and people in such cultures look for structured organizations and institutions, and they are supposed to be active, precise and to repel the unpredictable, while people in a weak UAI society are likely to be passive, imprecise and more relaxed. Paradoxically, people in an uncertainty-avoidance culture often prefer engaging in risky behaviour to reduce ambiguities, and they may ‘start a fight with a potential opponent rather than sitting back and waiting’ (Hofstede, 1991: 116) . 5

Although different societies hold different attitudes to uncertainty, they all basically have developed ways, such as technology, rules/laws


and religions, in trying to alleviate extreme uncertainty. By establishing a relationship between UAI and religious belief, Hofstede (2001b: 19–20) distinguishes the Western religions from the Eastern. According to him, what distinguishes the Western religions from the Eastern is ‘their concern with Truth with a capital T’. The Western religions, including Christianity, Judaism and Islam, are all based on divine revelation, and they share the same assumption that there is an absolute truth. Some very strong UAI cultures with religions such as Orthodox and Roman Catholic Christianity believe that they possess the only truth, which excludes other truths, and only they have it. Some relatively weak UAI cultures with religions such as Protestantism still believe in only one Truth, but they accept that they are not the only group that can possess it. On the contrary, Eastern religious are far less concerned about Truth, and people readily absorb elements of different religions. For example, Taoism stresses the dynamic and forever changing ‘Tao’ rather than a stable and fixed truth. Buddhism even points out the limits of truth: ‘Every being, human or non-human, is in relativity. Therefore, it is foolish to hold a certain idea or concept or ideology as the only absolute’ (Kyokai, 1980: 592).

‘Uncertainty-avoiding cultures foster a belief in an absolute Truth, whereas uncertainty-accepting cultures take a relativistic stance’ (Hofstede, 2001a: 363). As for Western religions, which hold that there is an absolute and exclusive truth, the quest for truth is also an essential motivator for Western philosophers (Hofstede, 1991). The ancient Western philosophers believed that the basis of reality is a unity (Dorter, 1977), seeking rational explanations for existence and events and pursuing absolute truth. ‘[T]he emphatic goals of Western philosophy have been truth, rational necessity, and the good’ (Brightman, 1952: 8). The general tendency of Western philosophers has been to understand things as being either real or unreal and to view propositions as either true or false (Schroeder, 1985). It is assumed that what is true or real is opposite and exclusive of what is untrue or unreal, and there is no middle ground.

The history of Western philosophy begins with Thales, who claimed that the basis of the nature and cosmos is water, and from him onward Western philosophy has been remarkably constant in the conviction that there is an absolute truth which can explain reality objectively and rationally. The multitude of conflicting philosophies explaining reality, each initially conceived as ‘absolute truth’, was to reverse the trend towards absolute truth with the emergence of new schools of thought (Harris, 2003). In their quest for the truth, Western philosophers have stressed ‘both inference and observation; analysis of the objects of


experience supplemented by a synoptic view of their properties as a whole; and since the rise of modern era, the experimental attitude of testing and verifying’ (Brightman, 1952: 8).

The ancient Greek philosopher, Heraclitus, believed that all nature was in constant change and that reliable truth was only what was perceived by the senses, but ‘it was his counterpart Parmenides whose being ontology has since prevailed and has dominated Western thought for over two millennia’ (Chia, forthcoming). Siding with Parmenides, Plato believed truth existed in the realm of being , which was always true and could only be perceived by reason and logic (Farzaneh, 2009). Although questioning Plato’s innate knowledge of certain self-evident truth, Aristotle accepted the Platonic idea that knowledge must have a certain stability and immunity from change and fluctuation. For him, genuine scientific knowledge is of that which ‘cannot be otherwise’; it concerns ‘eternal truth’, not particulars (cited from Cottingham, 1996: 19). Aristotle stressed the crucial role of sense perception in providing the raw material of knowledge, and that knowledge develops from sense perception to grasp universal truth. ‘This privileging of being over becoming and substance over process have since provided the under-lying metaphysical framework for Plato’s systems of Ideals, Aristotle’s system of knowledge based upon observation and the modern, Western worldview’ (Chia, forthcoming).

According to Brightman (1952: 9), human beings, whether special-ists or ordinary ones, are distressed by the uncertainty of life, so the certainty, the undeniable and the absolute truth is ‘a source of intense satisfaction to any mind’. By using the tools of reason, of logical anal-ysis and conceptual clarification, Western philosophy tries to replace what is uncertain and doubtful with something more stable and coherent (Cottingham, 1996: 2). On the contrary, Eastern thinking stresses the everlasting and endlessly changing nature of experi-ence rather than a rationalistic description of reality or theoretical truth (Brightman, 1952; Chia, 2003; Jullien, 2004a). As Whitehead pointed out, Indian and Chinese thought makes process the ultimate while Western Asiatic or European thought make fact the ultimate (Whitehead, 1929: 9).

Representation of Western short-termism in art, medicine and business

The philosophical aspirations of Western thought since the time of Plato and Aristotle have moulded the epistemological roots and metaphysical orientation of Western people and have cultivated their preference for


direct, certain, visible and short-term engagement in dealing with affairs of the world, including such as art, medicine, politics, business and even in personal relationships.

According to Bryson (1983: 93–95), in contrast to Oriental painting, which stresses the unceasing process (Jullien, 1995: 138), Western painting emphasize the final spectacular display. ‘The temporality of Western representational painting is rarely the deictic time of the painting as process; that time is usurped and cancelled by the aoristic time of the event’ (Bryson, 1983: 92). Bryson argues that Western tradi-tional oil -painting can be regarded as an erasive medium: firstly, the surface of the picture plane should be erased; secondly, the previous pigment must be erased and cover its own tracks: ‘stroke conceals canvas, as stroke conceals stroke’. Thus, the individual history of a Western oil-painting almost cannot be retrieved, as the viewer cannot trace back to other surfaces which lie concealed beneath the final display. ‘[T]he image that suppresses deixis has no interest in its own genesis or past, except to bury it in a palimpsest of which only the final version shows through, above indeterminable debris of revision’ (Bryson, 1983: 92). The entire motivation of Western painters is focused on the final outcome, and their ultimate task is to capture the flux of the phenomenon and present it in an eternal moment of disclosed presence. The Western painters’ attitudes and motivations are driven by a ‘Platonic atemporal essence’ (Chia, forthcoming).

On the contrary, Oriental painting, especially Chinese ink painting is ‘constantly displayed in the wake of trace; in this tradition the body of labour is on constant display’ (Bryson, 1983: 92). The Chinese painting is a kind of performing art (ibid.) in which the process of performing is incorporated into the works, and it aims not only to convey the objects but also express the spirit, mood, knowledge and even the temperament of the subject. Thus, Western painting is a spectacle for an external observer, hiding or eliminating the process, and it ‘reveals an important metaphysical attitude and visual apprehension that focuses entirely on that specific moment of revelation. This is in stark contrast to an Oriental attitude that views the continuity of events as a seamless unfolding drama in time’ (Chia, forthcoming).

In a similar manner, Western medicine is an evidence-based medicine in which every statement is a result of a series of fact probing, and its methodology is fundamentally analytical and hypothetically deductive (Tsuei, 1978: 551). For Western medicine, the hypothesis is usually derived from general observation and a careful research plan, and conclusions come from the enormous data collection, whereas traditional Eastern


medicine prefers an inductive method: ‘Oriental medical literature in general is a record of practical experience accumulated from millions of practitioners throughout thousands of years’ (Tsuei, 1978: 552). Eastern medicine prefers the process of empirical observation over explana-tory and systematic theories, while Western medicine ‘rejects empirical observations that do not fit with its current scientific theories. It reduces phenomenon to explain cause and effect’ (Kim, 2004: 136).

The Western medicine approach sharply divides disease from health, and the main stress is on the individual body. Moreover, the human body is divided into discrete aspects in great detail: from microscopic to macroscopic views of anatomy, physiology, histology, embryology, cytology, ultra-structure, molecular biology and the practical clinical aspects of internal medicine, surgery, obstetrics, pediatrics and gyne-cology and so on (Tsuei, 1978: 552). With this large field in such minute detail, patients are often treated as objects that are composed of frag-mented parts according to the specific symptoms and problems of their bodies. Under the Western diagnostic and therapeutic approach, a phys-ical disorder is often recognized by symptoms such as headache and stomach pains and signs that can be examined directly by instruments and tests, and then are treated with surgery or drugs in the basis of the specific results of the tests.

The Eastern approach to medicine, especially traditional Chinese medicine, in contrast, is based on a holistic and changing view, empir-ical observation and non-linear logic (Kim, 2004: 136). Since the physio-logical process is in constant flux and balance, Chinese medicine regards health and disease as two sides of a coin: the human being is seen as a small universe that should respond and react to the outside environ-ment in a balanced way (Tsuei, 1978: 553). When the body and the outside environment are in harmony, the person is in good health, and once the balance is disturbed, illness sets in. Therefore, an individual is ‘considered merely a microcosm existing in a macrocosm, there are changes every minute, with constant readjustments’ (Tsuei, 1978: 552).

Unlike Eastern medicine, which lays stress on adaptation to the envi-ronment, the Western way prefers to change the environment to meet the human being’s needs. For instance, ‘antibiotics are developed to coun-teract bacteria harmful to the body. Sterilization techniques are practiced to shelter from the bacteria. In therapy, the same principles apply’ (Tsuei, 1978: 552). While Western medicine works quite well in the treatment of acute disease, this is not the case for many chronic diseases such as chronic pain (Kim, 2004; Tsuei, 1978; Liu, 2009), and Western treatments often lead to many side effects which cause increasing morbidity and


mortality (Kim, 2004: 135). Eastern medicine may work more slowly and appear to be less effective, but if successful, the result will be an inside–outside balanced, comfortable body in the long term.

From the comparison of Western and Eastern art and medicine, it is not difficult to see the Western emphasis on certainty of the final outcome and its short-term effects while also noting the Eastern emphasis on a continuous changing process of reality and long-term effects. The penchant of short-termism is also embedded in the practices of Western business.

The term ‘short-termism’ in business has been used to describe deci-sions in which firms pursue short-term gains (for example, seeking to maximize quarterly profits) at the expense of long-term strategies (for example, investing in research and development) (Laverty, 2004: 949). Many authors (such as Hayes and Abernathy, 1980; Jacobs, 1991; Laverty, 1996) have criticized business, particularly in the United States and the United Kingdom, which are dominated by short sighted management that is often obsessed with profit maximization and short-term gains instead of securing long-term returns. Also, Western managers have been criticized for their hastiness in adopting and abandoning new ideas (Laverty, 1996; Mamman and Saffu, 1998).

With regard to the financial market and the current global financial crisis, a fundamental argument is that some Western firms, especially U.S. ones, have failed to make the necessary investment that will have long-term payoffs rather than immediate profits (Laverty, 1996: 826). Economic short-termism has been blamed on biases against long-term investment that are inherent in certain formal planning tools and regimes for organizational control (Hayes and Abernathy, 1980), and on pressures from the stock market to pursue annual or quarterly profit-ability (Drucker, 1986). According to Jacobs (1991), as shares of stock are increasingly treated as a commodity, shareholders have no interest or sense to wait for a long-term result, and they can only respond to the changes in current performance.

Moreover, the accounting-based performance measurement has had the effect of bringing short-term performance to managers’ attention, because the ‘annual reporting focuses on providing narrow financial information, largely ignoring extra-financial indicators such as HRM, the environment, corporate ethics and stakeholder relations’ (Atherton et al., 2007), and accounting information measures performance ‘over too brief a period, before the long-term adverse consequences from making a short-term decision becomes apparent’ (Johnson and Kaplan, 1987: 203), and Kaplan (1984: 411) claims that ‘the ability of


the firm and division to increase reported profits while sacrificing the long-term economic health of the firm is the fundamental weakness in the accounting model’. Thus the accounting information measures the short term, and managers take actions to maximize profits shown by accounting information and will therefore exhibit short-termism (Marginson and Mcaulay, 2008: 276).

On the organizational dimension, Laverty (1996: 844) proposes that organizational inertia group processes and resistance to change may well produce results that are similar to the results of undervaluing the future. Bougon and Komocar (1990: 136) described how inertia is an inherent characteristic of firms. Nelson and Winter (1982) argued that the existence of organizational routines increases inertia through the persistence of the organization’s strategies and its way of responding to problems. The phenomenon of resisting change rather than adapting to the changing situation has the effect of economic short-termism, and so fails to take advantage of opportunities for the future. Although the increased pace of the world, with the significant technological devel-opments over the last several decades, produces a huge amount of information, it has produced greater uncertainty. The high uncertain-ty-avoidance orientation combined with the inertia of Western culture has exacerbated the issue of short-termism: organizations are continu-ously pursuing immediate returns and benefits but fail to adapt to the changing environment and, hence, fail to make dynamic long-term strategy decisions.

Short-termism and HRM

In his The McDonaldization of Society , Ritzer (2008) proposes a new concept namely ‘McDonaldization’, 6 referring to the alluring contemporary life-style. He claims that McDonaldization is an extension and amplification or, say, a contemporary representation of Weber’s rationalization and Taylor’s scientific management, both of which are dominated by effi-ciency, predictability, calculability and technologies that control people. Although scientific management seems outdated today, its impact is strongly felt in a McDonalized society (Ritzer, 2008). According to Ritzer, in the McDonaldized society everything seems clear, cut-and-dried, logical and routine, and the search for the optimum means to a given end by Westerners is shaped by rules, regulations and larger social structures.

However, this obsession with certainty, efficiency, predictability and quantity has increasingly disenchanted Western culture (Schneider, 1993). Anything of enchantment, which is magical, mysterious and fantastic, is considered inefficient in the McDonalized society, as


enchanted systems typically involve a convoluted means to an end, and they may have no obvious goals at all. Enchanted experience is almost unpredictable and with no extreme certainty. But the Western efficient, predictable and rational system eliminates meanderings and uncertainty, and consequently undermines its capacity of meaning and leads to an impoverished culture (Ritzer, 2008: 146–147).

This McDonaldization of society is exhibited by the short-termism of management nowadays. The long-term perspective of HRM – viewing an organization’s people as investments for the future – sits uneasily with the prevailing short-termist ideology of business in Western world. To many critics, one of main shortcomings of the current management approach is the concentration on the bottom line and short-term profits (Lumley, 1989; Voos, 1987), and some novel management strategies are often hindered by the perception that they will not contribute to profit maximization (Anthony, 1978). A study revealed that many Western managers do not think beyond 12 months (Hickson, 1986, cited in Wilson, 1992). Hitt and colleagues (1985) found that U.S. firms are more likely to use financial criteria such as return on investment, while the long-term goals are the main criteria of Korean managers. Haitani (1976) also found that contrary to Western management, which is obsessed with short-termism, Japanese managers make decisions based on the long-term benefit, and their primary goal is to increase market share, maintain a high volume of sales, enhance prosperity for employees and continued employment for workers.

To achieve the goal to fit the business strategy, Western HRM may contradict the core ‘soft’ HRM goals of employee commitment, flex-ibility and quality. For example, a multidivisional company pursuing a strategy of acquisition, asset striping and downsizing might ‘logi-cally’ adopt a set of HRM strategies that include compulsory lay-offs and a compensation system based on short-term performance results (Purcell, 1989, 1995). As Legge (1995: 126) points out, these HRM poli-cies, ‘although consistent with such a business strategy, are unlikely to generate employee commitment’. Furthermore, the profit-driven econo-mies seriously undermine the notion of long-term ‘soft’ HRM. Purcell (1995) argues that when a financial-control model of management and rational, short-term investment dominates, it tends to dispel long-term HR investment at the work-place. ‘As the 1990s continue to be marked by short-term financial expediencies in the Anglo-North American capital markets, this trend makes the adoption of non-economic and


intangible values characteristic of the “soft” HRM paradigm as part of a corporate improbable’ (Bratton and Gold, 1999: 50).

The ‘soft’ version of HRM believes that HRM signifies a shift from the bureaucratic approach of scientific management which suppress indi-viduals to a culture in which all employees are encouraged to take on a high level of responsibility (Beer et al., 1984). However, the critical perspective of HRM 7 has the view that HRM strategies for change are little more than symbolic affairs in which the dominant power group will try to maintain the status quo, and the burgeoning of HRM, which emphasizes trust and mutual dependency, is rhetoric rather than reality. Sewell and Wilkinson (1992: 98) argue that management techniques such as ‘Just in time’ and ‘Total Quality Management’ create inten-sive personal surveillance that is directed at individual members of the workforce, which appears opposite to alleged empowerment, trust and mutual dependency. As Delbridge and Turnbull (1992: 57) point out, high-trust employment relations are contradicted by ‘tight surveillance, strict discipline, and quality control procedures’ that seek to identify the ‘guilty’ worker, and the extreme standardization of jobs, with no indi-vidual variation. Therefore, no matter what kind of rhetoric HRM advo-cates, the aim of management is to pursue profit maximization through the maximum utilization of human assets.

In most formulations of HRM, training and employee development represent significant components. The replacement of the term ‘training cost’ with ‘investment’ allows people to take a long-term view of human resource development. However, due to the imbalance between a firm’s concern for short-term benefit and inadequate information (uncertainty) about the economic returns relating to training, the investment of compa-nies in training activities is still very low (Aragon-Sanchez et al., 2003; Keep, 1989). Although the overall training figures have risen since the 1980s, this has been achieved by having more evenly distributed shorter-term training courses; as Grugulis (2006: 109) argues, even if the duration of training is not equal to quality, it is unlikely to achieve fundamental changes on HR development if done with less than five days’ training. Unfortunately, Grugulis’s (2006) research shows that, overall, 29 per cent of training lasts for less than five days. Thus the efforts making for effi-ciency, maximum productivity and short-term profit may lead to a waste of human resources, as an employee’s potential cannot be fully explored, and their commitment to the organization may also be undermined. That is why American industry has fallen behind its Japanese competitors and those from other countries as well (Ritzer and LeMoyne, 1991).


Conclusion

The origin of individualism can be found in the Enlightenment. The Age of Reason was the beginning of an open society in which individ-uals were free to pursue individual happiness and liberty. Man began to embrace a belief in the perfection of humanity based on reason and to abandon reliance on church or other authorities. Individual autonomy, dignity, privacy and self-development were highly regarded and, there-fore, brought about the norm of meritocracy , which emphasizes that indi-vidual social status and individual success are based on individual efforts and ability. Thus, individual IQ, efforts and rational thinking were taken as the means for individuals to reach their profit gain and personal goals. Moreover, a tradition of rationality fosters a belief in an absolute truth and certainty, but the long term is very uncertain in reality, and the uncertainty only can be avoided in the short term. Consequently, it produces in Western people a short-termism , referring to the prefer-ence for direct, certain, visible and short-term engagement in dealing with affairs in their lives. In short, the emphasis on individual welfare at the expense of the collective leads to concern with meritocracy which, in turn, leads to instrumental rationality in which individual actions are only taken when there is expected calculated gain, and then this produces a short-term orientation. Therefore, meritocracy , individualism , rationality , and short-termism can be reckoned as the philosophical underpinnings that account for the features of modern Western organi-zations – emphasizing intelligence and individual efforts, highlighting individual recognition and rights, adopting scientific management systems and focusing on short-term profit return.

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4 Re-examining Traditional Chinese Thinking

While diplomats, politicians, businessmen and journalists are paying greater attention to the Far East, the universities and schools of the West are becoming more accustomed to the view that ‘a knowledge of oriental culture is a practical asset rather than an exotic luxury’ (Loewe, 1966). As the world’s longest continuous civilization with the longest tradition of record-keeping and collection and with one of the most sophisticated and profound cultures the world has known, ‘China really does deliver on that oft-made promise of modern life: something for everyone’ (Ropp, 1990: x ). What exactly the Chinese contributed to the modern world, in the ancient historical period, was not only in the areas of ancient Chinese science, technology, inventions and discoveries but, even more important, was a distin-guished and awe-inspiring way of thinking. Chinese ancient philo-sophical thoughts such as Confucianism, Taoism and Legalism, as well as ancient military and administrative strategies and tactics, are the main components of Chinese traditional thinking (Cheng, 1986; Liu, 2009; Louie, 1986; Tang and Li, 2008), which is embedded in every aspect of the Chinese people’s life, including art, literature, political and military strategy, business, medicine and so forth. This chapter begins with a brief introduction of Chinese history, and then, from three perspectives, draws a general picture of Chinese traditional thinking.

Chinese history: outline and implications

China is a country with a long history which unavoidably carries a considerable legacy from the past, and one cannot have an in-depth


understanding of today’s China without understanding its history over the past four thousand years (Liu, 2009). Nixon wrote (1980: 128):

As with Russia, we can only hope to understand present-day China if we know something about its past[;] even the changes now taking place have roots in the past and in some respects are a return to tradi-tion. More than most countries, China is a product of its past, and its history is unique. Other nations come and go, other empires rise and fall, but China endures; China is forever.

The writing of history has been prevalent in China since at least 841 BCE. In the course of centuries, the Chinese people have been able to look at the past from the present and to judge and shape the present in the light of the ideal past (Huang, 2004: 244).The present selection of historical information about ancient China is based on significance and the associ-ation with administration, schools of thinking, science and technology.

Timeline of Chinese history

Prehistory

Neolithic

Ancient era

Xia Dynasty (ca. 2,070–ca. 1,600 BCE) Shang Dynasty (ca. 1600–1046 BCE) Zhou Dynasty (1066–ca. 221 BCE) Spring and Autumn Period (722–481 BCE) Warring States Period (476–221 BCE)

Imperial era

Qin Dynasty (221–206 BCE) Han Dynasty (202 BCE–220 CE) Wei and Jin Period (265–420 CE) Wu Hu Period (304–439 CE) Southern and Northern Dynasties (420–589 CE) Sui Dynasty (589–618 CE) Tang Dynasty (618–907 CE) Five Dynasties and Ten Kingdoms (907–960 CE) Song Dynasty and Liao, Jin, Western Xia (960–1234 CE) Yuan Dynasty (1279–1368 CE) Ming Dynasty (1368–1644 CE) Qing Dynasty (1644–1911 CE)

Modern era 1949 to present

Re-examining Traditional Chinese Thinking 87

Most nations have myths about their origins, and the Chinese are no exception. Through most of the imperial era, the Chinese had a tradi-tion of ‘Man-governance’. ‘Unlike other peoples who pointed to gods as their creators or progenitors, the Chinese attributed to a series of extraordinarily brilliant human beings the inventions that step by step transformed the Chinese from a primitive people to a highly civilized one’ (Ebrey, 1996: 10). FuXi ( ), the first of the Three Sovereigns 1 ( San Huang) of ancient China, domesticated animals and invented the family. Yan Di ( ), also known as the Divine Farmer ( ), discovered the seedlings of crops, and invented the plough and hoe. Under the reign of Huang Di ( ), the Yellow Emperor, silk, writing, ceramics, boats, carts, wooden houses, and the bow and arrow were well introduced (Hucker, 1975: 22). Huang Di and Yan Di are seen as the creators of ancient Chinese civilization, while the Chinese people are described as their descendents. Yao ( ), Shun ( ) and Yu ( ) were three great rulers of ancient China. They acquired their power because of their ethics and merits rather than by heritage. However, when Yu died, Yu’s son launched a coup and killed the successor Yu had chosen and, from then on, hereditary dynastic rule was established which lasted for over two thousand years.

The first dynasty, Xia ( ) (ca. 2070–1600 BCE), was created by Yu’s son, and lasted for about 500 years. It is a milestone in Chinese civi-lization which signifies the end of the era of primitive societies and the beginning of class society (Liu, 2009: 6). The Shang Dynasty ( ) (ca. 1600–1046 BCE) replaced the Xia and further advanced material and spiritual civilization. During this period, China’s ideographic writing system was developed, known as the ‘oracle bone inscriptions’ ( ). ‘The Shang writing system already evinced subject–verb–object syntax and methods of character formation by simple pictographs, abstract descriptive pictographs, and phono-pictographs that would remain basic in Chinese thereafter’ (Fairbank and Goldman, 1998: 42). Origins and principles of much of Chinese civilization can be attributed to the West Zhou Dynasty ( ) (1046–771 BCE). Certain characteristics of the West Zhou period were similar to features of European feudalism: depend-ence on personal loyalties, decentralized administration of territories by appointment and economic authority in the hands of a minority of warriors over a majority of peasants (Meskill, 1973: 12). But unlike those of Europe, where the ties between lord and vassal developed as a system separate from kinship; Zhou’s system resulted from kinship. With a total duration of 1,300 years, the Xia, Shang and West Zhou dynas-ties are historically known as the ‘Three Dynasties’; the slave-owning system was developed during this time. The hierarchical political power


structure, incorporating dukedoms and kingdoms, was ‘predominately a patriarchal clan system based on close and distant relationships [and] influenced ancient China for many centuries’ (Liu, 2009: 8).

The Spring and Autumn Period ( ) (722–481 BCE) and Warring States Period ( ) (476–221 BCE) witnessed ‘drastic social and economic change, immense political complexities, frequent military conflicts and great academic and cultural prosperity’ (Liu, 2009: 8–9). Many great Chinese thinkers emerged during this most vibrant but culturally pros-perous and resourceful time, among whom were Confucius, Mencius, Lao Zi, Sun Zi, Mo Zi, and Han Feizi and so on. Therefore, this period is known as the era of ‘The Hundred Schools of Thought’. People have been impressed by the parallel sequences in ancient China of this time and in the Graeco-Roman world: ‘[A]n age of philosophers and warring states, an age of unification and empire, and an age of disintegration and collapse of central power’ (Fairbank, 1992: 47). Many classics of Chinese thinking, literature, psychology and strategic warfare can be traced back to this time (Liu, 2009: 9). These Chinese thinkers were contem-poraries of some of the great philosophers in the West, such as Socrates (ca. 470–399 BCE), Plato (ca. 427–347 BCE) and Aristotle (384–321 BCE), who laid the foundations of Western civilization.

As interstate rivalries intensified, a new order began to emerge that would contribute to the unification of the Warring States. The Qin ( ) state rapidly became stronger both economically and militarily as the result of the implementation of reform by the ruler’s legalist adviser, Shang Yang ( , 395–338 BCE). In 221 BCE, Qin conquered all the other states and unified China, with the ruler of Qin titled ‘the First Emperor’ ( ). In order to control such a large country, the emperor created the first centralized bureaucratic system of government in China, which signified the beginning of imperialism in China (Liu, 2009: 9). He divided his new empire into 36 commanderies ( jun ), each subdivided into counties ( xian ), and all local governors were centrally appointed and controlled. There were great achievements of language, measure-ment and engineering during the Qin Dynasty. The Chinese language system, the weights and measures system, and coinage system were standardized and unified, and these contributed significantly to the development of Chinese civilization, culture and business. Also, the first emperor was responsible for the completion of a number of famous large projects, including the Great Wall ( ), Royal Mausoleum ( ) and the spectacular Terracotta Army ( ).

The Han Dynasty ( ), which began its administration of the Chinese empire in 206 BCE, it can be divided into two periods: the West Han


( 206 BCE–CE 25), and the East Han ( 25–220). During the period of the Martial Emperor (Han Wudi 140–87 BCE), the empire became one of the most prosperous and strongest in the history of China. The Martial Emperor banned all schools of thought except that of Confucius: ‘Where the Qin had given political support to Legalism, the Han gave it to Confucianism’ (Ebrey, 1996: 75). From then on, Confucianism became the dominant system of thought and the basis of the examination system for the recruitment of officials in China for over 2000 years (Liu, 2009: 11). The Han sent envoys to the Western regions over the routes collectively known as the Silk Road. Many Chinese inventions, including gunpowder and paper, were exported to the West along the Silk Road, and Buddhism was introduced into China at the end of the West Han Dynasty (Jian, 2006: 146). During the Han, tradi-tional Chinese medicine became established systematically. The Yellow Emperor’s Inner Classic (Huang Di Nei Jing ) is the earliest classic book written about traditional Chinese medicine.

After several decades of rivalry among the three kingdoms ( 220–280), China was briefly reunified by the dynasty of West Jin ( 265–316), and then broken apart into the Sixteen Kingdoms ( ), many of which were controlled by foreign rulers. The three centuries of the Sui-Tang dynasties ( 589–907) finally re-established the Chinese ideal of unity that had developed under the Han. ‘The historical impor-tance and enduring influence of the Tang Dynasty cannot be overempha-sized, as it is the most developed period in Chinese history, politically, economically and culturally’ (Liu, 2009: 13). ‘Under the Tang dynasty, China combined prosperity, cultural grandeur, aristocratic sophistica-tion, military power and supremacy in foreign relations to achieve an age of greatness unmatched since the Han’ (Hucker, 1975: 139). Besides this, ‘Tang military prowess was matched by achievements in the fine arts and literature’ (Fairbank and Goldman, 1998: 78). The Tang capital, Chang’an ( ), was the largest and most brilliantly cosmopolitan city in the world. The outwardly oriented, cosmopolitan mood of the Sui and Tang periods allowed foreign religions, particularly Buddhism, to become an integral part of Chinese culture.

In its final half century the Tang was in a state of anarchy. Out of the debris emerged regional states in North China as the Five Dynasties ( ) and in South China as the Ten States ( ). This situ-ation of general warlordism was not resolved until the Song Dynasty ( 690–1279). The Song is divided into two periods: the Northern Song ( 960–1127) and the Southern Song ( 1127–1279), and it is considered as one of the most important periods in Chinese history,


alongside with the Tang and Han Dynasties. ‘It was a great creative age that put China ahead of the rest of the world in technological inven-tion, material production, political philosophy, government, and elite culture’ (Fairbank, 1992: 88). Because the achievements in art and literature reached new heights, the Song is known as the ‘Chinese Renaissance’, comparable with the later European Renaissance (Liu, 2009: 15). The civil service examination system which was used only on a small scale in Sui and Tang times came to dominate the lives of the elite, and Confucianism was reinvigorated. Four books were selected by the master Zhu Xi ( 1130–1200) as containing the essence of Confucianism: Confucius’s Analects (Lunyu ); the Book of Mencius (Mengzi ); the Doctrine of the Mean (Zhongyong ) and The Great Learning (Daxue ).

After 370 years of chaos and division, China was once again reunited in the Yuan Dynasty ( 1279–1368), which was built up by the Mongolian Kublai Khan, Genghis Khan’s grandson. This was the first time that the whole of China was controlled by foreigners; the Mongols not only conquered China, but they also expanded their territory into Western Asia, the Middle East and parts of Europe. As a result, the Yuan Empire was at that time the largest and richest in the world. Adventurous Westerners such as Marco Polo travelled all the way to China and brought back to Europe the first reports of its wonders. Under the alien rulers, the Chinese were not forced to adopt the customs of their conquerors. Chinese cultural life continued: ‘[M]embers of Chinese elite continuing to read and write books and ordinary Chinese continuing to worship gods of their choice in their own ways’ (Ebrey, 1996: 173–174). However the Yuan Dynasty only lasted for 89 years, and the limited duration of Mongol rule was mainly due to the Mongols coming to power without adequate ideas on how to govern a great settled empire (Meskill, 1973: 151).

With the disintegration of the Mongol empire and collapse of the Yuan Dynasty, China was relieved from foreign control. The Ming Dynasty ( 1368–1644) was founded by a poor peasant, Zhu Yuanzhang ( 1328–1398), who was the first commoner to found a dynasty in China in 1,500 years. He laid the foundation of a state interested more in extracting revenues from agriculture but less in commerce, unlike that of the Song and the Yuan dynasties, which relied more on commerce. Zhu Yuanzhang set up a strong and more autocratic govern-mental system: there were the so-called Six Ministries, reporting to the emperor directly: Revenue, Personnel, War, Rites, Justice and Public Works. Beginning in 1405, the emperor sent seven grandly equipped


fleets far into the South China Sea and Indian Ocean, sailing to East and Southeast Asia, Southern India, Ceylon, East Africa and the Persian Gulf, passing through 30 countries and territories (Liu, 2009: 17). ‘In the great age of sail that was just dawning around the globe, Ming China was potentially far in the lead but refused to go on. It took the Europeans almost another half century even to get started’ (Fairbank, 1992: 138). However, because of the anti-commercialism, xenophobia, weak rulers and eunuch dictatorships, China retired from the world scene. ‘The contradiction between Ming China’s superior capacity for maritime expansion and conservative Neo-Confucian throttling of it suggests that Ming China almost purposely missed the boat of modern technological and economic development’ (Fairbank, 1992: 139).

The Qing Dynasty ( 1644–1911) was founded after the defeat of the Ming by Manchu clan Aisin Gioro. It was the last dynastic empire of China and covered the most territory in Chinese history. The Qing was the richest empire in the world until the end of the eighteenth century. The early Manchu rulers, like the Jin and Yuan emperors, took over the terminology and ideas of Confucianism and used them for the maintenance of political authority (Fairbank, 1992: 147). Thanks to the remarkably long and vigorous reigns of two early emperors, the three following emperors provided strong executive leadership during the next 133 years: Kangxi ( 1662–1722), Yongzheng ( 1722–1736) and Qianlong ( 1736–1796). Until the middle of the Qing period, China’s foreign trade was in surplus; however, starting from 1757, the ruler tightened up on the foreign trade policy. From then on, China experienced the gap between her and the developed world in terms of science and technology that was acquired during Western industrializa-tion. Britain’s desire to continue its opium trade with China collided with imperial edicts prohibiting the addictive drug, and the First Opium War took place 1840–843 and the second 1856–1860. China was defeated in both wars, and Hong Kong was ceded to Britain in 1842 under the Treaty of Nanking.

Summary of Chinese ancient history

In summary, imperial China had lasted for 2,133 years, from the begin-ning of the Qin, the dynasty that first unified China, to the end of the Qing, the last dynasty. According to Loewe (1966: 71), there were three principal elements on which Chinese sovereignty had rested: religious belief, Confucian precepts and authoritarian theory. Some of the motives and practices of the religion of the Shang ‘can be shown to persist in the ensuing three millennia of Chinese civilization’ (Loewe, 1966: 71), and


it is unlikely to completely separate an emperor’s establishment from his function of maintaining religious observance. China’s emperor was regu-larly depicted as the tianzi ( ), or the son of heaven, and the implica-tion of the phrase has exercised a profound effect on the Chinese concept of sovereignty. The tian ( ) was regarded as the supreme power, and the worship of tian was restricted to the sovereign alone, so the emperor was confirmed as the authorized or legitimate leader of mankind, and he also performed as intermediary in negotiating with tian . Confucius’s influence on the development of Chinese sovereignty has extended for more than 2,500 years. Confucianism’s rationale for organizing society according to ‘the quiet virtues of patience, pacifism, and compromise; the golden mean; reverence for the ancestors, the aged, and the learned, and above all, a mellow humanism – taking man, not God, as the centre of the universe’ (Fairbank and Goldman, 1998: 53), effectively stabilized the Chinese governing system. The third element was that political structures had rested on a centralized and authoritarian system. China had long been a great centralized empire governed by a uniform admin-istrative system when the first modern state, the Kingdom of France, was just getting organized at the end of the seventeenth century. Also, unlike modern Europe, which at one time had emperors of France, Germany, Russia, Austria-Hungary and the British Empire plus the Pope at Rome – all ruling their domains simultaneously – China, ‘ideally, and most of the time in fact, had only one emperor on earth, like one sun in the sky’ (Fairbank, 1992: 46).

The evolution of Chinese history shows a continuous and steady devel-opment of Chinese civilization over many centuries, and this derived from a constancy of similar political and social conditions and the rela-tively peaceful coexistence of different religious traditions, also over many centuries. Radical changes have been extremely rare during the last three millennia (Loewe, 1966: 94). Further, the sequence of dynasties was due to the inveterate Chinese impulse for unity and the strong ideal of social harmony, which persisted even through centuries of disunity and turmoil. ‘Unity was so strong an idea because it promised stability, peace, and prosperity’ (Fairbank, 1992: 47). ‘There is an unshakable confidence that unity is best, that periods of disunity, however long, are temporary’ (Ropp, 1990: xiv). Finally, the rise and fall of imperial power tend to follow a cyclical pattern (Liu, 2009: 20). The dynastic cycle was an ‘important element in the traditional Chinese view of history, which seemed to be an inexorable progression from strength to weakness, from centralization to decentralization, from order to chaos, from unity to fragmentation, over and over’ (Hucker, 1975: 17).


Key features of Chinese traditional thinking

‘Chinese traditional thinking’ refers to, in general, the thinking that prevailed in China from the pre-Qin period until the Opium War, a way of thinking with Confucianism at its core, mixed first with Taoism, and later with Buddhism and also combined with ancient military and political strategic thinking (Zi, 1987: 443; Liu, 2009; Tang and Li, 2008), which had its root in a social system that stemmed from a primitive clan society and went right up through the slave and feudal societies in China. ‘Western way of thinking’ in general, refers to the main stream stemming from the European Renaissance that finds its roots in ancient Greek civilization (Zi, 1987: 443). Although these are very loose concepts, they can serve as an adequate basis for discussion.

Holistic, naive thinking 2

‘Western philosophers have many candidates for the “most important concept of the tradition,” but “Truth” is likely to make everyone’s short list’ (Hansen, 1985: 491). As the result of chasing the ‘Truth’, Western thinking is characterized by Aristotelian binary logic, foundationalist, and black-and-white symbolic logic that applies its bivalent ideology universally and without reflection (Alon, 2003: 3). Western thinking has a strong penchant to focus on the measurable, bivalent terms of founda-tional Truth and concerns the holistic and plurivalent phenomena less. On the contrary, the Chinese have no such concept of truth (Munro, 1969; Graham, 1970; Hansen, 1985). ‘In China, truth and falsity in the Greek sense have rarely been important considerations in a philoso-pher’s acceptance of a given proposition; these are Western concerns’ (Munro, 1969: 55). Chinese thinking emphasizes the holistic harmony, simplicity and dialectic change.

According to Holmes, ‘Language is the blood of the soul into which thoughts run and out of which they grow’ (quoted from Liu, 2009: 27). Similarly, Humboldt writes, ‘[E]ach language draws a magic circle round the people to which it belongs, a circle from which there is no escape save by stepping out of it into another’ (quoted from Wu, 1969: 423). As the core element of a national culture (Bodde, 1981; Logan, 1986; Wu, 1969), language system has an inextricable relationship with the way of thinking. Chen (1999: 56) points out that the two obvious reasons Chinese people see the world differently from Westerners are ‘the radically different nature of the Chinese script, and the isolation in which Chinese civilization developed’. To make explicit the common trends underlying


Figure 4.1 Pictographs

Chinese traditional thinking as a whole, it is necessary to start with the examination of some major characteristics of the Chinese language.

The Chinese language is markedly different from Indo-European languages in terms of structures and formation, and the most charac-teristic feature of the Chinese language lies in its written characters. Traditionally, Chinese characters are classified into six categories:

Pictographs (Xiangxing 1. ); Simple ideograms (Zhishi 2. ); Compound ideograms (Huiyi 3. ); Phonograms (Xingsheng 4. ); Phonetic loans (Jiajie 5. ) and Derivatives (Zhuanzhu 6. ).

The pictograph is in the earliest and most basic stage of word formation and is based on resemblance (see Figure 4.1 ). Pictographs evolved from simple pictures of everyday life, and each pictograph is a complete idea and has a single syllable.

Simple ideograms add symbols to pictographs to represent new words, especially for complex and abstract positions and notions, such as directions and numbers (see Table 4.1 ). Compound ideograms are new words derived by combining two or more individual pictographs (see Table 4.2 ).

Phonetic loans or, say borrowed characters, were originally borrowed from other words that are pronounced the same (i.e., homophones). Derivatives represent words that share the same root word or meaning, and they are mutually explanatory or synonymous. Both phonetic loans and derivatives account for a small proportion of Chinese vocabulary.

Nowadays, about 90 per cent of Chinese characters are phonograms, because this method of word formation is easy to understand and its structure is simple. Each phonogram consists of two elements, one indi-cating the meaning (pictograph or ideogram) and the other sound – one


of a limited number of determinative characters that supply an element of meaning and another character gives it the pronunciation (see Table 4.3 ).

Therefore, the Chinese character system is not as a pictographic but as a mixed logography or morpho-syllabography (Fischer, 2001: 19). The evolution of Chinese characters from pictograph to ideogram and then to phonogram reflects a process of synthesis and comprehensiveness which enhances the holistic thinking of the Chinese people (Liu, 2009: 30).

As mentioned above, the majority of Chinese characters are phono-grams, each of which is composed by using both meaning and sound. These two elements separately refer to the humanistic and natural phenomenon that comprise the unity of the world, thereby further encouraging holistic thinking. In contrast, it is proposed by some communication theorists (such as Marshall McLuhan, Harold Innis, Walter Ong and Robert K. Logan) that the Western alphabetic scripts have served to promote and encourage the cognitive skill of abstraction, analysis, coding, decoding and classification. With a limited number of

Table 4.1 Simple ideograms

One Two Three Up Below Root Tip

Table 4.2 Compound ideograms

× 2 = two trees → grove

× 3 = three trees → forest × 3 = three people → many + = a man leaning against a tree → rest + = sun and moon → brightness

Table 4.3 Phonograms

Determinative Added character Compound

water m ù m ù to wash oneself water l í n l í n to pour grass c ǎ i c à i vegetable


alphabet letters, any sentence can be expressed by arranging a combi-nation of these letters, and this may give rise to the notion that reality consists of a fixed and stable number of elements, which is highly conducive to analytical thinking. ‘Aristotle, with his insistence on visual observation and linguistic precision, tended to take articulated language as the only real route to knowledge’ (Chia, 2003: 959). According to McLuhan (1962) and Ong (1967), the essentially Greek-inspired linear causal thinking of the West derives its impetus from the influence of the alphabet system. As Ong (1967: 42–45) writes,

Operations with the alphabet imply that words ... can be somehow dissected into little spatial parts called letters of the alphabet which are independent of the one-directional flow of time and which can be handled and reassembled independently of this flow ... . The sense of order and control which the alphabet thus imposes is over-whelming ... . It appears no accident that formal (i.e., Aristotelian) logic was invented in an alphabetic culture.

By using the alphabet system, an environment is created that is condu-cive to the development of abstract science, deductive logic, codified law, monotheism and individualism.

While the Chinese language system emphasizes holism, change and transformation, the Western languages emphasize stasis, form and permanence (Chia, 2003: 963). The Chinese language is also notable for its lack of inflection, as there are ‘no tenses, no cases, no genders, no numbers and, in classical writings, even no punctuation’ (Wu, 1969: 426). As a result, the Chinese language is also known for its simplicity in grammar due to its syntactical nature. In classical Chinese writing, a noun can be used as a verb without any change in form. Take the Confucian Analects , for example: there is one sentence that reads: ‘ Jun Jun, Chen Chen, Fu Fu, Zi Zi . ( ) (12.11)’, which means the king should act as a king; the subject of the king should act as subject; the father acts as a father; the son acts as a son. In this sentence, the noun and the verb are in the exactly same form. Alan Watts (1957: 5) pointed out: ‘In English, the difference between things and actions are clearly, if not always logically, distinguished, but a great number of Chinese words do duty for both nouns and verbs – so that one who thinks in Chinese has little difficulty in seeing that objects are also events, that our world is a collection of processes rather than entities’. Chinese characters thus reveal a high degree of simplicity in


symbolizing the complexities of human affairs, corporeal objects and natural phenomena.

In China, calligraphy is a highly regarded art which has tremendously influenced Chinese aesthetic taste. It is non-depicted and is just black and white, line and space, Chinese calligraphy is stupendously beau-tiful in its simplicity yet enables a wide range of expression. Also it is ‘a kinetic art consisting of the choreography of human gestures’ to exhibit the beauty of simple ideography (Chia, 2003: 263). The practice of it requires a harmony of self, brush and paper, which shows an innate sense of balance and unity. Simplicity is not only the nature of the Chinese language, it is also a major characteristic of Chinese life, and it is ‘a cardinal methodological presupposition of Chinese thought’ (Wu, 1969: 429). Besides calligraphy, this emphasis of simplicity is exhibited in wide range of Chinese arts, including ink painting, music and poetry and so forth.

The ink used in Chinese traditional painting of the landscape has been generously diluted. The range of colour is narrow and pale overall; most paintings actually just contain one colour – black. But this black can be slightly or totally black. By softening the dark or by adding the black, the figure of the landscape emerges. Both the colour and brushstroke are simple; painters do not want to add any redundant colour or lines to disturb the calm and harmony which will unfold in the scrolls. Nothing in the picture tries to incite or seduce, nothing aims to compel attention. The emptiness and blandness of Chinese painting also is the source of the power (Qi ), in another words, the emptiness in a picture is not really empty: it produces the fluid Qi and contains the potential to transfer this Qi to give the landscape a vivid look. The painter combines his own emotion and the Qi with the nature in his landscape painting to acquire the harmony between him and nature. ‘The blandness of the painted landscape cannot be confined to the realm of artistic effect. Rather, it expresses wisdom, for the bland life constitutes an ideal’ (Jullien, 2004: 39). On the contrary, the paintings of Western expressionism lay emphasis on ‘ego’, the pure, independent self, so they often represent the sense of struggle, opposite and at odds. Moreover, the Western realistic painters represent reality as it actually is and without idealization or presentation in decorative way. This kind of work seeks for the reality of the appearance of something, but excludes the painter’s emotion.

To illustrate, here I will mention three famous Chinese painters: Zheng Banqiao ( 1693–1765) was an official calligrapher and painter for the Qianlong emperor. He was adept in freehand ( ) ink and wash


and raised the theory of the three steps of painting – having the object in the painter’s eyes, hands and heart, and the last step is most impor-tant for a painter to produce a lifelike work. Tang Yin ( 1470–1524) was a well-known calligraphist, painter and litterateur in Chinese art history. He was adept at landscape painting, figure painting and flower-and-bird painting. His landscape paintings gracefully portrayed grand and steep mountains in a sparse layout with delicate and fine lines. In Tang Yin’s landscape paintings, nature is always shown as omnipresent, and the human figure is concealed within nature; this work exempli-fied the Chinese traditional ideal of harmony: concealing within nature, rather than controlling nature. Qi Baishi ( 1863–1957) was the most celebrated modern artist in China. He used large brushes and concise lines to capture the spirit of an object with swift and vigorous strokes. His simplicity, his forceful brush coupled with a strong sense of naivety combined with an almost child-like crudeness, giving the viewer a most powerful impression of Chinese traditional art.

This simplicity is also embedded in Chinese traditional music. Chinese traditional vocal music has traditionally been sung in a thin, non- resonant voice, or in falsetto, and is usually solo rather than choral. All traditional Chinese music is melodic rather than harmonic. Unlike a Western symphony, which needs a lot of people to perform together, Chinese musical instruments such as zither, lute and pipa are preferred to be played solo. And the best place to perform the music is not the odeum or other public places but in some quiet and natural place (near a brook or in remote mountains, and so forth). Thus the performer can combine the sound of the instrument and of nature (the birdcall and the sound of the wind and rivulet). This will produce the most amazing and harmony melody, and it also produces a deep calm in the performer’s heart. Generally the sound would not be very strong and passionate but it is some sort of soft and slow sound, and the tune appears to have a magical, ceaseless power, as it will linger in the audience’s mind, not fading away easily. For the ancient Chinese, music in the highest sense is a means of calming one’s heart, emptying one’s mind, purifying one’s thoughts, and dispelling one’s desire and lust, rather than being just a form of amusement (Liu, 2008).

In Chinese tradition, the virtue of simplicity is even more highly praised in the area of poetry. It is accepted by scholars that the Chinese written language is a better medium for poetry than for scientific thinking (Wu, 1969: 431). It is demonstrably true that Chinese science is far less developed than Chinese poetry (ibid: 434). During the 289 years of the Tang Dynasty, which was the golden age of Chinese poetry, 48,900 poems

3

b.

a.


were written by 2,200 poets. The most valued literature form during Tang was the four-sentence poem (Jue Ju ), which is composed of merely 20 or 28 syllables or characters. By reducing the syncategorematic words to the minimum, the expression becomes more concise and concrete, and by using the same tone at the end of each sentence, a subtle sympathetic feeling is aroused. For example, let us take Du Fu’s ( ) 4 ‘Jue Ju’ ( )

Here is the English translation, provided by the present author:

Under the gradually longer time of sunshine, the river and mountain are so beautiful

The spring breeze bears the fragrance of flowers and grass The frozen mud begin to thaw, and the swallows fly around On the warm sand of the bank, mandarin ducks are sleeping

From the poem above, it is obvious that the English version is much lengthier than the Chinese original. By using the minimum number of words, the Chinese version draws a vivid picture of the beauty of spring: it combines the static mountain, mud and sand with the dynamic river, swallows and ducks, and it even conveys the visual sense of the sunshine, the tactile sense of the wind, the olfactory sense of flower and grass, and the indirect sensation of the thawing mud and warm sand. This poem not only depicts the vitality of spring, but it also expresses the harmony of nature, of the creatures and of the poet himself. The exterior simplicity of the poem actually leaves the unexpressed and more profound meaning to the reader’s imagination. Behind the plain words, the emotional depth and infinite unfolding allows the reader to savour without growing weary of the taste; the experience of the simplicity is without limit, it inspires continuous imagination. ‘[A]t first glance, it is plain and bland’, but ‘the longer one looks at it, the more apparent its spiritual dimension’. In contrast, ‘what first appears beautiful loses its fascination as soon as one looks away from it. The richness of the bland lies in its capacity to offer us an opportunity to transform our gaze into consciousness and to go endlessly deeper’ (Jullien, 2004b: 133). Moreover, praise of the wisdom of simplicity also can be found in the content of Chinese poems. Take the great poet Tao Yuanming’s ‘Drink’ ( ) as an example:


Here is the English translation by the present author:

I live in the noisy block but I have never been disturbed by the ruckus You ask me why I can be so aloof The answer is to keep my heart far away from the uproar I picked up some chrysanthemum at the bottom of fencing and then leisurely enjoyed the beautiful scene of the south

mountain The mist rose gradually in the gloaming the birds flew back together to their nests There is a real value of the life in this scenery I want to express but cannot find any proper words for it.

There are no decorative or verbose sentences in this poem; every word it contains is simple and plain, but we can find the hidden depth it conveys. Not only can we imagine the harmony and cosy scenery easily, we can also know the real value of life the poet wants to express: simplicity. He even does not use words to describe it, avoiding adding any restriction to this simplicity. When the sense of simplicity occu-pies our being, the quietude and serenity can be experienced, no matter where we live or what the position we are in; no fixation or blockages exist, and the desires and temptations which surround us start to disap-pear. In this short poem, we again see the harmony between human and nature, which shows the typical holistic view that is embedded in almost all forms of Chinese traditional art.

In the philosophical area, epistemological simplicity is also advocated and encouraged. Confucius, who was primarily an enthusiastic teacher, wanted to teach through silence. In the Analects (Lun Yu ), there is a dialogue between Confucius and his disciple, Zi Gong ( ): The Master said, ‘I would prefer not speaking’. Zi Gong said, ‘If you, Master, do not speak, what shall we, your disciples have to record?’ The Master said, ‘Does Heaven speak? The four seasons pursue their courses and all things are continually being produced, but does Heaven say anything?’ (17.19). 5 For Confucius, the most profound and influential teaching


cannot be expressed by words, no matter how expatiatory they are, just as supreme nature influences everything through silence. He suggested that to obtain virtue, one should get rid of the shackle of language and any other external constraints, and experience it by an unfettered mind. The Taoist encourages this simplicity by the concept of Wu Wei ( ): in administration, maximum of effect through a minimum of action; in battle, maximum victory through a minimum of military force; in communication, maximum ideas through a minimum of linguistic symbols; in education, maximum productivity through a minimum of teaching effort (Wu, 1969: 429). This state of doing nothing refers to a plain state full of freedom and sheer potential, without any impediments and prejudice. The simplicity, emptiness, plainness, tranquility, indifference, or non-action characterizes the nature of Dao . Indian Buddhism, which has had a vast and sophisticated metaphysical system, was imported very early into China’s history. Chinese Buddhists had simplified and summa-rized the whole Indian system and then formed their own Buddhism. For example, the great Chinese monk, Xuan Zhang ( 602–664), had simplified and summarized the Yogacara Buddhism system into his own version, usually called Wei Shi ( ) which is less complicated. To reach an even higher degree of simplicity, Chinese Zen ( ) Buddhism was founded, which contains more features of Chinese thinking. It was founded upon the four maxims: ‘

’. The translation 6 :‘Apart from the traditional teaching; not founded on words or letters; pointing directly to one’s heart; attaining to Buddha status when one acquires the realization of one’s nature’. By emphasizing that the most important teaching is about knowing one’s own nature correctly, which knowing cannot be fettered by words; Zen Buddhism manifests marvellously this great simplicity of Chinese thinking.

Throughout the history of Chinese culture, although a stupen-dous and fantastic civilization (philosophy, art, literature and so on) has been created, there has been very little systematic scientific thought comparable to that of Aristotle, Newton, Kant and Einstein. The underlying impulse of the Western scientific mind is the search for truth, clarity and certainty. This is the vital source of scientific thinking which has been weak in Chinese thought, as Lessem and Palsule (1997: 48) point out: the Eastern archetype can be described as favouring an aesthetic rather than scientific construction and does not seek absolute truth, as its innate compelling desires are holistic harmony and simplicity.


Fuzzy, processual thinking

In his My Country and My People , Lin Yutang (1936: 103) states that ‘for a Chinese it is not enough that a proposition be “logically correct”; it is much more important that it be “in accord with human nature”’. Unlike Western logical, binary and static thinking, the Chinese use fuzzy and processual thinking to understand the nature of the human and the world. According to Kosko (1994), the fuzzy principle states that everything is a matter of degree, and everything is in flux, every-thing flows. The opposite of fuzziness is bivalence, which means there are only two ways to answer each question: true or false, 1 or 0; fuzziness means multi-valence and, therefore, instead of just two extremes, there are many more possibilities, even infinite possibili-ties. As mentioned earlier, the Western scientific worldview comes from an underlying impulse for immanent Truth and certainty, which is a bivalent ideology which atomizes the world by reducing facts to the bivalent true or false. This binary precision is seen as part of the scientific method used by Western culture. Behind Western bivalent instincts lies Aristotle’s logic (Kosko, 1994: 23): ‘[W]e expect every “well-formed” statement to be true or false, not true more or less or false somewhat. A or not-A. This “law of thought” runs through our language and teaching and thoughts’.

In contrast, Chinese thinking is ‘dialectic in expecting an unfolding pattern to emerge from an acceptance of simultaneous multiple reali-ties’ (Lowe, 2003: 7). More than a hundred years ago, the missionary Arthur H. Smith (1897: 48–49) already noticed the Chinese penchant for the disregard of accuracy; he wrote, ‘the existence of a double standard of any kind, which is often so keen an annoyance to an Occidental, is an equally keen joy to the Chinese’. That means to Chinese, the different, even opposing and contradicting, propositions or truths can be accepted simultaneously, and these opposing propositions are mutu-ally inclusive and involved in a dialectic process of interconnectedness that produces a harmonious and dynamic stability: ‘What are conceived as opposites in the rational and pragmatic modes are inseparable polari-ties in the holistic mode’ (Lessem and Palsule, 1997: 52). Chinese tradi-tional thinking, especially Taoism, involves a multivalent, multi-valued, nonlinear worldview and fuzzy ‘shades of gray’ between ‘black and white’ that sees paradox and contradiction as normal, valuable, experi-ential coherent common sense (Lowe, 2003: 7).

The ancient Taoist yin- yang ( ) symbol ( Figure 4.2 ) is the emblem of fuzziness (Kosko, 1994: 14). Along with other forms of Eastern


mysticism, it offers the major belief systems that accept contradictions. The earliest appearance of the yin-yang was in the I Ching ( ), one of the oldest texts to explain Taoism. Traditionally it was believed that the principles of the I Ching originated with the mythical Fu Xi ( ), who is regarded as one of the earliest legendary rulers of China. It is said one day Fu Xi found females and males giving birth to their offspring and thereby enabled life to continue. He suddenly realized all creatures are produced and multiplied through this simple but eternal way. So he extended the female and male to numerous opposite concepts which denote the fundamental essences of the universe. Yin ( ) is the darker half of the symbol and refers to darkness, passivity, femaleness, weak-ness, coldness and so on; the other, the bright half, is yang ( ), which refers to brightness, activity, maleness, dominance, hotness and so on. In fact, there is no absolute borderline between yin and yang , as a dot of yin exists in the yang , and a dot of yang exists in the yin . The seed of the other is contained within each of them and they together form a changing unity (Chen, 2001). The position of the yin-yang symbolizes dialectic, and their complementary bipolar synergy of expanses, crea-tions and liquidations lead to variable fields of changes of the creative energy (Carnogurska, 1998: 205). Thus, what really matters to Taoists is that the ceaseless process of transformation of wanwu (all things in the world ) is through yin-yang transition rather than on the particular viewpoints or judgements obtained in the course of the process. The mutual replacement (or different degrees of ascent and decline) of yin and yang is only temporary, and the temporal model of the process is cyclical.

The Chinese language reveals this dialectic thinking. Faure and Fang (2008: 195) point out that numerous Chinese concepts are made up of two paradoxical sub-concepts. For example, the word ‘thing(s)’ in Chinese is called ‘dong xi’ ( ); ‘dong’ means East and ‘xi’ means West – everything embraces opposite properties, which endows them with a multi-valence of values. Another example, the Chinese word wei ji ( ) means ‘crisis’. In Chinese, wei refers to danger, and ji means opportunity, and this word means crisis is not only about danger but it may also lead to opportunity. There is a famous idiom from Huai Nanzi ( . ) about an old man and his horse ( ), which represents the absence of bivalent Truth and the paradox and contradic-tion central to life in an indeterminate world (Lowe, 2003: 7). The old man lost his horse, and when his neighbours gathered to commiserate with him on his loss and his bad luck, he simply responded, ‘It may


be a good luck’. Several months later, his horse returned with six wild horses. When his neighbours gathered to congratulate him about his good fortune, he responded, ‘It may be a bad luck’. A few days later, his son was thrown from one of the wild horses, and broke his leg. When his neighbours gathered again to sympathize with the old man about his misfortune, he replied. ‘It may be a good luck’. One year later, the conscription officer came to the village to recruit soldiers for a war, and because of his broken leg, the son of the old man escaped from joining in the army and thus saved his life. The theory of reversion makes the Chinese remain cautious even in the time of prosperity, and hopeful even in the time of extreme danger, and has enabled them to survive through the wars that they have undergone in their long history (Fang, 1999: 32).

Because of the Aristotelian metaphysics tradition and alphabetic language system, definition, identification and the attribution of causal relations constitute the key points in the Western knowledge-creation process (Chia, 2003: 959). As a result, the Western epistemological atti-tude leads to a view that only the fixed, defined and universal aspects can be accepted as valid ontological issues.

Figure 4.2 Yin– Yang symbol


[T]hat which is in flux and changing, by definition cannot be given a stable identity, and hence cannot be named, differentiated, and compared for their universal qualities. Flux, change, process and the individual particularities of event-happenings are thereby relegated to an epi-phenomenal status in the Aristotelian scheme of things. (Chia, 2003: 960)

Due to the Western desire for fixity, universality and certainty, the eternal and the unchanging are viewed as the essential features of ultimate reality. On the contrary, Chinese fuzzy thinking not only stresses that everything is not fixed, is temporary and that there are always manifold possibilities, it also stresses that the process of change is imminent and everything is in the process of changing form: ‘[N]othing is black and white, as everything is in a constant process of changing from one shade of gray to another’ (Lowe, 2003: 9).

The I Ching ( Yi Jing ), one of the oldest Chinese classical texts, emphasizes correlative thinking, a humane cosmological outlook and a fundamental unity and resonance between Heaven, Earth and Man. It also stresses the pervasive notion of yin-yang complementarities, cease-less alternation and cyclical movement. The Yi ( ) in the title of the book has at least three meanings 7 : the first is ‘easy and simple’ ( ), which means the fundamental rules of the world are utterly simple and plain, even if lots of things look apparently complex and hard to under-stand. The second is ‘change, transfer’ ( ): everything in the world is ceaselessly changing, and two opposite situations can always be trans-formed. For example, the yin-yang, good-bad, right-wrong and so forth are opposite but complementary concepts. The last is ‘persistency’ (

), which is the essence of the substance, as the continually changing is a persistent principle, a basic rule of the world. The symbolism of the I Ching ( Figure 4.3 ), also known as 64 hexagrams ( gua ), each of which is composed of two three-line arrangements called trigrams, which repre-sents that a person is related to other persons and things in the world, to nature and to the world as a whole and, furthermore, that he or she is related to things in the past as well as to things in the future (Cheng, 1989: 169). So the universe is not a static unity; it is dynamic and in constant change.

The I Ching was at the heart of Chinese thought, serving as a common ground for the Confucian and Taoist schools. The concept of Dao also originates from the I Ching . The Yi Zhuan ( ) of Confucius, Tao Te Ching ( ) of Laozi and Zhuangzi ( ) of Zhuangzi are all under the powerful influence of the I Ching . These three famous works are classic


texts about Dao (Cheng, 2006). The word Dao, one of the most impor-tant terms in Chinese philosophy, has a primary meaning of ‘road’ or ‘way’ (Fung, 1937: 177). Dao is the essence and all-embracing principle of the universe; it is such a thing that is

formless yet complete. Before Heaven and Earth it existed. Without sound, without substance, it stands alone without changing. It is all pervading and unfailing ... (chapter 25, Tao Te Ching ) 8

In chapter 1, Lao zi says, ‘[T]he Dao that can be called “Dao” is not an unvarying Dao; the names that can be named are not unvarying names’. 9 The Dao is formless, nameless and therefore it is unfixed and changeable. This everlasting change and spontaneous accomplish-ment of Dao is forever thus. According to Laozi, Dao is never stagnant and it has incredible power to keep things in the world in order and in harmony. It manifests itself through cycles and transitions: cycle of life, cycle of seasons, transitions of power and so forth. As the origin of things: ‘Dao begets one; One begets two; Two begets Three; Three begets the myriad creatures’ 10 (chapter 42, Tao Te Ching ). There is a connection between Dao and creatures: the changeable Dao gives birth to the world and all the creatures and then the changing and transition of the crea-tures in the universe as well as the continual cycles. It is the basic law of nature: ‘It [the Dao] is the voidness which is forever the boundless and

Lake Heaven Wind

Fir We ater

Thunder Earth Mountain

Figure 4.3 The Ba Gua (eight trigrams )


inexhaustible source of change and creativity of all things’ (Cheng, 2006: 31). In Yi Zhuan , Confucius indicates that ‘[O]ne (phase of) Yin, one (phase of) Yang, is what is called the Dao’ 11 . Through the conjunction of yin and yang alternation and transition, Dao underlies the constant evolution of the world.

Under the influence of the I Ching , Confucian and Taoist schools inher-ited the idea of change and disseminate it everywhere. This emphasis of Chinese thinking on a continuous changing process of reality, flux and self-transformation can be found in political and military strategy, tradi-tional arts and literature, cuisine, Chinese medicine and people’s daily lives. When reflecting on the arts in China, the ‘three jewels’ of tradi-tional Chinese culture – calligraphy, painting and poetry – demonstrate the Eastern emphasis on becoming and process, as all of them, ‘by their unmistakable expression of energy, vitality and dynamism through the relentless emphasis on contrast and renewals, exemplify a widespread attitude that embraces the inexorable necessity of change, emergence and evolutionary self-transformation’ (Chia, forthcoming).

Chinese calligraphy provides a key example of dynamism in opera-tion, since its linear nature made it an immediate means of revealing the temporality of movement (Jullien, 1995: 133). A calligrapher can never go back and redo the lines already made by his brush. Being endowed with an excess of Shi ( ), or potential by the calligrapher, the brush ‘continues onward in the most efficacious fashion ... . Once the brush stroke is completed, that dynamic continuity remains forever active in the eyes of the beholder: each element anticipates the one that follows, and the latter is born in response to the former’ (ibid.). This tendency toward dynamism and continuity is particu-larly expressed by Chinese writing at its most radical stage – Caoshu ( ), or say cursive Chinese writing, which emphasizes continuity ‘not just between the successive elements in a single ideogram, but also between successive ideograms’ (Jullien, 1995: 134). In regular writing, once an ideogram is finished, the meaning that gives it life is completed, while in Caoshu, ‘even when the whole column of char-acters is completed, the impulse (Shi) carries on beyond’ (ibid.). Wang Xizhi ( , 303–361 BCE) was one of most famous calligraphers in China, and he was traditionally referred to as the Sage of Calligraphy ( ). His works in Caoshu characterize him as a master of a monu-mental style that creates an atmosphere of balance and ease. He is famous for showing one stroke connecting several characters, and by using the single and continuous stroke, the power of Shi is at its most developed: even when the line is broken, ‘the rhythmic surge is not


cut off’ (ibid.), as the stroke with the same aspiration is taken by the Shi from the very beginning to the end as within a ceaseless flow of a river.

Chinese painting seems to lack the geometrical perspective, the anatomical knowledge and the thickness and brightness of oil paint, all of which came to Europe with the Renaissance (Scharfstein, 1974: 31), yet the Western painter’s aim is to catch the essence of objects, rather than appearances, through constantly displaying it in the wake of trace (Bryson, 1983: 92). The process of Chinese painting, in contrast, stresses displaying the consciousness of the painter, and Chinese painting is by no means a dead copy of the objects; it is alike in spirit with the objects. The Chinese painter tends to store in his mind the objects that he is going to paint before he starts, and then they paint just following their inspirations spontaneously: ‘[W]ith eyes unconscious of the silk before them and hand unconscious of brush and ink, the picture is created, marvellous, mysterious, boundless’ (Scharfstein, 1974: 39); it is a process unfastened from silk, brush and ink, it is a harmonized interaction between the painter and the objects, and it is a continuous exhibiting of the consciousness of the painter.

12


Similar to Chinese painting, the greatest Chinese calligraphy is produced at a moment when personal consciousness, power and spon-taneity are perfectly joined. Su Shi ( 1037–1101), a famous calligra-pher of the Song Dynasty, compared his calligraphy to a kind of river:

On level ground, it flows calmly, over three miles a day. When it reaches mountains and rocks, it winds around them. It cannot be defined or circumscribed: it flows when it must, and stops when it must. (Scharfstein, 1974: 50)

This personal inspiration, vigour and passion spontaneously changes, and the works can always present the flow of consciousness of the callig-rapher. The process of becoming of Chinese painting and calligraphy is incorporated into the works’ display, which continuously shows the personal emotion and vigour of the painter/calligrapher, while in Western art, the process is hidden or eliminated:

Only its final completed state matters. The painting is placed outside duration. (Chia, forthcoming)

The text of Chinese poetry, according to Jullien (1995: 140), exists ‘not only through its “order” and “coherence”, but also through its “flow” and unfolding’. Moreover, because the Chinese language is tonal, the melodic and rhythmic aspects are particularly crucial in Chinese poems: by encouraging the interaction of sounds and tones in their particular engagement, and by interspersing the long and short rhythms within the text, variation is created to renew the vitality. When a fine poem is read aloud, the vitality is inexhaustible, just like a flow from a spring that has never encountered the slightest obstacle of disharmony or monotony. However, without engaging the poet’s inner feeling into the poem, even if he decorates the poem with beautiful sounds and tones and with gorgeous words, there is no vitality or Shi in the poem. Unlike Western poetry, which has ‘remained close to epic and drama and has shared their values of creation and making ’ (Owen, 1990: 294, emphasis original), the Chinese lyric poem is often defined as yin shi ( ) – to articulate intensely what is in the poet’s mind and to be able to express it spontaneously are expressions of the state of mind of the poet. A good Chinese poem, should deploy ‘all the necessary language, moving through “alternation and variation”, “turns and detours”, “expansions and retractions”, to reach “the perfect expression of meaning”’ (Jullien, 1995: 143).


The same concept can be found in Chinese traditional medicine. Western medicine lays stress on ‘the impersonal, excessively lesion-cen-tred and nihilistic’ tendencies of biomedical therapy, which is concerned with micro-organisms or details of the body’s organs and tissues, while Chinese traditional medicine, on the contrary, lays emphasis ‘rather in its sophisticated analysis of how functions are related on many levels, from the vital processes of the body to the emotions to the natural and social environment of the patient, always with therapy in mind’ (Sivin, 1990: 183, 186); it understands the human body as a many-levelled, dynamic system that is ceaselessly interacting with the outside environment and treats illness holistically.

Using a metaphor to summarize the above discussion: China is a longevous man who has never been young, as he always carries the past, but he seems he could live forever, because he continually renews himself. For him, the past, the present and the future are interconnected, even indistinguishable. Nothing is predetermined and fixed, but is in the endless flux. His life vitality comes from his fuzzy and multivalent thinking – numerous possibilities exist, so his mind cannot be utterly fettered and cannot be easily defeated, therefore he always has hope and confidence to survive any suffering. He is seemingly weak but mentally strong; he is seemingly naive but actually profound and powerful.

Indirect and long-term thinking 13

Over a century ago, American missionary Arthur Smith used a whole chapter of his book, Chinese Characteristics , to describe the talent of being indirect of Chinese:

We shall lay no stress upon the redundancy of honorific terms in all Asiatic languages, some of which in this respect are indefinitely more elaborate than the Chinese. Neither do we emphasis the use of circumlocutions, periphrases, and what may be termed aliases, to express ideas which are perfectly simple, but which no one wishes to express with simplicity. (Smith, 1897: 65)

In contrast, he pointed out that going directly to the marrow of a subject is what Anglo-Saxons pride themselves in – they say what they mean. According to Jullien (2000), indirectness (or using Jullien’s term ‘detour’) is a special propensity of the Chinese way of expression and a feature of Chinese traditional thinking. Indirectness can be found in the oblique attack recommended by ancient Chinese military treatises (Xu and Shi , Qi and Zheng 14 ); the technique of using circumlocution,


hints in politics; the set of associative implications of a sentence in addi-tion to its literal sense, is often used in traditional literature; the essence of shadowboxing (Tai Ji ) and the game of ‘I-go’ and those habitual expression full of connotation and euphemism in people’s everyday lives. All of these are the ‘Chinese talent for the indirect ’, and are applied by Chinese people in their daily lives but rarely are noticed by them.

Jullien (2000) reviews this indirectness from three levels. Firstly, indirect-ness can be used as a strategy. Taking Chinese ancient military strategy as an example, one of the basic principles of ancient Chinese military treatises is to insist in avoiding direct confrontation with an armed enemy. Ancient Chinese had an innate aversion to direct confrontation and engagement, as any dramatic and heroic intervention is ‘unavoidably intrusive and inevi-tably provokes elements of resistance or reticence that undermine its effi-cacy’ (Chia, forthcoming). The whole art of war is to deprive the enemies’ ability to defend themselves and to undermine them from within, even before the confrontation can take place. In the heart of ancient Chinese strategy, there are two important notions: on the one hand, the notion of a situation or configuration ( xing ), as it develops and takes shape before our eyes (as a relation of forces); on the other hand, the notion of poten-tial ( shi ), which is implied by that situation and can be made to play in one’s favour. The potentiality includes three interconnected aspects: moral potential, topographical potential and the potential through ‘adaptation’. This potential energy within the situation should not be limited to the terrain of military operations. By utilizing the potentiality, ‘with very little effort’ one can produce ‘great effects’ (Jullien, 2004a: 18–19).

Unlike its Western counterpart, which emphasizes setting up a goal, obeying a pre-set strategy and plan throughout the war and confronting enemy forthrightly, for Chinese, the emphasis is on harmonizing the army’s actions with the internal ‘propensity of things’ and ‘going with the flow’ of events (Chia, forthcoming). To a good Chinese general, if any operation is to be undertaken before engaging in the battle, it must be an operation of evaluation or assessment of the environment and the situa-tion and the military strength of both of their own army and their enemy rather than detailed and fixed planning; this also avoids the inevitable inferiority ascribed to practice as opposed to theory. It is important to figure out the situation of both sides, as the weakness of the enemy will be the potential one can earn benefit from: ‘One would not lose a battle if one knows the military situation of both sides’. 15 The best potential energy of the situation of an impending battle is when the meteorological conditions, topographical conditions, the morale of the army and the command of the general are in perfect match ( ).


Warfare is regarded as an act from the Western perspective: ‘the act of war’ (Jullien, 2004a). It means only action, so an engagement makes it possible to obtain true efficacy; and the ‘direct efficacy’ makes the intended effect attainable. But the Chinese treatise on warfare stands for the exact opposite. ‘To carry on hundred victories for every hundred battles is not an end in itself, whereas to subjugate the enemy without having engaged in combat is the height of excellence’ (Sunzi-mougong) 16 . Furthermore, according to Sunzi (Sun Tzu), the most economical way to win is not only to capture the enemy’s country intact, but also to keep one’s own troops intact. 17 The most brilliant strategy is to attack the enemy through stratagems, rather than through physical force. The classic Thirty-six Stratagems ( ) states that especially when in an inferior position, the first requirement is to keep one’s resources undam-aged by avoiding direct confrontation (Faure and Ding, 2003: 86). From another perspective, Westerners view war as ‘the sum of the moments of action’ (Jullien, 2004a: 50), which means that any elapse of time during a engagement can divert the conflict and dilute its essence, for it is very possible that due to the changeable situation, the supposed action may turn to inaction; meanwhile, the Chinese emphasize the progressive duration of a transformation in the course of which the potential of the situation accumulates. So, for Chinese, time brings about not a ‘dilu-tion’, but ‘maturity’. This kind of indirect efficacy requires a long time, and a slow time, in order to await the mature situation.

A Chinese literary classic, the Romance of the Three Kingdoms ( ), is full of military stratagems and plots, which are demonstrated to

be the key to winning battles, wars and power struggles ( liu , 2009: 62). For example, the story of ‘to borrow arrows by thatched boats’ (

) 18 expresses the idea of getting one’s needs by utilizing the poten-tial of the situation (the weather and the enemy’s military strength); ‘borrow the southeaster’ ( ) 19 is about defeating the enemy with very little effort using the potential of the weather and stratagem rather than directly attacking; and the ‘empty-city stratagem’ ( ) 20 is about presenting a bold front to conceal a weak defence, which termi-nates the battle without fighting. There are also many old sayings about devious tactics: ‘Kill with a borrowed knife’ ( ); ‘conceal one’s dagger behind a smile; hide a needle under the cotton’ ( ;

); ‘beat the grass to startle the snake’ ( ); ‘to catch someone, first let him/her go’ ( ), ‘make a feint in the East but attack in the West’ ( ) and so on.

Secondly, indirectness can be seen as a powerful way of expressing one’s idea. Chinese culture is a high-context culture (Hall, 1976). Low-context


cultures, such as that of the United States, use explicit, direct language, whereas high-context cultures, such as China’s, prefer implicit, indi-rect language in which words and phrases derive their meanings from contextual clues. Therefore, nonverbal communication is quite impor-tant in a conversation with the Chinese: they may say little to others but rather ‘question, and expect others to understand their meaning from their hints and gestures’ (Ma, 2006: 70).

According to Jullien (2000), the ancient Chinese people believed that the most effective way to express oneself was not through a direct and open statement, but in an insinuating and influential way. When one analyses the indirect way of expression of the ancient Chinese people, it is necessary to understand the reason why people tended to express themselves in an oblique way. The harsh political environment in ancient China made authors and speakers seek to veil with imagery and express themselves euphemistically to avoid being too obvious or flattering, and thereby reduce the possibility of saying anything offensive or critical, which might endanger them. So in ancient China, poetic expression was always recommended for the people who could not express themselves openly and dare not confront the authorities head-on; only the ambi-guity of the image allowed people to protect themselves.

Actually, like the wind’s power, the richness of indirect communication was considered inexhaustible. The Chinese insinuative word has discrete influence, which is endless penetration – like the wind’s ceaseless haunting of the world. This is a type of poetic speech which influences its recipients discreetly, moves them, and penetrates them all the more deeply by working indirectly; instead of imposing itself on them; it insinuates itself gently. And because this kind of expression offers no definition, no explicit meaning and even no fixed content, it cannot encounter any resistance. Thus it can invade one’s consciousness gener-ally and continuously and more effectively. By packing more meaning into words than the vehicle can carry, there can be no interpretation that exhausts all the ideas contained in the words (Hou, 1983: 61).

Qu Yuan ( ) (342–277 BCE), the writer of Encountering Sorrow ( ), which is China’s first long poem, mixed biography with his feelings,

opinions and flights of imagination. He complained in the poem that he had been banished from court and suffered from treachery. He lamented his alienation from his lord not by voicing it outright, but by identifying his experience with that of ‘a beautiful woman falling out of favour and of fragrant flowers being thrust in the midst of odorous weeds and thorns’ (Hou, 1983: 61). In the last stanza of Wang Changling’s ( ) poem, ‘ Cong Jun Xing ’ ( ), it is written, ‘The moon in the autumn sheds


light on the Great Wall’ ( ). This simple sentence offers a spectacular but doleful scene to express feelings of nostalgia. Moreover, it also indirectly expresses the author’s wish to ease the suffering of the soldiers in a ceaseless war. Another example is Li Shangyin’s ( ) ‘No Title’ ( ):

The English translation is provided by the present author:

It is hard for us to meet and difficult to tear apart, Powerless lingers the eastern wind as all the flowers fading away. The spring silkworm ends its spinning only when it dies, The candle sheds no tears only when it dries. Facing the mirror in the morning, my grey hair depresses me, Shivering under the moonlight, he should feel cold like me. Attractive is the fairy land, but no ways even to see. May a blue bird bring a message for me.

This is a famous love poem. Although there is almost no explicit word mentioning love, it tactfully expresses the endless yearning and the painful persistence of a woman. By comparing this to a silkworm, which stops producing silk when it dies and candle which stops shed-ding tears when it dries, the author expresses the woman’s incessant, yearning desire – her love will never end until she dies. The deepest love is depicted by the poet’s implicit and euphemistic words. The Chinese expression tends to minimize the explicit literal meaning and leaves more room for the reader to imagine (Wu, 1969: 433). As Jullien writes: ‘[T]o be effective, words must remain inchoate, must merely begin to say; their richness comes from their implicitness’ (2000: 200).

Thirdly, indirectness can be seen as wisdom. ‘Philosophy’ in Greek literally means ‘love of wisdom’, and the wisdom here refers to the ‘Truth’. The history of Western philosophy is the history of seeking the ‘Truth’. According to Jullien (2000), Chinese thinking also seeks for wisdom, but differently from Western philosophy, Chinese wisdom is not with an eye towards truth, but the regulation of conduct – which makes the regulation of the world possible – it need be not truthful, but effective.


As Confucius’ Analects ... this wisdom never sought to define general ideas, even on a moral level. It constructs nothing theoretically ... . Its intention is not to direct our behaviour from the outside, by shaping it to the teachings of a doctrine, but to favour its adaptation in rela-tion to a circumstance. (Jullien, 2000: 195, author’s emphasis)

Instead of dwelling on abstract ideas, Confucius sought to understand the actual situation of a given time and use this understanding as a point of departure to transform society into a moral community (Tu, 1990: 116). Confucius made it clear that all he really excelled in was just ‘love of learning’ 21 ( The Analects , 5.28), and he was not a philosopher who had already seen the truth, but a traveller on the way to self- realization (Tu, 1990: 116). For Confucius, the primary function of education was to train gentlemen (Junzi ) through a proper process, which involved constant self-improvement and continuous social interaction. The Master believed that the gentleman is not the man who just says what he thinks, but the man who does what he says, and his concern is not only that speech should reflect consciousness but also that it should not be contradicted by acts 22 ( The Analects , 2.13).

Therefore, ancient Chinese wisdom is not conceived through abstract ideas; rather, it emerges in a diffuse, all-embracing fashion, starting from the slightest aspect of the Sage’s personality. Although there are analects between Confucius and his disciples, all Confucian teachings are based on the principle of the Confucius’s minimal intervention – for example, his teaching through silence ( ), as we mentioned earlier in this chapter. However, not that he wants to enclose himself in the silence of mystics and worship the ineffable: he speaks as little as possible out of pedagogical concern in order to allow one to discover wisdom by oneself. ‘The ideal of Confucian speech is not to promote dialogue (by a direct confrontation of consciousness) but to imitate nature’s indirect manner of operation: it is comparable to the “rain falling,” which, without anyone noticing how, makes everything “grow”’ (Jullien, 2000: 202). The Master speaks less than he indicates; he does not deliver a message but rather draws attention and stimulates people to reflection.

So the ancient Chinese believed it was wise not to make the objective of one’s speech clear, but through an indirect way, and using the fewest words, to enable others to understand. In contrast, the form of anec-dotes remained minor in European literature. Westerners expect truth not from them but from ‘revelation’ or from theoretical discourse. What is more, unlike Western philosophical tradition, which seeks for fixed


principles and rules, the Confucian (also Taoist and Buddhist) under-values any specific viewpoint or idea, as it may lead to deviation, which can produce propensity and then cause people to sink into a particular orientation, which renders them incomplete and obstructs their ability to evolve. By not privileging anything in advance and by refusing all prejudice, one is able to give free rein to the power of immanence and identify oneself. ‘Confucius does not pose the problem of definition because he is not seeking to extract a stable – and therefore ideal – entity, separable from becoming: he does not inquire into the essence of things because he conceives the real not in terms of being but as a process’ (Jullien, 2000: 228).

This kind of wisdom, which Chinese sages always sought, is the golden doctrine – Doctrine of the Mean ( Zhongyong ). It is such a situation in which every proposition and viewpoint can coexist without any bias and prejudice. It is the original status of thinking before philosophy differ-entiates from it. Western philosophy chases the truth forward, while Chinese wisdom emphasize the ‘return’, which means that the ‘way’ is a process, and everything has to return to its original status. In Tao Te Ching (chapter 16), Laozi says, ‘emptiness is the ultimate wisdom’; ‘myriad things occur simultaneously and I thereby observe their return’. 23 Dao is embedded in the process of always returning to the origin or source of change, and ‘to return to the root is quietude’. 24 Therefore, in China, a sage believes that every proposition has its limits and shortcomings, so he should always maintain an attitude to ‘return’ to a neutral and plain position, which has infinite potential. The one who has this ‘mean’ (or median) attitude could see everything as it is, without illusion and precon-ception, and thus get rid of any burdens by one’s knowledge and experi-ence. So there is no absolute right or wrong, good or evil in this neutral state; one can be free from learned labels and any fixed definitions.

When there are no stirrings of pleasure, anger, sorrow or joy, the mind is in the state of equilibrium; when those feelings have been stirred, when they are in the neutral degree, they are in the state of harmony. The equilibrium is the great root from which grow all the creatures in the universe, and the harmony is the fulfilment of the Dao of the society. If the states of equilibrium and harmony are both attained, the heaven and earth will be in perfect order, and all things will be nourished and flourish. (Liji, Zhong Yong) 25

This is the ideal of grand harmony in Confucianism: non-extreme is the foundation of the world and if human beings follow through the


cultivation of Zhongyong , they will become gentlemen and the world will be harmonized so that the Dao will be prevalent (Li, 2004: 177). Although Aristotle also raised the conception of the ‘mean’, it is different with the Confucian ideal. The Aristotelian ‘mean’ is uniquely moral in nature, which only relates to the realm of actions and emotions, and through rationality and knowledge this kind of ‘mean’ can be acquired (Chen, 2005; Chen, 2006; Yu, 2003). The Aristotelian ‘mean’ seeks for the equality of human beings so as to obtain the real morality. Compared to the Aristotelian ‘mean’, the Confucian ideal has broader meaning. To the Confucian, ‘mean’ is based on the perception of the fundamental neutrality of all nature. The Confucian ideal tries to reach the harmony of the whole world, which means heaven, Earth and human all in their proper place, nothing ever to go to an extreme and to keep in harmonious balance.

Conclusion

History is considered as the bridge connecting the past to the present and is used as a mirror to see into the future, so it is impossible to fully understand China without looking at what has happened over the past four thousand years. History has always tended to have a great impact on how people think and behave. After a brief outline of ancient Chinese history, this chapter elaborates the three features of Chinese traditional thinking: holistic and naïve , fuzzy and processual ; indirect and long-term .

These differ from most of the Western philosophers who endeavoured to pursue the universal law and the absolute truth within the world. The Chinese are concerned with holistic and plurivalent phenomena. While Western thinking is foundationalist, characterized by Aristotelian binary logic, Chinese traditional thinking emphasizes holistic harmony, simplicity and dialectic change. Due to the Western desire for fixity, universality and certainty, the eternal, absolute and unchanging are viewed as the essential features of the ultimate reality. In contrast, the Chinese fuzzy and proces-sual thinking lays stress on the mutability, temporality, manifold possi-bilities and the everlasting changing experience of realization. Indirect thinking can be used not only as a military strategy and as a powerful way of expression, it is true wisdom for the Chinese to fit into the actual situ-ation effectively, artistically and safely. Finally, the Chinese holistic , fuzzy and processual thinking takes every bit of experience as the node of the whole life chain, together with the indirect and reserved living wisdom to account for the long-term orientation.

119

Introduction

The last chapter briefly introduced Chinese history and analysed the features of ancient Chinese thinking from three perspectives: holistic and naive thinking, fuzzy and processual thinking, and indirect and long-term thinking, by comparing these with Western abstract and scien-tific thinking; binary and static thinking; and direct and short-term thinking. Chinese traditional thinking continues to provide a moral, intellectual and social nexus for the Chinese psyche which, even ten years of the Cultural Revolution was unable to exorcise (Cheng, 1986). Chinese traditional thinking is revealed and preserved through a set of core values which underlie social interactions among Chinese people. We will extract five key themes in this chapter which depict core aspects of Chinese values that are derived from the traditional Chinese way of thinking. These values are: He ( harmony); Zhongyong ( the Doctrine of Mean); hierarchy, seniority and loyalty ( ); Guanxi and Renqing ( ); and Face ( Mianzi and Lian ).

As one of the most significant values, He (Harmony), which empha-sizes both the harmony within human society and harmony between human beings and nature, is derived from holistic and na ï ve thinking, which seeks for holistic harmony and simplicity in equilibrium. Zhongyong originated from fuzzy, holistic, processual and indirect thinking. It refers to a status in which every proposition and viewpoint can coexist with no bias and prejudice, so it is neutral, plain, unfixed and indirect and, consequently, it has unlimited potential and power. Holistic and long-term thinking generates hierarchy, seniority and loyalty, because long-term interpersonal harmony and social relationship harmony can, in reality, be largely accomplished through following the rules of

5 Chinese Traditional Values – Implication for HRM in China


the social order. In ancient Chinese society, hierarchy, veneration of the old and loyalty to superiors were highly stressed ritual proprieties. Hierarchy, seniority and loyalty exhibit the strong sense of vertical order in Chinese people’s behaviour and attitude, and through this vertical relationship, people can be defined and identified by their social roles and corresponding obligations. Guanxi and Renqing reflect the horizontal relationship, and they come from fuzzy , holistic , and long-term thinking. The Chinese ethical judgment system is largely based on accessible rela-tionship rules rather than binary, fixed and abstract terms or any distant religious ideal. What guides people’s exchange behaviours and ensures long-term mutual personal inter-dependence in China are Guanxi and Renqing , which emphasize reciprocal obligation and mutual assurance. Face ( Mianzi and Lian ) is derived from holistic and indirect thinking. Face only can be acquired or lost in social interactions, and one’s face is not an individual and private issue but is closely associated with the entire face (honour and reputation) of one’s group members. To save face of both sides and avoid direct conflict, one of the most effective ways is to employ indirect and subtle forms of communication.

These five key values are selected because in the relations of Chinese organizations, they fundamentally affect social interaction within organ-izations; they differ from other values, notably Western ones, although the differences may be less in other Asian countries; they have persisted over time. 1 We will also further explore the implications of these values for HRM in China.

He (harmony 和 ) and collectivism

He (harmony 和 )

He (harmony) has long been valued in Chinese culture, and the emphasis on harmonious society has been recognized as one of the most signifi-cant characteristics of Chinese culture (Hwang, 1987). Looking at the more than four thousand years of history of China, it becomes apparent that the word, He is not a freshly coined a piece of political jargon, but a philosophical tradition. He in Chinese refers both to the harmony between human beings and nature and the harmony within human society, and it is a highly desirable state in life.

The character He ( ) comes from two sources: one from an ancient musical instrument ‘ ’, another from the ancient wine utensil . ‘[F]rom the musical instrument that produces various sounds comes the meaning of mingling various sounds; from the utensil that mixes wine with water comes the meaning of mixing different flavours’

Chinese Traditional Values – Implication for HRM in China 121

(Li, 2008: 84). Both sources of meaning are reflected explicitly by ancient Chinese scholars. In ‘ Guo Yu ’ ( ), Shi Bo ( ), who is a scholar of the West Zhou period, praised early sage kings who harmonized the five flavours to satisfy the taste and the six measures of sounds to befit the ear, and so they achieved the highest level of harmony of society. 2 In ‘ Chun Qiu Zhuo Zhuan ’ ( ), Yan Ying ( ), a scholar of the Spring and Autumn Period, understood that harmony is like making soup, where the cook needs to mix the ingredients in order to balance the taste. He needs to compensate for deficiencies and to reduce excessiveness. The gentleman eats such food to achieve a balanced mind. Sounds are like flavours, different elements competing with each other: the pure and the impure, the big and the small, the short and the long, the fast and the slow, the sorrowful and the joyful, the strong and the tender, the slow and the quick, the high and the low, the in and the out and the inclusive and the non-inclusive. The gentleman listens to such music to balance his mind. 3 Here, harmony is not just a mixture of sounds or flavours, it is the state when various flavours are mixed to enrich one another, and when different sounds are mixed to complement each other – it is a state of mutually complementing and reinforcing.

Harmony is given the utmost importance in Confucian philos-ophy (Cheng, 2006; Li, 2008, Lun and Bond, 2006; Ip, 2009). For the Confucian, harmony is the basic state and underlying structure of reality. The world, according to Yi Zhuan ( ) and Neo-Confucian writings, is in a process of change and development. ‘Notwithstanding that there may appear variation, difference, divergence, tension, oppo-sition, and antagonism in the world, the Confucian insists that the overall tendency of cosmic and social processes as well as individual life is conducive to unity and harmony’ (Cheng, 2006: 28). As stated in Zhong Yong ( ), the Confucian goal is to achieve harmony so that Heaven and Earth maintain their appropriate positions and the myriad things flourish ( Thirteen Classics with Commentaries , 1985: 1625). The way of Zhongyong (the Mean) is the way of harmony (Li, 2004), as we mentioned in the previous chapter. When an individual reaches the state of Zhongyong , he realizes the Dao of the world and he thus a gentleman (Junzi ) and achieves the harmony (the harmony in himself or between him and the environment). It is believed that one is capable of achieving this harmonization through self-cultivation.

The sage is like the Heaven and Earth and he therefore does not deviate from the natural ... [;] he does not go to the extreme. He comprehends all things and yet does not indulge himself. (Cheng, 2006: 30)


Harmony can be achieved when the individual and nature are in oneness, as Cheng Hao ( , 1032–1086), a Song Neo-Confucian thinker, stated: ‘[T]he benevolent person innately forms one body with all things’, 4 and Wang Yangming ( , 1472–1529), a Ming Neo-Confucian thinker, proposed that ‘the great person forms his body combined with Heaven, Earth and all things together’. 5 In the Analects , the Master says, ‘In the application of the rituals, harmony is the most valuable. Of the way of former kings, this is the most beautiful part’ 6 ( Analects , 1.12). The gentleman not only should practice the Confucian five Constant virtues: benevolence ( ren ), righteousness ( yi ), ritualized propriety ( li ), wisdom ( zhi ) and sincerity ( xin ), but also more importantly he should apply them harmoniously to suit specific circumstances that lead to ultimate virtue (Li, 2008: 87).

Harmony is also an important concept in Daoism. It is stated in the Dao Te Ching that ‘all creatures carry yin and embrace yang , and achieve harmony through the dynamic Qi (energy )’. 7 The interpenetration and inter-transformation of the yin and the yang is the essential function of the Dao in the Daoist metaphysics of harmony. In the Zhuangzi (

), harmony also appears frequently, and it is closely associated with the concept of Wu Wei ( ), or non-action, effortless action. Wu Wei here does not mean doing nothing, but it means to ‘take a path that harmonizes with the world’ (Li, 2006: 88). It is an action which follows the Dao to stay in harmony. In chapter ‘ Xu Wugui ’ of the Zhuangzi , sage Xu Wugui ( ) says, ‘[T]he great people love to harmonize with things and hate to keep to themselves’. 8 The chapter ‘ Tian Dao ’ ( ) of Zhuangzi states that

understanding the virtue of heaven and earth is the most fundamental understanding. People with this understanding can harmonize with heaven. Those who can equalize and reconcile with the world can harmonize with people. Harmonizing with people is human happi-ness[;] harmonizing with heaven is heavenly happiness. 9

Therefore the harmony in Taoism means to selflessly accord with the world and follows the Dao of the world.

In comparison, Confucian harmony is more likely to be generated within society, although harmonizing with the world is also included in the Confucian ideal; while Daoist harmony is primarily about the relationship between humanity and the natural world. Moreover, Confucians are more proactive than Daoists to promote harmony; whereas Confucians advocate achieving harmonization through self-


cultivation, Daoists, especially Zhuangzi , prefer Wu Wei . As Li (2006: 89) points out, ‘the thrust of Confucianism is to harmonize the world; the thrust of Daoism is to harmonize with the world’.

According to Li (2006), the notion of harmony had also been explored by the ancient Greek philosophers such as Pythagoras (582–507 BCE) and Plato. For Pythagoras, harmony is a system of numbers linked by ratios; numbers are the ultimate reality of things that embody them; harmony exists in ratios of simple whole numbers (Gozza, 2000: 2). The Pythagorean tradition looked at music as a proof of harmony and order in a universe which obeys mathematical laws (Caleon and Ramanathan, 2008), but unlike their Chinese counterpart, for whom understanding of harmony focuses on a dynamic and unlimited relationship in which various elements are interacting and balancing each other, the Pythagorean understanding of harmony is rigidly structured in a linear sequential pattern as in the musical model, and ‘thus was the principle of harmony revealed as an unseen and unheard principle of order and concord, identical with a system of numbers bound together by inter-locking ratios ... [;] the system, moreover, is limited ... [;] it is confined within an order, a cosmos , by the imposition of Limit or Measure’ (Cornford, 1922: 144–145). In The Republic , Plato states that the char-acteristic function of the soul is to manage, rule and deliberate, and its virtue is to perform these functions in a just or noble way. Morality is the state when the soul is doing successfully what it is supposed to do and immorality the opposite (Seeskin, 2008: 488). Plato divided the soul into three parts: appetite (the source of hunger, thirst and lust), spirit (the source of anger), and reason (the source of critical thought). For him, justice in a person lies in the harmony of the three elements of the soul: when these three are rightly tuned in consonance, the man is just and virtuous (Cornford, 1922: 147). Plato’s understanding of harmony is not egalitarian, which means the three elements of the soul are supposed to function together in equal proportion; rather, harmony is a hierarchical condition in which these parts exist in a natural relation of ruling and being ruled, as one part is by nature superior to others (Seeskin, 2008: 488–489). Thus, this is a structured harmony, with reason in control, assisted by the spirit, and appetites in check. The fundamental difference between Confucian and Daoist harmony and Platonic harmony is that the harmony of the former is without a pre-set order, and it is unlimited. Harmonization is continuous; it is generated from a forever-changing, elusive and dynamic Dao, while the latter, similar with Pythagorean harmony, believes that harmony is to conform to a pre-set, rational and fixed order imposed onto the world from outside (Li, 2006: 96), as it is


described by the Pythagorean Timaeus in Plato (Cornford, 1922: 150): ‘[T]hat very harmony which is manifest to sense in the order of the heavenly bodies and is to be reproduced in the attunement of the indi-vidual soul’.

Although both Confucianism and Daoism stress harmony, in real practice, Confucian harmony is more prevalent in China (Antoniou and Whiteman, 1998; Chen, 2001, 2002; Chen and Chung, 1994; Chen and Starosta, 1996; Hwang, 1987, 1997, 1998; Kirkbride, Tang and Westwood, 1991; Knuston, Hwang and Deng, 2000). Confucian harmony is ‘the basic and overlapping goal of familial, organizational, communal, and political lives’ (Ip, 2009: 466), and it can be achieved by practicing the Confucian five Constant virtues: benevolence ( ren ), righteousness ( yi ), ritualized propriety ( li ), wisdom ( zhi ) and sincerity ( xin ). The concept of ‘state’ to the Chinese is an enormous but united group, which essentially means the ‘super-family’ of Chinese people, while it is an abstract, universal or absolute idea for Westerners (Redding, 1990: 44). The maintenance of order within Confucian structure was based on the morally enriched prescription for relationships, and individuals find meaning and dignity in the maintenance of harmony in their social context. Families treat their members virtuously to produce harmony in the family; if kings and governors practice these virtues and imple-ment virtue-driven policies to create harmonious relationships in society, thus achieve harmonious governance; by undertaking virtuous policies between states, a harmonious inter-state environment that is conducive to prosperity and peace for all humanity can be achieved. Moreover, to achieve harmony, one should not only cultivate and practice these virtues in order to build consonant relationships with others, one must also possess a holistic view that places the harmony of society, commu-nity, and family ahead of one’s own benefit, as personal harmony only can be achieved through broader harmony. In other words, one should subordinate one’s own interests and goals to the goals and interests of family, group and country. There are no individual interests independent of, or separate from, the broader interests, and both should be in good alignment with each other to achieve and maintain harmony. ‘Individual well-being are to be fulfilled only through the fulfilment of well-being of the family and group to which he or she belongs’ (Ip, 2009: 468).

The generic principle of relationality is central to understanding holistic harmony (Lowe, 2003). There is a Chinese idiom: ‘No egg is unbroken when a nest is overturned ( )’. It refers to a story that when Kongrong ( ), a Mandarin of the Three Kingdom period, was arrested because of his disapproval of Caocao ( ), he pleaded


with the wardens not to arrest his two young sons. But one of his sons insisted on being taken, saying, ‘No egg is unbroken when a nest is over-turned’. From the story we can see that family is an indivisible unity the value of which is much greater than the sum of its parts. Family is the basic unit of society, and the good arising from the emphasis on familial relations will extend to the whole society (Chan, 2008: 355). Therefore, Chinese culture societies, including mainland China, Hong Kong, Taiwan and some other Asian countries, have frequently been described as ‘collectivist’ (Hofstede, 1980, 1985, 2001a; Bond and Hwang, 1986; Westwood and Everett, 1987; Yang, 1981), which is often contrasted with the individualism or egocentrism that represent the characteristics of Anglo–American culture (Hofstede, 1980, 2001). The stress of collec-tivism is, rather than on the interest of individual, on the maintenance of the collectivity and the continuation of harmonious relationships of members within it.

He and Chinese organization

As we have discussed in Chapter 3, human resource management prac-tices are culture specific, and individualistic cultures and collectivistic cultures encourage and endorse different HRM practices (Bernardin and Russell, 1993; Gomez-Mejia and Welbourne, 1991; Hofstede, 1984, 2001; Ramamoorthy and Carroll, 1998). In contrast with individualist culture – which lays stress on formal job design, individual achievement, competi-tiveness and merit-based hiring and promotion – the collectivist culture emphasizes group achievement, group harmonization, cooperative behav-iours, informal appraisals and situational HRM strategies. In a collectivist entity, to achieve and maintain harmony, an individual is expected to give up his/her individual needs in favour of the group needs when the individual and group needs are in conflict. Rather than harmony, the proximate value orientations of Western ideology are based upon notions of equality, egalitarianism and consensus (Westwood, 1997: 459).

In employee selection practices, the use of cognitive ability tests is more prevalent in individualist countries (Bernardin and Russell, 1993). The aim of this selection test is to measure the ability of the individual to see if he/she could perform well on the job, and these selection prac-tices ‘emphasize individual rights, individual interests and job compat-ibility as the sole criteria of selection’ (Ramamoorthy and Carroll, 1998: 573). On the contrary, the scores of IQ tests and the ability to perform the job are not the sole criterions in selection in a collectivist entity. Organizations are considered as extended families, and harmony of the organization is emphasized as a central value, as Gomez-Mejia and


Welbourne (1991) indicate: the employees’ loyalty, lower employee turnover and compatibility with the organization are more valued in a collectivist organization. In performance appraisal practices, individualist culture emphasizes the formal performance appraisal system whereas collectivist culture tends to apply an informal one, which may not serve any useful need except as a routine organizational ritual (Ramamoorthy and Carroll, 1998). In general, in Chinese organizations, owing to inter-personal ties, one may overlook any significant mistakes of his/her supervisor or other group members in order to maintain a harmonious relationship. Additionally, based on the value of harmony, employees usually follow their superior’s instructions without any criticism, and junior employees rarely raise any objections to senior employees (Liu, 2009). In reward system practices, individualism emphasizes a pay-for performance relationship and monetary success, while a collectivist-oriented system, with its focus on the group and group harmony, is associated more with a preference for group rewards which are based on hierarchical status, seniority or loyalty, and on a long-term employ-ment relationship which is based on moral commitment (Gomez-Mejia and Welbourne, 1991; Ramamoorthy and Carroll, 1998). In the past, especially before the economic reform in 1978, because of the tradi-tion of harmony, great differentiation among Chinese employees was discouraged, and therefore this affected performance management and career development. Warner (2008: 792) states that despite the Chinese economic reforms, it is difficult for many organizations to completely change their old practices over a short time.

Zhong Yong (中庸中庸)

Zhongyong , the doctrine of mean

Zhongyong is a more practical value that is closely related to harmony, occupying a pivotal place in Chinese thinking, and it represents all the features of Chinese holistic, indirect, processual and fuzzy thinking. For the Chinese, harmony becomes the ontological foundation by which they regulate the transforming cyclic and everlasting process of human communication, and it dictates that human interaction is a dynamic process within which the interactants continuously adapt and adjust themselves towards cooperation and inter-dependence (Chen, 2002). Chen and Chung (1994) state that the ultimate goal of Chinese commu-nication is to pursue a conflict-free interpersonal and social relationship, and the ability to reach a harmonious relationship with others becomes


one of the main criteria to evaluate a Chinese person’s virtue and compe-tence. As we mentioned in the previous chapter, to the Confucian the ultimate way to achieve the state of harmony is through Zhongyong . Zhongyong provides a concentrated, elaborate and practical philosoph-ical exposition of harmony for Confucianism. Zisi ( ), Confucius’s grandson, compiled the book, Zhong Yong , or Doctrine of the Mean , which has become one of the four Confucian classics 10 and has had a major influence on Chinese people since the Song Dynasty.

Zhongyong suggests the fundamental Confucian idea of balance, moderation and appropriateness (Li, 2004; Liu, 2009). The first character zhong ( ) means the ‘middle’ ‘centrality’ or ‘impartial’, and the second character yong ( ) means ‘application’, ‘commonplace’, ‘mediocrity’ or ‘persistent’. In Zheng Xuan’s ( 127–200) commentary on the ‘ Zhong Yong ’ chapter of the Li Ji ( The Book of Rite ), he interpreted yong as application. So Zhongyong is the application of zhong – ‘the practical application of centrality’. Zhu Xi ( 1130–1200), a Song Neo-Confucian scholar, interpreted yong as the ‘ordinary and common’, so Zhongyong accordingly means the ‘central, common and non-ex-treme’. Zheng Xuan noted in his commentary on Zhou Li ( ) that ‘ yong has constancy’ ( ) ( Thirteen Classics : 787) and the Wei ( ) scholar He Yan ( 193–249) stated that ‘ yong means constant. Central harmony is the virtue that can be constantly practiced’ (

) ( Thirteen Classics : 2479). So Zhongyong also means ‘centrality persistence’.

To achieve Zhongyong one should adjust his/her action to be appropriate to the specific time and situation. One of the differences of a gentleman ( Junzi ) and a petty man ( Xiaoren ), according to Confucius, lies in that a gentleman practices well-timed centrality while the petty man has no concern for others and the world, and he is biased toward extremes. 11 Thus, practicing Zhongyong is to avoid extremes and one should appro-priately regard the timing and situation. Furthermore, rather than simply taking a fixed, absolute middle way all the time, it is a dynamic exercise; it is an integration of all kinds of strengths into a harmonious interac-tion (Li, 2004: 184). As Confucius says, ‘The gentleman is harmonious but not conformable; the petty man is conformable but not harmo-nious’. Confucian harmony is not merely to go along with the flow without contention; it is not about unprincipled compromise; rather, it stresses timely and appropriate actions; the true harmony is in his heart. Zhongyong is of such a high standard of moral virtue that it is difficult to reach for the common people; as Confucius says, ‘[T]he constant mean as a moral virtue is sublime indeed. It has been rare among the common


people for quite a long time’. 12 One could get close to Zhongyong through developing moral virtues continuously. However, the goal of Confucians is not just holding the centrality itself, but harmony. Confucius praises the sage king Shun ( ) for his practice of ‘holding the two ends and applying the middle way to his people’, 13 which means avoiding extremes, Shun treated the people in an appropriate central way, then reached the Zhongyong and consequent harmony.

The ideal of Zhongyong can never be overstated in Chinese way of life; no matter if social, political or personal, all have been profoundly influenced by this mentality for over two millennia (Liu, 2009: 52), and even the Chinese people called their own country the ‘Middle Kingdom’ ( ), which is more than a geographical notion: it signifies a way of life which is holding on to the Zhongyong as their ‘Golden Doctrine’. It is believed that the principle of Zhongyong is one of the fundamental factors that has prevented China from being mired in prolonged warfare and has given Chinese civilization a remarkable continuity over the past two millennia (Bodde, 1981; Liu, 2009). The adoption of Zhongyong in dealing with social and political life is intended to avoid or maximally reduce conflict and tension; ‘[I]t often combines firmness with flex-ibility, justice with mercy and leniency with severity’ (Liu, 2009: 52). The current economic system in China is a reflection of Zhongyong , as it is a mixture of the ‘invisible hands (market system)’ and the ‘visible hands (state-control system)’, known as socialism ‘with Chinese charac-teristics’ ( ). This terminology was employed after 1979 in order to reach a balance of these two mechanisms, a middle way between them. As Warner says, ‘[It is] to reconcile what might appear to be “foreign” [even “capitalist” and therefore “non-socialist”] practices, with indigenous Chinese institutions based on Chinese values, whether traditional or communist – and even appearing to resolve the apparent contradiction’ (2008: 772).

In social life, a well-educated Chinese man should embrace moderation and restraint and repel abstract theories and logical extremes (Lin, 1936: 104). Sometimes the secular understanding of Zhongyong may deviate from what Confucians intended. Although the Confucian notion of harmony embodies disagreement and open debate (Leung et al., 2001), the secular Zhongyong is sometimes regarded as a synonym for compromise, conserv-atism and sophisticated slickness. According to Chen (2002), in order to promote the alleged harmony, individuals must subdue their emotions in public and neglect their personal desires, as showing raw emotion imme-diately threatens the principle of Zhongyong . It requires individuals to control their emotions and avoid aggressive behaviour in order to avoid


being involved in a potential conflict. Thus Chinese tend to conceal their sentiments in the process of interaction and communication, and it is believed by Chinese people that following the majority is the safe and easy way to behave in the middle way, and therefore consequently those who are aggressive, innovative, individual heroic and ambitious towards winning are depreciated and despised for ‘showing off’ at a cultural level. For example, there are many old sayings that express these ideas: ‘The fastest bird gets shot first’ ( ); ‘A big three attracts wind’ ( ); ‘It is a bad omen when one man gains fame, just as when a pig gains weight’ ( ); and ‘Contentment begets continuous happiness’ ( ). Furthermore, ‘When one is in conflict with someone else within his or her social network, the first thing one has to learn is “forbearance” … [;] [this leads to] giving up one’s personal goals, for a prior consideration of maintaining a harmonious relationships’ (Hwang, 1997–1998: 28–29). Also, there are many old sayings about avoidance, compromise and endurance with the purpose of avoiding troubles associated with conflicts; for example: ‘Lack of tolerance in small matters will destroy the whole plan’ ( ); ‘withdraw in order to advance’ ( ); and ‘endure one moment of anger, [and] you will acquire calmness and equilibrium; compromise for once, [and] you will be boundless as sea and sky’ ( ; ).

Zhongyong and Chinese organization

The principle of Zhongyong also significantly affects the Chinese management style (Liu, 2009; Redding, 1990; Zeng, 2006), such as: the manner of communication and negotiation; the relationship between employees and managers and relationship between employees; and the leadership style and so forth. We have mentioned earlier that organi-zational harmony is highly emphasized in Chinese companies. As Tse, Francis and Walls (1994) have observed, a Chinese manager is respon-sible for maintaining an effective balance between subordinate human relationships and corporate goals. The ideal state of Chinese manage-ment is to develop a harmonious and a secure working environment for employees through the process of self-cultivation and self-improvement (Chen and Chung, 1994). Zeng (2006) labels this ideal of management as ‘M theory’, which is a ‘middle way’ management per se, indicating that management is a process of achieving harmonious balance among people. He argues that middle way management must take ‘human’ as the focal point, and therefore the middle way management is also ‘humanistic management’ or ‘ethical management’. So, in management practices, the managers do not handle everything according to the rules


or policy of the organization but prefer to deal with different problems according to different situations. Zhongyong is therefore not only the ideal method of management, but it is also an ideal style of leadership: the harsh, strict and penal leadership styles are de-emphasized, while lenient, gentle and middle way styles are preferred (Liu, 2009; Zeng, 2006). According to Zeng (2006), in Chinese organizations it is much more effective to adopt middle way management principles to solve management problems than to rigidly comply with the organizational rules, and it is an art for managers to keep the balance between ‘dead’ rules and ‘live’ human beings.

Moreover, the principle of Zhongyong has both positive and negative effects on employees’ behaviour. Shao’s (2003) research shows that the negative effects exist mainly in the conservative attitude towards giving different or opposite ideas and suggestions and thus employees tend to behave in deliberately following the majority, which may handicap the development of creative thinking. From the positive perspective the Zhongyong endows employees’ consonance, self-control and modesty, which effectively maintain organizational harmony. Shao (2003) finds that the extent of Zhongyong of employees is associated with factors such as their education level, working position level and organiza-tional culture: highly educated employees are more Zhongyong than lowly educated ones; the ones in higher positions are more Zhongyong ; employees of Chinese private or local companies are more Zhongyong than those in multi-national companies or foreign companies.

Hierarchy, seniority and loyalty ( Zhong 忠)

Westwood (1997: 458) points out that there is a common error in the West, which is ‘to perceive these [Chinese] power and authority arrange-ments in isolation or in partiality and inappropriately conclude that they reflect clear inclinations and structural inducements towards sheer authoritarianism, autocracy or even despotism’; in fact, Chinese hierarchy and authority exists to meet the ultimate goal of harmony (Lin, 1936; Westwood, 1997). It is important to understand certain advantages in the Chinese vertical order, although to Westerners brought up in a more egal-itarian world this verticality might appear stifling (Redding, 1990: 61). While Westerners make a considerable effort to justify the authority struc-ture and thus equal amount of challenge could arise from below, for the Chinese the sense of hierarchy and the superior–subordinate relationship is ingrained – ‘it is an extension of a natural order’ (Redding, 1990: 61).


Hierarchy

Chinese traditional thinking, especially Confucianism, is character-istically secular and places less emphasis, in contrast with Western philosophy, upon metaphysical reality; it stresses that harmony can be achieved through this-worldly humanistic virtue. We have mentioned in the previous chapter that the Chinese are not so keen on something ‘logically correct’, but more prefer something more ‘in accord with human nature’, as Lin (1936: 106) argues in My Country and My People : ‘Logically no man should get married, but practically all men should, so Confucianism advises marriage. Logically all men should be equal, but practically all men aren’t, so Confucianism teaches the authority and obedience …’ The interpersonal harmony and social relationship harmony in reality of this-world, according to Confucianism, is largely accomplished through following the rules of proper behaviour within the status hierarchy (Westwood, 1997: 459).

For Confucianists, a person is not so much ‘an individual, the indi-visible and self-coherent and self-contained rational entity [be it the Platonic eidos , the Christian soul, the Cartesian cogito , or the Kantian noumena ], but fundamentally a “man-in-society”’ (Sungmoon, 2009: 384); and the so-called ‘liberal right’ and ‘individual freedom’ of Western liberalism is therefore lacking in any inherent, deep meaning. Liberalism is a moral and political thesis that takes liberty as the fundamental source above other values. For liberals, a person may do whatever he/she wants so long as he/she does not harm others and does not violate the rights of others. ‘What they [liberals] count as moral is non-interference or non-harming’ (Lee, 1996: 369). However, according to Confucianism, one cannot achieve inner freedom and happiness even if one has been given freedom or rights externally, not unless he/she acquires real virtue through self-cultivation. ‘For Confucius, a genuine sense of freedom can be found in a virtuous and spontaneous conformity to community norms that one believes to be worthy of following’ (ibid.) Mencius holds that the essential factor which prevents a person from being free is not external obstacles, but internal ones:

There is nothing better for the nurturing of the heart than to reduce one’s desires. When a man has but few desires, even if there is anything he fails to retain in himself, it cannot be much; but when he has a great many desires, then even if there is anything he manages to retain in himself, it cannot be much. 14


Furthermore, even if it sounds good to have equal rights for everyone, and when insistence on rights under some inappropriate circumstances, it does not necessarily help people to ‘stand up like men’, but causes people to become cold-blooded ‘rights-maniacs’ (Feinberg, 1986: 27); and on some occasions, claiming rights reveals ‘his [one’s] ungoverned rage at what he sees as a damnably insensitive, confrontational world’ (Meyer, 1989: 525). On the contrary, the society Confucians aim to build is ‘not one that is aggregated of self-interested claimers but one composed of virtuous individuals who live in harmonious relationship with other members of the community’ (Lee, 1996: 367).

Confucian thought about social hierarchy is represented by the Book of Rites ( ), which defines society not as an adversarial system based on individual rights and on contractual relations but as a community of trust based on social responsibility (Tu, 1990: 124). The unequal and hierarchical structure of Confucian society is largely reinforced by the notion of Li (Nuyen, 2001: 61), which is a pillar of Confucian ethical, social and political thought. In addition to its present-day meaning of ‘politeness’ or ‘courtesy’, in ancient China the word Li also referred to the ‘entire body of usages and customs, political and social institutions’ (Fung, 1937: 68); or, in short, Li includes all the rules for everything pertaining to human conduct: ‘The Li constitutes the warp of Heaven, the principle of Earth, and the conduct of the people’ (ibid.). Li defines the conventionally accepted style of actions, and regulates people’s words and deeds and therefore contributes in consolidating and main-taining social order and stability. It is believed that it was the continuity and regeneration of Li that make it possible for China to be ‘maintaining institutional and cultural continuity with a minimum of conscious intervention’ (Hall and Ames, 1987: 22).

Li is of significant importance to maintaining the harmonization of a society according to Confucians: ‘when practicing the ritual, what matters most is harmony’ ( Analects , 1.12). 15 The primary function of Li is to prevent human conflict, and Li is a set of formal prescriptions that delineates the negative limits of self-regarding activities (Cua, 1989: 214). The Li purports to set forth the rules and orders to regulate a human’s individual desires and interests and ultimately to promote the harmony and unity of human association in a society that is ruled by a sage king in accord with Ren (humanity, benevolence, ). As Confucius says:

[I]f you govern them (the common people) with decrees and regulate them with punishments, they will evade them, but will have no sense


of shame. If you govern them with virtue and regulate them with the Li , they will have a sense of shame and abide by the rules. 16

The reason Li is used by the Confucians as an authoritative guideline for people’s moral behaviour is that ‘it embraces accumulated wisdom of human beings from the past and present’ that appropriately regulate the individual desires that threaten the social harmony – rather than because it is a rational imperative (Sungmoon, 2009: 397).

Confucius states that the borderline between virtue and vice will be blurred if they are unmediated by the Li : ‘Deference without ritual propriety becomes lethargy; discretion without ritual propriety becomes timidity; courage without ritual propriety becomes rebelliousness; candour without ritual propriety becomes rudeness’ ( Analects , 8.2). 17 Li appears to be rigorous on the one hand, as Confucius says: ‘Do not look at anything that violates the rituals; do not listen to anything that violates the rituals; do not say anything that violates the rituals; do not do anything that violates the rituals’ ( Analects , 12.1). 18 On the other hand, Li must be self-originating and attained through self-cultivation – only through the process of practicing Li , can one achieve true freedom and harmony from inside (Sungmoon, 2009: 398). In ancient China, it was the ethical Li , rather than strict law that maintained and enforced the standards of morality and regulated human behaviour.

Li demonstrates and defines the hierarchical position and proper conduct of everyone through proper rites and ceremonies. Confucius believed that there are ‘Five Cardinal Relationships’ ( Wulun ) existing in society: father–son, ruler–subject, brother–brother, husband–wife and friend–friend. These relationships are innately of a ‘superior–subordinate hierarchical type’ (Liu, 2009: 41), and they are bounded by certain moral standards or virtues, which respectively are: filial piety, loyalty, brother-liness, love and obedience and faithfulness. Each individual derives his/her personal ethical identity from these relationships, and individuals who occupy the inferior role are obliged to be obedient to their respec-tive superiors. Also Confucians propose the so-called ‘Three Bonds’ ( ) which refers to the authority of the ruler over subject, the father over the son, and the husband over the wife. The Three Bonds are based on dominance–subservience as well, and emphasize the hierarchical relationship as an inviolable principle for maintaining social order. ‘The primary concern is not the well-being of the individual person involved in these dyadic relationships, but the particular pattern of social stability which results from these rigidly prescribed rules of conduct’


(Tu, 1998: 123). However, in Confucian texts these relationships and bonds are not by nature the harsh bondage of people, but the basic prin-ciples through which one can realize his/her self-cultivation. Each indi-vidual should recognize his/her social role and conduct himself/herself appropriately through these relationships based on Li , and if everyone performs his/her duties, recognizes his/her roles, then the society will be in harmonious order. According to Confucius, the secret of govern-ance is ‘Let a ruler act like a ruler, a minister like a minister, a father like a father and a son like a son’. 19 If a subordinate challenges the superior, and if a son defies his father, the moral fabric of the society will be damaged. Even Han Feizi ( ), the originator of the Legalists, holds the same idea: ‘The minister serves the king, the son serves the father, and the wife serves the husband. If the three are obeyed, the world will be governed in order, if violated, the world will be in chaos; these three are the constant Dao of the world’. 20

Meanwhile, these relationships are reciprocal. That means that in a hierarchical society on the one hand, the son has to be subordinate to his father, and the subject has to obey the ruler; on the other hand, the father has to be a proper father and the ruler a proper ruler (Hucker, 1975: 84–85). The ruler, father and husband should be ‘the interpreter, the executor, and the judge of the moral code’, since they assume the full responsibility for the stability and harmony of the society (Tu, 1998: 123). Although a subordinate is supposed that he/she has to demon-strate unquestioned loyalty without recourse to his/her superior, the superior should treat subordinates properly and earn their support. As Mencius says:

If the ruler treats his subjects as his hands and feet, they will treat him as their heart and belly; if he treats them as dogs and horses, they will treat him as a fellow countryman; if he treats them as mud and seeds, they will treat him as an enemy. ( Mencius . Lilou xia [ ]) 21

Similarly, filial piety also contains mutual obligations and reciprocity: whilst it demands obedience from the child, it also places inescapable obligation and responsibility on the father to protect and nurture the child (Westwood, 1997: 460). The individuals occupying the superior roles in Wulun are supposed to be benevolent and kind toward the infe-rior. In Liji ( ) there is one passage that expresses all the mutual obli-gation of the five relationships:

[W]hat is righteousness? Kindness on the part of the father, and filial duty on that of the son; gentleness on the part of the elder brother,


and obedience on that of the younger; righteousness on the part of the husband, and submission on that of the wife; kindness on the part of the elders, and deference on that of juniors; benevolence on the part of the ruler, and loyalty on that of the minister. These are the ten things which humans consider to be right. 22

Seniority

A further significant feature of the Confucian social order was venera-tion of the past, and its extension, veneration of the old (Redding, 1990: 51). In Chinese culture elders are highly respected and obeyed (Ho, 1996; Hwang, 1999). To the Confucians, age normally embodies experi-ence and wisdom and therefore commands respect (Tu, 1998: 128) and seniors are accorded a wide range of prerogatives and authority with respect to juniors (Farh et al., 1997: 424). Mencius believes that rank, age and virtue are the three things that should be exalted in the world: at court, rank is supreme; in the village, age; for ruling the people, virtue (Tu, 1998: 128). Xunzi also emphasizes the importance of maintaining the social order in accordance with age: ‘Praise highly and use the elites, rank the noble man and humble man, distinguish who is intimate and who is not in close touch, arrange the old and the young in order in accordance with the age – that is the Dao of governance of the Sage King’ ( Xunzi , 24.5). 23 According to Tu (1998: 128, 130), ‘precedence of the old over the young’ is a deliberate attempt to build an ethic on a biological reality, as the Confucian believes that human beings are differentiated by hierarchy, age, and gender – an irreducible reality – and the recognition of the biological bondage is the starting point of people’s moral self-cultivation. Although ideally in the Confucian order of things, virtue takes precedence over rank and age, in the practice of governance the hierarchy is of significant necessity in establishing harmony and stability in society. A high degree of deference towards age implies that ‘positions of authority, which yield power and encapsulate the highest quality resources, are generally held by older individuals’ (Bu and Roy, 2008: 1089). Coupled with this respect for older people, the extensional principle is to obey those on whom one’s improvement in life may depend (Redding, 1990: 184), such as the teacher and the employer.

Loyalty ( 忠 )

‘Loyalty’ ( Zhong ) is a very important moral conception in China, appearing 17 times in the Analects . According to Shuo-wen chieh-tzu ( , Explaining Simple and Analysing Compound Characters),


which is the ancient Chinese dictionary from the Han Dynasty, loyalty refers to respect with one’s whole heart. Another ancient Chinese dictionary, Guangyun ( Broad Rhymes) defines loyalty as selfless-ness. Zhuxi ( ) believes that the conscientious effort toward an end is loyalty. The Xunzi Li Lun ( ) equates loyalty to honesty: loyalty is an honest and upright attitude without any fraudulence. So loyalty is about endeavour, selflessness and honesty; it is not only an attitude about people and affairs, but also a practical action to deal with others honestly and sincerely.

Due to the principles of the Five Cardinal Relationships ( ) and the Three Bonds ( ), consequently, loyalty ( Zhong ) on the part of the inferior implies one’s faithful support for the superior, which may be illustrated by complete dedication to the superior and to willingly sacri-fice one’s self-interest (Chen et al., 2002: 341). In another words, people who are lower in the hierarchy must respect and obey the one who has higher status (Hackley and Dong, 2001). On the other hand, the superior who holds the key position could advance the security of his occupation and authority as ‘he shows patronage and favour to individuals capable of repaying obligation with deference and loyalty’ (Redding, 1990: 135). In the Analects , when Duke Ding asks how a ruler should treat his minis-ters and how ministers should serve their ruler, Confucius replies, ‘[A] ruler should employ his ministers in accordance with the rituals ( Li ); the ministers should serve their lord with loyalty ( Zhong )’. 24 Also, Master Zeng ( ) points out that the Dao of Confucius consists of loyalty (to the ruler) and benevolence (to the common people). 25 Xunzi’s ‘ Chen Dao ’ (the Dao of ministers ) chapter remained a guide for ministers for centuries. He states that the true loyalty of a minister must be to the state, and because the state and the ruler are one and the same, a minister must be loyal to his ruler as well. To Xunzi, disobedience to a ruler was permitted, but only for the sake of Dao, which was equated with the state’s interests, and therefore ‘Loyalty to Dao was thus the same thing as loyalty to the state, which as the same thing as loyalty to the ruler’ – that means a minister must be loyal to the ruler uncondition-ally (Standen, 2007: 47).

Hierarchy, seniority, loyalty and Chinese organization

Nowadays, Chinese society, despite some of sacred ties (the Five Cardinal Relationships and the Three Bonds), has lost much of its persuasive power (for example, the inferior status of wife to husband), or has been trans-formed (for example, the minister–ruler relationship has been largely replaced by the subordinate–superior relationship); the significance of


hierarchy, age and gender remain important, and people’s sensitivity to social roles and their innate identified obligations remain a major char-acteristic of contemporary Chinese (Tu, 1998; Chen et al., 2002). While, in the Western context, loyalty to organization and belief in company values are loosely associated with employees’ willingness to stay, these factors are more important and relevant in the Chinese context: ‘[F]eeling proud of working for the company, good relationships between managers and employees, and job security, are good predictors of (Chinese) employees’ willingness to stay’ (Warner, 2008: 790).

When compared to other cultures, Hofstede (1980) notes that the desire for ‘power distance’ is relatively large in Chinese organizations. In Chinese organizations, employees show respect for hierarchy and accept the hierarchical nature of the superior–subordinate relationship (Jiang and Cheng, 2008); they are often expected to behave appropriately in accordance with their social roles (Farh and Cheng, 2000) and fulfil role expectations and obligations during interpersonal interaction (Shore et al., 2004); managers want clear distinctions between themselves and subordinates (Lockett, 1988). The judgement of a person’s worth, and particularly his/her appropriateness to fill a certain role, is a ‘question of loyalty rather than technical ability’ (Redding, 1990: 135). This is not to say that the possession of skill is totally ignored, and in many cases it is an object of concern, but in the Chinese case it is not the prime or sole criterion. A supervisor is expected to treat subordinates well, and the subordinates are expected to be loyal to the supervisor recip-rocally (Farh and Cheng, 2000). Wright et al. (2008: 804) state that in the Chinese workplace the level of organizational commitment depends more on managers’ personal charm than on the actual organizational system itself; loyalty to one’s manager is ‘a powerful motivating force in Chinese workplaces’, and ‘the personal attributes of a manager can complement the structures of legitimate authority’. It is noted that in Chinese companies, especially family-owned businesses, bosses tend to use loyalty as a key criterion to classify subordinates into in-group and out-group members and consequently use it as the criterion for promoting or rewarding subordinates (Chen et al., 2002; Cheng, 1995; Cheung and Chan, 2005; Jiang and Cheng, 2008; Wong et al., 2002). Cheng (1995) finds that the loyalty of employees to the boss is not only about accepting the boss’s values and goals, but also they tend to exert extra effort and demonstrate unreserved dedication willingly. Chen et al. (2002) observe that employees’ loyalty to managers is stronger than that to the organization, as the managers are psychologically and physically more proximal to the employees than the organization, and loyalty to


managers is associated with employee performance to a large extent. In the Chinese context, ‘[I]t can be assumed that employee loyalty or disloyalty to the supervisor is likely to be more direct, salient and intense in driving employee behaviour’ (Chen et al., 2002: 343) and, therefore, managers show most concern to controlling employees’ attitudes and behaviour through a constant stressing of loyalties (Child, 1991: 97). To maintain employees’ loyalty, managers tend to be highly protective of their employees, and this feeling of protectiveness often is cemented by a strong sense of close personal relationship and obligation (Child, 1991: 101).

Because of the tradition of respecting age, the culture of seniority was prevalent in Chinese organizations, especially state-owned compa-nies and private companies (Chen et al., 2004), while in Western socie-ties youth is glorified and the age of people relating to one’s work is often not even considered (Bu and Roy, 2008). Norburn (1986) found that age was positively associated with managerial career progress in the business context. Since 1986, the ‘iron rice bowl’ ( ) policy of lifetime employment has been widely abolished, and the criteria for selecting and promoting cadres have shifted from ‘political ideology’ and seniority to education and competence (Cooke, 2005; Zhu, 2005; Shen and Edwards, 2004; Shen, 2008) and Guanxi ( ) (Shen, 2008). Additionally, seniority has been replaced by job responsibility (posi-tion, wages) and education as the most significant criteria for payment (Cooke, 2005; Shen, 2004; Zhu, 2005). However, Meng (2000) argues that although the ‘iron rice bowl’ has met its demise, in China promo-tions are still largely based on seniority rather than performance. Child (1991: 102) also notes that candidates for training (especially for training abroad) have often been selected by their superiors on the basis of seniority rather than of capacity. Moreover, it is found that in state-owned companies, although employees have little influence in the formal wage structure, ‘they play a fundamental role in preserving the egalitarian and seniority culture in the distribution of bonuses and other material incentives, regardless of the relative efficiency of individuals’ (Cooke, 2005: 11). In private companies, according to Cooke (2005), seniority still remains a characteristic in employees’ attitudes towards pay, although it has been diluted by employers’ constant attempts to introduce performance-based pay, especially in foreign-owned compa-nies and joint ventures. Thus, seniority seems no longer to play an important role in Sino-foreign companies and foreign-owned companies, and if employees or managers in these companies want to be promoted to higher positions, they must demonstrate their competence through


performance. In these companies, the higher the management position, the more are performance-based criteria applied (Chen et al., 2004).

Renqing and Guanxi ( 系和人情 )

The ultimate judgement about how to behave in the Chinese ethical system is not based on ‘any distant religious ideal conceived in abstract terms’, but instead on something which is immediately accessible and which is largely enacted in terms of relationship rules (Redding, 1990: 62). Unlike in the Western context, trust and commitment play a key role in interpersonal relationships (Morgan and Hunt, 1994; Wang et al., 2008); what guides relational exchange behaviours in China is Guanxi , which is a kind of reciprocal obligation and mutual assurance. A salient feature of Chinese culture is the pervasive role of Guanxi , as delicate fibres that are woven into every Chinese individual’s social, political and business life (Brunner and Koh, 1988; Brunner et al., 1989; Lee and Lo, 1988; Liu, 2009; Tsui and Farh, 1997). Developing networks of mutual dependence and creating a sense of indebtedness and obligation are lubricants for exchange and key to building successful long-term relationships with Chinese communities (Standifird and Marshall, 2000; Wang et al., 2008; Yang, 1994). Guanxi is cultivated, maintained and strengthened through the exchange of Renqing , a unique concept rooted in traditional Chinese culture (Zhai, 2004). Developing Renqing is a precondition for the estab-lishment of Guanxi (Qian et al., 2007: 216) and Renqing is the chain and glue of social relationships.

Renqing ( 人情)

According to Hwang (1987: 953–954), Renqing has three meanings in Chinese culture. First, Renqing refers to the emotional response when one is confronting the various situations of daily life. People are concerned much more with emotional factors than scientific and rational factors when they deal with daily problems. The original definition of Renqing , according to Li Ji ( ), is particular and natural feelings, including happiness, anger, sadness, fear, affection, hate and desire, all of which are acquired at birth. 26 A person who knows Renqing is well equipped with sympathy: ‘[I]f an individual can understand other people’s emotional responses to various circumstances of life, that is, feeling happy or sad when and as others do, or even catering to their tastes and evading or avoiding whatever they resent, then it may be claimed that such a person knows Renqing ’. That is to say, a person who is versed in Renqing tends to maintain a tolerant and charitable attitude when dealing with


others (especially the in-group members), can see a situation from someone else’s respective and is always ready to offer his/her help when others are in need; contrarily, a person will foster a bad reputation or not know Renqing if he/she is indifferent to another’s feelings and not ready to help others when they are in great need. As Confucius says: ‘Do unto others as you wish done unto yourself; do not do unto others that which you would not wish done unto you’. 27 Moreover, a person full of empathy can understand another’s feelings, anticipate others’ needs and offer help to others without being told. In contrast, in Western society, if one shows sympathy to others subjectively or gives others help without permission, he/she may be regarded as impolite or impertinent.

Second, Renqing indicates a resource that can be used as gift in the course of social exchange. In Chinese society, when one faces diffi-culties, his/her acquaintances are supposed to offer both spiritual and material support, while in happy occasions, his/her acquaintances are supposed to send gifts and congratulations. As a social exchange resource, Renqing can have material forms, such as money, gifts, clothes, food and any other things we need to live; it also can be invisible and abstract, that is, it could be an activity, procedure or spiritual support – for example, to give others an opportunity to have a good job; give them some conveniences to get what they want; or make some promises or concessions and so on. ‘This is the reason why Renqing is so difficult to calculate and why one is never able to pay off debts of Renqing to others’ (Hwang, 1987: 954). This kind of Renqing gift reinforces the sense of obli-gation of friendship and kinship, the affective sentiments, and superior–subordinate ties (Yang, 1994: 122).

Third, Renqing connotes certain social norms or behavioural rules, which should be obeyed when people associate with each other. It has two perspectives: on the one hand, one ordinarily should keep in touch with his in-group members and exchange greetings, gifts and visita-tions with them from time to time; on the other hand, when one of the in-group members faces trouble one should sympathize and offer help to him/her. According to Yang (1957: 292), Renqing principles were not merely sentiments but also concrete expressions such as the offering of congratulations or condolences, the giving of gifts on appropriate occasions, and the fulfilment of obligations. Renqing provides leverage in interpersonal exchange of favours and, as a Chinese, one of the most important things for living well in society is to master this rule of Renqing and to be accomplished in using it to have or establish a reciprocal and harmonious relationship with others. By weaving one’s web of Renqing obligations, one creates his/her Guanxi networks; while


enjoying the benefits of the Guanxi network, one also takes on a recip-rocal obligation that must be repaid sooner or later (Hwang, 1987; Qian et al., 2007).

This reciprocal meaning of Renqing is also derived from the notion of the Confucian Li (Zhai, 2004; Qian et al., 2007 ) . In Li Ji, there is a passage that says:

The sage kings highly valued morality, and the succeeding kings attach importance to benefaction and repaying an obligation. If you do others a favour and they do not return a favour to you, they violate Li ; if you receive but do not return a favour, you violate Li . Having Li , people will leave in peace; without Li , people will be in danger, and therefore it is necessary to learn Li . 28

Thus a gentleman should always interact with others in a reciprocal way. In China, accepting a gift and not repaying or visiting someone without bringing a gift is seen as impolite and morally wrong. To a recipient, if one receives a favour, he owes Renqing to the benefactor and he should be ready to pay back once circumstances permit, and in demonstrating Li return even more of a favour than he received. So the important feature of Renqing principles is the notion of the ‘necessity of reciprocity, obliga-tion, and indebtedness in human relations’ (Yang, 1994: 122). There are some old Chinese sayings about Renqing , such as: ‘Receive a peach as a gift, return a plum’ ( ); ‘if one has received a drop of beneficence from others, one should reciprocate with a fountain of beneficence’ ( ); and ‘you honour me a foot, I will re-honour you ten feet’ ( ).

The Chinese word Bao ( ), which means ‘to repay’, ‘to respond’ and ‘to return’, is the foundation of Renqing and Guanxi (Chan et al., 2003; Hwang, 1987; Yang, 1957; Zhai, 2007). ‘Renqing is much more highly elaborated and more tightly bound up with the ideas of reciprocity (Bao) than it is in many other cultures’ (Hwang, 1987: 946). The Bao stresses the reciprocity of actions, including favours and hatred, reward and punishment, between man and man, group and group, family and family (Yang, 1957: 291). When one acts toward others, one normally antici-pates a response or return. The most common Chinese words containing Bao are baoen (return a favour, ) and baochou (revenge, ) (Zhai, 2007: 87). In order to maintain a positive interpersonal relationship one should undertake baoen rather than baochou , and Chinese ethics advise the gentleman to overlook minor injuries to achieve harmony. In the Analects , Confucius says, ‘requite enmity with justice, and requite favour


with favour’. 29 In Tao Te Ching , Laozi even advocates ‘requite enmity with favour’. 30 Even though the idea of recompense of Laozi is consid-ered somewhat impractical, it represents the Chinese innate pursuit of harmony and their propensity of being concerned much more with emotional factors than with logical and rational factors.

According to Zhai (2007: 87), the action of Bao need not always relate to material gifts and resources. It can be spiritual and invisible, as it may come from the reaction of appreciation or abhorrence and it also may be the result of the comprehension and evaluation of a particular event and behaviour. Thus it is hard to evaluate and judge the value of Renqing by objective calculation, since to a large extent it is subjective (Zhai, 2007). It is uncertain and ambiguous according to different people, situ-ations, time and places and it is a kind of social sentiment and spir-itual resonance as it is bound up tightly with real life. For example, the value of a simple meal to a starving person may be much higher than a precious diamond to a rich person; a favour which one gives to another easily may be very important to the recipient, and even could save the recipient’s life. There are numerous examples in Chinese history and daily life about the exchange of Renqing and baoen . A well-known story titled ‘golden meal ( )’ says that when Hanxin ( ), a famous general in the Han Dynasty, was young, he was frustrated by his poverty. One day he was starving and he tried to catch fish in the river. An old woman who was passing by, saw him and felt sympathy for the young boy’s misfortune, so she offered a meal to Hanxin and encouraged him. After that, Hanxin started to make an effort to improve himself, and several years later, he finally became a general of the state. He found the old woman and repaid her hundreds of kilograms of gold for the meal she had offered him when he was at his most depressed time. Another incident happened during the Three Kingdom period. An official of the court, named Gurong ( ) once attended a banquet, and he saw the cook who was baking the meat longed for it himself. Gurong generously gave his own portion of meat to the cook. Other officials mocked him for sharing the meat with so humble a person. Gurong argued that the cook devoted himself all the day to serve tasty meat, and it is unreasonable to forbid him to even have a taste of it. Afterwards, chaos caused by war rose from all directions, whenever Gurong was in danger, a mysterious person came just in time to protect him: this person was the cook.

Westerners emphasize the short-term, equal reciprocation in a balanced exchange relationship, while Chinese believe that Renqing need not be paid back immediately (Yang, 1957: 292). For example, the exchange of gifts and visits during the New Year and other annual festivals is almost


immediate, while on other occasions, such as weddings, birthdays and funerals, gifts and Renqing can only be returned under suitable circum-stances. Also, from the two stories above, it can be seen that, although Renqing can be repaid at the proper time or in the right situation, the recipients may have to wait a very long time to repay the debt of Renqing ( ) to benefactors once he/she has the ability or fortune, or when the benefactors are in trouble and need help. On the other hand, when one gives favours to others, one may not ask for profit directly and does not expect the favour to be returned immediately, but once there is a need for the favour to be returned, one often requires it through an allusive and meandering hint. This indirect and roundabout interaction in Chinese society often makes those who ‘song Renqing (giving favour )’ acquire much more return profit than initially expected (Zhai, 2004). That is why nowadays there is still an abundance of investment of Renqing existing in the Chinese market place.

Thus, normally, the exchange of Renqing is not disposable; it is a long-term relationship (Fei, 1985: 75). According to Parsons (1937: 550–551), to a very high degree Western ethical duties apply ‘impersonally’ to all men theoretically and practically; or that is to say, the foundation of the Western social order is ethical universalism and this social order, to a large extent, functions irrespective of any specific personal relation involved. To Parsons, ‘the whole Chinese social structure accepted and sanctioned by the Confucian ethic was a predominantly “particularistic” structure of relationships’. Yang (1957: 303) believes that the Chinese principle of reciprocity is considered as particularistic is due to the fact that ‘a social response in China is rarely an independent single transaction but rather an additional entry in a long balance sheet which registers the personal relations between two individuals or two families’. In Chinese society, an individual can never pay off all the debt of Renqing , even when some reciprocal action has been taken (Hwang, 1987: 963), as Renqing can never be calculated objectively; so a sheer balance of Renqing of both sides in an exchange relationship cannot exist. Because of this unbal-anced pay–repay circle, a long-term relationship among Chinese can be expected to last a lifetime. By exchanging Renqing from time to time, Guanxi can be built and maintained.

Guanxi ( 系 )

Guanxi ( ) refers to drawing on personal connections in order to secure reciprocal favours in personal relations. It consists of guan ( ) and xi ( ). Guan means door, gate or ‘to close up’, and additionally it refers to ‘doing someone a favour’; xi means to tie up into relationships.


(Hackley and Dong, 2001; Luo, 1997; Yeung and Tung, 1996). There are a number of terms associated with Guanxi that are usually being used in people’s daily social life: ‘ La Guanxi ’ (‘Pull Guanxi ’ ) means to establish a Guanxi with someone and store the social capital with him/her; ‘ Li shun Guanxi ’ (‘harmonize Guanxi ’ ) means to put Guanxi into normal or proper order; ‘ Guanxi Wang ’ (‘ Guanxi net’ ) means the whole network of Guanxi within which reciprocal favours are exchanged and circulated; and ‘ Guanxi Hu ’ (‘ Guanxi family’ ) means a person, group or organization is very important in someone’s Guanxi network. One characteristic feature of Chinese Guanxi is that it tends to be built on the shared living backgrounds such as kinships, birthplaces, alma maters, workplaces and so forth, rather than on personal or demographic similarities (Jacobs, 1982; Tsui and Farh, 1997; Chen et al., 2004). People tend to use their Guanxi to gain unfair competitive advantage over others (Ip, 2009): people use Guanxi to get good jobs and houses and to get their children access to school and university; Guanxi can also be used in getting access to a bed in a reputable hospital, getting a train ticket during peak season (especially during Spring Festival), getting a ticket to a popular concert or a football match, and so on. Although Guanxi is by no means unique to China (a similar concept is found in Western society), it is that ‘the Chinese raised Guanxi to an art’ (Seligman, 1999: 34). Guanxi provides the lubri-cant for the Chinese to get through life, as Chen (2004: 54) states it: ‘[T]he Chinese put considerable effort in Guanxi construction and Guanxi evasion’ in order to obtain ‘the kind of convenience and benefit that is often not available through official systems’.

The roots of Guanxi have been deeply embedded in Chinese culture for more than two thousand years: ‘Ever since Confucius codified the soci-etal rules, values, and hierarchical structures during the sixth century B.C., the Chinese society has been functioning as clan-like networks’ (Luo, 1997: 45). Such networks can be viewed as concentric circles, with family members as the core, distant relatives and acquaintances in the middle and strangers at the peripherals; those circles are arranged in accordance to the closeness of relationships and degrees of trust (Luo, 1997). Thus we can see that Guanxi finds its roots in the kinship asso-ciations, specifically under the Confucian principle of Wulun . As Weber (1951: 209) notes, the duties to superiors within Wulun comprise the sum total of the Chinese ethical binding:

Hitherto in China no sense of obligation has existed toward impersonal communities, be they of political, ideological or any other nature.


All social ethics in China merely transferred the organic relations of piety to other relations considered similar to them.

According to Hackley and Dong (2001: 17), the Confucian Li provides Guanxi the social structure and principle; Ren (benevolence) and Yi (righteousness) cultivate people’s attitudes when they establish personal relationships. In practice, Guanxi is maintained through the continuous exchange of Renqing .

While Chinese Guanxi and Western social networking do share some basic characteristics such as mutual understanding, cooperative behav-iour and reciprocal exchange, they have quite different underlying mechanisms. Firstly, unlike its Western counterpart, the fulfilment of the responsibilities of a given role in the hierarchy of social relationships is the Chinese people’s fundamental motive for building social relation-ships, as individuals are considered part of a system of interdependent relationships rather than isolated identities (Yeung and Tung, 1996: 55). Secondly, the guiding principles of a relational exchange in most Western cultures are driven by legality and rules, whereas guiding principles of relational behaviours in Guanxi are driven more by morality and social norms (Arias, 1998; i.e., Li , Ren , Yi ). In feudal societies, the power was highly concentrated in the hands of key people, and the workings of society reflected the particular distribution of power (Redding, 1990: 135). China is therefore often regarded as a man-governed society ( ), as more emphasis is put on personal power than on rational and professional institutional authority, and those who occupy positions of authority have the power of influence. So a practical consequence of Guanxi , according to Luo (1997) is that to Chinese people personal connections are often more important than legal standards. As one popular Chinese saying puts it ‘ Who you know is more important than what you know’, and the ‘who’ here are people with the right connections. Thirdly, Guanxi is maintained and reinforced through continuous, long-term interaction and associa-tion, while in the West the social transactions are usually seen as isolated occurrences. As Yeung and Tung (1996: 55) point out, ‘[T]he objective [of the Western social transaction] is to maintain balance in each transaction, with great emphasis placed on immediate gains from the interaction’. Fourthly, China’s Guanxi is a ‘private social network’ which is based on ‘often-secret personal ties’ (Heckley and Dong, 2001), and people commu-nicate, interact and exchange through this private channel, while Western networking involves public communication. Fifthly, in Western society, people tend to calculate the value of exchange in the form of money, so if one person violates the rules of an exchange relationship in Western


society, he may be sued and have to pay for the damages to the other parties (Arias, 1998). In contrast, most Chinese deem that immoral behav-iours cannot be merely estimated by money and only can be judged in a moral and sentimental way (for example, to lose face) in order to make the person live under another’s denigration and feel ashamed forever.

Guanxi , Renqing and Chinese organization

In HRM practices, the characteristics of Chinese management place great emphasis on a ‘relationship-oriented’ management philosophy (Liu, 2009; Shen, 2008). Zhu and Warner (2000) state that the term ‘employment relations’ was first translated into Chinese as ‘ Laozi Guanxi ’ (labour–capital relations ) and later was translated as ‘ Laodong Guanxi ’ (Labour relations ), which reflected the importance of Guanxi in Chinese society. In organizations, the overlap between the formal relationship and informal relationship ( Guanxi ) is much more pervasive in the Chinese context than in the West (Chen et al., 2004; Yg and Huo, 1993). For example, if a manager and a subordinate come from the same hometown or graduated from the same college, the manager’s official responsibilities and personal rela-tionship overlap, and it may often lead to actual or potential conflict when the manager deals with organizational problems when these personal relationships are involved. Organizations often meet busi-ness needs such as recruitment of employees through the social–eco-nomic network based on Guanxi (Chen and Easterby-Smith, 2008). For instance, in recruitment, whether a person has personal relationship with the hirer counts much more than whether he/she is qualified for the job (Ip, 2009). Relatives, friends and those who are hometown fellows or former classmates are easily targeted in hiring, especially in the recruitment of entry-level employees, and therefore the ‘employ-er-employee relationship starts to overlap with more personal bonds’ (Chen and Easterby-Smith, 2008: 135). In selecting or promoting employees, the decision is also often based on Guanxi rather than on merit (Liu, 2009: 49). A Chinese manager tends to select and promote those who have a good and intimate personal relationship with him/her. There is an old Chinese saying describing the impor-tance of relational closeness: ‘When a man gets to the top, all his relations and friends get there with him’ ( ). Guanxi between employee and supervisor also takes on special importance in influencing employee attitudes in Chinese organizations (Chen, 2002). When an employee perceives a bad Guanxi with the supervisor, that employee may think about leaving the organization; so in China,


Guanxi plays a more important role in employees’ turnover intentions than do perceptions of procedural justice (Zhang and Agarwal, 2009: 688). Shen (2008: 93) states that in the context of Chinese culture, performance appraisal lacks open discussion and objective feedback, because striving for harmonious peer and supervisor–subordinate rela-tionships is regarded as more important. Most Chinese firms, as he observed, apply ‘soft’ performance criteria, such as party loyalty, posi-tive moral attitudes and working attitudes, and good interpersonal relationships. These criteria ‘blur’ as it is difficult to get objective results, but the appraisal results represent whether one has a good Guanxi with superiors and with peers to a large extent, as the perform-ance appraisal is always being applied through a ‘democratic’ form.

Face ( Mianzi and Lian 面子和 )

It (face) cannot be purchased with money, and it gives a man or a woman a material pride. It is hollow and is what men fight for and what many women die for. It is invisible and yet by definition exists by being shown to the public. It exists in the ether and yet can be heard, and sounds eminently respectable and solid. It is amenable, not to reason but to social convention … . It is more powerful than fate and favour, and more respected than the constitution. It often decides a military victory or defeat, and can demolish a whole govern-ment ministry. It is that hollow thing which men in China live by. (Lin Yutang, 1936: 190–191)

Mianzi and Lian

In My Country and My People , the famous modern Chinese writer Lin Yutang (1936: 186) says ‘Face, Fate (obey hierarchical status) and Favour ( Renqing ) are the three muses’ that have always ruled in China, and are ruling still. According to him, these three are the immutable laws of the Chinese world, ‘more eternal than a Roman Catholic dogma, and more authoritative than the Constitution of the United States’ (ibid.). Among the three muses, the influence of face is most outstanding, and it is impossible to know the Chinese spiritual world without knowing the ‘Chinese face system’.

Actually, some Western scholars also find the same basic social struc-ture of Western people, which is due to basic human nature. The desire for prestige exists in every human society (Hu, 1944), and therefore face is not a unique concept in China or Asia; it is a universal concept which


exists in various cultures. However, it is a kind of cultural concept; different cultures have different connotations of it, and the value placed upon it and the means for attaining it vary considerably, so it has a different extent of significance in people’s daily lives. In Western social psychology, face is conceptualized as an individual’s situated identity (Alexander and Rudd, 1981), and according to Brown and Levinson’s definition, it is ‘the public self-image that every member wants to claim for himself’ (1987: 61). That is to say that the Western concept of face is merely a self -image and it is defined upon the individual rather than the communal aspects. The famous Chinese essayist, Lu Xun (1934: 129), wrote about Chinese face: It is all very well if you don’t stop to think, but the more you think the more confused you grow. There seem to be many kinds: each class in society has a different face’. That is to say, face is essentially the recognition by others of one’s social status and posi-tion, and thus must be defined by situation rather than as an aspect of one’s personality (Ho, 1976: 868).

However, there is no established and universal definition of face that can be accepted by all the scholars so far. Smith stated that Chinese face is ‘capricious, and not reducible to rule, deserving only to be abolished and replaced by common sense’ (Smith, 1897: 17). When the Chinese use face to refer to some social activities or mentality, it means either a kind of visible or invisible situation, as Lin Yutang puts it: ‘It is not a face that can be washed or shaved, but a face that can be “granted” and “lost” and “fought for” and “presented as a gift”’ (1937: 190). The general concept of Chinese face has two specific meanings: Mianzi ( ) and Lian ( ) (Hu, 1944; Mao, 1994; Chan et al., 2003), which are similar to Hwang’s (2006) two types of face: social face and moral face. On the one hand, Mianzi , or social face, stands for prestige or reputa-tion which can be achieved through social status, success and ostenta-tion. The higher social status one maintains, the more successful is one’s career, the more face he/she earns. One can either gain face by one’s illustrious origins, by means of personal effort and particular talent, by clever manoeuvering or just by the strength of one’s Guanxi . On the other hand, Lian , or moral face, is ‘the respect of the group for a man with a good reputation’ (Hu, 1944: 45) and it is the baseline of one’s integrity of personality and the social evaluation of one’s moral char-acter as well (Hwang, 2006: 277). According to Hu (1944: 45), ‘ Lian is both a social sanction for the enforcing moral standards and an internal-ized sanction’, and Chinese people often regard Lian as more important than Mianzi , because Chinese face emphasizes more the harmony of individual behaviour with the judgement of the community, rather


than individual desires (Mao, 1994; Yu, 1999). Chinese may give up the Mianzi but protect or save their Lian under all circumstances, as the loss of someone’s Lian ‘makes it impossible for him to function properly within the community’ (Hu, 1944: 45). Losing Lian , for Chinese, is a ‘real dread affecting the nervous system … more strongly than physical fear’ (Hsu, 1971, quoted from Redding, 1990: 63).

In Confucian society, face is both a goal for achieving noble personhood and a means to ensuring the harmony of interpersonal relationships and the proper social order (Chang and Holt, 1991; Jia, 2001). According to Jia (2001: 19), face is one of the driving forces of Confucianism, and even Confucianism can be seen as a study of Renqing and Mianzi (face).

First of all, traditional Chinese social networks are based on the family unit and ‘all of the social relationships were patterned after the shared identity, vertical relationships and loyalty that exist within the family structure’ (Cardon, 2005: 58). Expanded from the family unit as the core, Chinese social networks were built upon some primary groups such as close friends, colleagues and schoolfellows. In these social networks, face represents one’s standing vis- à -vis others in the group, and it is also used to demonstrate the esteem individuals have for others in the group and vice versa. More often, face is the measure of the strength of these rela-tionships (Zhai, 1995; Zuo, 1997).

Secondly, Chinese social networks of Confucian society are based on social ranking. This ranking system pervades everything in people’s daily lives, and it tends to put people in order according to their social status, age, intelligence, talent, competence, and so on; therefore, face always includes an element of comparison with others, as Chen (1989: 170) states:

Whether a person performs well or poorly always creates a compar-ison of one person to another person. The result of a comparison necessarily involves a ranking and order. The amount of face is judged based on this ranking, whether it is high or low.

Chinese face, specifically Mianzi , is disciplined by concerns about hier-archical order (Bond and Hwang, 1986) and, as a result, people are particularly sensitive to it (Hu, 1944; Redding and Ng, 1982). Zuo (1997: 67) also points out that those with higher rank and status have corre-spondingly brighter Lian and larger Mianzi .

Thirdly, the primary emotion that is associated with loss of face tends to shame ( ) (Cardon, 2005: 62). Chinese Confucian culture is a culture of morality based on Ren (humanity) and Li . In The Analects (2.3),


Confucius says that if you govern the common people with decrees and regulate them with punishments, they will evade them but will have no sense of shame. If you govern them with virtue and regulate them with the Li , they will have a sense of shame and abide by the rules. On the one hand, Ren is the internal constraint, which makes people feel ashamed from deep within their hearts through moral cultivation and self-refining. On the other hand, Li is the external constraint: if a person’s conduct violates the rules of Li, he/she will feel ashamed when they get the negative moral evaluation from others. Due to its moral connotation, shame tends to be more strongly associated with Lian than Mianzi (Jia, 2001; Zuo, 1997). As a Chinese proverb, says, ‘[A] man needs Lian as a tree needs bark’, which means losing Lian (moral reputation) is like a tree being stripped of its bark – ‘a life and a death situation’ (Chan et al., 2003: 48).

Fourthly, face is associated with the Confucian ideal of harmony. In order to promote harmonious relationships, cultivated persons must subdue their emotions in public and conduct themselves according to the principle of Zhongyong (Chen, 2002). The emphasis on self-restraint or self-discipline leads Chinese to politely, tactfully and indirectly show courtesy to each other and avoid showing aggressive behaviour openly. According to Jia (1997), Chinese face work is a conflict-preventive mech-anism. With the strong emphasis on maintaining harmonious relation-ships, Chinese are expected to be particularly motivated to protect the face of others and also be concerned that their own face be accepted (Bond and Hwang, 1986; Hofstede, 1980). The Chinese believe that any acts or language used to insult or to cause another to lose face is self-hu-miliating and damaging to one’s own image, and therefore would lose one’s own face and damage the personal relationship as well. So when Chinese are challenged, they tend to keep silent rather than be involved in intense argument and rebuttal even if they feel they are right, hoping to save each other’s face and keep the harmonious relationship between the two parties (Chen, 2002).

Additionally, in Confucian society, the emphasis on face work entails a greater concern for the feeling, needs and wants of one’s in-group, and it results in the relatively greater use of indirect expression in commu-nications (Holtgraves, 1997), which involves ‘hints, gestures, level and tone of voice, body orientation, use of eyes and distance between the bodies’ (Triandis, 2002: 38). Ting-Toomey et al. (1991) find that Chinese and Taiwanese use more obliging and avoidant (indirect) style than do their U.S. counterparts, and people from collectivist cultures are assumed to be more concerned with face management than are people


from individualistic cultures. So Chinese rarely say ‘no’ to a counter-part, because a direct refusal is considered an uncooperative attitude which may lose the counterpart’s face and harm the reciprocal and hierarchical network (Chen, 2002). Chinese prefer to give an evasive answer or show an opinion indirectly to express ‘no’, and thereby saving face for both sides. Even lying can be seen as acceptable behaviour if it saves face or helps the in-group (Triandis, 2002: 39); as Faure and Fang (2008: 198) put it: ‘[N]ot showing ignorance seems more important than telling the truth’. Here, face is more associated with Mianzi than Lian . In conflict situations, the Chinese often use all possible means to give their counterparts face to avoid causing any emotional uneasiness to promote interpersonal harmony (Chan et al., 2003; Silin, 1981; Tjosvold et al., 2004).

Three characteristics of face

There are three characteristics of Chinese face. Firstly, face exists by relying on interaction and sociality, and it only can be acquired from others (Yan et al., 2007). No matter whether Mianzi or Lian , both are formed and represented in the social relationship – that is, whether a person has face or not is not determined merely by himself and his behav-iour, but mostly by the attitudes and behaviours of others in his social group. By one’s status, ability, talent, morality and emotional intimate relationships, one can gain more face or less face from others. It is a kind of culturally sanctioned co-dependency of people in group contexts, and one should maintain and manipulate one’s identity in local group frameworks. Only through interpersonal interaction, can whether one has face or not, or how important is one’s face, be evaluated and tested. Also, through the exchange of face, reciprocal interpersonal relation-ships can be established and maintained, as Lewis (2006: 16) writes: ‘[G]iving and receiving of face, either positive or negative, governs almost every conceivable relationship in almost any behavioural setting avail-able to the Chinese’.

The second characteristic of Chinese face is that it is remarkably contextual and changeable. On the one hand, there have been different connotations of face in different historical periods (Yan et al., 2007). For example, in the feudal age, if a married woman remarried with another man, even after her husband had dead, she would definitely lose the whole family’s face and would have to bear others’ abuse all her life. But, now, in China, remarriage and divorce are very common; people rarely feel that they have ‘lost face’ and suffer shame about this. Another example: according to Confucius, three things ruin filial piety, but the


worst is having no offspring. In old China, if a couple have no children, or no boy, the couple would lose face or even lose their whole family’s face, because this may cause the extinction of the man’s family name. But today in China, although most couples still keep the traditional mind, more and more couples have begun to accept, or even choose, having no children.

On the other hand, individuals in different situations may acquire different degrees of face. Take a story in Stratagems of the Warring States (

) as an example. During the Warring States period in ancient China, a tactician named Su Qin ( ) went to Qin state to convey his mili-tary strategy to the emperor of Qin, but he was refused by the emperor. When Su came back home, his wife refused to prepare food for him and even his parents did not want to talk to him, because they all thought Su had lost the family’s face. After that, Su made great efforts to improve his knowledge and presentation skills, and he went to other states to offer his political and military ideas, and this time he became the prime minister of six states. When he went back to his home town, not did only all his family members come out to welcome him, but many neigh-bours and even strangers came to invite him to banquets and gave him valuable presents. So the same person can acquire different face when he/she is in another position and situation.

Finally, Chinese draw a clear distinction between in-group members and out-group members (Triandis, 2002). People tend to give face to each other and protect face for each other when in a group of acquaintances, and they may get more face than in a strange social group (Cardon, 2005; Yan, 2007). Furthermore, Chinese people behave according to how their roles are specified by in-group members and society, and ‘if the indi-vidual deviates from such ideals of behaviour, there is loss of face, not only for the individual but also for the whole in-group’ (Triandis, 2002: 39). In other words, one’s face is not merely an individual and private issue but closely associated with the entire face of in-group members, who share a common Mianzi and Lian . As Zuo (1997: 70) says: ‘[I]f the Wang’s daughter gets pregnant before marriage, the entire Wang clan will feel they have lost moral face. If the Chinese national soccer team performs poorly, the entire nation will feel they have lost face’. There is a real story about Chinese face which happened in 2008. A Chinese girl, who studied in the United States, gave a presentation on her campus criticizing human rights conditions in China. Some pictures and videos of her speech were spread widely across the Internet. More and more Chinese people saw the video and became very angry about the girl’s behaviour because they thought the girl had betrayed her country.


The girl’s parents, who still lived in China, had to bear the blame and denouncement from other people, for they had cultivated such a betrayer. Finally, the girl’s father wrote a letter which was published in a newspaper to all the Chinese people, to apologize for his daughter’s speech, and he said he felt ashamed to have such a daughter. In this event, because of the girl’s behaviour, her parents and even her whole family lost face and were disgraced.

Face and Chinese organizations

In human resource management practices, face work largely influences communication between superior and subordinate and provides an overarching strategy to maintain one’s face within the group. Mo and Berrell (2004) state that it is not easy for a Western observer at a surface level of a Chinese organization to read this subtle and implicit form of communication, as it is ‘quite different to the Western-style organiza-tional communication, which is generally both open and interactive’ (Wright et al., 2008: 802). Whilst Chinese subordinates should seek to protect and give face to the superior, the superior should also take care not to damage the subordinates’ face (Westwood, 1997: 461). To maintain or enhance one’s superior’s face, one should make ritualistic greetings, give compliments to the superior and avoid arguments; to save the subordinate’s face, the superior should try to avoid criticizing directly, especially in public. Although criticism from superiors are deemed more acceptable by Chinese subordinates than their U.S. coun-terparts, the former are less likely to accept the criticism’s content and can become more demoralized after the criticism (Triandis, 2002: 41). In other words, direct criticism is a damage of face; even if the content of the criticism is right and helpful, subordinates still feel that have lost dignity and Mianzi , which are much more important to them. In conflict situations, Chinese superiors tend to use obliging, avoiding, integrating, compromising and face-saving styles of conflict resolution rather than a confrontational style (Ting-Toomey et al., 1991). For example, in Chinese organizations, a superior’s disciplinary action to a subordinate is usually practiced by following the saying ‘extol the merit in the public hall; rectify the wrong doing in the private room’ (Chen and Chung, 1994: 280). In Chinese firms, performance appraisal practices often lack openness and transparency as the results usually remain confidential because ‘management feels reluctant to pass on any negative informa-tion to appraisees so that direct confrontation is avoided and “face” can be saved’ (Shen, 2008: 93). It is even more important for a manager to be concerned about face work when dismissing an employee. Normally, the


manager not only has to choose the right timing to release the informa-tion of dismissal, but also avoid expressing the decision directly to save the face of the employee (Zhu and Ling, 2004). Some managers prefer to give the employee a indirect hint that he/she is to be fired; for example, in some firms of southern China, the bosses used to give employees a bonus envelope with severance pay and a letter inside to hint that he or she is getting fired.

Conclusion

He ( harmony), Zhongyong ( doctrine of mean), hierarchy, seniority and loyalty ( ), Guanxi and Renqing ( personal connections and relationship, favour), and face ( Mianzi and Lian ) are five core values that derive from Chinese traditional thinking and which define Chinese culture. He in Chinese refers both to the harmony between human beings and nature and harmony within human society. It is the ongoing attempt to harmonize diversity which is different from the ideal. Zhongyong is a more practical value that is closely related to harmony and suggests the fundamental Confucian idea of balance, moderation and appropriateness. The adoption of Zhongyong in dealing with social and political life is intended to avoid, or maximally reduce, conflict and tension and thereby to achieve harmony. Due to the prin-ciples of Li , the Five Cardinal Relationships ( ) and the Three Bonds ( ), loyalty and seniority in Chinese culture are highly respected. The Confucian social hierarchical order provides the philosophical basis for the maintenance of the family structure and, in turn, of the state itself. For Chinese, the self is embedded in social relationships, is inextricable from them, and the social web is part of the person; therefore one salient feature of Chinese culture is the pervasive role of Guanxi , as delicate fibres woven into every Chinese individual’s social, political and busi-ness life. Chinese ‘face’ is both a goal to achieving noble personhood and a means to ensure the harmony of interpersonal relationships and the proper social order. Through this set of core values which underlie social interaction among the Chinese people, Chinese traditional thinking is manifested and preserved. By exploring the origins of these values, their apparent constancy and tenacity and their particular relevance to current organizational life can be understood.

155

Much of the conventional management research was dominated by positivistic or neo-positivistic assumptions and methods stressing ideals such as neutrality, objectivity, scientific procedure, quantification, accu-rate data, techniques, replicability and discovery of fixed law (Alvesson and Deetz, 2000). Cooke (2009: 20) finds that articles about Chinese HRM published in top-ranking journals, particularly U.S.-based journals, tend to adopt a quantitative approach, ‘often involving sophisticated statistical analysis and hypothesis development and testing’. However, the inadequacies of the dominant quantitative hypothesis-testing approach have led to an increasing use of qualitative methods (Denzin and Lincoln, 1994). As Quer and colleagues (2007: 375) noted, adopting Western models and quantitative methods may have limited explana-tory power and Chinese management researchers need to be ‘more self-confident in exploring locally relevant research issues and devel-oping theories that explain Chinese phenomena’. Thus, Cooke (2009: 26) suggests that more qualitative studies are needed to complement the relatively large volume of quantitative studies that are ‘hypotheses led and (Western) theory driven with sophisticated statistical analysis’ in order to understand ‘the nuances of what is going on in business organi-zations that operate in the Chinese context’; and she argues that an inductive approach may be better suited to provide an insider’s view.

This research is based on Chinese managers’ own perceptions and understandings about the role of Chinese traditional thinking in current HRM practices. The tacit messages in HR practice cases and personal stories provided by managers with rich working experience in HRM can be used to discover the cultural fundamentals beneath the surface, and so disclose their underlying significance. The methodological focus on narratives and stories are valuable, as they are a fundamental way through which we

6 Research Findings and Analyses


understand the world (Bruner, 1990; Jameson, 1985; Tenkasi and Boland, 1993); they are basic tools individuals use to communicate and to create understanding with other people (Boje, 2001); and rich and textured stories can express the collective sense, the shared knowing (Boyce, 1995). It is possible to understand, even partially, the reason behind the visible behaviour of organizations through the stories of organizations (Boje, 1995; Gephart, 1991). The validity of stories was well explained by Barthes (1978: 89, quoted from Hoivik, 2007: 459): ‘[A]ll classes, all human groups, have their narratives ... . A narrative is international, trans-historical and trans-cultural: it is simply there, like life itself’. Although stories are purposeful constructions and therefore may not true, Wilkins and Thompson (1991) suggest that these stories are often all we have to explain behaviour. Even if the narratives are sometimes seemingly vague and ambiguous, organi-zational respondents have some power in determining their own inter-pretation of what is going on, and therefore these narratives often have a purposeful goal (Berry, 2001; Thatchankary, 1992).

This world is fluid, and the culture of one nation, although relatively stable, is always in a constantly changing process. A challenge for most organizations is finding congruency and fitting in with the ever-changing nature of the outside environment – culturally, socially, economically, politically and so on. A narrative is dynamic and processual rather than lifeless and static, and it represents the change of the inner–outer world. To uncover the implicit and silent messages, and to explore cultural char-acteristics, it is necessary to look at the narratives from a more holistic perspective. By carefully listening to the personal messages from Chinese managers, the culturally significant aspects can be captured. The narratives and stories therefore yield insight into Chinese managers’ own perceptions about Chinese traditional thinking and its role in HR practices, which to a large extent reflect the collective sense in the Chinese context.

The data for the study were collected through in-depth interviews with 21 top managers and HR managers in Chinese companies about the role of traditional thinking in Chinese HRM practices. The partici-pates are identified by pseudonyms, and the findings are presented in narrative form through in-depth direct statements of interviewees to provide authentic examples of how managers conceptualize and practice traditional thinking and core values in HR management. Despite what appear to be apparent contradictions in how informants describe these traditional values through their personal experience, when the context is examined closely, similarity and predictable patterns emerge regarding the role of traditional thinking in HR practices. This chapter provides the findings from 21 managers speaking about their perceptions of the role,

Research Findings and Analyses 157

in contemporary Chinese HR practices, of Chinese traditional thinking (holistic/naïve, fuzzy/processual, indirect/long-term) and its derived core values, including He (harmony ), Zhong Yong (the Doctrine of Mean ), hierarchy, superiority and loyalty ( ), Guanxi and Renqing ( ), and Face ( Mianzi and Lian ).

The role of Chinese traditional thinking

Before each interview, the purpose of the research was explained. The vast majority of informants warmly applauded this study for its focus and thought it to be very important for management. For example, Mr. Xiong stated:

This is a very good and interesting study. To understand Chinese people, you must understand their way of thinking. This is also as important for Chinese managers who were born in China and live in China, and not only for foreigners. (Mr. Xiong, General Manager, ZhongYuan Hospital Management Company) (1)

Many other individuals made similar remarks.

I think this study is great. People from different countries have different values and ways of thinking. It is very meaningful and prac-tical to find out what the reasons of these differences are. (Mrs. Ma, HR manager, China United Telecommunications Co., Ltd) (2)

Modern Chinese people have changed a lot, but these changes are superficial rather than fundamental. It is necessary to realize that in fact Chinese still retain their old way of thinking and doing things in accordance with it. (Mr Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (3)

Since the late 1990s, as a subject in the relatively new management disci-pline, HRM is attracting wide attention in China. Although a growing number of companies, both state-owned and private, have adopted HRM models and theories from Western countries, many informants hold a doubtful viewpoint as to whether such policies and practices can be fully assimilated and applied in Chinese organizations without remoulding. For example, Mr. Ma stated:

During the early stages after the establishment of China Mobile, we consulted lots of foreign consulting companies for a development


plan, but in the end they failed. The reason they failed was that they knew little about Chinese culture and its social environment, and they tried to deal with problems without flexibility. We admit that some of the Western management theories are very useful, but we should not ignore the fact that those theories and ideas should be transformed and be rooted in the cradle of Chinese culture, espe-cially relating to human resource, which is about people who live within a certain culture. (Mr. Ma HR manager China Mobile Communications Corporation) (4)

Mr. Zhang also stressed the importance of adopting HRM theories into a Chinese context. He stated:

One day, a general manager of Hangzhou Brewery came to visit our company and consulted me about the secret of successful manage-ment. He said that he hired a lot of highly-educated employees, and taught them advanced Western management ideas, but the morale of the company was still very low. I told him that no matter how good these management theories are, you have to apply them in a Chinese context. In other words, you have to know what your Chinese employees’ needs are and what your organisation needs. (Mr. Zhang, General Manager, Henan Xinxiang Asia Brewery Co., Ltd.) (5)

Another HR manager of ten years’ experience, Mr. Lv has witnessed the changes and developments in HRM in China in the last decade. According to him, HRM in China has quite a different connotation and structure from Western countries. It is a more hybrid and complex management model, which is the result of combining an increasing level of marketization with the deep-rooted Chinese culture. He stated:

I have worked in HR management since 1999. During the following ten years, personnel management has changed a lot; we have adopted systematic recruitment and selection, training and development, appraisal and incentive schemes. However, in real practice, we have had to tune these models and policies to fit the Chinese culture, and then develop our own corporate culture. (Mr. Lv, HR manager, CEC Huada Electronic Design Co., Ltd.) (6)

For the vast majority of informants, traditional thinking moulds the basic way of thinking of Chinese people, and it still plays a very important


role in every aspect of society – ethical, social, political, economic and managerial.

I will present the findings of present research to find out: firstly, whether traditional thinking still affects contemporary HRM practices; and, secondly, if yes, how it is practiced; and, finally, the transformation of its role during the past decades. This research is based on Chinese managers’ own experiences, perceptions and understandings, through five areas, including He, Zhong Yong, Hierarchy, Superiority and Loyalty ( ), Guanxi and Renqing ( ) and Face ( Mianzi and Lian ), because these are the five core values which are derived from traditional thinking.

He (harmony 和 )

He refers both to the harmony between human beings and nature and the harmony within human society. It has long been valued in Chinese culture, and the emphasis on a harmonious society has been recognized as one of the most significant characteristics of this culture (Hwang, 1987).

Through interviews, it is shown that He is still very important in the minds of the Chinese. Although, nowadays, the concepts of ‘reform’, ‘innovation’ and ‘competition’ are increasingly stressed, most 1 inform-ants still believe that H e is the essential factor which guarantees their companies to develop smoothly and continuously. In China, the core work of HR departments is to create a harmonious work environment; in other words, their main work is to deal properly with the relation-ship between the superior and subordinate and relationships among employees to maintain and strengthen organizational harmony.

Many informants, especially those who are general managers in charge of HRM or are board chairmen, believe that the He (harmonious environment) of a corporation is related to the boss to a great extent. According to their personal experiences, in most Chinese companies, the boss establishes corporate culture. So, to sustain harmony within a corporation, the key point is to make employees share their identity with the corporation culture, which actually means they have a real shared identity with their boss. Meanwhile, as a boss, it is not only important for him to play an exemplary role, showing employees his good person-ality, but also he has to offer employees a warm environment which makes them feel like being in a ‘family’. While Western management is characterized by a ‘hard approach’, which is based on objective and systematic rules and targets, Chinese management is featured by a ‘soft


approach’ and stresses the role model of leaders and human relation-ships (Liu, 2009: 43). Mr. Jiang stated:

Corporate culture in China almost equates to the leader’s person-ality. Organizational harmony is closely associated with the leader. As a leader, it is very essential to create a harmonious environment for employees. In practice, he must know how to combine the hard approach (strong leadership) with the soft approach (personal influence). (Mr. Jiang, Vice General Manager, ZhongYuan Hospital Management Company) (7)

To create a harmonious environment in the organization and maintain a harmonious relationship between superior and subordinate in manage-ment, harsh, strict and penal approaches are normally de-emphasized, while empathic, lenient and gentle methods are preferred. Mrs. Han stated:

If a manager is incompetent with a resultant poor financial performance, or makes a mistake, she/he is highly unlikely to be fired; in most case she/he will be given one more chance to see if she/he can do better in the future, or she/he will be transferred to another position at the same level. (Mrs. Han, HR manager, Xinfei Electric Co., Ltd) (8)

Mrs. Han believes that in China, the key to successful people manage-ment is to unite workers in a harmonious organizational environment and win their support, trust and loyalty. Organizational harmony means workers having high morale, and it also means higher efficiency and productivity. She said:

There is a Chinese old saying ‘harmony brings wealth’ ( ), with which I totally agree. There are numerous examples of firms which attained initial success but later have been ruined by the same leader because of the fatal mistake of neglecting the importance of organisational harmony. Although sometimes absolute power and harsh management style can lead to high productivity, it is only short-term phenomenon. It can never last long. For leaders, workers should not be seen as irrelevant individuals, but should be seen as members of a big family. Only when you win their hearts completely, will they work for you willingly and wholeheartedly. (Mrs. Han, HR manager, Xinfei Electric Co., Ltd) (9)


Mr. Zhang, who is the CEO of China National Commercial Foreign Trade Corporation gave such an example to show his viewpoint about He : in Mr. Zhang’s company, a person, named Li was the representa-tive of a subsidiary company, possessing a certain amount of stock. Li took out a loan from the parent company in 2005 to invest in a silicon factory in Sichuan province. Li nominally stated that he had cooperated with China Minmetals Corporation to purchase silicon for the parent company, but actually he was in collusion with some people from China Minmetals Corporation, using the loan to establish a silicon company under his name without the permission of the head office. The silicon business had very high profits at that time, and the requirement of capital return of utilized rate of the fund in the parent company was only 10 per cent, so Li thought he could pay the loan back soon after his embezzlement on the company. But the international silicon market started to decline unexpectedly that year, and due to the high pollution of silicon, the Chinese government began to restrict silicon exports, so Li failed in his investment and could not pay back the loan. Li made lots of excuses for the misuse of the loan but the truth was discovered by investigators. Because of Li’s misdeeds, Mr. Zhang’s company lost three million RMB, but he did not send Li to the police. Li was a senior manager of Mr. Zhang’s company, and their fellowship had started a long time ago. When the embezzlement scandal was revealed, Li was in hot water and his family felt ashamed of him; his wife became depressed and tried to commit suicide several times. Considering Li’s private share holdings at the subsidiary company was nearly three million RMB, Mr. Zhang decided to make him mortgage his stocks to the parent company. Actually, Zhang took the three million RMB as the fund for the compa-ny’s investment, which would receive a 20 per cent bonus and interest per year and after seven years the expected return of the fund would even out the loan Li had misused. Zhang planned to return Li’s stocks after seven years, and he thought the money would help Li to run a new business again. Mr. Zhang said:

As the boss of the company, I had to punish him and so warn other managers and employees, and these people were waiting to see what my decision was. I could send Li to prison or confiscated his stocks totally, but if I did that, his family would break up. So I gave him a bright hope after seven years, and the seven years were long enough to teach him a lesson. Li and his wife appreciated my decision and even knelt down to thank me. They said they owed me their lives. I personally think that the business world is different compared with a


battlefield, you cannot be too merciful when you are in a battle, but as to HR management, it is better to use a humane way to solve prob-lems. I always regard harmony as fundamental. (Mr. Zhang, CEO, China National Commercial Foreign Trade Corporation) (10)

China’s opening up of its economy has led to growing competition and liberalization of SOEs and domestic private firms and, consequently, employees in these firms in transition are facing a greater level of employ-ment insecurity. To meet their target of raising productivity and labour standards and reducing costs, these firms must face the problems caused by downsizing. From the mid-1990s to the early 2000s, millions of workers were laid off, and this institutional discontinuity brought to an end the organized dependence of state workers on their employer (Lee, 1999; Cooke, 2005), which had been crucial in sustaining paternalism. When companies need changes such as reforms or reorganization for further development at some stages, it is extremely difficult for reformers in these firms to deal with the radical downsizing and meanwhile avoid impacting the workers. The harmony and stabilization of the whole organization should be considered seriously; otherwise it may lead employees, who are used to secure employment relationships, into a state of anxiety, even protest, which may finally bring disaster to the company.

Here is an example, which came from Mr. Zhang, the General Manager, Henan Xinxiang Asia Brewery Co., Ltd. His management ideals and prac-tices successfully transformed the old state-owned brewery, which almost closed down, into a well-known corporation which is mainly engaged in the research, production and marketing of Hangkong beer and its serial alcohols. For him, to change the old and inefficient personnel system, reform was necessary, but it could not be carried out radically at the expense of the harmony of the whole organization. Reform had to be carried out in a humane way in order to sustain the overall harmony of the organization. He stated:

Five years ago, when this company was reorganized and became a Joint Venture, the majority of people in the company still kept hold of many bad habits which were the remnants of the state-owned model. It was very common for employees to do their personal affairs during their working time in the company. You could easily find employees doing laundry; cooking meals; playing cards and so forth. People had no sense of discipline, the phenomenon of coming late but leaving early during working days was very normal at that time. So when I was appointed as the general manager, the first step was to carry out a


personnel system reform. All the Chinese know that the most difficult part of management practices for Chinese companies is to deal with ‘people’. The reason why our company developed so laggard ly in the past was that no one dared to change the old personnel system. The personnel system is like a beehive, if one touches it improperly, he may incur terrible troubles. Human resource is the basis of a company, and unreasonable reform methods may cause turbulence amongst the workers and destroy the base. So my reform idea was ‘To reform on the premise of stability and harmony’. The change is absolute and perma-nent, and the stability always relative – This is the rule of our life and the whole society. The point is how we can control the proper degree and process of ‘change’. I dismissed the middle-level managers and employees who I thought could not follow the new developing paces. To avoid the employees’ mental turbulence, I took certain conciliatory methods. For example, I kept offering them high pensions after they left the company and continued to buy them five kinds of insurance 2 . We attempted to ‘combine rigidity with gentleness’, and organisa-tional harmony and stability are our first concern. I think this is the ‘Tao ( )’ only when we understand the Tao then obey the Tao of people management, we could make remarkable progresses. (General Manager, Henan Xinxiang Asia Brewery Co., Ltd.) (11)

Many informants echoed Mr. Zhang’s idea of ‘reform on the premise of stability and harmony’, as they have seen numerous negative examples of unsuccessful reforms which were caused by over-radical and ill-considered implementation. Although an organization needs different points of emphasis during different stages of development, the basic consideration should be harmony. Mr. Gong, HR manager of Zhongxing Telecommunications Corporation, said:

When a company develops at high speed, it is even more important for it to emphasize harmony; while when it develops at a slow speed, change and reform should be emphasized. But harmony is always the keynote of the management strategies. (Mr. Gong, HR manager, Zhongxing Telecommunications Corporation) (12)

Because of the highly valued concept of harmony, individualism is not appreciated in China. In performance appraisal practices, indi-vidualism emphasizes a formal performance appraisal system, whereas collectivism-based organizations tend to apply an informal one, which may not serve any useful need except as a routine organizational ritual


(Ramamoorthy and Carroll, 1998). In spite of the Western individual performance evaluation systems’ good intentions – that is to monitor the achievement of company’s objectives – the use of such systems runs into major cultural obstacles in China (Hoivik, 2007). Mr. Zhong’s comment is typical:

While Western managers view employees as individuals, we view our employees as collective resources for developing our company and a harmonious society. Many Chinese managers prefer not to identify explicitly employees as good or bad performers, as they think that will arouse an inharmonious effect in the organisation. Therefore in Chinese companies, the appraisal results are promoted as group results instead of personal results, and the performance of the team members are regarded as on similar levels. Moreover, the 360-degree feedback which is favoured by Western companies cannot be carried out in China because giving negative feedback to one’s superior is unthink-able. (Mr. Zhong, Board Chairman, Beijing Kangde Investment Co., Ltd) (13)

Harmony among people is more emphasized than is individual recogni-tion, so individual bonus systems based on performance appraisals may be sacrificed for the system that recognizes the group as a whole, and the appraisal system actually is merely formality. Although many informants noticed that the results of the appraisal system are artificially made as an average, so that it is impossible to differentiate employees’ perform-ance properly, and this may de-motivate both the high performers and low performers to a certain extent: they think it is impossible to adopt the Western performance systems radically as the culture values are so deep rooted.

Zhongyong (the Doctrine of Mean 中庸 )

As mentioned before, the Chinese character of zhong ( ) means central, a way in the middle without excursion; yong means a state of harmony. The goal of zhong yong is to maintain balance and harmony by directing the mind to a state of constant equilibrium. Zhongyong expresses a Confucian ideal to perfect every relationship and every activity in human life.

Mr. Shi, the Board Chairman of Shanghai Meiyu Medical Investment Management Co., Ltd, believes that the idea of Zhongyong comes from Chinese fuzzy thinking, which is extremely elastic, comprehensive, moderate and tolerant. He used to think that American culture, which


lays stress on liberal democracy, human rights and the rule of law, was better than Chinese culture based on fuzzy thinking, but after the ‘911’ disaster, he changed his opinion. He said:

The 911 disaster made the Americans’ mind become extremely vulnerable, but if this happened to China, Chinese people would not be beaten down so easily. The Wenchuan ( ) earthquake really was a catastrophe for China, but it didn’t bring as enormous trauma to the Chinese compared to Americans. The great ability of Chinese to balance their emotion is because of their ‘numbness’. Chinese people are used to accepting the reality and adapting them to the real situ-ation, and they always avoid getting into extreme circumstances. So this kind of numbness is really not bad, and sometimes it helps people to survive an impasse. (Mr. Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (14)

Further, he illustrated:

When Japanese planed to invade China, they thought they could conquer China within three months, but it took them eight years of fighting for their wild ambitions and finally they failed. Although it was the Russians who destroyed the Japanese main army force and the Americans who forced them to surrender by dropping A-bombs, another crucial factor for the Japanese failure was the Chinese people’s unbeatable faith and staunch resistance that exhausted the strength and battle effectiveness of the Japanese army in the eight years. Why the Japanese spent so many years in China was because they were trapped by Chinese culture. Chinese culture inclusion is enormous, and any exotic culture can be absorbed and reconstructed by it. So when the Japanese planned so hastily to defeat China, they underesti-mated Chinese culture, which seems docile but was actually powerful. It is very hard to conquer Chinese culture, that’s why lots of foreign-owned companies cannot survive in China unless they know how to adapt themselves to Chinese culture. (Mr. Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (15)

When Chinese people apply Zhongyong in their daily lives, they stress mostly on ‘never go to extremes’ and ‘neutrality’. Chinese people are characterized in much literature as being plain, modest, unostenta-tious and unpretentious. In the past centuries, the Chinese tended to glorify, praise or honour those who do the moderate and proper things


according to their own social status and position, while disdaining those who like to show off but do not match their expressions with actions. The ‘gentleman’ in Chinese eyes is one who subordinates his words to his actions; the vulgar person seeks only to make a good impression.

The General Manager of American Yidi Co., Ltd, Mr. Fang, expressed how he does not like people who are showy and immodest.

If someone talks to anyone in China about what he knows and what he is capable of, I will think he is over the top. Although candidates should be able to show their competences in a very short time in recruitment interviews, I can still estimate people’s character from their talk and behaviour. (Mr. Fang, General Manager, American Yidi Co., Ltd) (16)

Mr. Jiang, the Vice General Manager of ZhongYuan Hospital Management Company, thinks that Zeng Guofan’s ( ) 3 classification of people is reasonable and useful for selecting and evaluating people. According to Zeng Guofan, people can be classified into four groups in accordance with their character, appearance and behavior. The first group of people look like clever men and behave as clever men, and indeed they are clever men; the second group of people appear slow-witted, but they behave properly and actually have great wisdom; people in the third group look like clever men, but behave presumptuously; people in the last group look like fools and are fools in nature as well. Mr. Jiang said:

The people in the second group are more likely to make great achieve-ments in China rather than the people in the first group, who have a smart appearance, even though they also have clever minds. Because those who look slow-witted, calm and reserved are more unlikely to be arousing others’ antipathy and wariness; if they have clear minds, in fact, they can be easily accepted and trusted by others. Most Chinese people do not like people who are showy and canny as they may think those people might be potential threats to them. So the second group of people is more likely be trusted and thought more highly of by their boss, and get more opportunities for promotion and training. (Mr. Jiang, Vice General Manager, ZhongYuan Hospital Management Company) (17)

Therefore, Zhongyong tends to clash strongly with those who are aggres-sive, heroic, showy, canny and explicitly oriented towards winning (on the excessive side) at a cultural level, and this clash often tends to result


in a negative outcome. Mr. Shi, the Board Chairman of Shanghai Meiyu Medical Investment Management Co., Ltd, pointed out that those who have excellent capabilities but like to show off and flaunt very often arouse antipathy in others in China. He listed some Chinese top leaders in history or classic literature, such as Liubang ( ), Liubei ( ), Songjiang ( ) and Zhu Yuanzhang ( ), to support his idea. These historical characters were great masters of Zhongyong . The one thing they had in common was that they became emperors from a very low social status rather than being born as royalty. So they needed to win their followers’ and peers’ loyalty and total support by ‘emotion and Yiqi (Brotherhood)’ to achieve their goal. In other words, they could not be too severe and harsh or too weak and merciful to their subordinates. Mr. Shi added:

Zhongyong is important for both the superior and subordinate: for the superior, he should keep a balance between severity and weakness, while the subordinate should keep a balance between being aggres-sive and being passive. Actually, Zhongyong is important and useful for everyone in China. It is a real wisdom and art to keep oneself in a middle way, in balance. (Mr. Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (18)

Due to the traditional way of fuzzy thinking and the penchant of the doctrine of Zhongyong , Chinese people tend to discourage the extremes of excess and deficiency. Consequently the behaviour of the majority falls into the middle range which represents a reserved, slick, evasive, cagey and often neutral attitude, while small numbers of those who are aggressive, showy and ‘black-and-white’ binary value oriented are at the two ends of the scale. Here is an example which came from Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd.

We use some professional employee appraisal applications, such as DISC 4 and PDP 5 , to help our personnel management. Professional Dynametric Program (PDP) divides people into four basic categories that can be described as four different animals: tiger, peacock, koala and owl. Similar to some other current human appraisal applica-tions, PDP also originated from an ancient temperament theory in which four basic temperaments – sanguine (cheerful), chol-eric (irritable), phlegmatic (apathetic) and melancholic (gloomy) were defined. These assessment systems originated from the US. In America, most people can be unambiguously described as one


of those four animals. But an interesting result came out when this assessment method was applied in China, especially when some older people with relatively high social status were tested. It was very difficult to categorize these people as a type of these four animals, as they are able to control and choose their tempera-ments according to different situations to protect themselves. Their capability of hiding their personal emotions and standpoints come from their life experience and deep understanding of Zhongyong . PDP was developed based on numerous trials and was well-ac-cepted and popular in several developed countries, but in China, a fifth kind of animal was proposed, which can properly describe those people, they were called ‘chameleon’, referring to those who can adapt themselves freely to different situations and always keep themselves in a safe position. (Mr. Lv, HR manager, CEC Huada Electronic Design Co., Ltd.) (19)

Those who are capable of using the rule of Zhongyong freely are flexible, tactful and slick – they can easily adapt to any circumstance: Like water, which has no particular shape, their shape depends on the container – circumstances and environment. Mr. Ma, the HR Manager of China Mobile Communications Corporation, stated that top Chinese leaders should be masters of Zhongyong . He said:

In an organization, people who are rigorous and inflexible are suit-able to be executives or middle-level managers, because they can sustain the organizational rules relatively strictly and carry out tasks efficiently; those who are amiable, flexible and tactful could be general managers or top leaders, for they are capable of coordinating relationships of all sorts. A Chinese top manager may look mild, but he is the absolute authority, and each of his subtle expressions and actions conveys deterrent power and dignity. (Mr. Ma, HR manager, China Mobile Communications Corporation) (20)

Similarly, Mr. Shi, the Board Chairman of Shanghai Meiyu Medical Investment Management Co., Ltd, stated:

For example, an ancient Chinese marshal could not be too harsh because he is the key man who must sustain the morale of the whole army, but the general should be very strict with his subor-dinates as he must guarantee the command is fulfilled completely. I think the marshal of a company – the Board Chairman, should


master Zhongyong , while the general, the CEO, should absorb more Western management ideas and logic to ensure the organisational goals are achieved without divergence. But the problem is that there are too many good marshals in China but too little qualified generals! (Mr. Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (21)

Mrs. Han, the HR manager of Xinfei Electric Co., Ltd, agreed that Zhongyong is of significant importance for people management, and she further added:

The main task of an HR department in China is to deal with the interpersonal relationships of their organisation. So the HR managers do not need to be expert at HR theories and models, and they do not even need to possess much professional knowledge about Human Resource, but they must be fully experienced in dealing with various people in various situations. As a HR manager, in most cases, rich interpersonal skills and experience are far more useful than dead theories and models in China. (Mrs. Han, HR manager, Xinfei Electric Co., Ltd) (22)

Mr. Fang, the General Manager of American Yidi Co., Ltd, thinks that there is a difference between the blue-collar and white-collar workforces: the white-collar ones are more likely to practice Zhongyong in their daily life. He explained:

People with low education background who work in manufacturing are more likely to verbalize their viewpoints and have a relatively clear standpoint, whereas people who work in office buildings or work for the government are different. These white-collars workers with relatively higher education are able and they prefer to cover up their feelings and emotions. The more of the code of ethics one knows and the deeper understanding about the rules of Zhongyong one has, the less frank one becomes. In brief, those white-collars, officers and seniors are fonder of Zhongyong than blue-collars, peasants and juniors. (Mr. Fang, General Manager, American Yidi Co., Ltd) (23)

Therefore, Mr. Fang has suggested that HR managers should adopt different management approaches according to the different tasks of employees. To employees in manufacturing, the managers can be more frank in communication, whereas to employees in offices, the managers


should choose a way of Zhongyong to communicate and so avoid face-to-face conflict and embarrassing situations.

Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd, proposed that in China, compared to people who were born before the 1980s, the generation of ‘post-eighties’ present relatively clearer personal characters and it is much easier to categorize them into specific categories of personality assessment (such as PDP). People of the older generation were deeply affected by the traditional culture and so they know how to make use of Zhongyong to protect themselves from being hurt because of years of life experience, while the younger generation is more open to Western culture and new ideas, and many of them are not willing to be ordinary in any aspect. However, Mr. Lv predicted that those young people may change as they grow older. He stated:

For example, ‘post-80s’ with sanguine temperaments are willing to express their feelings freely. If they didn’t agree with the results of their performance appraisal, they would argue with their managers about that straight forwardly. However, most Chinese people over 30 would prefer to keep silent and to avoid face-to-face confronta-tion in any form. As people get older, the complicated and callous social realities will teach them lessons. The time and experiences will smooth their sharp edges, and make them realize the true essence of Zhongyong . (Mr. Lv, HR manager, CEC Huada Electronic Design Co., Ltd) (24)

The negative results of Zhongyong are the emotional numbing and indif-ference of Chinese people. From their childhood most people have been continually indoctrinated in rules like: ‘Do not be too showy and ostenta-tious’. ‘Do not express ideas in an extreme way’. As a result, as people grow up, they tend to hold a neutral and conservative attitude when at work or in daily contact with others. However, this excessively distorted perception of Zhongyong would lead to inefficiency of organizational work. Mr. Wang, the General Manager of Xinxiang Department Store Co., Ltd, stated:

The traditional ‘Laohaoren ( Goody-goody)’ thinking is an obstacle for Chinese management. ‘Laohaoren’ refers to those who overly lay stress on or even twist ‘ Zhongyong ’: they afraid to offend people, pretend to be nice with everyone, excessively devote them-selves to ‘Renqing’ and ‘folksiness’, avoid pointing out anyone’s mistakes, never express their own ideas frankly in public and tend to follow the popular thinking. Although Chinese people’s minds have


changed a lot nowadays and more and more people have the sense to express their own ideas freely, undeniably, there are still too many Laohaorens that hide in the society and thereby hinder the devel-opment of novel ideas and creative spirits. (Mr. Wang, the General Manager of Xinxiang Department Store Co., Ltd) (25)

Hierarchy, seniority and loyalty

The Confucian social hierarchical order provided the philosophical basis for the maintenance of the family structure and, in turn, the state itself (Redding, 1990: 47). As a high-power distance culture (Hofstede, 1984, 2001), China has a strong sense of vertical order in behaviour and atti-tude. Due to the principles of Li, ‘Five Cardinal Relationships’ ( ) and the ‘Three Bonds’ ( ), loyalty and seniority in Chinese culture are highly respected.

The vast majority of the informants hold that the social pecking order has been deeply embodied in Chinese culture. Mr. Peng, the CEO of Yuanjing Investment Group, gave an example of Chinese dining culture to show this hierarchy in daily practice:

In a formal banquet, an important propriety of dining culture is that the seat of honour should always be reserved for the one who has the highest status among the guests, and then according to age, social status and position, people find their proper seats around the table. If someone takes the wrong seat, there will be a very awkward atmosphere during the dinner. Behaving properly in China is of sovereign impor-tance. If you want to survive and be successful in China, you have to follow the ritual. Most of the Chinese superiors do not like subordinates to speak to them like buddies, no matter how amiable those superiors may appear. (Mr. Peng, CEO, Yuanjing Investment Group) (26)

Therefore, it is very important for Chinese to behave properly in accord-ance with one’s social status and position and not to cross the line. Most informants think that the relationship between superior and subordinate is most complicated, delicate and crucial for people in their workplaces. Mrs. Han stated:

In the workplace, people have two faces, one face is for the superiors, and the other is for the subordinates. To superiors, one has to show fully respect and obedience, while to subordinates, one could show superi-ority and prestige. (Mrs. Han, HR manager, Xinfei Electric Co., Ltd) (27)


Unlike their Western counterparts whose cultures have clear bounda-ries between work and personal life, the boundaries for Chinese people are blurred. Or, actually, there seems no boundary at all. Mr. Peng pointed out:

In China, being a superior at work very likely makes someone behave as a superior no matter if in the office or in his leisure time. Chinese leaders enjoy the superiority very much. So, most bosses prefer patri-arch-based management, which can create a family atmosphere in the company, and the boss is the patriarch who manages the family. Meanwhile, the boss tends to think that if he is nice to his subordi-nates, in return, the subordinates should repay him double in the form of loyalty and dedication. (Mr. Peng, CEO, Yuanjing Investment Group) (28)

Mr. Wang, the HR manager of Tianjin Otis Elevator Company, has ten years’ HR management experience, and he also had several years of working experience as an HR manager in Motorola and Dell before he worked in his current company. Although the flat management style has been widely applied in recent years by some large-scale foreign-owned corporations like Motorola and Dell, in his present company, Tianjin Otis Elevator Company, which is a Joint Venture, Mr. Wang can still sense the existence of the hierarchy system. He said:

Employees commonly show high respect to the superiors and mentally put themselves into relatively low positions. Some of senior managers are very sensitive about the way subordinates speak to them, and they expect others’ respect and deference. (Mr. Wang, HR manager, Tianjin Otis Elevator Company) (29)

Chinese people used to say ‘the old ginger is spicier ( )’ and ‘those who do not have a beard are less reliable ( )’, which mean that older people always appear to be more experienced and qualified than younger people. Although people are starting to abandon these old ideas nowadays, promotion by seniority is still common. As the CEO of China National Commercial Foreign Trade Corporation, Mr. Zhang said that even though it is reasonable to promote someone according to one’s competence, in practice, they have to take both seniority and competence as the criteria. He stated:

The older employees who have worked many years for the company are more emotionally connected to the company and are more loyal


than young employees. Now more and more young people tend to change jobs more frequently, aiming at a quick financial gain or career advancement. So it is very risky to put young people into an important position, because it is hard to predict when they will hop to another company and leave a mess behind them. Older employees seem more reliable. (Mr. Zhang, CEO, China National Commercial Foreign Trade Corporation) (30)

However, promoting older people has limitations: Mr. Zhang pointed out that a lot of senior employees are lacking in professional and advanced knowledge and skills. But Mr. Zhang expressed that they can provide them further training to improve their abilities. He said:

Personally, I tend to give priority to the seniors. Although some of them have lower academic degrees and less professional knowledge than those young employees, they have working experience and sense of loyalty which I think are much more precious than education background. I would like to provide them with training courses from top colleges in China or abroad. (Mr. Zhang, CEO, China National Commercial Foreign Trade Corporation) (31)

The HR manager of China Mobile Communications Corporation, Mr. Ma, said that promotion by seniority can sustain the balance and harmony of an organization. He explained that the majority of employees in his company at present are young (under 35 years old), and one young person’s promotion would arouse the others’ jealousy, which may lead to negative effects for the organization. Mr. Ma said:

It is common that there is fierce competition among peers. If a young man gets promoted, his peers and senior colleagues will be upset and disturbed. Chinese people are afraid of inequality rather than ineq-uity, in other words, people would rather to keep the status quo even if the existing situation is not good for them but cannot bear that someone gets more benefits than others, especially when they are originally of the same status. I think this is because Chinese people are deeply influenced by Zhongyong . However, if seniors get promoted, normally no one will disagree, because on the one hand, there is a tradition in China that older people are respected by the younger; on the other hand, junior employees are more likely to accept that it is reasonable to get promoted after many years’ devotion to the company. (Mr. Ma, HR manager, China Mobile Communications Corporation) (32)


Although seniority is still very common in the workplace, more than half of the informants mentioned that when they select and promote people, seniority as an evaluation factor is diminishing in its proportional impor-tance. Mrs. Ma, the HR manager of China United Telecommunications Co., Ltd, stated:

If senior and junior employees have similar qualities, we prefer the seniors. Certainly, we would like to give the young people more oppor-tunities for training and practice. As to promotion, we are inclined to those who have both good competence and rich experience. If we cannot find seniors as appropriate candidates, we will go for compe-tent young people. In the past, we have had to promote seniors no matter whether they are competent or not, to make everybody happy, but now the things are getting easier. (Mrs. Ma, HR manager, China United Telecommunications Co., Ltd) (33)

Most informants believe the subordinate’s capability is very important, but it is not the essential factor that makes someone get promoted in China. One’s good work performance and professional skill and knowledge just make him an excellent employee but cannot guarantee him to be the favourite of his boss. Those informants expressed that they would prefer to choose the obedient and loyal subordinates for promotion, even though their work performance is relatively medi-ocre, rather than choose a disloyal one with outstanding capability. For example, the General Manager of Xinxiang Department Store Co., Ltd, Mr.Wang, said:

Although both virtue and competence are important, personally I think one’s sense of loyalty is superior to his competence. Actually, being loyal is also a kind of ability. Only when one is loyal to his organisation could he really make great effort in his job and learn new skills and knowledge studiously. It is nearly impossible for someone to contribute to one’s organisation pure-heartedly without loyalty, to his own family and to the whole society. We can judge whether one is loyal or not both by his words and behav-iour. (Mr. Wang, General Manager, Xinxiang Department Store Co., Ltd) (34)

Mr. Zhong, the Board Chairman of the Beijing Kangde Investment Co., Ltd, pointed out that the employee’s loyalty seems to be more precious to Chinese companies in recent years. He said:


In the past, because of the planned economy, from entry to retirement, most people stayed in the same organisation, so it seems perfectly justified for people being loyal to their organisation. Since the market economy was introduced, the implementation of competition has been increasingly intensified, especially in recent years, along with a large amount of foreign capital enterprises penetrating into China. While both Chinese enterprises and employees are under much more pressure than before, there is increased freedom and space for both of them. When enterprise layoffs and employee job-hopping become more and more common phenomen, loyalty problems emerge. (Mr. Zhong, Board Chairman, Beijing Kangde Investment Co., Ltd) (35)

Therefore, the two causes for the ‘loyalty crisis’ are: on the one hand, enterprises cannot provide employees permanent jobs as in the past, and downsizing is a common and effective method for enterprises’ develop-ment at certain stages; and on the other hand, considering the chances for personal development and financial gain, more and more employees accept changing jobs reasonably. However, from the aspect of the enter-prises, they still need employees’ loyalty as much as ever. Mr. Zhong said:

Employees’ loyalty and competence are both important to enter-prises. But loyalty is the basic criterion. Based on loyalty, we want the employees with more competence. (Mr. Zhong, Board Chairman, Beijing Kangde Investment Co., Ltd) (36)

Although the connotation of loyalty has changed – in the past people’s object of loyalty was a particular person and now employees’ object of loyalty is the organization – the leader’s personality still has a very important effect on the extent of employees’ loyalty, especially in private companies. An example was given by Mrs. Li, the HR manager of the Open E-learning Company.

As a small-scale private company, employees’ loyalty is closely asso-ciated with the leader’s personal charisma. Our boss, Mr. Wu, is a very nice person, and he treats employees as his family members. For example, there is an employee in our company whose daughter was diagnosed with a very serious heart disease several years ago. The father needed money desperately at that time for his daughter’s cardiac surgery. Mr. Wu did not only lend him the operation fee personally, but also helped him to get in contact with the best cardiac doctor to do the surgery. So after that, this employee was totally loyal


to Mr. Wu, and he has rejected several invitations from big compa-nies during these years, no matter how tempting the salary they promised to offer. Because of Mr. Wu’s kindness and benevolence, we are loyal to him and willing to work hard for him, as a result, you see, our company grows rapidly! (Mrs. Li, HR manager, Open E-learning Company) (37)

In fact, the loyalty of employees is based on their satisfaction with the leadership more than with the organization. If there is no such positive personal emotional connection between employees and the leader, the foundation of the loyalty could be very fragile. As Mr. Peng, the CEO of Yuanjing Investment Group, stated:

There is a two-way psychological connection between employees and the leader of the organisation. If employees view the organisa-tion merely as a work place, when there is another job with better conditions, they can easily give up their existing jobs. Emotional connection is still important in China. If the organisation treats staff as profit machines, employees would view the organisation just as a place for making money; however, if employees are regarded as family members of the big family (the organisation), employees would be loyal to the boss and the organisation. (Mr. Peng, CEO, Yuanjing Investment Group) (38)

Similarly, Mr. Fang, General Manager of American Yidi Co., Ltd, stated:

Now the turnover rate of the personnel is much higher than before as more and more employees accept doing jobs temporarily. I think is unreasonable to retain talents merely by offering high salary, because there is an accepted standard of salary in our industry, and we cannot offer salaries that exceed what we can afford. It is reasonable to make them feel their salaries match their positions. Not everything can be solved by organisational rules or money; you must really care for your employees. (Mr. Fang, General Manager, American Yidi Co., Ltd) (39)

However, it is undeniable that people become more realistic than in the past: employees need more self-development opportunities and salary increases. If organizations do not pay attention to employees’ needs, they may lose their loyalty. Mr. Zhong, the Board Chairman of the Beijing Kangde Investment Co., Ltd, said:


On the one hand, Chinese employees need human care and a harmo-nious working environment; on the other, they need incentives of salary and promotion. Petty emotional benevolence cannot meet their needs any more, especially for employees of the young genera-tion. (Mr. Zhong, Board Chairman, Beijing Kangde Investment Co., Ltd) (40)

Guanxi/Renqing

Guanxi is a central concept in Chinese society, and it describes the basic dynamic in the complex nature of personalized networks of social relationships and influence. Nowadays, this word is becoming more widely used in Western media instead of other common translations like ‘connections’ and ‘relationships’, as no terms sufficiently reflect the wide cultural implications that Guanxi describes. In China, Guanxi is cultivated, maintained and strengthened through the exchange of Renqing . People are concerned much more by emotional factors than by scientific and rational factors when they deal with daily problems. Relationships between Chinese are sustained by Renqing , the chain and glue of social relationships.

Although as a sort of resource Guanxi also exists in Western countries, the nature and scale are by no means comparable to those of Chinese Guanxi (Liu, 2009: 51). Guanxi is much more complicated and powerful. For example, Mr. Shi, the Board Chairman of Shanghai Meiyu Medical Investment Management Co., Ltd, said:

It is common and convenient for one to handle affairs by using public resources or open social information and systems in the majority of Western countries, but in most regions of China, people can hardly move a single step without a social network. For example, when I set up a new company several years ago, it was very hard to go through the official procedures without proper ‘ Guanxi ’, even if it is the officials’ duty to help me go through. (Mr. Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (41)

Similarly, the HR manager of Tianjin Otis Elevator Company, Mr. Wang, said:

In China, people always say ‘you cannot solve any big problem without Guanxi ’. This may be an exaggeration, but in fact, it is indeed the cardinal task for the Chinese to build and sustain proper


interpersonal relationship. (Mr. Wang, HR manager, Tianjin Otis Elevator Company) (42)

Developing and nurturing Guanxi and Renqing is very demanding on time and resources, but the time and materials spent establishing a strong network are well worth the investment. People expect to receive equal or more valuable returns from others when they are in need, espe-cially in the long run.

The concept of Renqing is closely related to the ‘gift culture’ in China (Hoivik, 2007). It is very common for individuals to visit the residences of their superiors, acquaintances, friends, relatives and anyone they intend to build a Guanxi with, bringing gifts. Every gift carries a piece of Renqing . Knowing how to give and how to receive gifts is a must in exchanging Renqing and building and sustaining Guanxi . Mr. Fang, the General Manager of American Yidi Co., Ltd, stated that if a person in China visits someone asking for help without giving any gift, he/she would be deemed as innocent or insincere. Sometimes even when Renqing is given by someone expecting nothing in return, the receiver could feel uncomfortable if he/she does not repay anything. He gave an example:

Lack of parking spaces has been a problem in the block I live for a long period and I couldn’t find a parking space because I went off work later in those days. When a member of the community noticed my problem, he applied for a private parking space for me just because he had a good impression of me. I was touched by his kindness and, from then on, I send gifts to him on every festival to express my deep grati-tude. (Mr. Fang, the General Manager of American Yidi Co., Ltd) (43)

Because the exchange of Renqing is often based on exchange of material, Guanxi is often deemed to be related to corruption. Moreover, according to Western morality, Guanxi as a way of ‘using’ others, is deemed unethical. However, for most Chinese, Guanxi has its own moral code and serves a necessary social function. Mrs. Han stated:

Actually, Chinese Guanxi relationship does not equate to money-based or commodity transactions, and it is not simply the same as corrup-tion, as it is mainly long-term relationship-focused. It is an exchange of obligation ( Renqing ). As long as one eventually fulfil his/her obligation, he/she is considered ethical. (Mrs. Han, HR manager, Xinfei Electric Co., Ltd) (44)


The gift can also be intangible, such as giving face (for example, give a compliment in the presence of one’s boss), doing someone a favour (for example, help someone get to know a Guanxi in need), or giving someone support spiritually (for example, encourage and comfort someone when he/she is frustrated and sad). The giving and receiving of Renqing cannot be taken for granted as an easy and effortless job. How and when to give Renqing ? In what form? To whom? How to realize the maxim of effectiveness of giving Renqing ? How and when to get Renqing back? All of these questions should be considered carefully, otherwise improperly giving Renqing can have negative effects. Mr. Qiao, the HR manager of China National Petroleum Corporation, said:

Giving gifts is definitely an art. For example, it is like a big test of the ability of giving gifts for the Chinese during some important Chinese festivals such as Spring Festival and Mid-Autumn festival. If you fail the tests, you may get an undesirable result. For example, before these festivals, you have to list the names of those that you want to send gifts and the corresponding values of the gifts in your mind. In a company, just imagine you are a middle level manager, and that means you have to give gifts not only to the big boss, but also to those superiors who can affect your career. If you miss one cursorily, when there is a chance for promotion, you may meet some difficulties. Because that person may think you ignore him/her on purpose or you do not like him/her. About the value of the gifts, you have to consider it very carefully: to show your sincerity, and to meet the taste of the receiver and you can also afford it. (Mr. Qiao, HR manager, China National Petroleum Corporation) (45)

Here is a detailed example of the complexity of Renqing , which came from Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd:

Working in the HR department, there is always someone asking for a chance of an interview through the company’s ‘Guanxi’. If the candidate’s ‘ Guanxi ’ is important for the company, when we receive their CVs, we will arrange interviews for them with the permission of the boss. But there was one time I got a candidate’s CV from the company’s important Guanxi and I arranged the interview without asking my boss, as I took for granted that my boss would have no disagreement. When I was delivering the CV to another manager to arrange an interview, my boss happened upon this scene. Then he was very angry to me: ‘every candidate should follow strict


recruitment process, we don’t accept anyone who wants to be employed by our company through ‘ Guanxi ’, and otherwise it will ruin the whole employment system’. How was I to understand my boss’s meaning? Should I reject candidates with important ‘ Guanxi ’ next time, following my boss commands? But the rejection of these candidates that are recommended by people who have good ‘ Guanxi ’ with the boss or who are important officials will lead to a negative influence on the company’ business. A few days later, the boss gave me a CV and asked me to arrange an interview, how do you understand my boss’s meaning this time? Actually, the answer is very simple: he is the boss and anyone who recommends people to work in the company should rely on his ‘ Guanxi ’ and ‘face’, then they owe him Renqing. When I handled these affairs without his permission, it was considered that I had robbed his Renqing, and that is why he was so angry with me. As the subordinate of the boss, if you handle Renqing and Guanxi inappropriately, you are close to being fired. (Mr. Lv, HR manager, CEC Huada Electronic Design Co., Ltd) (46)

In an organization, it is equally important for the superiors to make good Guanxi with subordinates, and for employees to sustain good Guanxi with their colleagues. Mr. Peng, the CEO of Yuanjing Investment Group, said:

As a boss, you have to handle Guanxi with your subordinates prop-erly. For example, if a boss organizes a private party, people who are invited would think that they are within the ‘group’, and those who are not invited would think their boss dislikes them. As a result, you may lose the loyalty of these people. So, even if you have an in-group, or your favourite people, you cannot make it obvious, otherwise the morale of the whole organisation may be disturbed. (Mr. Peng, CEO, Yuanjing Investment Group) (47)

From the examples above, we can understand that Renqing and Guanxi are complicated and elusive. It is not easy to understand and master even by a lot of Chinese people living in the cultural context, not to mention Westerners. Unlike Western interpersonal connections, which are based on basic law and certain rules, Chinese interpersonal relation-ships are built and sustained by ‘ Qing ’ (emotion), which include kinship, friendship, brotherhood and even a kind of feeling. As Mr. Fang said:


In Central China, ‘ Renqing ’ remains a deep traditional meaning. In Henan, Shandong province, even drinking together with some strangers could make some real friends. (Mr. Fang, General Manager of American Yidi Co., Ltd) (48)

In terms of selecting and nominating people in an organization, Chinese superiors lay stress more on feelings and trust. Once a strong relationship is in place, and when there is a good opportunity, people feel morally obliged, or even spontaneously, to consider someone who is intimate with them. Mr. Shi, the Board Chairman of Shanghai Meiyu Medical Investment Management Co., Ltd, stated:

It is usual for Chinese to select the right people for certain positions in a more casual manner. For instance, Western employers tend to list the qualities that a particular position requires and then select people accordingly. On the contrary, Chinese bosses prefer to choose and appoint their favourite people to various positions according to their characteristics. Chinese lay more stress on whether people can ‘hit it off’ together. Suppose I plan to select an assistant, and I would already have some objective criterion, but if I find someone who can hit it off with me, I will choose him even though he might fall short of my previous criterion. Chinese are lacking of the concept of standardiza-tion. (Mr. Shi, Board Chairman, Shanghai Meiyu Medical Investment Management Co., Ltd) (49)

Unlike a rule-oriented culture, Chinese regard the obsession with rules as inappropriate and callous, because in their opinion it signals lack of trust, which is an essential part of any strong relationship (Hoivik, 2007). In the workplace, the boss’s favourite person is not the one who strictly follows the organizational rules and policies, nor is it the one who has excellent professional competence, but the one who has a good relationship with him and gets his trust. Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd said:

Our daily job mainly consists of: the management of employment relationship, recruitment, training, performance assessment and compensation and benefits, the duty could also extend to human resource strategy and organisation structure design. Having the rele-vant knowledge and skills could make one a good HR manager, but not necessarily a ‘successful’ HR manager. It’s very hard to convey


in words, you need to sense it by yourself. It is important to make your superior trust you and like you. How? As Zeng Shiqiang said in his book, Chinese Style of Management’ 6 , in a foreign company, if an employee is asked to do something beyond his own duty, he can refuse without any excuse. But the description of job duties in Chinese companies always contain an extra term– tackle affairs that assigned by the boss – it may very often exceed one’s positional duty. The minion in a company is the one who throws himself into the ‘extra tasks’ for his boss. Furthermore, to some extent, the more time and energy people spend on this ‘extra term’ than doing their posi-tional works, there is more chance that they might be promoted. This doesn’t only happen in HR department, it happens in many other departments as well. (Mr. Lv, HR manager, CEC Huada Electronic Design Co., Ltd) (50)

From a Western perspective, this behaviour is difficult to understand and may go against the rules of Western ethic codes, but for Chinese, building and sustaining good Guanxi with others is considered necessary and most of the time, ethical. The Renqing and Guanxi based manage-ment often has positive effects, especially in private, small and middle-sized enterprises, but in some particular stages or for larger enterprises, relying too much on Renqing may become a burden for the develop-ment of enterprises. Mr. Li, the Board Chairman of Shandong Rongguan textile Group Corporation, said:

In my province, a lot of family-corporation owners don’t rely on formal contracts in their businesses, whereas they trust more on ‘ Guanxi ’ and ‘personal loyalty’. Most businesses are based on oral contracts. To some extent, these ‘latent rules’ restricted by ethics are better than written contracts in China. (Mr. Li, the Board Chairman, Shandong Rongguan Textile Group Corporation) (51)

Mr. Wang, the general manager of Xinxiang Department Store Co., Ltd, explained:

The advantage of ‘ Renqing ’ is to make people feel closer and it constructs the emotional belonging and cohesion. So sometimes Renqing has the power to mobilize and call people together at some crucial moments. But when the scale of one corporation is large enough, the power of ‘ Renqing ’ will decline, and sometimes it might become a handicap. So the large-scale companies, especially multi-national enterprises, should combine the culture with rules and rely


more on the power of rules. (Mr. Wang, General Manager, Xinxiang Department Store Co., Ltd) (52)

He gave a further example:

About ten years ago, lots of ‘household’ private enterprise appeared in the southeast of China, especially around Guangzhou, Fujian, and the region of JiangZhe. Those enterprises were relatively small and grew at an incredible speed. Those enterprises mostly relied on family members, relatives and friends, so they could communicate with each other more conveniently and manage the organisation in a more flex-ible way. They believed the relationships among them were more reli-able than others. But as those enterprises grew bigger and bigger, those advantages became obstacles and ceaseless conflicts between Renqing and rules finally led to recession and even bankruptcy. (Mr. Wang, General Manager, Xinxiang Department Store Co., Ltd) (53)

The large majority of informants think that Guanxi continues to play an important part in business. Emphasizing Guanxi may appear to be unac-ceptable or even harmful in some parts of the world, but it is a necessary aspect of doing business in China. Mr. Xiong, the General Manager of ZhongYuan Hospital Management Company, said that each year, when the recruitment time comes, there are lots of phone calls from local offi-cials, friends, and relatives and so on asking for job opportunities in the company because of their Guanxi . He said:

If Guanxi is crucial for the company, we will accept the candidate even that he/she cannot meet our selecting standard, because we know if we refuse, that Guanxi will be ruined, which may cause a lot of problems for the company in the future, and if we accept, in some stage in the future, those people would repay the favour back when we need help. (Mr. Xiong, General Manager, ZhongYuan Hospital Management Company) (54)

It is essential and even crucial for managers to master interpersonal Guanxi and social Guanxi . If so, they can double their results with half the effort. Mr. Zhang, the General Manager of Henan Xinxiang Asia Brewery Co., Ltd, stated:

If we cannot change the deep-rooted social consuetude, we have to adapt to it and make use of it. As the manager of a company, I believe good social relationships could be a kind of invisible rich resource


which can bring us a lot of benefits for the company rather than being an obstacle. For example, some official inspectors of the govern-ment actually intend to collect charges. Even you know the truth you cannot adopt a confrontational approach, you have to adapt to the ‘jungle rules’. So only those who can acclimatize themselves to the Chinese social environment well can have success, just like a duck to water, and that is what we say ‘Survival of the fittest’. However, there are two different criteria for managers dealing with the relationship with employees and with government departments: to the former, employees should adjust themselves to the organisational rules, but to the latter, the organisation should adapt itself to the social rules. (55)

Increasing numbers of foreign-invested enterprises, including joint ventures and foreign wholly owned business, have emerged in China in recent years; they have become aware of the importance of Guanxi and have started to use it to set up and expand their business. There is an example from Mr. Wang, the HR manager of Tianjin Otis Elevator Company:

When I worked in Motorola, the boss let me join a new department named OD (organisation development). I was the lowest, in terms of my education background, among the members of that department: my superior was an overseas educated doctor; two of my colleagues were local doctors, another one was a PhD student, and the last one was a master student, but I only had a bachelor degree. The reason the boss chose me at that time was: that on the one hand, I am good at learning new things and adapting to a new environment; and on the other hand, what is more important, I had very good contacts. I had rich Guanxi with high-level officials since I had more than six years working experience in the Chinese government. (Mr. Wang, HR manager, Tianjin Otis Elevator Company) (56)

Mr. Zhang, the General Manager of Henan Xinxiang Asia Brewery Co., Ltd, had a similar experience. Since 1994, when his company became a Joint Venture, several foreign managers were appointed one after another, but no one could successfully handle complicated affairs and inherent problems in the company. Finally, the directorate had to designate Mr. Zhang as general manager and some other local people as middle-level managers. He stated:

Why? It was because those foreigners knew very little about Chinese culture and local social convention. We know very well about people’s


thinking and behaviours, and we know how to deal with interper-sonal relationships and the relationships between the company and the local government. (Mr. Zhang, General Manager, Henan Xinxiang Asia Brewery Co., Ltd) (57)

Now, after more and more foreign companies have benefited from Guanxi , they have started to build their own social relationships in China through hiring local people, who have a good reserve of Guanxi , as their middle- or top-level managers. They have learned very quickly about this way of handling affairs, because this is a shortcut for them. Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd, gave another example:

When foreign companies started to run their businesses in China, they didn’t realize the importance of ‘ Guanxi ’, and everything was diffi-cult for them, but nowadays, many foreign companies are very good at using their ‘ Guanxi ’ in their business. My wife works in a famous foreign accounting company X. X engaged some office leaders of the State Administration of Taxation who were going to retire as their part-time advisors. The company wanted to use these leaders’ personal Guanxi , so any difficulty about tax would be solved smoothly. (Mr. Lv, HR manager, CEC Huada Electronic Design Co., Ltd) (58)

Some informants claimed, however, that both the connotation and the importance of Guanxi are gradually changing. Mr. Fang, the General Manager of American Yidi Co., Ltd, stated:

I believe that in some large modern cities in China, ‘ Renqing ’ is becoming more and more over-commercialized, but in some less-de-veloped regions, ‘ Renqing ’ still retains its traditional meanings, which is more sincere and reflects the depth of feeling within an interper-sonal relationship, not merely about ‘giving and returning’. (59)

Some informants noted that inside the organization, especially for large-scale companies and multi-international companies, the importance of Guanxi and Renqing has diminished, while Guanxi between a company and government and among companies to ensure a long-term rela-tionship is definitely increasing. As Mr. Yu, the HR manager of China Petrochemical Corporation, said:

In the organisation, separating work from private affairs is very helpful to improve work efficiency. The importance of Guanxi and


Renqing is gradually weakening, but outside the organisation, they still play an essential role for the development of the organisation. (Mr. Yu, HR manager, China Petrochemical Corporation) (60)

Mr. Lu, the Board Chairman of Chian Jinlang Co., Ltd, further added:

Although ‘Renqing’ still plays an important role in modern manage-ment, the concept of ‘Renqing’ becomes increasingly apathetic to the young people who were born in the 70s and 80s, as they are more inclined to be self-centred and they have begun to change jobs more frequently. (Mr. Lu, Board Chairman, Chian Jinlang Co., Ltd) (61)

Face ( Mianzi and Lian )

There are two separate but related concepts about face in Chinese social relations: one is Mianzi ( ), and the other is Lian ( ). Basically, these two concepts have similar meanings in everyday speech and are often used alternately, but actually they have tiny differences. Mianzi refers to the social perceptions of a person’s prestige, which is close to the ‘social face ’ of Hwang (2006), while Lian represents the confidence of society in a person’s moral character, which is close to the ‘moral face ’ of Hwang . In another words, Lian is a social evaluation of one’s personality, while Mianzi is more like a kind of self-judgment. However, no matter if Lian or Mianzi , both are formed and represented in the social relationship, that is, whether a person has face or not is not only determined by himself and his behaviour, but also by the attitudes and behaviours of others in his social group. So, face exists relying on interaction and sociality, and it only can be acquired from others’ reactions. By one’s status, ability, talent, morality, and emotional intimate relationship, one can gain more or less face from others. It is a kind of culturally sanctioned co-dependency of people in group contexts, and one should maintain and manipulate one’s identity in local group frameworks.

Mr. Ma, the HR manager of China Mobile Communications Corporation thinks that there are two different traditions of expression between the West and China. He stated:

The Western people tend to use a ‘Yes/No’ approach to express their ideas, but Chinese seldom speak out their real ideas directly. For example, the Western books are printed breadth-wise, and when people read, it seems they are shaking their heads and asking ‘why?’


But the ancient Chinese books were lengthwise printed, so people kept nodding their heads when they were reading, looking like they were saying ‘yes’ all the time. Westerners tend to hold a suspicious attitude while Chinese are used to obedience. When a Chinese subor-dinate has a disagreement with his superior, he would never speak out hastily but tend to make the superior known euphemistically. On the contrary, it is very common for one to express one’s opinion to superiors in Western countries, even knowing his ideas are totally conflict with his superior’s. (Mr. Ma, HR manager, China Mobile Communications Corporation) (62)

For Western people, a clear response is a good response, no matter whether it is positive or negative and no matter how unmerciful it is; while for the Chinese, it is for sure that a positive response is good, but an equivocal response is better than a negative one, because a negative response could destroy the harmonious relationship between people, losing face on both sides. Mr. Peng, the CEO of Yuanjing Investment Group, stated:

It is very interesting that Chinese people don’t like to say ‘No’ or refuse another’s’ proposal directly in order to save the other’s face . If they do not want to do it, they would just leave it unsettled. For example, if someone was hesitant about agreeing to do something in a meeting, it is probably because he didn’t want to do, but he would not refuse it completely in front of other colleagues. After the meeting, if the leader did not push him frequently, the work would not be finished efficiently as scheduled. So, if someone said ‘I will think about it’, you should consider that as a disagreement, otherwise a misunderstanding will be unavoidable. (Mr. Peng, CEO, Yuanjing Investment Group) (63)

The HR manager of Tianjin Otis Elevator Company, Mr. Wang, believes that for most Chinese people, the motivation of their actions is not the expectation of a good result but to a great extent to protect their own face or another’s face . Based on to Mr. Wang’s more than ten years of HR management experience in foreign companies in China, he thinks most Western employees, if they disagree with others, would like express their opinions without worrying about whether their ideas are right or wrong, whereas Chinese people would make sure their opinions are reasonable and right before they share ideas with others,


because they are afraid of losing face if their ideas are proved wrong or ridiculous. Mr. Wang said:

Face problem is more like a mental conflict with themselves for Chinese people, because they have to go through a self-judgment every time before expressing their ideas. But for those foreigners (Westerners) that I know, they don’t think too much about others’ opinions before speaking. (64)

Many foreign companies or joint ventures in China have uncovered a lot of trouble with communication. Basically, it is easier for Western employees to accept others’ comments or criticism about their work objectively without involving personal feelings; while for most Chinese, they tend to take everything as a whole, blurring the boundary of work and private life. If person A is criticized by person B about his work, very possibly he may think B has some private problems with him. Mr. Peng, the CEO of Yuanjing Investment Group, stated:

Chinese people like to express their opinions indirectly and always take business personally. If someone’s work wasn’t approved by his superior, he would probably think the superior dislikes him for personal reasons rather than thinking that the superior’s word is right or wrong. I have worked a lot of co-operation with German companies, and if I criticized a German staff member about his wrong operation, he would not think this was a personal abuse. Normally, pointing out a Chinese staff’s incompetency of his work in public will make trouble. (Mr. Peng, CEO, Yuanjing Investment Group) (65)

A large majority of the informants believe that to have effective commu-nication in Chinese organizations, it is necessary to consider carefully the face of the other side. Although there are somewhat individual differences of receptivity, most Chinese prefer gentle and euphemistic approaches. When they criticize their subordinates about their work, most managers tend to save face for both sides. Indirect criticism can make the recipient feel less embarrassed and be more appreciative and, on the other hand, it can show the benevolence and virtue of the managers. Mr. Sun, Deputy Manager of China Mobile Communications Corporation, pointed out that there is actually no fixed communication pattern, and superiors must adopt different methods according to indi-vidual differences. He said:


Under most circumstances, we prefer using an implicit way to criti-cize others’ work. Chinese are accustomed to express their ideas using simple and vague words, leaving listeners to understand the meaning by themselves. If listeners have no common culture background or have no sympathies with the speakers, they will not understand the deep meanings that hide under the surface. The manager should trigger the problem and let the employer discover the meaning himself. (Mr. Sun, Deputy Manager, China Mobile Communications Corporation) (66)

Although in most societies, face is used to civilize their members by raising their sensitivity to the views of others, the importance of face for the Chinese is much greater (Redding, 1990). Losing face to the Chinese is a ‘real dread affecting the nervous system ... more strongly than phys-ical fear’ (Redding, 1990: 63). Therefore, managing face in an organiza-tion is an effective approach to managing employees. Mr. Zhang, the general manager of Henan Xinxiang Asia Brewery Co., Ltd, thinks that the most harsh way to punish his employees when they do something wrong is to make them lose face (diu Lian ). He gave this example:

One time, I found some staff of the infirmary played mah-jong during working time, so I decided to punish them and their superior by posting a notice of criticism in public. This superior came to beg me that do not do that, but I refused him. To give other employees an effective warning we have to announce their fault and post the punishment. Because Chinese people would feel very shameful if their names were put on the punishment notice board; no one wants to lose face like that. (Mr. Zhang, General Manager, Henan Xinxiang Asia Brewery Co., Ltd) (67)

While it is useful to discipline employees by making them lose face , it must be applied very carefully. Normally, the Chinese tend to solve problems in a relatively gentle way, and if it does not work would then try a relatively harsh way. Mr. Li, the Board Chairman of Shandong Rongguan Textile Group Corporation, said that when his subordinates and employees make mistakes, usually he would like to give them face and solve the problem in private, but if they do not appreciate his kind-ness and give him face back, he settles it strictly, following the organiza-tional rules. He gave an example:

Once there was an employee, who is the son of the old vener-able party committee secretary, who embezzled public funds for


gambling. To protect the face of his father, I decided that if he could pay off the funds then, ‘No names, no pack-drill’. But the old secre-tary actually refused to compensate the funds, so in the end we had to send his son to jail. So, we should think about saving some-one’s face in the first place, but if there are no other choices, we will have to abandon personal considerations and follow official princi-ples. (Mr. Li, Board Chairman, Shandong Rongguan Textile Group Corporation) (68)

Furthermore, some employees may get more face from their superiors because of their working experience, educational background or private Guanxi . Some informants thought it is necessary to save employees’ face , especially for some elder employees, whose professional compe-tence may lag behind that of young people but who have dedicated many years to the company. Managers should show respect to those employees and save their face and, meanwhile, they need to solve prob-lems subtly and effectively. The example below came from Mr. Zhang, CEO of China National Commercial Foreign Trade Corporation:

Yang is a senior manager in our company, and he was once in charge of the foreign trade at the parent company, then he was transferred to manage a subsidiary hotel. He did not realize that the business field had changed and now required different management concepts and methods, and he kept applying for a higher salary because he thought his work intensity was much higher than before. I told him that I would not raise his wage unless he made more profits for the company. He felt unhappy with my words and began to instigate some other managers to antagonize the parent company and to slack off at work. Thus, the hotel’s business was badly affected. So I decided to transfer Yang back to the parent company to ‘freeze’ him. He was reappointed as a manager of one department, but actually he had no real duty and power under that title. Since he has worked in this company for such a long time, I gave him a nominal title to save his face. When he finally realized his embarrassing situation he would have learnt a lesson. (Mr. Zhang, CEO, China National Commercial Foreign Trade Corporation) (69)

Although face is important to every Chinese, normally people from high status need more face than ordinary people; old people need more face than young people; and the male needs more face than the female, because they have to protect their prestige, authority and power. It is important for superiors to give face to their subordinates to sustain harmony in an


organization, and what is more important is to give one’s superior face to build and maintain good Guanxi with the superior. Here is an example from Mr. Zhang, the general manager of Henan Xinxiang Asia Brewery Co., Ltd:

One day one of the entrance guards of my company had a quarrel with a driver of another company, and he refused to let the delivery truck get into the company. One middle-level manager tried to settle the conflict, but he failed. So I made a personal inquiry with the entrance guard, questioning him what had happened. The guard told me that it is the company’s rule to padlock after closing time and he just followed the rules. I said: ‘It was right for you to obey the rules. But why did you still persist in that after your superior told you to let him in? ’ The entrance guards answered: ‘I refused that guy at the very beginning and we even had a quarrel, if I finally compromised, I would lose my face .’ I said to him: ‘Ok, you think your face is impor-tant, but if you don’t follow your superior, how about your supervi-sor’s face ? Or if your superior defies me, how can I keep my face ? Do you think your face is more important than mine?’ It is quite necessary to back up middle-level managers and to protect their ‘ faces ’, and in this way the bosses can protect their own ‘ faces ’. (Mr. Zhang, General Manager, Henan Xinxiang Asia Brewery Co., Ltd) (70)

Face is very often associated with Guanxi . One essential component of Guanxi is to sustain face for both sides, saving face and giving face . For example, Mr. Li, the Board Chairman of Shandong Rongguan Textile Group Corporation, said:

I have been working in my own business since 1984 and achieved some successes. I had good relationships with a lot of officials, but as the years passed, some of them were promoted to other places, some of them retired, so I had to keep exploring and sustaining new ‘ Guanxi ’ with new officials. Sometimes, some ‘ Guanxi ’ cannot be maintained merely using money, because it is about the ‘ face ’. It was necessary for me to also engage in some social intercourse with very important officials personally rather than ask my subordinates to do it, I have to show enough respect to them to give them face . (Mr. Li, Board Chairman, Shandong Rongguan Textile Group Corporation) (71)

Although emphasizing the importance of face in an organization is helpful for managing employees’ work and maintaining harmonious


Guanxi between superiors and subordinates, it is undeniable that for most informants face and Guanxi are the biggest barriers for the imple-mentation of advanced management policies and rules. Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd stated:

In most organisations in China, the performance appraisal systems only exist in name. Why? Because too many factors that relate to Guanxi and face integrate into the system, so that the appraisal results can hardly be objective. (Mr. Lv, the HR manager of CEC Huada Electronic Design Co., Ltd) (72)

Mr. Ma, the HR manager of China Mobile Communications Corporation, added:

To protect employees’ face s, we (HR department) need to try our best to reduce the differences between staff in the performance appraisal, so the results of the appraisal are very similar. To protect their superiors’ face , subordinates normally give 100 per cent positive feedback; to save the subordinates’ face , the superior would only point out some inessen-tial shortcomings. By doing so, everybody save face and the appraisal work is accomplished, and as a result, everybody is happy. (Mr. Ma, HR manager, China Mobile Communications Corporation) (73)

Many informants also pointed out that increasing market orientation and job mobility contribute to more open and direct communication in the workplace, and today’s Chinese managers are more assertive and direct in communication than they used to be. As Mr. Gong, the HR manager of Zhongxing Telecommunications Corporation, stated:

Today, contrasting ideas and unorthodox opinions can be more openly stated and discussed in Chinese media and over the internet. In the workplace, managers are more explicit and more tolerant to a subordinates’ challenge; while subordinates tend to conjugate face preservation and the self-expression. (Mr. Gong, HR manager, Zhongxing Telecommunications Corporation) (74)

Discussion and managerial implications

The purpose of the study has been to find out the role of Chinese traditional thinking on Chinese HRM practices. The analysis of the


informants’ responses to the interviews revealed that the five core values: He (Harmony), Zhong Yong (the Doctrine of Mean ), hier-archy, superiority and loyalty ( ), Guanxi and Renqing (

) and Face ( Mianzi and Lian ), still significantly affect HRM practices in present-day China.

The first section is about Chinese managers’ perceptions of He and its influence on HRM practices. Through interviews, it is shown that He is still very important in the minds of the Chinese. Although similar to Western HRM (Chinese HR practices also consist of recruitment, training, performance assessment and compensation and benefits and so on), the core work of HR departments in Chinese organizations is to create a harmonious work environment for the organization or, in other words, their main work is to deal with the relationships between supe-rior and subordinate and the relationships among employees in order to maintain and strengthen organizational harmony. In HRM practices, the penchant for harmony significantly affects overall management strate-gies, personnel structure reform, the relationship between superior and subordinate, the application of appraisal systems and leadership style.

It was mentioned in Chapter 5 that the Chinese state can essentially be seen as an extension of the family, and the maintenance of social order was founded on morally enriched prescriptions for interpersonal rela-tionships. Therefore, through maintaining harmony in one’s own social context, the individual can find meaning and dignity. Being described as collectivist (Hofstede, 1980, 1985, 2001a), Chinese society is constructed of morally binding relationships, rather than by the Western mode of ‘uniting loosely coupled and “free” individuals by their separate espousal of coordinating ideas and principles’ (Redding, 1990: 44). Similar to defining the family as the prime unit of society and then ascribing certain roles for individuals in order to maintain social harmony, myriad self-controlling units are created. In each unit, to ensure its inner coher-ence unit, it is necessary to emphasize the father-figure role. The head of each unit is not only endowed with power and authority, but he should also behave appropriately, combining discipline with benevolence. The working place is one of those units. As many informants pointed out, the harmony of an organization is closely associated with the leader. In most Chinese companies, especially the private ones, the leaders’ person-alities have great influence on the constitutions of corporate cultures.

While Western management is characterized by a ‘hard’ approach based on objective and systematic rules and targets, Chinese manage-ment is featured by a relatively ‘soft’ approach which highlights the role models of leaders and human relationships (Liu, 2009: 43). In Chinese


management, to create a harmonious environment in the organization and to maintain harmonious relationships between superior and subor-dinate, harsh, strict and penal approaches are normally de-emphasized, while empathic, lenient and gentle methods are preferred. In fact, the capacity of merciful management is related to the insistence on appro-priate role behaviour of each member throughout the organization, and so the need for harsh approaches can be reduced.

In order to maintain organizational harmony, personal emotions are often allowed to enter into the decision making. Organizational policies and rules are supposed to concede to the harmony of the whole organi-zation under certain circumstances. Sheer objectivity and rationality are regarded as inflexibility and irrationality, so Chinese managers tend to make adaptable decisions according to different situations, even if such decisions may contradict preset policies. The overall good and harmony of the organization are the prime considerations for managers.

Although nowadays the concepts of ‘reform’, ‘innovation’ and ‘compe-tition’ are increasingly accentuated, most informants still believe that He is the essential factor to guarantee their companies will develop smoothly and continuously. When companies need to reform organizational poli-cies or reorganize the personnel structures for further development at some point, it is extremely important for reformers to assuage public feel-ings to avoid impacting workers; many informants, therefore, suggested ‘reforming on the premise of stability and harmony’. When dealing with organizational downsizing, the harmony and stabilization of the whole organization should be considered seriously; otherwise failure to do so may lead employees, who are used to secure employment relationships, into a state of anxiety even protest, which may finally cause disaster to the company.

Most informants believe that a harmonious environment is essential for the high morale and high efficiency of an organization and pointed out that some Western HR systems based on individualism are ill-suited for collectivist organizations. For example, individual performance appraisal systems cannot be applied properly in Chinese organizations, as harmony among people is of a much greater value than individual recognition. As most of the appraisal systems are directed towards group results rather than personal results, and performance results are artifi-cially limited on an average scale, this may consequently de-motivate both the high performers and low performers to a certain extent. Thus, despite numerous economic reforms that have already been carried out in the past three decades, it is impossible for local organizations to completely change their old practices in a short time (Warner, 2008);


even if they have adopted some Western management systems, such as bonus systems based on appraisal systems, the existence of those systems is rather a insignificant formality.

The second section is about Zhongyong and its role in HRM practices. Zhongyong means the ‘Doctrine of the Mean’, and it is an important concept and method in Confucianism, occupying a pivotal place in Chinese culture (Liu, 2009: 52). Zhongyong , based on fuzzy thinking, contributes greatly to the enormous flexibility, tolerance and moder-ation of Chinese culture. It can never be overstated that the Chinese way of life has been profoundly influenced by this mentality for over two millennia. The adoption of Zhongyong in social and personal life is intended to avoid or reduce tension and conflict and lays stress on ‘never go to extremes’ and on ‘neutrality’. In HRM practices, the principle of Zhongyong significantly affects preferences in recruitment and selection; in ways of communication and negotiation; in relationships between superiors and subordinates and relationships among employees; in behavioural and psychological tests and in leadership style.

Most informants mentioned that they dislike those who are showy and immodest. Although nowadays, during recruitment interviews, candi-dates should be able to show their competences as much as possible in a very short time; interviewers could estimate people’s characters from details such as their appearance, talk and behaviour. In an organiza-tion, all things being equal, those who behave modestly, reservedly and appropriately are more highly regarded than those who are aggressive, heroic, showy, canny, explicitly oriented towards winning and, conse-quently, the former may get more opportunities for promotion than the latter.

To be a successful leader, one must grasp the essence of Zhongyong . People most likely to make great achievements are those who behave moderately and reservedly, because they are less likely to be imagined as a potential threat and arouse others’ antipathy and wariness, and thus they should meet less obstacles during the early stage of their career. Moreover, for leaders, those who master Zhongyong are more possibly able to sustain their power and authority, as they can manage various relationships and handle all sorts of situations properly. Zhongyong is therefore not only the ideal method of management, but it is also an ideal style of leadership in China: always combining flexibility with firmness, mercy with justice and leniency with severity.

Zhongyong is important for both superiors and subordinates: for superiors, they ought to keep a balance between strictness and weak-ness, while subordinates ought to keep a balance between aggressive


and passive behaviour. This kind of balance is not static but changeable and flexible according to different situations, and thus the relation-ship between superiors and subordinates and among employees can be maintained in a mutually beneficial, harmonious and safe state. Some behavioural and psychological assessment systems favoured by many Western companies have proved that the preset categories of test results cannot be applied to Chinese test subjects, as their behaviours and temperaments change freely to meet various needs and according to a self- preservation consideration, so test results are hard to predict and cannot be over-simply categorized by Western models.

Although Zhongyong plays a significant role in everyone’s life in China, the responses of the informants show that the perceptions and practices of Zhongyong are to varying degrees in accordance with different groups of people. Firstly, the educational background and vocational type have an influence on people’s perception and practices of Zhongyong . Normally, the white-collars are more likely to practice Zhongyong in their daily life than the blue-collars, and those with high-educational qualifications have a better comprehension of Zhongyong than those with low-educational backgrounds. Those who with relatively higher educational backgrounds are possibly more aware of the code of social ethics and implicit rules; they have more opportunities of ascending into the upper class of a society; and they may also more sensitive to others’ responses and reactions and more careful in dealing with different kinds of complicated relationships – consequently they prefer to cover up their feelings and emotions to protect themselves. Secondly, people who work in government departments or state-owned companies, espe-cially those who occupy top-level positions, are more likely to practice Zhongyong , because interpersonal relationships are much more highly emphasized in these organizations and essential for the leaders. On the one hand, they need to manage certain relationships which are vital for the prosperity of their careers; and on the other hand, they must handle the relationships with subordinates properly to win their loyalty and support. Thirdly, in an organization, senior employees are keener on Zhongyong than are the juniors. People of the older generation are more deeply affected by traditional culture and by years of experience know how to make use of Zhongyong to protect themselves from being hurt, while the younger generation is more open to Western culture and new ideas, and many of them are not willing to be ordinary in any aspect. However, the younger generation might be remoulded by social reality and the imperceptible influence of Chinese culture as they grow older, as some informants mentioned.


The rule of practicing Zhongyong is to avoid trouble wherever possible and adopt the general principle that one will not attack unless being attacked (Liu, 2009: 52). In an organization, a confrontational approach during communication and negotiation would normally be avoided, and a mild and flexible way is preferred. In spite of its significant contribu-tion for the harmony of interpersonal relationships and the stability of the whole organization, Zhongyong has been largely responsible for the undesirable consequence of overly stressing Zhongyong – the numbness, slickness and even indifference of Chinese employees. The traditional ‘Laohaoren’ (Goody-goody) refers to those who overly stresses or even twist Zhongyong : they are afraid to offend people, pretend to be nice with everyone, excessively devote themselves to Renqing and ‘folksiness’, avoid pointing out anyone’s mistakes, never express their own ideas frankly in public and tend to follow popular thinking. This is an obstacle for Chinese management. Although nowadays more and more people have the sense of expressing their own ideas freely, it is undeniable, as informants indicated, that there are still too many Laohaorens who hide in society which suppresses novel ideas and creative spirits and so hinder the development of organizations.

The third section is about Chinese managers’ perception of the hierarchy, seniority and loyalty in HRM practices. In order to maintain social harmony and overall stability, an individual must be civilized through conforming with and fitting into the basic social order of his surrounding world, which requires mastery of both vertical and horizontal relationships. As a high-power distance culture (Hofstede, 1984, 2001), China has a strong sense of vertical order in the people’s behaviour and attitude. Social hierarchy and the superior–subordinate relationship are commonly seen as the foundation stone of society, and the prevailing and centralized rules of governing vertical linkages are conveyed in the specific principles of Li , ‘Five Cardinal Relationships’ ( ) and the ‘Three Bonds’ ( ), which highly emphasize authority, seniority and loyalty. The vast majority of the informants hold that the social pecking order has been deeply embodied in Chinese culture and people are still defined by their social roles and innate identified obliga-tions. In HRM practices, the notion of hierarchy, seniority and loyalty affects the relationships between superior and subordinate, selection and promotion systems, training and development and employee turnover.

The relationship between superior and subordinate is most compli-cated, elusive and vital for people in the workplace. In Chinese organi-zations, clear distinctions between superiors and subordinates are expected: subordinates should show respect for hierarchy and accept


the hierarchical nature of the superior–subordinate relationship; while superiors are supposed to show their authority, humanity and propriety, disrespect and open challenges from subordinates are not normally allowed. The vertical order in an organization is dynamic and relative rather than static: today’s subordinate could become a superior in the future by Guanxi , seniority, loyalty, competence and so forth; one person in a rank can be a superior and a subordinate at the same time, as he understands that he fits naturally below some people and just as signifi-cantly, above others, so he very possibly plays two opposite roles. That is to say,, one has to show fully respect and obedience to superiors, whilst to subordinates, one could confirm superiority and prestige. Nowadays, although the management structure tends to be flat in many enterprises, especially those large-scale and foreign-invested ones, the psychological hierarchical order of Chinese employees still exists.

The boundary between work and personal life for Chinese people is extremely blurred. As enterprise is an extension of the basic unit of family, the leader of an organization is esteemed as the patriarch of the whole organization. The core of the leader’s responsibility is paternalistic concern for the subordinates’ general welfare, and in return loyalty and its exten-sion in diligence are supposed to be offered from below. Though one can have different identities and roles according to different situations, certain roles are ahead of others, or say, one role is usually in a dominant posi-tion: for instance, as some informants stated, being a superior at work very likely makes someone behave as a superior even in his private time, and this superior–subordinate relationship can still be maintained after work.

One’s competence and intelligence are not the prime criteria for promotion in Chinese organizations, especially in SOEs and private companies, and the criteria for evaluation are based more on personal Guanxi , Renqing , face , seniority, loyalty and so on. Because of the tradi-tion of respecting age, promotion by seniority is still very common. Senior employees are deemed to be more closely connected emotion-ally and psychologically with their organizations and more loyal and reliable than their junior counterparts, and therefore would more likely be offered training opportunities. Promotion by seniority has certain advantages in its operation: firstly, it gives individuals a built-in sense of belonging to their organizations, as the more years one has devoted to his organization the more benefits he gets in return; secondly, it can help to uphold a relatively stable personnel structure for an organization, because the younger people who are keen on job-hopping are expected to get less opportunities for development, and hence they would prefer to stay longer; thirdly, giving priority to the older staff could avoid


excessive competition and unwanted conflicts among employees, which may destroy the harmony of the organization, because Chinese people tend to accept the so-called ‘first come, first served’.

However, more than half the informants mentioned that when they select and promote people, seniority as an evaluation factor is dimin-ishing in its proportion. All things being equal, more often than not, priority will be given to seniors, but more and more employers are inclined to those who have both good competence and rich experience, so if they cannot find seniors as appropriate candidates, they will go for competent young people. What is more, seniority has been diluted by the adoption of performance-based pay systems, especially in foreign-owned companies and joint ventures.

Loyalty is a vital quality that determines whether someone is favoured by his/her superior or not. Most informants believe that subordinates’ loyalty and reliability are more valuable and significant than competence, professional skills and knowledge. Only when one is loyal to his/her organization, could he/she be devoted to his/her work completely. Today, when changing jobs becomes a more and more prevalent phenomenon, loyalty is of particular significance for employers. Although employees’ loyalty and competence are both important, the former can be seen as the basic quality: based on loyalty, the more competence the better.

The connotation of loyalty has gradually been changed: in the past an employee’s object of loyalty was to a particular person, but now it is advocated that employees’ object of loyalty should be to the organiza-tion. However, employees’ loyalty to managers is stronger than that to the organization, because the managers are psychologically and physi-cally more closely connected to the employees than to the organiza-tion, and the leader’s personality still has a very important effect on the employee’s degree of loyalty, especially in private companies. The loyalty of Chinese employees is actually based on their satisfaction with the leadership more than with the organization. Nevertheless, it is incontrovertible that people have become much more realistic than before: employees need more self-development opportunities and stronger salary incentives. If organizations do not pay enough attention to employees’ needs, they may lose their loyalty.

Turning now from vertical relationships to horizontal ones, the fourth section is about the role of Guanxi and Renqing in HRM management practices. The way of nurturing individuals of a collectivist society is to make a person perceive that his/her place is alongside others, to behave properly in assorted social networks, both vertical and horizontal. What guides the horizontally relational exchange behaviours in China is


Guanxi , which is a kind of reciprocal obligation and mutual assurance. A prominent feature of Chinese culture is the omnipresent role of Guanxi , and it is as delicate fibres that weave into every Chinese individual’s social, political and business life; Guanxi is cultivated, maintained and strengthened through the exchange of Renqing . In HRM practices, Guanxi and Renqing have an effect on the relationships between superior and subordinate, recruitment and selection, promotion systems, training and development and employee turnover.

In organizations, the overlap between the formal relationship and informal relationship ( Guanxi ) is pervasive: the boundary of work and personal life is indistinct; one’s official duties and personal relationships often overlap; and additionally more often than not, the formal order and rules in an organization give way to the operation of Guanxi and Renqing . For that reason, building and maintaining a good Guanxi with superiors and peers in an organization is the crucial factor that guaran-tees a prosperous career, and the sustaining of Guanxi is mainly achieved through the long-term investment in Renqing .

The giving and receiving of Renqing is by no means an easy job. Apposite exchange of Renqing could reach the utmost of efficacy while improper Renqing operation may ruin a relationship or even one’s whole social network. To construct a good relationship between superiors and subordinates: for subordinates, they should give Renqing to superiors as much as possible, through showing respect, giving face , doing favours, providing entertainment, sending gifts and so forth; for the superior, besides the virtual benefits they should return, mental encouragement is also important, by which those subordinates would become or remain as their in-groups. The exchange of Renqing is closely related to the ‘gift culture’ in China and, accordingly, knowing how to give and how to receive gifts is a must for both superiors and subordinates in exchanging Renqing as well as establishing and sustaining Guanxi .

In recruitment, whether a person has a personal relationship with the recruiter counts much more than whether he/she is qualified for the job. From the inner aspect, relatives, friends and those who are hometown fellows or former classmates of the employer are readily targeted in hiring, especially for private enterprises, as those people are regarded more reliable and trustworthy than strangers; from the other aspect, employers have to accept the entry of some candidates in order to sustain vital social Guanxi for the advantage of the whole enterprise and ‘in reality’ recruitment can often be seen as a good chance for the exchange of Renqing for Chinese organizations.


In terms of selecting and nominating people in an organization, Chinese managers lay stress more on feelings and trust, and they tend to select and promote those who have good and intimate personal relationships with them. Once a strong relationship is in place, when there is a good opportunity, the Chinese feel morally obliged or even spontaneously to consider someone of their in-groups. Professional knowledge and skills cannot guarantee a thriving career, but the appro-priate network-construction in the workplace does.

For Chinese people, the establishment and maintenance of personal networks are considered necessary and, most of the time, ethical. Because the moral dimension functioning is that those who fail to observe the rule of Renqing exchange and refuse to fulfil their obli-gations are deemed as unreliable and untrustworthy. Based upon moral, emotional and even utilitarian mutual obligation, complicated interlocking connections are built, and a dense and cohesive net is formed. Consequently, management based on Renqing and Guanxi often has positive effects, especially in private, small and middle-size enterprises, because within an organization, Renqing makes people feel closer to one another and it constructs emotional belonging and cohesion; hence, it has the power to retain talent and mobilize people to reach certain objectives together at crucial times. However, in some particular stages, or in larger enterprises, relying too much on Renqing may become a handicap to management and a burden for the growth of enterprises. Outside the organizations, it is essential for managers to handle social Guanxi properly, because most of the companies in China are heavily dependent on business opportunities and credit lines provided by their Guanxi network, and they cannot go far without good and extensive Guanxi . Managers tend to maintain and expand social Guanxi networks as much as possible, especially when informal Guanxi connections can compensate for a possibly inefficient official system.

An increasing number of foreign-invested enterprises, including joint ventures and foreign wholly owned businesses, have become aware of the importance of Guanxi and have started to use it to set up and expand their business. By nominating local managers, foreign enter-prises can adapt to the Chinese business environment more easily, as those managers are more versed in the implicit rules of Guanxi and Renqing and, therefore, are more adept in dealing with employees and building social networks. Actually, after more and more foreign compa-nies have benefited from Guanxi operations, they have started to build


their own social relationship through hiring local people with good resources of social Guanxi as their middle- or top-level managers to reduce obstacles which are set for foreign companies and to earn more business opportunities.

Nevertheless, the connotation and the importance of Guanxi are gradu-ally changing. On the one hand, in some large cities, Renqing and Guanxi have increasingly become over-commercialized and over-utilitarian and have lost their original sense of emotional sincerity; on the other hand, inside the organization, especially for those large-scale companies and multi-international companies, the importance of Guanxi and Renqing in management are reduced, while Guanxi between company and govern-ment and among companies to ensure a long-term relationship is defi-nitely increasing.

The fifth section is about Chinese managers’ perceptions of face in HRM practices. Face is another important concept, alongside Guanxi and Renqing , and relates to horizontal social relationships. In the Chinese ethical system, how to behave is not based on any distant and abstract religious ideal, but instead on immediately accessible relationship rules. A person can define and guide himself or herself through the social web, and protecting his/her face , or say, dignity, self-respect and prestige depends on the maintenance of correct relationships among individuals. As explained earlier, face has two dimensions – Lian (moral face ) and Mianzi (social face ). In HRM practices, face mainly affects relationships between superior and subordinate, recruitment and selection, promo-tion systems, communication and punishment approaches, training and development, appraisal systems and employee dismissal.

Communication in an organization is largely influenced by face work. The research shows that normally people from high status need more face than ordinary people; old people need more face than young people; the male needs more face than the female, as they have to protect their pres-tige, authority and power. Consequently, to different people in different situations, saving, giving and losing face properly is important in people management.

While Western-style organizational communication is generally both open and interactive, the effective and artistic communication of Chinese style is by no means direct and impertinent. Chinese subordi-nates should seek to protect and give face to the superior, and the supe-rior should also take care not to damage the subordinate’s face . When a subordinate has a disagreement with his superior, he rarely speaks out hastily or thoughtlessly, but tends to make the superior know his position euphemistically. Superiors are also supposed to try to avoid


criticizing subordinates directly, especially in public, as direct criticism causes a loss of face . Even if the content of the criticism is pertinent and helpful, subordinates still feel embarrassed and humiliated, or even worse, may take the criticism personally. Although there are individual differences of receptivity, most people prefer gentle and euphemistic approaches, so when they criticize subordinates, managers tend to save face on both sides. Indirect criticism can make the recipient feel less mortified and be grateful, and can show the kindness and virtue of the manager.

Negative responses in communication are loathed by the Chinese, who would rather make ambiguous responses to avoid embarrassment and face-to-face conflict. If a group of people cannot reach an agree-ment, they prefer to leave it unsettled instead of arguing against others openly. If a person makes an equivocal response to a proposal or request, it can often be considered as a sign of disagreement or unwillingness, otherwise a misunderstanding would be inevitable.

Managers tend to be concerned about the face work when demoting or dismissing an employee. For example, before a demotion or dismissal, the manager may reassign him/her to another less important post for a while to give a ‘cooling-down’ transition period in order to save his/her face and meanwhile reveal a hint of imminent demotion or dismissal. When dealing with personnel affairs, a gentle way is often preferred; however, when it does not work, a relatively harsh approach will be applied. Because losing face is a real dread, it can be used as an effective method of punishment, but it must be applied very carefully for the sake of maintaining organizational harmony.

Although emphasizing the importance of face in an organization is useful for managing employees’ work and maintaining the harmonious Guanxi between superiors and subordinates, it is indisputable to most informants that face and Guanxi are the main barriers for the imple-mentation of advanced HRM practices, such as performance appraisal. In most organizations, the performance appraisal practices often lack objectivity and reliability, as differences between staff in the appraisal are artificially reduced by the HR department in order to protect both managers’ and employees’ face .

However, some informants suggested that increasing market orienta-tion and job mobility contribute to more open and direct communica-tion at the workplace: more managers are likely to adopt an explicit way of communication, and they are more tolerant to subordinates’ challenges; while subordinates tend to combine face preservation with self-expression ( Table 6.1 ) .


Table 6.1 Findings and the managerial implications

Features of Chinese traditional thinking

Core values HR practices

Holistic, naïve He (harmony) Steady and smooth development strategies of Chinese organizations; relatively mild approach of personnel reforms; harmonious interpersonal relationships; nominal performance appraisal systems; and the importance of leadership as the role model.

Fuzzy, holistic, processual, indirect

Zhongyong Preference for modest and reserved people in recruitment and selection; harmonious and balanced relationship between superiors and subordinates; relatively mild, lenient and gentle leadership style; the soft, flexible and conflict-free way of communication and negotiation in HRM practices.

Holistic, long-term Hierarchy, Seniority and Loyalty

Clear distinctions between superiors and subordinates; the leader of an organization tends to play paternalistic roles with paramount authority; promotion by seniority and loyalty are still very common; senior employees with loyalty more likely to get the opportunities of training and development.

Fuzzy, holistic, long-term

Guanxi and Renqing

The overlap between formal relationship and informal relationship ( Guanxi ) is pervasive in Chinese organizations; the line between work and personal life is rather blurred; Guanxi and Renqing often intervene into recruitment and selection, promotion and reward systems, performance appraisal system and training and development.

Holistic and indirect Face ( Mianzi and Lian)

Indirect communication, mild criticism and equivocal responses are quite common; good relationships between superiors and subordinates are maintained by properly giving and saving face ; face work can be used in reward, dismissal and punishment.

205

‘Chinese history is still essentially without history: it is only the repeti-tion of the same magnificent ruin’ (Hegel, 1956: 168). Hegel’s comment about Chinese ‘immobility’ seems exaggerated, while Teilhard de Chardin’s (1956: 241) description of China as a ‘malleable and tena-cious bloc’ may well describe the flexibility of today’s China in terms of ‘assimilation, adaptation and capacities of learning from external inputs’ (Faure and Fang, 2008: 205), combined with its constant inheritance of traditional thinking over the past millennia.

Since 1978, Chinese society has been in direct contact with foreign concepts, cultures, technologies and lifestyles as a result of the ‘Open-door’ policies. Globalization, foreign direct investment and the perva-sive influence of the Internet has exposed China to unprecedented global knowledge transfer, information sharing and culture learning (Faure and Fang, 2008: 194). Although values, beliefs and behav-iours may change when different cultures interact with each other, in China – an old, vast, long-lasting, mysterious and complex kingdom – its unique and vigorous tradition is as fertile soil to plants or as water to fish; its importance, influence and osmosis are far beyond the under-standing of foreigners, and even often cannot be perceived by many Chinese people.

In the globalized economy, investment flows from developed coun-tries into China, and along with the economic investment, the Western management theories and practices have been introduced and spread rapidly. Most HRM theories and practices used in current management literatures have originated from Western countries, particularly from the United States. The strong U.S. bias in the development of the HRM field, which suggests a semi-homogenized HRM field (Brewster, 2004), has led to a limited number of empirical studies on Chinese indigenous HRM

7 Conclusion


practices in the Chinese cultural context. Often, Western HRM poli-cies and models are viewed as ‘globally applicable’, and therefore they are assumed to be ‘ready-made’ options from which organizations can choose in order to enhance the organization’s performance anywhere in the world.

Two old Chinese idioms can be used to vividly describe the existing research that has been undertaken on HRM in China over the last twenty years. The first is guan zhong kui bao ( ), which means, ‘to look at a leopard through a bamboo tube, one could only see a segment of its whole body’. As many writers (such as Chiu, 2006, and Cooke, 2009) have noted, a large proportion of empirical studies on HRM in China tend to use Western theories and conceptual models as a starting point or benchmark to investigate HR practices in China, and this ‘outside-in’ approach (although it may be useful as a starting point to guide investigation in China) could very possibly become the ‘bamboo tube’ which limits the picture in viewing Chinese HR issues as a whole. Moreover, Western HRM theories and models rest on deeply rooted cultural characteristics ( meritocracy, individualism, rationality and short-termism ), and they do not necessarily function equally well in another culture, such as China’s, which is characterized by holism, fuzziness, long-term orientation and relationship orientation . Therefore, if one takes Western theories as a benchmark to investigate Chinese HR issues and assertively translate Western code into Chinese while paying little attention to the cultural differences, this may lead to partiality and a preconceived notion which could result in a distortion when investi-gating authentic Chinese management.

The other idiom is mang ren mo xiang ( ), about a well-known fable which tells of four blind men trying to observe an elephant by touching its body, and they each reach different conclusions: the man who holds the tusk believes the elephant is like a spear; the man who touches its trunk insists the elephant is like a snake; the man who feels its leg maintains that the elephant is like a tree; and the last, who reaches its ear claims the elephant is like a fan. Similarly to those blind men who could not grasp the elephant in its entirety but attempted to describe the whole animal from their own point of view, it is very hard for those outside Chinese culture (even many inside) to grasp all of its features. Those who have Chinese culture by the tusk may say Chinese people are conservative and that is why it is so difficult for China to accept modernization; those who have it by the tail may say that Chinese society is relationship-oriented and that explains the noto-rious corruption and substandard business practices; those who hold

Conclusion 207

Chinese culture by the leg may say that Chinese people are spontane-ously artistic and this accounts for the absence of a scientific tradition; and those who hold the ear may say that Chinese people are adaptable to any situation, and that is perhaps the reason why Chinese culture has outlived the other great civilization in Eurasia, being the oldest, but still dynamic, civilization. These interpretations of Chinese culture may not be wrong in themselves, but they all commit the error of taking the part for the whole according to their own selected emphasis.

Therefore, the present work has tried to avoid the limitation and devi-ation, mentioned above, by investigating HRM practices in China via both the outside-in and the inside-out approach and comprehending Chinese culture through more than the tusk, tail, leg and ear.

East–West comparisons

Max Weber (1976) held that the rise of Western capitalism is closely associated with the Protestant ethic. According to him, the Protestant ethic cultivated a specific type of personality that relinquished all inter-mediaries between God and the individual, and this direct relationship promoted a sense of dignity, thus bringing forth individualism . The white Anglo-Saxon Protestants (WASPs), who originated from the Protestant religious sects (McNamee and Miller, 2004), tend to believe that one’s individual ability and efforts can master or transform one’s environment in the way one chooses, and therefore enable one to achieve success – this idea largely represents the core norm of the Western meritocracy . Besides, the connotation of rationality , which is objective, abstract and detached, acts as a symbol of all that the Western philosophy tradi-tion holds precious (Lloyd, 1998). This tradition of rationality fosters a belief in an absolute truth and certainty, but the long term is very uncertain in reality, and uncertainty only can be avoided for a short time. Consequently, rationality cultivates Western people with short-termism, referring to the preference for direct, certain, visible and short-term engagement in dealing with affairs in their lives. In a nutshell, meritocracy, individualism, rationality, and short-termism can be reck-oned as the philosophical underpinnings that account for the features of modern Western organizations – emphasizing intelligence and indi-vidual efforts, highlighting individual recognition and rights, adopting scientific management systems and focusing on short-term returns.

In contrast with the transformative thinking that is inherent in the Protestant ethic, Chinese traditional thinking, Confucianism in partic-ular, tends to exhort people to accept or adjust to their environment: a


man should relate to society in a harmonious way by following a whole set of social formalities and accommodating various situations. The Chinese orientation towards harmony is based on traditional holistic thinking in that human beings are an integral part of nature in which equilib-rium forms a core that is tightly bound by the ethical principle of both the vertical (social hierarchy) and horizontal ( Guanxi , Renqing and face ) relationships. The inevitable intertwinement of such vertical and hori-zontal relationships constitutes Chinese society as a whole: the powerful vertical bonds are dominant and can be reckoned as the skeleton which offers the body its basic structure; the horizontal ties are secondary but still essential and can be seen as the flesh and blood which endow the body with vigour and vitality. The unique feature of Chinese society has thus been retained and reinforced by the interaction, for millennia, of these two main social relationships, which combine the stability with flexibility, tenacity with laxity, and sympathy with apathy . As an extension of the notion of He (harmony), Zhongyong is not only a distant ethical and living ideal but also a practical doctrine that can be applied in the everyday life of the Chinese to build social conformity. Zhongyong origi-nated from fuzzy thinking, which involves a multivalent, multi-valued, nonlinear worldview, and therefore inclines to create balance among conflicting components whilst repelling extrsemes and one-sidedness. At a more practical level, indirect and long-term thinking guides the specific ways the Chinese people operate their social and personal relationships: the maintenance of Guanxi and exchange of Renqing have a long-term orientation and are mutually highly obligatory and reciprocally focused; the magic code of giving and saving face is used effectively and artisti-cally, through witty compliment and euphemistic criticism.

Summary of the main findings of the research

The main core of the initial target of this research was to find out whether Chinese HRM practices are affected by these core values and therefore form the Chinese HR style. Also, what can Western HR management learn from Chinese values, which originate from traditional thinking? In terms of the former question, as we have seen, HRM in China is pragmatic in nature rather than being confined by advanced foreign HRM models and theories. Chinese traditional values continue to exert a profound influence on the HR practices in organizations in China: still highly emphasized are harmony, moderation, indirect expression of disapproval, showing respect to older people, being loyal, saving or making face , reciprocity and interpersonal relationships.

Conclusion 209

This research validates much of the literature about HRM in China in several important ways and further broadens and deepens their topics through an inside-out approach. Firstly, it confirms the existing research about the characteristics of managerial practices in a collectivistic culture like China (e.g., Hofstede, 1984, 2001; Shen, 2004), but it tries to explain this collectivism by unveiling the underpinnings of Chinese traditional holistic thinking and its derived core value – He , or harmony. The research shows that the penchant for harmony is responsible for the steady and smooth development strategies of Chinese organizations; the relatively mild approach of personnel reforms; the harmonious inter-personal relationships; the nominal performance appraisal systems; and the importance of leadership as the role model.

Secondly, this research shows that the principle of Zhongyong significantly affects the Chinese management style, and this is consistent with many researchers (e.g., Liu, 2009; Redding, 1990; Shao, 2003; Zeng, 2006) who suggested the importance of the ‘middle way’ thinking in Chinese management. The current research further reveals that the ideal of Zhongyong originated from the traditional fuzzy thinking, which accounts for the preference for modest and reserved people in recruit-ment and selection; a harmonious and balanced relationship between superiors and subordinates; a relatively mild, lenient and gentle leader-ship style; and the soft, flexible and conflict-free way of communication and negotiation in Chinese HRM practices.

Thirdly, the study supports propositions made by many researchers (e.g., Hofstede, 1980, 2001; Jiang and Cheng, 2008; Warner, 2008) about how hierarchy, seniority and loyalty influence Chinese management. Underpinned by traditional holistic thinking, the specific principles of Li , Five Cardinal Relationships ( ) and the Three Bonds ( ), which strongly emphasize authority, seniority and loyalty, were explored by the current research. HRM practice, shows that there are clear distinctions between superiors and subordinates; a leader of one organization tends to play a paternalistic role with paramount authority; promotion by seniority and loyalty are still very common; senior employees who are loyal are more likely to receive the opportunities of training and development.

Fourthly, the findings of this study strongly confirm the existing research (e.g., Chen et al., 2004; Chen and Easterby-Smith, 2008; Yg and Huo, 1993) on the role of Guanxi and Renqing in Chinese management. However, this research highlights the cultural context in which Guanxi and Renqing are embedded, rather than considering these terms in an isolated way. As the dynamics of horizontal social relationships in China, Guanxi and Renqing are based on long-term reciprocal obligation, which


originated from the Chinese traditional long-term oriented thinking. In HRM practices, the current research shows that the overlap between formal relationships and informal relationships ( Guanxi ) is pervasive in Chinese organizations; the line between work and personal life is rather blurred; Guanxi and Renqing often intervene in recruitment and selec-tion, promotion and reward systems, performance appraisal systems, and training and development.

Finally, this research supports suggestions made by many researchers (e.g., Mo and Berrell, 2004; Ting-Toomey et al., 1991; Westwood, 1997) that face work largely influences the way of communication and negotiation in management, while the current research deeply inter-prets the face phenomenon in a Chinese context, tracing it back to the traditional indirect way of thinking. The research shows that in Chinese HRM practices, indirect communication, mild criticism and equivocal responses are quite common; good relationships between superiors and subordinates are maintained by properly giving and saving face; face work can be used in reward, dismissal and punishment.

Chinese HRM style and its importance

This concerns the second target of the current research. Because of the propensity of using Western ethics codes, models and theories as universal standards to evaluate other cultures, the obstacles for truly mutual understanding are inevitable. To evaluate whether a manage-ment system has value or not, the social and cultural environment in which it operates cannot be ignored (Shen, 2004: xiv), so it is risky to take Western values, which are against historically existing values in Chinese culture, as the only benchmark for management in China. In spite of the denounced corruption and substandard business practices, China has made remarkable economic progress, therefore it is signifi-cant to understand the Chinese competitive management style through the eyes of an ‘insider’ by comprehending the fundamental knowledge of Chinese history, the quintessence of Chinese traditional thinking and those derived core values. Additionally, to foreign management practi-tioners (similar to management researchers), transforming management practices for strategic success in China is not merely a matter of adapting management practices to fit the local context (different actions); this also requires coping with different mental models, different relation-ship paradigms and different axiomatic foundations (different ways of thinking), which are more fundamental and more challenging (Lasserre and Schutte, 1999; Stening and Zhang, 2007).

Conclusion 211

Indubitably there are indigenous principles which lie behind the effi-cient business practices in China and, as is evident from the findings of this research, they are articulated in terms of a long-standing tradi-tional way of thinking, which is holistic/naïve, fuzzy/processual and indirect/long-term, and are specifically revealed by the use of the key values of He , Zhongyong , hierarchy/seniority/loyalty, Guanxi / Renqing and Mianzi / Lian .

Based on the holistic/naïve, fuzzy/processual and indirect/long-term thinking, Chinese culture has maintained a distinctive tradition of holding an organization together as a dynamic group. Instead of narrowly defined scientific specialization, the interrelatedness of all kinds of things is highly emphasized: ecology, Earth, ocean, population growth, economic development, wars, natural disaster and so on are all interrelated (Chen, 2004:30). The harmony of the society as a whole and harmony between human development and the outside environment are the fundamental concerns of the Chinese, whose holistic, flexible and long-term approach is to deal – in a non-radical, moderate but effec-tive way – with the complicated and constantly changing phenomena of the real world. An organization is one microcosm of the whole state, so it operates following the social code in almost the same way, and the harmonious, steady, adaptable and long-term development of the organization is its managerial ideal. Moreover, Chinese traditional thinking views the self as the centre of relationships, and the self is dignified in social networks, realizing its dignity and value by taking advantage of human interaction, and so leading to a special manage-rial style emphasizing inter-relationships, humanism, personalism, 1 authority, consensus formation and so forth.

Organizations are fundamentally humanistic, even in a hard competi-tive world, and after a hundred years of dormancy, the heritage and transformation of Chinese traditional thinking is changing the balance to China’s advantage. Specifically, the competitive edge of Chinese organizations lies in their prime concern for harmony, which ensures a stable, harmonious, persistent development, although it may be slow and laggard at some stages. The talent of Zhongyong – which endows Chinese organizations with the ability to maintain balance in various situations as well as with the capability of managing paradoxes with skill and ease – will modify and reassess the Western management theories to fit Chinese value systems; the ability to forge a daedal and long-term Guanxi network and maintain a high degree of flexibility, which allows the organizations to transcend the limits from both inside and outside and adapt to any situation.


All in all, the long-standing preference for organizational harmony over radical change, for a vertical, stable order based on paternalism and seniority, for trust bonds reinforced by obligation and reciprocity, for personal virtues stressing moderation, appropriateness, avoidance, loyalty, benevolence and persistence, and so forth – this has shaped a special Chinese psychological system that will contribute significantly to its economic and managerial efficiency.

Limitations of the research and suggestions for future studies

The research findings are limited mainly because of an insufficient sample size, undivided geographical area and inadequate classifications of the Chinese enterprises. The People’s Republic of China is made of a great variety of local cultures and languages (dialects), so that the term ‘mainland China’ can be an oversimplification. Though China ethni-cally is rather homogeneous, being 91 per cent Han ( ), it also can be deemed as a fairly heterogeneous country, not only racially but linguis-tically and, in religion, local customs and cultures (Stening and Zhang, 2007). The cultural variations of different regions could lead to different propensities in HRM practices. The research findings are limited to the Chinese sample managers in areas of Beijing, Shanghai and Henan, which has to some extent served to diminish the applied implications of the research findings. Consequently, more complicated and deeper research is necessary into the areas’ cultural differences instead of making general statements about HRM in China as a whole.

In addition, the analysis conducted in the current research was based on data only from in-depth interviews with HR managers and general managers in charge of HR departments, which may limit confirmation of different hierarchical levels of perception on HR practices in China. Future studies therefore may strive to collect wider data from the HR manager’s peers and subordinates so as to further validate the research findings.

Finally, although the current research has noted differences of perception of Chinese traditional values in HR practices between the local enterprises and the multinational enterprises, it is necessary to further explore these differences, specifically according to various types of enterprises. For example, future study could focus on the different extent of perceptions on Chinese traditional thinking in HR practices in private enterprises, state-owned enterprises, joint ventures and exclu-sively foreign-founded enterprises in China. Future research might also

Conclusion 213

focus on culturally indigenous HRM practices in small, medium and large indigenous companies in China, to limit the effect of the institu-tional transferability of HRM practices among multinational companies that has been experienced in the present day. Such endeavours have the potential to further highlight the impact of Chinese traditional thinking and its core values on the effectiveness of indigenous HRM practices.

214

Appendices

Appendix 1 Informant Pseudonyms and Background

Pseudonym Age Gender Position Company Work location

Location of interview

Mr. Sun 43 Male Deputy manger

China Mobile Communications Corporation

Beijing The Café at the CMCC Headquarters

Mr. Ma 35 Male HR manager China Mobile Communications Corporation

Beijing The Café at the CMCC Headquarter

Mr. Peng 37 Male CEO Yuanjing Investment Group

Beijing Cafe

Mr. Zhang 52 Male CEO China National Commercial Foreign Trade Corporation

Beijing Cafe

Mr. Zhong 56 Male Board Chairman

Beijing Kangde Investment Co. Ltd

Beijing Office

Mr. Yu 55 Male HR manager China Petrochemical Corporation

Beijing Office

Mrs. Ma 48 Female HR manager China United Telecommunications Co. Ltd.

Beijing Lobby of the headquarters

Mrs. Li 40 Female HR manager Open E-learning company

Beijing Office

Mr. Qiao 47 Male HR manager China National Petroleum Corporation

Beijing Office

Mr. Wang 43 Male HR manager Tianjin Otis Elevator Company

Tianjin/ Beijing

Office

Mr. Lv 44 Male HR manager CEC Huada Electronic Design Co., Ltd.

Beijing Meeting room

Mr. Shi 45 Male Board Chairman

Shanghai Meiyu Medical Investment Management Co., Ltd.

Shanghai Cafe

Mr. Gong 40 Male HR manager Zhongxing Telecommunications Corporation

Shanghai Office

Mr. Fang 60 Male General Manager

American Yidi Co., Ltd Shanghai Cafe

Mr. Lu 58 Male Board Chairman

Chian Jinlang Co., Ltd Shanghai Restaurant

Mr. Li 57 Male Board Chairman

Shandong Rongguan Textile Group Corporation

Shandong Cafe

Mr. Zhang 50 Male General Manager

Henan Xinxiang Asia Brewery Co., Ltd

Henan Office

Continued

Appendices 215

Pseudonym Age Gender Position Company Work location

Location of interview

Mr. Wang 55 Male General Manager

Xinxiang Department Store Co., Ltd

Henan Office

Mrs. Han 38 Female HR manager Xinfei Electric Co. Ltd Henan Office Mr. Jiang 46 Male Vice general

managerZhongYuan Hospital

Management Company

Henan Office

Mr. Xiong 50 Male General manager

ZhongYuan Hospital Management Company

Henan Office

Appendix 2 Endnotes with Original Text and Quotations

Appendix 1 Continued

216 Appendices

考

Appendices 217

考

。

㌳

218 Appendices

Appendices 219

考

㌳

220 Appendices

考

Appendices 221

㌳

㌳

222 Appendices

223

Notes

1 Introduction

1 . These core values are essential ones of Chinese characteristics, although it is undeniable that there are substantial individual, regional and organizational differences in Chinese society.

2 Western HRM and HRM in China

1 . Here the U.S. and U.K .definitions are chosen because HRM gradually spread from its American roots, and during the 1980s, the United Kingdom seems to have had the same interest in HRM as the United States (Guest, 1987; Storey, 1989; Poole, 1999).

2 . According to Sparrow and Bognanno (1993), the competence approach exhibits ‘vertical integration’ with business strategy and ‘horizontal integra-tion’ across all the HRM policy and practice areas. Mabey and Iles (1993), use the terms ‘internal and external integration’ to argue that the competence approach can help achieve the external integration of HRM and business strategies, and achieve internal integration of individual commitment.

3 . The types of tests used for selection are ability and aptitude tests, intelligence tests and personality/characteristics questionnaires (Beardwell and Wright, 2004).

4 . According to Grugulis (2006), overall, 29 per cent of training lasts for less than five days.

5 . It is necessary to point out that the present review excludes research studies published in Chinese academic journals, as articles published in Chinese-language outlets are not directly comparable with those published in English-language journals, mostly due to their different intellectual traditions and methodological approaches (Peng et al., 2001: 96), and research published in Chinese journals in mainland China were commonly viewed as less rigorous and more descriptive (Xu and Zhou, 2004).

6 . According to Granovetter (1973), weak ties (relationship characterized by infrequent interaction or low intimacy) are wide ranging and are therefore more likely than strong ties to serve as bridges across social boundaries. He believes weak-tie bridges provide people with access to information and resources beyond those available in their own social circles, so weak ties can channel exceptional social mobility opportunities to those in contact with others. In contrast, strong ties are less effective in facilitating status attainment as they generally do not bridge social boundaries or hierarchical levels(Granovetter 1982).

3 Philosophical Underpinnings of HRM Theory

1 . According to Hofstede (2001a: 215), the ranking of Individualism Index Values (IDV) for 50 countries and three regions, the top 15 countries are

224 Notes

respectively: United States, Australia, Great Britain, Canada, Netherlands, New Zealand, Italy, Belgium, Denmark, Sweden, France, Ireland, Norway, Switzerland and Germany.

2 . In general, more traditional, and often more Catholic, Western countries are more collectivist whilst more modernized, and more Calvinist/Protestant, countries are individualistic, although this is not always the case, as with Australia which is primarily Catholic but individualistic.

3 . In The Coming of Post-Industrial Society , Bell outlined a new kind of society – the post-industrial society. According to him, there are three components to a post-industrial society: firstly, a shift from manufacturing to services; secondly the centrality of the new science-based industries; thirdly, the rise of new technical elites and the advent of a new principle of stratification.

4 . ‘Rational animal’ is a classical definition of man, though it is often attrib-uted as first appearing as a definition of Aristotle. In Nicomachean Ethics 1.13, Aristotle states that the human being has a rational principle.

5 . According to Hofstede (1991), uncertainty avoidance is different from risk avoidance. Risk is focused on something specific, which is often expressed as a percentage of probability that a particular event may happen, while uncertainty is a diffuse feeling which has no specific object. So the high UAI cultures prefer to take risks than bear uncertainty, in opposition to the Chinese culture’s preference for tolerance of ambiguity to taking risks.

6 . Ritzer (2008: 1) defines ‘McDonaldization’ as ‘the process by which the prin-ciples of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world’. He also thinks McDonaldization is a kind of ‘rationalization’ (ibid: 25).

7 . See the ‘critical perspective on HRM’ in Chapter 2.

4 Re-examining Traditional Chinese Thinking

1 . The Three Sovereigns San Huang ) were partially mythological rulers and a mix of culture heroes from ancient China during the period from ca. 3500 BCE to 2000 BCE. This period preceded the Xia Dynasty. The Three Sovereigns are FuXi ), Divine Farmer ( ), and Yellow Emperor ( .

2 . ‘Naive thinking’ here refers to a way of thinking which is not detached, atomistic and abstract, one that is manifested by unaffected wholeness and simplicity.

3 . The first work (a) Composing Poems While Drinking , ( ) is by Liu Shaobai ( 1983–), who is a famous calligrapher and painter in contemporary China. He inherits the painting style from Qi Baishi’s ( ) fourth son, Qi Liangchi ( ). The second (b) Yellow River ( ) is by Xie Ruijie (

1902–2000), who was a famous modern painter, calligrapher and educator in China. This painting is in the private collection of the author.

4 . Du Fu ( 712–770) was a prominent Chinese poet of the Tang Dynasty. He is known as the Saint of Poem ( ) for his undisputed genius in Chinese poetry.

5 . The Chinese version:

6 . The English translation was made by referencing Alan W. Watts’ (1957: 88) translation in The Way of Zen .

Notes 225

7 . The three meanings are cited from Yi Wei ( ), which is an explana-tory text about I Ching in the Han Dynasty.

8 . From Tao Te Ching , chapter 25, ‘ ... ’

9 . From Tao Te Ching , chapter 1, ‘ ’ . 10 . From Tao Te C hing, chapter 42, ‘ , , , ’ . 11 . From Yi Zhuan.Xici Shang ( . ), ‘ ’. 12 . The above work used the least amount of strokes, and the artist exemplified

a beauty of simplicity, continuity and wildness. This work ‘Creek tour’ ( ) is by Liu Sentang ( ), a famous calligrapher in contemporary China.

13 . See discussion about Chinese long-term thinking in Chapter 4, Western ‘Short-termism’.

14 . Xu Shi and Xi Zheng: according to the position of both sides, transform tactics to command troops flexibly.

15 . From Sunzi-mougong ( . ) 16 . From Sunzi-mougong ( . )

17 . From Sunzi-mougong ( . )

18 . To Borrow Arrows with Thatched Boats ( 213BC). This is an episode from

the Three Kingdoms (Wei, Shu and Wu) (208BC). Wu and Shu prepared to unite to defend Shu. One of Wu’s generals, Zhou Yu ordered Zhuge Liang, who was the military counsellor of Shu, to manufacture 100,000 arrows within ten days. Zhuge said “Give me three days, if I fail, I will accept any punishment.” Zhou Yu ridiculed Zhuge Liang who it appeared was looking for self-destruction. Zhou Yu asked his assistant, Lu Su, not to supply enough material. Zhuge Liang borrowed twenty light boats from Lu Su and sent men to place several grass figures on both sides of the boats. He then swore Lu Su to secrecy. Two days passed, and Zhuge Liang did nothing. On the third night, Zhuge invited Lu Su to drink with him on his boat. He asked his men to link the twenty boats together and sail towards Cao Cao’s (the king of Wei) camp. It was foggy that night; everything was blurred in the distance. When they got close to Cao Cao’s camp, Zhuge ordered his men to beat their drums and shout. Cao Cao thought that Zhou Yu was attacking. He could not count the enemy soldiers. So he ordered his archers to shoot at them. All the grass men on the boats were soon covered with arrows. This was to be the 100,000 arrows that Zhou Yu demanded and Zhuge promised to deliver in 3 days. Once the grass men were full of arrows, Zhuge gave the order to depart. When Cao Cao realized what had happened, it was too late. The twenty boats had already returned to the south bank. Zhuge Liang was good at observing weather signs. He knew that there would be fog that day.

19 . Borrow the southeaster (208 BC). Zhouyu came up with a plan to burn Caocao’s warships, but he needed someone to surrender to Caocao. An old general named Huang Gai volunteered. The next day, Zhouyu pretended to quarrel with Huang Gai and had him whipped in front of everyone. At night Huang Gai sent a letter to Caocao, and told him about the whipping and said he wanted to join Caocao to defeat Zhouyu. Caocao was very happy. Zhouyu’s plan depended on the southeaster. As it was wintertime, there was no southeaster. Zhouyu was so worried that he became ill. Zhuge Liang

226 Notes

calculated there would be a southeaster after a few days. He told Zhouyu that he could borrow the southeaster for him. Zhouyu asked how to do that. Zhuge Liang said: “I know some sorcery. Build an altar and put some tribute on it, then I can borrow the southeaster from heaven”. Zhouyu commanded that it be done. On that day, Zhuge Liang ascended the altar and endlessly recited spells. The others believed he was really practicing sorcery. And after a while, a southeaster really blew and grew stronger and stronger. A jubilant Zhouyu immediately ordered an attack on Caocao. As soon as Zhouyu gave the order, Huang Gai headed north with 20 boats carrying oil-soaked brush-wood. Caocao saw Huang Gai coming in the distance and felt very excited. Huang Gai came nearer, then shook his broadsword and the 20 boats all went up in flames. Pushed by the southeaster, the burning boats crashed into Caocao’s riverside camp. Soon the entire camp was on fire and the Changjiang River was also flaming. Caocao’s millions of soldiers were either killed or scattered.

20 . Empty-city stratagem. Once, Wei dispatched a general named Sima Yi to lead more than a hundred thousand soldiers to attack Shu. But at that time Shu had less than ten thousand soldiers. During this emergency, Zhuge Liang ordered all his troops and the citizens to evacuate the city, and then he opened the city gate and waited for his enemy. When Sima Yi came, he was astonished. The city gate was open, no soldiers appeared on the walls or ramparts, and there was just an old man cleaning the floor outside the city gate. While Sima was still extremely puzzled, Zhuge Liang appeared on the top of the city gate, where he began to play a musical instrument calmly. Sima Yi knew that Zhuge was a very resourceful and tactical person and suspected that there would be a large military force lying in wait for them. So he ordered his troops to retreat. Thus, without using one soldier or weapon, Zhuge saved his city from damage.

21 . From The Analects (5.28), ‘The Master said: “Even a ten-thousands hamlet must have whole-heartedly sincere and truthful people like me, maybe not as fond of learning as I am”’.

Translation is from Chichung Huang, 1997, The Analects of Confucius , Oxford University Press.

22 . The Analects (2.13), ‘When Zi Gong asked about the gentleman, the Master said: “His action goes first; his speech follows it”’.

Translation is from Chichung Huang, 1997. 23 . Dao Te Ching (chapter 16), ‘ ’, ‘ ’ . 24 . Dao Te Ching (chapter 16), ‘ ’. 25 . From Li Ji. Zhong Yong ( . ), ‘

’.

5 Chinese Traditional Values – Implication for HRM in China

1 . These core values are essentially Chinese characteristics, although it is unde-niable that there are substantial individual, regional and organizational differences in Chinese society.

Notes 227

2 . In ‘ Guo Yu ’ ( ), chapter of Zheng Yu ( ), ‘ … …, ’.

3 . From ‘ Chun Qiu Zhuo Zhuan ’ ( ), chapter of Zhao Gong Year 20 ( ), ‘

’. ‘

’. Translation is from Li Chengyang (2008), ‘The ideal of harmony in

ancient Chinese and Greek philosophy’. 4 . From Yu Lu ( ), by Cheng Hao ( ), ‘ ’ 5 . From Da Xue Wen ( ), by Wang Yangming ( ), ‘

6 . From Analects 1.12, ‘ ’ Translation is taken from Huang Chichung (1997), The Analects of Confucius , Oxford University Press.

7 . From Tao Te Ching 42, ‘ ’. 8 . From Zhuang Zi, chapter ‘ Xu Wugui ’, ‘ ’. 9 . From Zhuangzi , chapter ‘ Tian Dao ’, ‘

’. 10 . The four Confucian classics are Mengzi ( ), Zhongyong ( ), Analects (

), and Daxue ( The Great Learning ). 11 . From Zhong Yong , chapter 2, ‘ .

.’ 12 . From Analects 6.29, ‘ ’ 13 . From Liji ( ) of Zhong Yong, ‘ ’ 14 . From Mengzi . JinXin ( . ): ‘

’. Translation from Lee (1996). 15 . From Analects , 1.12: ‘ ’. 16 . From Analects , 2.3: ‘

’. Translation from Huang (1997). 17 . From Analects , 8.2: ‘

’. 18 . From Analects , 12.1: ‘ ’. 19 . From Analects , 12.11: ‘ “

.”’ 20 . From Han Feizi. Zhongxiao (loyalty and filial piety ) : ‘

. ’. 21 . From Mencius . Lilou xia ( . ): ‘

’. 22 . From Liji. Liyun ( . ): ‘

.’ 23 . From Xunzi , 24.5 : ‘ ’. 24 . From Analects 3.19: ‘ “ ” “

’. 25 . From Analects 4.15: ‘ “ ” “ ”

“ ” “ ’ 26 . From Liji. Liyun ( . ): ‘

’.

228 Notes

27 . From Analects 12.2: ‘ ’. 28 . From LiJi. Qu Li: ‘ , , , .

. “ .”’ 29 . From Analects 14.34: ‘ “ ”.’ 30 . From Tao Te Ching , chapter 79:’ .’

6 Research Findings and Analyses

1 . Throughout this section, the use of words and phrases such as most , many , the vast majority and a few are used consistently to identify the number of informants who described similar viewpoints or experiences (Blaszczynski, 2003). Most refers to conclusions based on five or more informants or state-ments and more than 50 percent but less than 75 percent of informants or statements on the same topic. The vast majority refers to conclusions based on five or more informants or statements and more than 75 percent of inform-ants and statements on the same topic. Many refers to conclusions based on five or more informants or statements and less than 50 percent of the informants or statements on the same topic. A few refers to conclusions based on five or fewer informants or statements.

2 . Five insurances ( ): old-age insurance, medical insurance, unemployment insurance, employment injury insurance and birth insurance.

3 . The book to which he was referring was Zeng Guofan’s (2008) Bing Jian ( ). Zeng Guofan ( , 1811–1872) was an eminent official, military general and devout Confucian scholar of the late Qing Dynasty.

4 . DISC is the four-quadrant behavioural model based on the work of William Moulton Marston, PhD, (1893–1947) to examine the behaviour of individ-uals in their environments or within a specific situation (otherwise known as environment).

5 . Professional Dynametric Programs (PDP) is a system used in behavioural assessment for business.

6 . The book to which he was referring is Chinese Style of Management (in Chinese), by Zeng, S.Q. (2007), The Peking University Press.

7 Conclusion

1 . According to Redding (1990), ‘personalism’ is the tendency to allow personal relationships to enter into decision making.

229

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259

absolute truth, 51, 75, 76–7, 84, 103, 118, 207

abstract thinking, 6, 11accounting, 80–1achievement, 65American culture, 49American Dream, 50, 60–3Analects, 101, 116, 122, 132–136,

141, 149appraisal systems, 29–32, 46, 60,

66–7, 126apprentice system, 28Aristotle, 7, 46, 50–1, 68, 69, 70,

77, 103art, 78, 97–9, 108–10ascription, 64authoritarianism, 5, 209autonomy, 53–4

Ba Gua, 107Bao,141binary thinking, 6, 7, 11Buddhism, 6, 7, 76, 102bureaucracy, 65business, short-termism in, 80–2

calligraphy, 97, 108–10Caoshu, 108capitalism, 65causal relations, 105certainty, 7, 8, 51, 66, 75, 80, 81–2,

84, 102, 103, 106, 118, 207Cheng Hao, 122China

business practices in, 4–5, 38–9, 47economic competitiveness of, 1–2economic reforms in, 1, 38history of, 6, 11, 85–93population of, 1

Chinese culture, 4–10, 43–5, 47, 206–7

see also traditional thinking; traditional values

Chinese human resource management, 2–6, 37–45, 47–8, 205–13

influence of culture on, 43–5research studies on, 40–2, 155–204rise of, 37–40role of traditional thinking/values

in, 155–204Chinese language, 93–7Chinese medicine, 79, 108, 111Chinese organizations

face and, 153–4Guanxi in, 146–7He and, 125–6hierarchy, seniority, loyalty and,

136–9Renqing in, 146–7Zhongyong and, 129–30

Chinese painting, 97–9, 109–10Chinese Zen, 102Christianity, 76collectivism, 8–9, 44, 47, 54–7, 59,

120–6, 150–1communism, 52comparative studies, 43compensation, 32–5, 66–7competition, 14competitive advantage, 24Comte, Augusto, 54, 71Confucianism, 5–7, 9, 45, 47, 85, 92,

101–2, 106–8, 116–18, 121–4, 131–4, 207–8

Confucian five Constant vitues, 122,124

consumption, 62core values, 6–12, 119–54

see also traditional valuescultural products, 44–5Cultural Revolution, 6, 119culture

American, 49Chinese, 4–10, 43–5, 47, 206–7dimensions of, 44–5

Index

260 Index

Dao, 106–8, 118, 122, 134, 135, 136see also Taoism

Declaration of Independence, 53Declaration of the Rights of Man, 53demographic time bomb, 24Descartes, R., 52–3development, employee, 27–9, 83developmental humanism, 35dialectic thinking, 103–11direct thinking, 6, 11doctrine of mean, 8, 11, 119, 126–30,

164–71Du Fu, 100Durkheim, E., 54, 64

Eastern medicine, 79–80Eastern religions, 76East Han, 89East-West comparisons, 207–8economic growth, 1–2economic reforms, 1, 38education, 65–6empiricism, 70employees

performance appraisal of, 29–32, 60, 66–7, 126

recruitment and selection of, 24–7, 46, 66, 125–6

remuneration and reward of, 32–5responsibility for, 83training and development of,

27–9, 83Enlightenment, 52, 54, 63, 64, 71, 84epistemology traditions, 69–72, 105equality, 65equal of opportunity, 26equity, 65

face, 8, 11, 45, 47, 119, 147–54, 186–92, 202–3, 204, 210

characteristics of, 151–3Chinese organizations and, 153–4

familism, 5feedback, 31–2femininity, 44filial piety, 133, 134, 151–2Five Cardinal Relationships, 9, 132–3,

136, 154, 171, 197, 209Five Dynasties, 89

Five-Fold Grading System, 25foreign direct investment (FDI), 2, 37Franklin, Benjamin, 61French Revolution, 52functionalist sociology, 50, 63–4FuXi, 87, 104fuzzy thinking, 5–9, 11, 103–11, 118,

119, 121, 204

Gierke, Otto, 54gift giving, 140, 141global assimilation, 3globalization, 14, 205–6gross domestic product (GDP), 1–2Guanxi, 10, 11, 44, 45, 47, 119, 121,

143–7, 177–86, 199–202, 204, 209–10

Guest model, 19–20, 72–3

Han dynasty, 89Han Feizi, 134hard HRM, 35, 193–4harmony, 8–9, 11, 119, 120–6, 150,

159–64, 193–5, 204Harvard model, 17–19He (harmony), 8–9, 11, 119, 120–6,

159–64, 193–5, 204He Yan, 127Hegel, G. W. F., 54Heraclitus, 77Herzberg’s two-factor theory, 32, 58hierarchy, 5, 8–11, 45, 119, 120,

130–9, 171–7, 197–8, 204high-context cultures, 113–14holistic thinking, 5, 7, 8, 11, 93–103,

118, 119, 121, 204, 208, 209homogenization, 3, 205–6Huang Di, 87humanistic management, 129–30human resource management (HRM)

Chinese, 2–6, 37–45, 47–8, 205–13

critical perspective on, 35–7definition of, 15–17dominant models in, 17–21individualism and, 58–60meritocracy and, 66–7in multinational firms, 2personnel management and, 21–4

Index 261

human resource management (HRM) – continuedphilosophical underpinnings of,

49–84practices, 24–35, 46, 74–5rationality and, 72–5research findings and analysis,

155–204rise of, 13–15short-termism and, 81–3strategic, 16strategy, 73–4theories of, 2, 46–7in West, 2–3Western, 13–37, 45–8, 206

I Ching, 104, 106–8ideograms, 95indirect thinking, 5–9, 11, 111–18individualism, 9, 11, 27, 44, 49,

52–60, 84, 119, 151, 204collectivism and, 54–7, 59HRM and, 58–60philosophical pedigree of, 52–4

industrial relations, 14in-group membership, 5insecurity, 5instrumental rationality, 67–75interpersonal networks, 43–4iron rice bowl, 38Islam, 76

Japan, 1joint stock companies, 38joint ventures (JVs), 38Jue Ju, 100Judaism, 76Junzi, 116

Kangxi, 91Kant, I., 53–4

labour market, 28language, 93–7, 114Laozi,106,107,142legalism, 85Li, 9, 132–3, 136, 154, 171, 197, 209Li Ji, 127Li Shangyin, 115

Lian, 10, 11, 147–54, 186–92, 202–3, 204

liberalism, 54life-time employment, 38Lincoln, Abraham, 61–2Lin Yutang, 103logic, 7, 103long-term thinking, 5–8, 11, 75, 82,

111–19, 121, 204low-context cultures, 113–14loyalty, 8, 11, 119, 126, 130, 135–9,

171–7, 199, 204, 209

Maistre, Joseph de, 53managerialism, 27Marx, Karl, 54masculinity, 44–5Maslow’s hierarchy of needs, 32, 58McDonaldization, 81–2medicine, 78–80, 108, 111meritocracy, 11, 50, 60–7, 84

American Dream and, 60–3definition of, 61HRM and, 66–7philosophical bases of, 63–6

Mianzi, 10, 11, 147–54, 186–92, 202–3, 204

Michigan model, 17middle class, 65middle way management, 129–30Ming dynasty, 90–1modernization, 5Mongol empire, 90motivation, 33motivational theories, 32–3M theory, 129multinational companies (MNCs),

2, 39, 47multi-resource feedback, 31music, 98

naive thinking, 5, 6, 7, 11, 93–103, 118, 119, 204

natural laws, 54Needham, Joseph, 6

off-the-job training, 29on-the-job training, 29Opium War, 6

262 Index

organisational theories, 63–4Oriental painting, 78

painting, 78, 97–9, 109–10Parsons, Talcott, 64pay by result (PBR), 34pay/rewards systems, 32–5, 66–7performance appraisal (PA), 29–32,

46, 60, 66–7, 126performance measurement, 80–1performance related pay (PRP), 34performativity, 72performing art, 78personal connections, 8, 143–7personalism, 5personal life, 198personnel management, 21–4, 38phonograms, 95–6pictographs, 94–5Plato, 7, 46, 50–1, 68, 69, 70, 77poetry, 98, 100–1, 110, 114–15positivism, 51, 71, 72post-industrial society, 65power distance, 44, 47privacy, 54processual thinking, 5–8, 11, 103–11,

118, 119, 204production technology,

standardization of, 3productivity, 14profit maximization, 82promotions, 198–9Protestant work ethic, 62, 207Puritan values, 61–2Pythagoras, 123

Qi Baishi, 98Qi, 97Qi and Zheng, 111Qianlong, 91Qin dynasty, 88–9, 91Qing dynasty, 91Qu Yuan, 114–15

rationalism, 8rationality, 11, 50–1, 67–75, 84

definition of, 67–9epistemology traditions of, 69–72HRM and, 72–5

reason, 52–3, 67–75reciprocity, 141, 142–3, 209–10recruitment, 24–7, 46, 66Redding, S. G., 5relationality, 123–4relationships, 10, 43–4, 133–4, 140–1,

143–7, 209–10religion, 10, 76remuneration, 32–5, 66–7Ren, 132,149–50Renqing, 10, 11, 119, 121, 139–43,

146–7, 177–86, 199–202, 204, 209–10

reward systems, 32–5, 58, 66–7Romance of the Three Kingdoms, 113Rousseau, J.-J., 54

Saint-Simon, H., 53, 54, 71Saunders, P., 64science, 100scientific management, 11, 81, 83scientific thinking, 6, 8, 11, 71, 102–3selection, 24–7, 46, 66, 125–6seniority, 8, 11, 119, 130, 135, 136–9,

171–7, 198–9, 204, 209Seven-Point Plan, 25Shang Dynasty, 87shame, 149–50Shi, 108, 112Shi Bo, 121short-termism, 2, 6, 11, 51, 75–83, 84

HRM and, 81–3representations of, 77–81Western philosophy and, 75–7

silence, 101–2Sixteen Kingdoms, 89Smith, Arthur, 111social exchange, 140social hierarchy, 5, 9–10, 45, 120,

130–5socialism, 38, 52social networks, 143–7, 149, 199–202,

209–10social norms, 140–1Socrates, 68, 70soft HRM, 35, 82–3, 193–4Song dynasty, 90Spinoza, B., 53Spring and Autumn Period, 88

Index 263

state-owned enterprises (SEOs), 38static thinking, 6, 7, 11status, 65strategic HRM, 16strength-of-weak-ties hypothesis, 43–4strong, 44structural functionalism, 50Su Shi, 110Sui-Tang dynasties, 89–90superior-subordinate relationships,

45, 197–8sympathy, 139–40

Tai ji 7, 112Tang Yin, 98Taoism, 6, 7, 9, 76, 85, 102, 103–4,

106–7, 122–4Tao Te Ching, 104, 117, 142Tao Yuanming, 101technological changes, 15Ten States, 89Thales, 76theory application, 43–4theory Y, 58Third Plenary of the Eleventh Central

Chinese Community Party Congress, 1, 38

Three Bonds, 136, 209360-degree feedback, 31–2Three Kingdoms, 89three old iron, 38Three Systems Reforms, 38Thirty-six Stratagems, 113Tian, 92Tianzi, 92Tönnies, Ferdinand, 55total quality management (TQM), 83township and village enterprises

(TVEs), 38trade unions, 14traditional thinking, 5–10, 11,

85–118role of, 157–92

traditional values, 119–54, 208–10face (Mianzi and Lian), 11, 147–54,

186–92, 202–4Guanxi, 10, 11, 44, 45, 47, 119, 121,

143–7, 177–86, 199–202, 204, 209–10

traditional values – continuedHe (harmony), 8–9, 11, 119–26,

120–6, 150, 159–64, 204hierarchy, 5, 7, 8, 11, 93–103,

130–5, 136–9, 171–7, 204, 208, 209

loyalty, 8, 11, 119, 126, 130, 135–6, 136–9, 171–7, 199, 204, 209

Renqing, 10, 119, 121, 139–43, 177–86, 199–202, 204, 209–10

seniority, 8, 11, 119, 130, 135, 136–9, 171–7, 198–9, 204, 209

Zhongyong (doctrine of mean), 11, 119, 126–30, 164–71, 204, 208, 209

training, 27–9, 83Truslow, James, 62truth, 51, 75, 76, 76–7, 84, 93, 103,

104, 118, 207two-factor theory, 32, 58

uncertainty avoidance, 26, 44, 51, 56, 75–6, 207

United States, 1American Dream, 50, 60–3HRM in, 2, 49–50, 58individualism in, 49productivity in, 14

utilitarian instrumentalism, 35

valuesPuritan, 61–2traditional Chinese, 6–12, 119–54,

208–10WASP, 11, 45, 50

Wanwu, 104Wang Xizhi, 108–9war, art of, 112–13Warring States Period, 88Warwick model, 20–1WASP values, 11, 45, 50weak, 44Weber, M., 8, 81, 207West Han Dynasty, 87West Zhou Dynasty, 87Western human resource management,

2–3, 13–37, 45–8, 206Western medicine, 78–80

264 Index

Western painting, 78Western philosophy, 7, 46, 50–3,

68–72, 75–7, 105–6Western religions, 76wholly owned foreign enterprises

(WOFEs), 38wisdom, 115–17work ethic, 62, 207–8World Trade Organization (WTO),

2, 39World War I, 62Wu Wei, 102, 122

Xia dynasty, 87xing, 112Xuan Zhang, 102Xunzi,135

Yan Di, 87Yan Ying, 121

Yao, Shun, and Yu, 87Yi Zhuan, 121yin shi, 110yin-yang, 7, 104, 105, 106Yongzheng, 91Young, Michael, 63Yuan dynasty, 90

Zen Buddhism, 102Zheng Banqiao, 98Zheng Xuan, 127Zhongyong, 8, 9, 11, 119, 126–30,

164–71, 195–7, 204, 208, 209Zhong,136Zhou dynasty, 87–8Zhu Yuanzhang, 90Zhuxi,90, 136Zhuangzi, 106Zi Gong, 101–2Zisi, 127

traditional chinese thinking on hrm practices: heritage and transformation in china

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