Chapter 18: Enterprise leadership management under China’s national conditions – Consumption and Management

18

Enterprise leadership management under China’s national conditions

China has its own national conditions. Leadership management under China’s national conditions has the general characteristics of other countries around the world, and its own specific characteristics. Leadership management under China’s national conditions will be discussed in this chapter.

Section 1 Enterprise management under China’s national conditions

The object and purpose of management

Leadership management is an integrated and systematic structure with different levels. Leaders are also managed. The object of management involves people, property, and materials. Both macro management and micro management focus on people. Management begins with ‘pulling an ox by the nose’ – the most important element – people. If you can manage people, everything else becomes easy.

The ultimate purpose of management is to realize the enterprise’s objective. During this process the enterprise will achieve high output with low investment, and obtain the highest economic, social, and business benefits.

Six types of leadership management

The Charter of Anshan Iron and Steel Plant

The Charter of Anshan Iron and Steel Plant is the conclusion of the work report of Anshan Iron and Steel Plant made by Mao Zedong. It is also the general rule of the enterprise management of Anshan Iron and Steel Plant. The Charter is built on ‘two participations, one reform, and three combinations’, by which Mao Zedong summarized the experience of Anshan Iron and Steel Plant. ‘Two participations’ means that officers participate in labor and workers participate in management; ‘one reform’ means reforming unreasonable production processes and regulations to plug loopholes in production and management; ‘three combinations’ means the management system with the combination of administrative managers, technical managers, and workers. It is of practical and historic significance to re-advocate and develop the Charter of Anshan Iron and Steel Plant.

Three honesties, four strictures, and four samenesses

Daqing Oil Field advocated three honesties, four strictnesses, and four samenesses. The ‘three honesties’ are being honest, speaking honestly, and acting honestly. The ‘four strictures’ are strict organization, discipline, requirements, and attitude. The ‘four samenesses’ are being the same with the leader present or absent, with and without the inspector, with good weather and bad weather, and in the day and at night.

Preciseness, prudence, carefulness, confidentiality, and firmness

‘Preciseness’ is being precise; ‘prudence’ is being cautious; ‘carefulness’ is taking great care and paying attention to detail; ‘confidentiality’ is keeping work secret; ‘firmness’ is acting firmly and without soft-heartedness. The leader of a country should follow these characteristics strictly and follow regulations instead of breaking them, which could encourage other people to do the same.

Four ways of being perfect

There are four qualities in management that can ensure the completion of a management task: perfect mind, perfect business, perfect work-style, and perfect management. One has a ‘perfect mind’ if one loves our country, the people, and the Party. To have a ‘perfect business’ one learns whatever one does in theory and practice. To have a ‘perfect work-style’ one is practical in everything one does and follows rules and instructions strictly. ‘Perfect management’ is the having the best management style for managing and mobilizing people, inspecting, studying, reporting, establishing models, punishing the backward, and encouraging the people stuck in the middle.

Kind-hearted management and cold-hearted management

In management, the special person does not exist and is not allowed to exist. Everyone serves as a link and a part, and will be replaced if they make a mistake. Therefore, management does not involve personal emotion or any distinction between the close and the distant.

Though management does not involve personal emotion, we all have flesh and blood and emotion after work. In daily life, we care for each other like brothers and sisters. Therefore, the leader will criticize and care about personnel as if they were their parents. Cold-heartedness does not means being unkind in daily life but in work.

Whatever we do, we will begin with the national condition of China. The biggest characteristic of the Chinese national condition is the leadership of the Communist Party, so we must adjust the relationship between strengthening the leadership of the Party and strengthening management.

Eight aspects of leadership management

These are eight aspects of leadership management:

1. Making the best of computers for management. There has been an information explosion throughout the world. The wide application of computers in various productive fields has improved labor productivity enormously. The computer has been widely popularized and applied to management, greatly promoting modern industrial production, social economic development, and high-tech productivity. Productivity cannot be improved to the highest level without making full use of computers, and contemporary industries must manage computers in order to develop.

2. Supervision and restriction. Management is a behavioral standard in the operation process. ‘Supervision and restriction’ is the management of management, in which managers are supervised and restricted. The task of supervising and restricting personnel is to supervise every management personnel and management organization and to prevent them from making any mistake, realizing the objectives of management as much as possible.

3. Legal management. As a society governed by law, the market economy society will be managed by law to guarantee the development of the economy legally. Practice has proved that legal management has a huge effect on protecting and promoting economic development. In order to ensure orderly movement, fair and legal competition in the market, and everybody’s rights, legal means will be applied.

4. Centralized and decentralized leadership management. On the whole, enterprise management can be divided into two modes: centralized management and decentralized management. Generally speaking, large and relatively large enterprises usually combine centralized management and decentralized management; in relatively small enterprises or in the pioneering stage of an enterprise, centralized management is usually carried out; when an enterprise has developed to a certain stage, decentralized management is employed.

5. Objective management and detailed management. Objective management involves determining and breaking down the annual overall plan of an enterprise and committing it to every member, so all members can realize the same objective. Objective management is divided into longterm objectives, medium-term objectives, and short-term objectives. Objectives are formulated scientifically, with multiple levels. Once formulated, they are broken down and detailed. Objectives of the enterprise become objectives for the staff of the enterprise, for which they will work. Therefore, we need to divide and break down all objectives to get specific objectives for every company, department, and person. The sense of responsibility of every department and person cannot be formed without detailed objectives. During the process of objective management and detailed management, every detailed objective will be finally provided with a day of implementation, and during the practice process, any unreasonable objective will be perfected and adjusted to be reasonable. The enterprise should review, improve, and revise its yearly project every half a year.

6. Fixed number management and piecework management. Fixed number management and piecework management are two main means to detail management. Piecework management is usually used for countable work in factories. The operation of piecework management is simple, but quality should be emphasized. For uncountable work, fixed number management is usually applied. It is difficult to operate fixed number management. For the examination of the workload, efforts will be made to ‘use fewer people, award more, and increase salaries’. The method can better mobilize the enthusiasm of personnel and prevent laziness.

7. Macro management and micro management. Macro management is overall planning and decision-making. An enterprise evolving towards a standardized and modern organization will first succeed in macro management, and macro management must first adapt to the needs of the transnational company and large movements of the world economy. The manager of a modern industrial and commercial enterprise will consider whether overall planning of the enterprise can be controlled; how to establish the organization; the support of international finance; the most advanced equipment and communication tools in the world; and international law and the specific law of the country. Micro management involves specific, practical, and single operation. Every microscopic decision will be realized by a microscopic operation. Macro management is a bare outline without the normal operation of micro management or micro-economic benefit. There can be no macro-level success unless specific micro level needs are realized. Therefore, attention will be paid to micro management and macro management, and macro management is the dominant element.

8. Multi-layer graded accounting management. ‘Multi-layer graded accounting management’ means that the parent company is responsible for overall accounting management, while every subsidiary has its own accounting management. In addition, one-way accounting management can be carried out. Multi-level accounting classification increases personnel’s sense of responsibility when in charge of financial management. While implementing the multi-level classification of accounting, rights, liabilities, and benefits will all be provided, so salaries and bonuses will be distributed according to the performance of financial management. Good performance will be rewarded, and bad performance will be penalized.

Section 2 Leadership management development effectiveness

We run an enterprise with the purpose of acquiring benefits to the largest extent. Benefits can be divided into development benefits and management benefits. We can acquire benefit from both the high-speed development of the enterprise and the scientific and strict enterprise management, and the two are complementary to each other, and neither will be neglected.

Emphasize balance and balance emphasis

Emphasizing balance and balancing emphasis are two aspects of the development and management of an enterprise. The purpose of development is emphasizing, while the purpose of management is balancing. During the high-speed development of the enterprise, balance is realized through management, and development is emphasized in balanced management. The two repeat the process again and again with a dynamic movement, making the enterprise develop healthily and steadily. Balance and emphasis, the same as management and development, are complementary to each other and dialectically unified with each other. It is wrong to neglect either party. The enterprise will strengthen management during development, realizing development benefit and management benefit.

The hen-raising perspective and new product development in an enterprise

The fundamental purpose of developing an enterprise is to pursue benefits and to increase profits. In this sense, it has something in common with raising hens. The purpose of raising hens is to make hens lay more eggs. It is difficult to make hens lay more eggs, make the enterprise create more benefit, profit and tax with low cost, and to acquire maximum interest with minimum investment.

Anyone who is familiar with raising hens knows that a hen is rarely raised for more than three years, or it will be un-remunerative and the ‘benefit principle’ of raising hens will be violated. While guiding and studying enterprise development in accordance with the law of cost and benefit in raising hens, we can easily come to the conclusion that the enterprise will continuously release new high-tech products to increase the after-effect, or the enterprise cannot remain invincible.

Problems in economic development of middle and small cities

The economic development of middle and small Chinese cities is not balanced at all. Through summarizing and analyzing, we discover the following factors:

1. Government and enterprise administrators have mistakenly understood the basic law of market economy development.

2. In fierce market competition, they fail to emphasize development and management benefits, strengthen management in development, and accelerate growth via management.

3. Enterprises do not pay sufficient attention to new technical products and scientific research, and cannot develop new products in time, resulting in insufficient after-effects and competitive power in the market.

4. Government leaders and functional departments do not have sufficient understanding of the issues above. Government has not realized that it will serve the enterprises, and governmental work mechanisms are not in step and do not coordinate with enterprise development.

5. The force of cultivating the tax source is insufficient, and phenomena like killing the goose that lays the golden egg happen now and then.

6. Some leaders do not study the economy and solve practical problems in economic development.

In order to solve these problems, specific efforts can be made as follows:

1. Use educational institutions such as party colleges and cadre schools to hold various study classes and training classes frequently and invite experts and scholars to give lectures, learn, and discuss basic economic laws concerning the health competition and economic development of the socialist market economy, so as to enhance government and enterprise leaders’ competence to control the market economy.

2. Government and functional departments at various levels should change their work-style and function, strengthen service consciousness, and overcome bureaucracy.

3. The major leader of the enterprise should concentrate on the economy, measure economic development with time and energy, and pay attention to the technological development of new products.

4. Actively support enterprises and carefully cultivate tax source.

5. Reinforce public security and maintain social stability, providing a looser and better ‘soft environment’ for the healthy development of the enterprise. Optimize and standardize the ‘hard environment’ of investment, and accelerate infrastructure construction.

6. If the secretary of the municipal party committee, the mayor, the secretary, and the factory manager of the enterprise can discover the correct method for the city and the enterprise, establish and perfect an operation mechanism suitable for economic development, then the development of the city and the enterprise will be suited to each other and promoted. They are the parties to promote economic development.

Section 3 Three forces and leadership management

Material force

‘Material force’ is the force used by an enterprise to satisfy personnel’s material demands through reasonable material interest distribution, so as to encourage personnel, mobilize their enthusiasm and initiative, and arouse their creativity. The core of material force is stimulating the enthusiasm of personnel through the distribution of material interest.

How to provide material force

There are four stages:

1. Combine the development objective of the enterprise and the development objective of the individual employee.

2. Break down the objective and the task. The objective of the enterprise will be transformed into a post objective, and it will be broken down and provided for a specific post and person.

3. Define a post responsibility system, realizing the close connection of responsibility, right, and interest while centering on interest.

4. Inspect and control work to guarantee the implementation of responsibility, rights, and interests.

Spiritual force

Spiritual force is used by an enterprise to satisfy the spiritual demand to arouse the enthusiasm and creativity of personnel by spiritually encouraging means such as enterprise philosophy education, ideological and political work, and commendations.

How to provide spiritual force

There are three stages:

1. Analyze and study the spiritual needs of the enterprise’s personnel, achieving a well-defined mental objective while working.

2. Reflect personnel’s spiritual needs in the enterprise objective and enterprise philosophy.

3. Satisfy personnel’s spiritual needs on various levels through various means of spiritual encouraging.

Guiding personnel to establish a lofty view of spiritual demand

While giving play to spiritual force managers guide and educate personnel to train and help them establish lofty spiritual demands. They keep carrying out ideological and political work in depth. They should make use of words, such as praise and compliments, methods, and art to stimulate spiritual enthusiasm. Relying mainly on spirit with materials as subsidiaries, the initiative of staff and their family members is aroused and the information is transmitted.

Information force

Information is a symbol to represent the existence and change of everything in the objective world that can be known and perceived by people. ‘Informational force’ is the acting force to realize the enterprise objective by connecting the enterprise, the external environment, and every function, link, and member of the enterprise.

Mode of information transfer

Information transfer inside and outside an enterprise is realized through certain channels, which can be oral or written, such as telephone, telegraph, and the internet.

Direction of information flow

There are three main directions of information flow in an enterprise: from top to bottom, from bottom to top, and as a lateral cross flow. This is the same with the information flow between the enterprise and the outside.

The generation and function of informational force

While giving play to informational force, information acts on the leader’s mind and hence influences the enterprise’s decision-making and behavior. In order to make correct decisions, the leader first collects information widely. Information collecting is the precondition and basis of releasing informational force, so the process is of great importance. Once collected, information is screened. Information that is highly valuable for decision-making is reserved, the rest is deleted. The function of informational force is directly represented in the power of the model. Through the comprehensive application of the principle ‘emphasis–balance, balance–emphasis’, the leader constantly learns from the model, by comparing, learning, catching-up, helping, and surpassing to promote the progress of the work.

The use of informational force is restricted because the information that any decision relies on is incomplete and distorted. Any decision should be made under the precondition that the decision maker grasps a certain amount of information. However, in practice, the decision maker cannot grasp all information, and the process of decision-making is inevitably influenced by the subjective preferences of the decision maker. Therefore, the function of information force can only be relatively exerted.

The relationship between material force, spiritual force, and informational force

The three forces are complementary to and dependent on one another. As the basis of spiritual force and informational force, material force is the most important acting force, and spiritual force and informational force should be exerted on the basis of material force. The maximum material force should not be exerted without the coordination of spiritual force and informational force, and informational force should not be exerted without the support of informational force.

There are also differences between the three forces. Material force is the primary acting force. Spiritual force is more than material force sometimes, but it cannot be separate from material force in the final analysis. Influencing the decision-making of leaders exerts information action. Some information reflecting the action of material force and spiritual force is shown by spiritual force through leaders’ decision-making.

The objectives of the three forces

These are the objectives of the three forces:

1. In the long-term objective, informational force is primary, spiritual force is secondary, and material force is seldom involved.

2. In the mid-term objective, spiritual force and informational force are still dominant, while material force is auxiliary. In the pattern of the motion of the three forces, the function of the three forces is exerted by encouraging spiritual force.

3. In the short-term objective, material force is primary, spiritual force is secondary, and informational force is tertiary. The function of material force must be fully exerted to stimulate the enthusiasm and creativity of personnel, and then the function of spiritual force is exerted to satisfy and arouse personnel’s spirit. Informational force feeds back the information related to the realization of material force and spiritual force to the decision maker, and then the decision maker carries out corresponding adjustments based on the information, ensuring the normal and maximum exertion of the function of the three forces.

The law of three motives

We can see from the analysis above that the three motives – material motive force, spiritual motive force and informational motive force – are the decisive forces for enterprise development. The three motives are not abstract or immeasurable. A brainy entrepreneur will always pay attention to the existence of the three motives and grasp the relationship between them and their variable of corresponding elements. Only then can he or she actually grasp the inherent law of three motives, exerting more value of the three motives.

The power and value of each motive force are regular, and every motive force and corresponding elements are related in a certain proportion. Material force and management and the profit rate are related: the more scientific management is and the higher the profit rate is, the bigger the material force will be, forming a proportional relationship. On the contrary, a reversely proportional relationship may be formed.

Spiritual force, culture connotation, and culture transformation are also proportionately related. The more advanced and practical the enterprise culture is and the more common the transformation from culture to personnel philosophy, the bigger the spiritual force will be, forming a proportional relationship. On the contrary, reversely proportional relationship may also be formed.

Informational force and the period of information capturing, the accuracy of information, and the degree of information transformation are related with corresponding proportion. The shorter and more timely information capturing is, the more accurate and reliable the information, and the quicker and more thorough the transformation from information to action, the bigger the informational force will be, forming a proportional relationship. On the contrary, a reversely proportional relationship may also be formed.

It will be noted that every one of the three motives is relatively dependent and has a huge effect on the development of the enterprise. However, the three motives are related to and dependent on one another and transform into one another. Therefore, a brainy entrepreneur must research their relationship, grasp their transformation law, and finally turn the three motives into the integral force for enterprise development.

The value of the three motives can be presented in this formula:

M stands for surplus value, P stands for total revenue, and V stands for total expense.

It can be seen from the formula that enterprise benefit – surplus value – is the difference between total revenue and total expense.

However, it is not so simple. During the process of production, if production efficiency (material force) is increased through scientific management and technical improvement, and personnel’s mental outlook is changed and their working enthusiasm is stimulated (spiritual force is increased) through popularizing and spreading the enterprise culture, and the enterprise can grasp more comprehensive and accurate market trends (informational force is increased) through information capturing and transforming, then the three motives can play a comprehensive part during the process of enterprise development and create a huge composite force for enterprise development.

The formula can be stated as follows:

M1 stands for surplus value, P1 stands for total revenue, and V1 stands for total expense.

It will be noted that the surplus value at the moment has acted on the three motives. Generally speaking, it is much bigger than the first surplus value. Therefore, the result and speed of enterprise development are finally tested and determined by the three motives. Hence we come to the conclusion that the three motives are not superficial but effective and necessary for enterprise development. Once the law of the three motives is grasped, enterprise management will be more effective, enterprise cohesion will be more powerful, and the enterprise will continuously develop and stay invincible when there is fierce market competition.

Section 4 The political quality of enterprise leaders

Lenin once said: ‘Politics is the concentrated expression of economy.’ Deng Xiaoping said: ‘Economic development is the most important manifestation of politics.’ The sayings show that politics and economy are inseparable.

Politics, economy, and enterprises

Politics is the concentrated manifestation of economy, while economy is the basis of politics. Politics serves economy. The quality of the economic base determines that of politics. Politics under certain circumstances serves enterprises as well. Politics that are in conformity with the laws of productivity development promote progress and the development of economy, otherwise they will inhibit development. The corruption of politics necessarily brings about the recession of the economy, and the improvement in politics will lead to economic development. The so-called progress of politics means following economic laws.

Politics and the state machine

Politics, the soul of the state machine, determines the nature of the state machine, protects and serves the economic base, provides service for the cultural progress of the whole society, protects national interests, maintains a high degree of unity and solidarity, and safeguards the security of the people and the stability and unity of society. Politics is realized by means of ideology, law, and a strict state machine.

Politics and the political parties and the parties

Politics has class differences, and politics under a certain circumstance represents interests in that specific social condition. In modern society politics and the regime are generally reflected by political parties. A political party takes advantage of rights and powers by taking control of the regime, and serves the people under its leadership, and in the meanwhile checks all powers that are against its control. China is under the people’s domestic dictatorship led by China’s Communist Party – the Communist Party in our country stands for the proletariat and all peoples, while other parties only participate in politics instead of competing for power.

Politics, democracy, and freedom

Politics, democracy, and freedom are complementary aspects to one another. Democracy and freedom belong to politics, serve politics, and are the means of politics. Democracy and freedom are relative, and there is no absolute democracy or freedom. Politics contains democracy and freedom. The maturity level and quality of a nation, the maturity level of different classes, the actual condition of economic development, and the stability and unity of society determine the proportion of democracy and freedom. What our country adopts is political democracy – a people’s democratic dictatorship led by Communist Party of China.

Politics, news, art, and literature

News organs, such as newspapers, radio stations, TV stations, and news agencies, are mouthpieces of parties and states. The stronger the quality of arts and literature, the more appealing they get. Therefore, the more meaningful education becomes. Literature is certain to serve a certain regime and politics.

Politics, class, distribution, and life

Politics belongs to a certain class and stands for the interests of a certain class. Through its organ of power, it transfers, organizes, and protects all producers and people having a life, and at the same time fights crimes to make sure of a stable and unified society and to protect the nation from danger. Living consumption and distribution are closely related and determined by the contribution to society and methods of demand, which in the meantime is determined by the regime.

Politics, belief, religion, and morals

Belief, religion, and morals are in the same scope of the superstructure. Belief and religion are protected and taken advantage of if they are not against national policies, otherwise, they are inhibited. Religion can also serve politics and be employed by politics. Morals are the sum of the norms of behaviors that adjust relationships between people and between individuals and society. But morals are at the same time built to a certain degree on the basis of the materials of society and serve class and the whole society as well.

Political reign and control

Politics takes responsibility for safeguarding social culture, economy, people’s lives, and the stability and solidarity of the whole society, the protection of which entails a high degree of reign and control. Control means management, which is suitable for an enterprise, so is also true of a state. In the process of controlling a country, premier control has to be grasped. There has to be a whole set of compulsory and non-compulsory social control systems, including systems of politics, economy, law, religion, and morals.

How to enhance political caliber

These are ways to enhance political calibre:

1. Work hard on theories. Learn Marxism, Mao Zedong’s Thought and De Xiaoping’s Theories, improve political caliber, enhance political sensitivity, and have good knowledge of the Party’s opinions and their mutual relations. If we want to improve our political caliber, we have to start from the bottom – from political cultivation, which entails learning the related works of Marxism.

2. Hold on to principles. Pay adequate attention to principles and various complex relations, and while sticking to principles, learn to handle problems in the most effective and inoffensive way.

3. Hold on to beliefs, and enhance good manners. If people do not have faith, they will not be firm, especially when faced with ups and downs. In the process of great setbacks and disasters, people will be diverted from following a righteous course. In a complex society, relations between people can be very contradictory. If we cannot cultivate ourselves well, we are apt to get stuck in contradictions. If we do not have adequate perseverance, then we will not develop.

4. Pay adequate attention to flexibility. If there is only a sense of principles but no flexibility, we will become dogmatic, which mainly derives from being unfamiliar with dialectics or with the cause-and-effect relationship of things. Flexibility serves principles, and it is a means to an end.

5. Grasp policy and strategy. Policy is basic, and strategy is a means to an end, which is a process of doing great things and the assurance of success.

6. Overcome pride and arrogance. This is necessary for success; without it we will fail.

Political caliber that employees of Sanzhu group should have

These are qualities employees of Sanzhu group should have:

1. Love of the party, love of country, and love of the nation. Never say words against our party, country, or nation; do no things against our party, country or nation. Become aware of the consistency of interests between working for Sanzhu and working for country and the nation.

2. Love of individual study and self-discipline. Employees of Sanzhu will form a habit of love of study and of diligence in thinking, and strengthen their self-discipline.

3. Respect for the government, respect for leaders, and strive actively for leadership in the company.

4. Integrity above all things. They will be faithful to the Party, country, nation, company, and comrades. The development and consolidation of enterprises entails credits.

5. Ability to integrate with groups. If a man is detached from the group, in spite of having lots of caliber, he will be powerless. If a man has great leadership skills and lots of caliber, but he has no people to lead, he will not make his leadership come true. Therefore, it is necessary to become integrated into groups and to possess team spirit.

6. Ability to discharge responsibilities to help develop the national economy of China. Developing economy is just a means to an end – making China prosperous, having a thriving national economy, and doing what is best for China and for the party.

Section 5 Enterprise culture management

In the early 1980s, the research of enterprise culture first rose in the United States. Enterprise culture involves the values of a company, which determine its behavior norms, enterprise tenets, and action model. Enterprise culture is defined in various ways. My understanding is as follows. Enterprise culture is the unique values and spirit of an enterprise in the context of certain political, economic, and social cultural backgrounds gradually generated and growing during long-term production and operation. The behavior norms, moral criteria, tenets, work-styles of the enterprise are generated on that, and the operating consciousness, operating ideas, and operating strategy of the enterprise are generated on that.

Enterprise culture is of great importance to enterprise development. In modern enterprises, enterprise culture is mainly relied on to mobilize the enthusiasm of personnel and to increase the cohesion and centralism of the enterprise. Enterprise culture is the basis for enterprise survival, the motive force for enterprise development, the norm of behavior, and the core for success.

Sanzhu culture

Revolutionary, traditional, and modern enterprise culture is discussed using Sanzhu culture as an example.

Sanzhu culture came into being between the later 1980s and middle 1990s, although some ideas and enterprise tenets had been put forward in early 1980. In 1997, the enterprise culture of Sanzhu was mature.

Revolutionary Sanzhu culture

We connect the good tradition of the Party and a modern enterprise management system and connect the struggle objective and the current task of the Party and the development objective of the enterprise, realizing the inheritance and development of revolutionary culture. First of all, we will stick to the guidance of Marxism-Leninism, Maoism, especially Deng Xiaoping’s theory of building socialism with Chinese characteristics, and the leadership of the Communist Party. Such is the basic political and ideological line of the development of Sanzhu Company. Next, we will persist in building socialist culture and ethics and carry out ideological and political work in depth. Third, we will inherit and carry forward the Party’s good tradition and success in leading economic building for several decades, which mainly involves the Charter of Anshan Iron and Steel Plant (two participations, one reform, and three combinations), and three honesties, four strictures, and four samenesses.

Traditional Sanzhu culture

The conception of ‘enterprise culture’ is introduced from abroad, but its simple content has been included in the traditional Chinese culture for a long time. Confucian culture can be fused with modern economic development to a certain degree, and some values in Confucian culture have promoted the development of economy. We have absorbed and learned that the best features of some contents of traditional culture are beneficial to modern enterprise development, especially the ethics of loyalty, filial piety, courtesy, justice, and benevolence in Confucian culture, legalist culture, and Taoist culture, initially forming some moral criteria and behavior norms in Sanzhu enterprise culture.

Modern Sanzhu culture

The modernity of Sanzhu culture is mainly reflected in its absorbing and learning the best features of Western culture. We have learnt some successful management modes and management systems of Western transnational companies and combined them with the basic condition of China to form a set of modern enterprise systems with Chinese characteristics. We are now consciousness of the following aspects of modern enterprise operation and management: management, high technology, market development, competition, ‘everything centering on consumption’, legislation, reform and innovation, respect for rules and subjective initiative, and kind-hearted and cold-hearted management concepts as the guiding ideas for team building.

Dedication is the core of Sanzhu enterprise culture

The values of Sanzhu culture are ‘dedication’ to the Party, China, and the nation. Sanzhu enterprise is a component of socialist enterprise. Our mission is to be the ‘head horse’ in the forefront of the times, and to make greater contributions to the revitalizing of the Chinese economy.

The enterprise tenet of Sanzhu Company

The enterprise comes from society, serves society, contributes to society, and returns to society; this is also the extension of the enterprise’s spirit of ‘dedication’.

Doing the duty of ordinary people for the revitalization of the Chinese national economy is the banner of Sanzhu culture: ‘Doing the duty of ordinary people for the revitalizing of Chinese national economy’ is our banner and slogan. We struggle, fight, and dedicate ourselves with only one purpose – to realize ‘national revival and Chinese mightiness’. National revival is related to every Chinese person.

Six spirit styles and three work styles

‘Six spirit styles and three work styles’ is our enterprise spirit. In involves the spirit of painstaking efforts; the spirit of economy; the spirit of professional dedication; the spirit of love for the Party, China, and the nation; the spirit of solidifying and friendship for progress; the spirit of national self-respect, self-renewal, and self-regard; and the work style of practical, quick, and strict enforcement; of preciseness, prudence, carefulness, confidentiality and firmness; and of enduring hard work and hardships.

Put people first and make the best of people

‘Putting people first’ can be done in the following ways:

• by respecting, caring for, and loving people

• by emphasizing the realization of the self-value of every employee, and realizing the self-development of everyone during the process of company development

• by recommending whoever has talent and using people based on their talent; whoever is able will work, while whoever is not able will be laid off

• by emphasizing the education and training of talents and the enhancement of their quality

• by selecting, training, and using people properly according to their ability, noting their talents.

This is the joint value pursued by Sanzhu staff: ‘You and I meet challenges together, stand at the front and run to the other side, experiencing pain and happiness.’ The sentence not only represents the aspirations of Sanzhu staff, but also the true feelings of Sanzhu staff to selflessly contribute to the revitalizing of Chinese national economy.

Section 6 China marketing team building outline

The standards of establishing the team with strong will and principle

Four strict elements

These are four strict elements:

1. A close knit organization. The upper organization is close knit, and the upper levels are connected closely with the lower ones. The lowest one consists of two men, with one of them as the first command; or consists of three men, with one of them as the first command and the organization of grade level.

2. Strict discipline. All of the behavior of the team (behavior against discipline) must be carried out according to the concrete rules of praise and punishment.

3. Strict requirements. The company must have regulations to abide by, ensure that lawbreakers are prosecuted, and act strictly according to the regulations and rules.

4. Strict attitude. Everyone is equal before the regulations and rules, and people who violate the regulations and rules must be punished severely and cannot be punished slightly because of their contribution.

Four excellences

These are four excellences:

1. Be excellent in ideology. Love the country and identify with the culture and idea of Sanzhu Group, which is the spirit of action and accept and abide by the regulations and rules of Sanzhu Group. Combine the task of accomplishing the enterprise objective with realization of one’s own life value and strive for excellence.

2. Be excellent in business. Be proficient in business, technique, and skills, and work with high efficiency.

3. Be excellent in management. Manage the team and population with modern methods, and carry out effective evaluation management that is systematic, standardized, institutionalized, and digitized. Use ‘three motives’ to motivate everyone’s enthusiasm and to achieve high efficiency and high benefit.

4. Be excellent in behavior. The behavioral style of leadership is to have the subordinates follow you, instead of following the subordinates in times of need, and be the first to bear hardships and rush to the front lines, endure hardships and work hard, and fight together with the team. Pay attention to decorum and politeness, respect others, be honest to others, and do not be conceited or rash. Form the habit of obeying orders as one’s nature, carry out orders firmly, and carry out work creatively. Be brave enough to offer leaders advice and carry out orders firmly even when the advice is not accepted.

Central attraction of the team

Emphasize the effect of material

To establish itself the team needs strict discipline as a guarantee, but there must be the target for which the team strives and the common benefits of achieving the targets. The targets and benefits are the central attraction to establish the team, so the team must correctly set the targets in different stages, which connects with benefits. The benefits must be feasible and fulfilled, especially for the lower staff.

Establish a strong team centered on the first commander

These are ways of establishing a team centered on the first commander:

1. The leader of the team is the first commander who is both brave and resourceful and a professional assistant who is cooperative and responsible for one section.

2. Carry out the work and fulfill the task firmly.

3. Use ‘four strict elements’ and ‘four excellences’ as standards to carry out strict management.

4. Be just and strict with oneself, and manage and praise and punish with regulations and rules.

5. Carry out work correctly:

 Unify the thoughts, convey correct advice, educate inferiors, and collect advice in a democratic way.

 Use the method of planning first and then carrying out. Work out plans and strategies and then gain a decisive victory.

 Use the rule of emphasizing balance to solve the contradiction between development and management. Use the rule to cultivate a model, set up a model, generalize the method, expand the experience, and promote the overall development (the principle of shepherd theory).

 Adopt training to ensure the quality of the team and to adapt to the needs of accomplishing the tasks.

 Solve the principal contradiction and then the ordinary ones. Learn the methods of playing the piano, which is vivid and dramatic, free and easy, and bittersweet.

6. Insist on appointing staff according to their abilities and talent:

 Select and employ staff according to their abilities, and afford enough space to put their abilities to use. Encourage them to learn from practice, and vice versa, and to learn all their lives to achieve great success.

 Take care of the work, lives, and families (divide the responsibility according to different levels) of subordinates, and offer timely help when it is needed; it is especially important to give care to them when they are in trouble or ill.

 Place people with special capabilities so as to tolerate all types of experts and achieve a great success. The career of reconstructing Sanzhu Group will be successful.

7. The first command must fully develop the abilities of assistants and inferiors and the subjective initiative of the first command of the department:

 Courageously transfer power to assistants to let them develop work creatively. The first command must take the respective responsibility for the inferior’s faults.

 Approves the achievements and success of inferiors and offer them timely help and support when they are in trouble. Do not blame them except for matters of principle, and ridiculing and contempt are not allowed.

 Grant the first command of the department the corresponding power related to the needs of the work; ask what is needed in the provinces; and carry out the system of giving different levels’ management responsibility.

 Praise staff to motivate their enthusiasm.

8. Unify thoughts with the culture and ideas that are the soul of the enterprise. As to education of culture and ideas, carry out systematic hard management; manage civilization, life, and behavior. Feel grateful for the education of parents, the Communist Party, our country, the enterprise, and the help and support of friends to establish harmonious work and interpersonal and social relationships in order:

 to establish the team with ‘nine demands and nine prohibitions’

 to be a collective hero and not an individualistic hero

 to emphasize the team instead of individuals

 to be democratic under the centralized power and unity and abandon the freedom of anarchism

 to have the sense of organization and discipline, and abandon non-organizational activities

 to be of one heart and one mind instead of disengaged

 to manage in line and not to interfere with others’ work

 to be strict, tight, careful, close, and firm instead of being weak, lazy, and loose

 to employ people according to their abilities instead of their relations

 to make friends instead of enemies extensively.

Establishing the team is the most important activity. All of us must regard establishing the team with four strict elements as a priority and a chance to allow one to succeed and achieve a great career. Be a master of shaping oneself. If the self-improvement of the leader group and all the staff has advanced enough, the reconstruction of Sanzhu Group will be successful. The success of Sanzhu Group is the success of your self-improvement and self-shaping. Let us move ahead hand in hand and create brilliant achievements.

Section 7 Quality of leaders and managers (Sanzhu Company as an example)

Managers must strengthen the cultivation of quality in every aspect so as to adapt to changing situations and achieve good results. In this way the organization or company can continually achieve success and remain invincible in the more complex and increasingly competitive market.

Managers should persist in relearning

Persisting in relearning is necessary for keeping pace with the time. We are transferring from a planned economy to a market economy and integrating with the world. International market economy has a history of several centuries and has accumulated rich experiences, while we have known little or nothing at all about it. Therefore, we have to learn and understand market economic theory and accumulate experience and knowledge as quickly as possible. In addition, the development of modern science and technology changes with each passing day.

Persisting in relearning helps to widen thoughts and reduce faults in work. Relearning helps us unify philosophy and understanding to form the correct concept of Sanzhu. It is naïve to think that you can know Sanzhu Company. The company was not formed in a day but has been constantly reinforced based on practice. The Sanzhu concept was not formed in a day. You may not understand it though you learn it, and you may be not able to put the concept into practice though you understand it. Therefore, it is necessary to repeat learning and unify our mind in the Sanzhu Spirit.

Persisting in relearning helps to understand the culture and tenets of Sanzhu Company as Sanzhu Company is a micro world that has its own culture and tenets. In order to understand and accept it, we must learn management philosophy, dialectics, contradiction theory, and practice theory.

To be the one obtaining Tao rather than losing Tao

When handling various relationships in society and among employees, managers should adhere to morals, moral principles, and reason of ‘Tao’. Strengthening the ideological education of employees is one of the most important parts of management. Employees are taught to be modest and keep in mind that a just cause gains great support, and an unjust cause finds little support.

So, we should stay modest and discreet, never be conceited or rash, and hold on to justice, which guarantees a healthy development of the business. Especially when an enterprise develops rapidly, these virtues cannot be ignored. Research carefully, keep on the alert, and bear crisis awareness in mind. Research the laws of crisis, and be able to handle accidental crises. Try to be modest, but at the same time do not be afraid of discharging your responsibilities so as to conduct work with preciseness, prudence, carefulness, confidentiality, and firmness.

A manager should be able to tolerate people. As a manager, one must have a big heart and tolerate people from different places across the world with different personalities; tolerate even more those who raised objections about you and were proved to be wrong.

Good managers, even if they are geniuses or well rounded, will not accomplish feats all by themselves. One should draw on the wisdom, will, and power of millions of people together and strive for a shared goal. A good manager should be tolerant of others’ disrespect, of others’ faults, and of others inability to correct their mistakes. Being modest and open to others’ opinions is a virtue of a good leader. Consequently, a manager should be tolerant of people’s shortcomings in addition to appreciating talent. We are not supposed to deny everything based on someone’s minor faults. No man is perfect, and no gold is entirely pure. Only when you can tolerate the shortcomings of someone can you gather more talent.

Cultivating the self

The first in command should aim towards ‘four excellences’. In a team of cadres, the first in command is of particular importance. Whether the qualities of the first in command are excellent determines the level of the whole team as well as the ups and downs of an enterprise. These are the four excellences for a manager:

1. Excellence in ideology. The manager should have the right ideas and values, be loyal to the enterprise, become fully aware of the properties of the enterprise, and correctly handle the interests of individuals and enterprises.

2. Excellence in style. Style is invisible. It can be transformed into great power. A leader establishes a good style. There is a saying in China, ‘Just as grass sways at the mercy of the wind, so soldiers do whatever the general tells them to do.’ This suggests that the performance of a unit is not determined by the masses, but by the leader. If leaders are soft and lazy, how can they lead an excellent, hard-working, and united team? In the meantime, a leader should be strict with subordinates. If you’ve got good style, you should strive to be a good leader of the team according to your style, and improve your style in practice.

3. Excellence in business. Leaders must possess a high level of business caliber. So a leader has to study hard to find out about marketing and our products. You know things that are not familiar to others, and you can do things that cannot be accomplished by others. Only in this way can your employees admire you and can work be done perfectly.

4. Excellence in management. Learn how to manage Sanzhu so as to ensure that Sanzhu develops smoothly and healthily and gets somewhere in the future. First, learn management knowledge of our own; second, refer to books related to management abroad.

We have to study hard and are prepared to be efficient managers. We have to learn, learn to do things well, or do better. A manager with high caliber needs to be highly experienced, but one has to set a goal to be a good manager. With such a goal, you will study diligently in a way that is different from when you don’t have a goal like this.

Improve confidence and perform work creatively

Good managers are adept in finding the laws of things. Each kind of work has its internal laws as well as the laws of its connection to the outside world. Be adept in employing the experience of advanced units, compare it with your unfinished work, and find universal laws. Knowledge inspires us to generate new opinions and approaches, which is called the work of creativity. Under the guidance of general laws and theories, you will find new laws and figure out working methods of creativity, which in turn guide your work and help you make progress in research.

It is not easy to be the first in command. Managers must impose ‘strictness’ and the ‘four excellences’ (see Section 6).

Improve leadership knowledge, inspiration, and decision-making ability

Leadership determines the direction of team development, and the first in command is the main decision-maker. Scientific decision-making is made, verified, and generalized through understanding and using large amounts of data. We should listen to people’s views, and carefully analyze the information. There is an old saying, ‘Everyone has a sledgehammer and the final word is made by only one sledgehammer.’ Different decisions have different results. Thus, perception, inspiration, and decision-making are required. While making a decision, the first thing to do is thinking. Faced with a number of market research data, different statements, and different views, what one needs is thinking. The process of thinking is related to personal knowledge, wisdom, and character. In particular, knowledge and wisdom have close ties with innate human sensitivity and the brain’s thinking capacity.

The process of thinking involves the brain’s processing function of thinking. After that information processing is over, results come out. The last result is creative thinking, namely inspiration. That ‘ideas come out with frowned brows’ is not accidental. It is the same with invention, which is connected with everyone’s talent, knowledge, experience, and inspiration. So-called talent is the brain’s processing capacity. Each person may reach different conclusions from the same material, because there are differences in subjective experience and knowledge, and the talent and capacity of brain processing.

The innovation of inspiration is instantaneous and is the origin of knowledge. In Christianity it is believed that knowledge and inspiration are from God. From the materialistic point of view, it is not God; instead, it comes out through our brain’s processing of information and materials. With innovation combined with us, our work is decided. The leaders of various departments should be like this. As long as one is in charge of a part of work, one has rights and responsibilities. Therefore, savvy is put into epistemology, which is the fourth stage of the epistemology of human history.

Until now, the development of human epistemology has experienced four stages. The first stage is that Plato puts idea into epistemology; the second stage is the heart of Kant taken into the epistemology; the third stage is the practice of Marxism taken into epistemology. Putting knowledge into epistemology can guide mankind to create more inventions and consumer products of material and spiritual culture to meet the people’s consumption needs. No knowledge, no invention; no knowledge, no innovation. Every progress is attributed to knowledge and inspiration, which requires us to improve knowledge, inspiration, and perception. Since we know the law, we can consciously cultivate and improve ourselves. It is not hard to improve knowledge, inspiration, and the decision-making capacity. As long as we are people with thinking, carefulness, and diligence, we will improve knowledge and inspiration.

Knowledge and inspiration does not exclusively belong to leaders. All inventors and technical innovators are the result of knowledge, inspiration, and thinking. The way of cultivation for a person is to make more observations, analysis, and acquire more data and learning, and dare to put forward new ideas. We should not be hesitant. As long as we have ideas, we should have a try, and it is easy to spark a burst of inspiration in the process of trying. A leader should gather a good wealth of resources for the job, and absorb significant wisdom from colleagues. Based on their own knowledge, wisdom and lessons, leaders inspire a form of thinking and perception and can be inspired in decision-making. Therefore, leadership decisions are closely linked with leadership knowledge and inspiration, and should be informed by specific practices.

Frustration, suffering, and passion

Frustration, suffering, and passion are unavoidable in the journey of life. Someone concluded that the chance of smooth going to rough going is two to eight. The 80% of frustration and suffering does not mean that unhappy things are always with us. So this setback and suffering go along with human growth, and anyone who has major accomplishments must go through a lot of hardships and setbacks. If nothing is done, there will be no hardships and setbacks, and no error. The more one does, the more errors one will make, the faster one’s enterprise can develop, and the more problems there exist. This is a law and formula.

Frustration and suffering are bad and good. The so-called ‘everything goes well’ is just a hope. On the one hand, hardships are bad and no one wants to have hardships; on the other hand, hardships can train a person, cultivate people, and make people mature. Human growth is also subject to such a stage. Those who are successful must forge ahead and take the lead in the crowd, which can cause them to be surrounded by contradictions and more hardships. It is common to face difficulties and stumble, and this is frustrating and causes suffering. But we cannot be defeated by a setback or hardship. If we give up our goals, we shall not become winners. Actually there is no road in this world that is not made by people’s walking. Hence, it is harder for people to take a road that none has taken, and one will learn more lessons. The more lessons one learns, the stronger one’s ability to bear the stress, and the more experience one gets. Therefore, all these hardships and lessons are treasures. The more experience and lessons one learns, the easier one creates success and the faster one grows.

In order to create success, one must face setbacks and hardships. So the people who want to make success must be mentally prepared for the process in which passion is necessary. One cannot be successful if one is defeated by a hardship. The right attitude should be that the more setbacks and hardships, the stronger one becomes. We should regard setbacks as a grindstone and a training opportunity.

Passion is the first and most important element for our innovation and success. The road for the progress and comeback of Sanzhu is filled with difficulties. The road twists and turns with a bright future. No matter what kind of difficulties we face, we must dare to overcome them. Since our bright future is ahead, gossip is a matter of indifference. We should adhere to our own road and no matter what others say, we should keep an ‘indifferent’ attitude. If one faces difficulties in society with an ‘indifferent’ attitude, one will be able to succeed. Therefore, we shall not be successful unless we have the passion to pursue our careers and good attitudes towards setbacks, difficulties, and hardships. And success makes it easier to deal with suffering and setbacks.

Characteristics of successful managers

These are characteristics of successful managers:

1. Being adept in business. If one wants to lead everyone to start a market, one has to know about various methods and strategies of starting a market and learn in-depth knowledge of all aspects.

2. Being able to unite most comrades to work together. What one is able to do is limited, so only through the wisdom and talent of everyone that moves towards a shared goal and is united together can working efficiency be enhanced.

3. Possessing an enterprising spirit. What one wants others to do has to be done by oneself first. Practice what you preach, and set a good example.

4. Being good at collecting the wisdom of crowds. Learn from others around you and from your subordinates. Collect the wisdom of crowds to pool wisdom; summarize theory to guide others.

5. Firmly carrying out the spirits prescribed by the superior. Carry out activities prescribed by the superior; no dogma or hegemony is allowed. For projects and proposals, branches and working offices of the headquarters must be managed in a firm way.

6. Stimulating enthusiasm and initiative of employees. Explore the strengths of employees and bring them into full play. Be good at analyzing and seeing other people’s advantages and make use of them well.

7. Being strict with employees and loving them. The first in command should care for every employee in life and work to make them voluntarily coordinate with your work; at the same time be strict with them.

8. Having the courage to conduct criticism and self-criticism. Do things righteously and raise opinions directly, do not cheat behind others’ backs. Do not be afraid to lose face at a time of self-criticism or to degrade yourself, for there is no such thing as a perfect man. Whoever can be self-critical is respected.

9. Unifying personnel’s ideology. Organize personnel to study. First, employees learn by themselves. Second, learn the knowledge in documents and newspapers and periodicals from headquarters. Unite employees so that everyone strives for the shared goal.

10. Holding on to the financial system. Also comply with financial and economic discipline.

11. Promoting employees’ interests. Only by exercising the enterprise management concept of the company can the enthusiasm and initiative of staff be stimulated. And only by representing the fundamental interests of staff can you be trusted by all employees.

12. Grasping principal contradictions. Start from principal contradictions and grip them tightly. Focus attention on the main point at the right time until success comes.

13. Learning to array troops for economic battles in a scientific way. By reasonable division of labor, command is fulfilled and work is performed smoothly. Troops should be arrayed in a scientific way according to the actual situation. We should have a compact organization, rigid discipline, strict requirements, and a serious attitude.

14. Being capable of making decisions. When leaders are sure about some issue after thoughtful consideration, they ought to come up with leading opinions and try to make everyone else agree with them so that all people want to carry out what they demand. On the other hand, when leaders are not so sure about a certain issue, they should bring it up to others for discussion, collect good and correct ideas from them, and then make decisions and examine the effect via the feedback loop.

15. Inspecting and give directions to work. After work is assigned, the first in command will inspect work often to help managers sum up experience, carry forward accomplishments, help the ones that lag behind, and correct mistakes. There are three ways to inspect work: regularly, according to statements, by conducting spot checks.

16. Learning to ‘play the piano’. There are different priorities at different periods, so learn to distinguish priorities from activities that are less important, and attach more attention to each priority. But focusing on priorities does not mean they are the only things that should be attended to, but that priorities are considered more important. At a certain time, other work is carried out complementary to those priorities so that all aspects of work are taken into consideration.

17. Maintaining good public relations. The first in command has to deal with public relations well, making friends with modesty and honesty, and approaching and resorting to others for help.

18. Showing the correct attitude towards employees. The first in command, takes responsibility for being an instructor to impart management concepts and business modes to employees. The first in command should show generosity by not noticing trivial matters, but be good at seeing other people’s merits: ignore disadvantages and employ advantages. In addition, the first in command ought to be strict with employees, treating them according to the principles of the ‘four strict elements’, and at the same time care for and be considerate towards them.

19. Proceeding from reality. Be practical, quick, strict, precise, prudent, careful, confidential, and firm.

Use the six-step work method and three formulas to achieve results

This is the six-step work method:

• Formulate the objective and task.

• Formulate the standard requirements of the objective and task.

• Define the person responsible for completing the task.

• Set the time required for the objective and task.

• Specify the discipline of rewarding and punishing for task.

• Examine, summarize experience and lessons, and implement the reward and punishment system.

These are three formulas to achieve results:

• clear assigned task: no examination and reward and punishment = zero (result)

• clear assigned task: with examination and without reward and punishment = bad(result)

• clear assigned task: with examination and reward and punishment = excellent (result)

Section 8 The philosophy of professional managers in China

Professional managers require:

• stage and responsibility

• a wage and bonus accepted by both enterprise and manager

• rights, including chief rights and specific rights

• responsibilities (definite objectives and tasks and responsibilities).

Professional managers must be committed to enterprise, shareholders, and the principles of action. According to the accredited rights from enterprise, the professional manager formulates management of his own enterprise. With the guideline and specific management rules as requirements, the manager provides business profits for shareholders and ensures the added value of capitals.

The behavior philosophy of professional managers

A successful and excellent professional manager should persist in transforming three motives – material, spiritual and informational – to policies so as to stimulate creativeness, enthusiasm and sense of responsibility of personnel:

1. Our objective and task is to realize two benefits, social benefit and business benefit, to maximize shareholders’ profits and obtain their satisfaction.

2. Be people-oriented. Talents are the most important treasure rather than simple costs. Leaders and personnel should enhance communication to break down various structural barriers and solve contradictions.

3. The blueprint for success, improvement, and development of personnel should be designed to help them realize their ideal and wishes.

4. When selecting talents, we should have priority over the inside talents with the outside talents as auxiliary.

5. Transform the three motives to policies to stimulate personnel’s enthusiasm.

6. Staff share achievements together.

7. Provide stable income and social security for staff.

8. Implement an administrative decentralization system and hierarchical decentralization system. Everyone has responsibilities and rights. Everyone is the owner of enterprise.

9. Leaders at all levels should be good at organizing and using the wisdom of personnel. By combining wisdom and thinking (brain’s processing) the leader is inspired to act on policies.

10. Encourage other leaders and personnel to make them grow and have success.

11. Persist in ‘two participations, one reform, and three combinations’ (see Chapter 13, Section 2). The staffs participate in management; leaders should go to the grassroots level to look into, study, discover problems, and then solve problems. Moreover, leaders should reform unreasonable regulations and technology, and encourage personnel to grow and be successful. In this way, leadership bureaucracy can be avoided.

12. Train each staff to strive to be a manager.

13. Operate with the requirements of the six-step work method and three working formula.

14. Make an effort to go public and let staff be shareholders.

15. Simplify procedures and reduce documentation and directives.

16. Retain performance achievements, accumulate personnel files, and leave no file with any fault.

17. Be people-oriented and put staff first. Leaders and personnel at all levels should have self-esteem, self-love, self-evaluation, and self-positioning.

18. Leaders at all levels should not advocate adherence to provisions from the upper level. Knowledge and inspiration should be encouraged in order to work with creative thinking.

19. Be professional, become experts, and continuously improve personnel’s professional skills.

20. Leaders and personnel should strengthen communication to break down various obstacles of organizational structure and solve contradictions.

21. Encourage and foster the mutual care and support among staff to make them have confidence and a sense of pride.

22. Make employees aware of the market. The highest interest is the corporate interests and staff should not live on the enterprise while helping others secretly.

23. Integrate all enterprise assets and resources, and make full rational use of the means of production and internal and external human resources.

24. Adhere to market ability and strictly prohibit overproduction, overstocking, and disuse of products.

25. Adhere to prominence–balance, balance – prominence business development and management philosophy.

26. Adhere to the independent business units at all levels; assess job efficiency and effectiveness by setting quotas.

27. Control the building of infrastructure and monitor and assess returns on investment.

28. All staff participate in management and economic accounting.

29. Develop patent products and products with new technology. This is the driving force for enterprise development.

30. Strengthen financial management, cash management, and benefit budget management. Everyone has a benefit indicator.

These 30 are methods for professional managers to realize objectives and tasks. Only proper methods can ensure the accomplishment of objectives and tasks. Once the objectives and tasks are identified, the fundamental responsibilities of leadership are to discover and solve problems, unify the understanding of all staff, mobilize knowledge and inspiration of all staff, and carry out creative work.

Section 9 Conclusion

Thirty years ago, I made consumption the subject of my long-time tracking research. In my long observation and study of Chinese economy and the operation of the world economy, I deeply recognize that consumption has been the original power behind almost all social activities since the beginning of humanity. And the role that consumption plays in economic and society development is not only huge, but also permanent. I conclude that consumption is the power source of social civilization progress; consumption creates all the social wealth; it is consumption that creates all things.

Based on this concept and from the view of history, reality and future, I studied the whole development process of human productive consumption, research productive consumption, and social consumption, and expounded the position, function, and significance of consumption in economics, even the whole of social life, and on this basis, created a systematic theory of consumption.

In this book, I discussed much about the issue of consumption. However, consumption is an old topic, and I summarized and analyzed various old and new schools of thought on consumption at home and abroad, aiming at absorbing their essence. I believe the theories of former generations can be summed up in four words: learning, succession, development, and innovation. Whether ancient theories or contemporary theories, I hold an attitude of study and make contributions based on the study of former generations. My academic purpose is to achieve the goal of overhauling thoroughly and correcting the original by tracing to the source.

The study results crystallize my 30-year endeavor, which also exposes a clear-cut principle that consumption is a huge discipline. We cannot finish this work within one day. It calls for long-term hard work. In the macro perspective, I am confident that my study results may boost virtuous social operation and enhance the healthy development of social civilization and progress, which has universal meaning. In the micro perspective, it may help human beings live a more sensible life. However, these theories have not been state or nation specific. Therefore, they should be combined with the actual condition of each country or nation. Only in this way can the efficiency of the theory be displayed to the largest extent.

In the introduction, I outlined 14 main academic innovations which cohere in my 30 years of painstaking effort, and especially emphasize the following content.

One of my contributions is endowing consumption with a lofty academic position and bringing up the new classification of the three main consumptions. During the very long development process of living consumption, human beings gradually created productive consumption, social consumption, and then science and research productive consumption. The living consumption is the origin, core, and power source of the three main consumptions.

Driven by their metabolism, human beings obtain materials from the natural world and then create new desires and needs, as well as new materials and spiritual and cultural products; the sum of this consumption process is human consumption. This process comprises micro consumption and macro consumption, which are embodied in the movement process of the micro-consumption chain and macro-consumption chain.

Many academic issues haven’t been studied deeply owing to limitations of time, knowledge level, energy, and so on. No theory can contain everything and no research can fully expose truth; nor does my study. Not avoiding problems is as important as not avoiding the contradiction of reality. As long as you look directly at it, you can face up to it, look into it, and develop it. For instance, though the macro control of the economy brought a more integrated system, the model for regulation and control hasn’t been set up completely; though consumption leadership management science put forward some theories, it hasn’t been a complete theoretic system; and though consumption social productivity brought up 15 elements, because of the restriction of the length of the article, some deeper related issues haven’t been unfolded further. In addition the relations between consumption levels and production levels, the mutual adaptation mechanism of production structure and consumption structure, the issue of specific features and implementation of consumption-led economy, the problems of controlling and leading social public consumption and consumer groups under the conditions of the market economy, national administration consumption models and so on are also illustrated generally but lack deeper and intensive study.

The existence of these issues should be discussed further in a systematic way. I am confident that I will make more significant contributions in the near future. Centering on those issues, I am ready to conduct extensive communication and discussion with scholars worldwide.

My study in the future will be focused on branch theories on consumptions capable of forming an independent theoretical system. At present, I am involved in writing two books. One of them is Leadership Management Science, which discusses consumption, including a series of concrete theories on the macro, medium, and micro levels of consumption philosophy, in the third volume. I hope that this book may become a work on new theories with a sense of innovation.

The other work is Productivity Science of Consumption Society, which is the productivity formed by three important consumptions in the whole consumption society. During the process of living consumption, human beings create production consumption, social consumption, and today’s scientific research and production consumption. Therefore, to a certain extent, Consumption and Management is a work of discussing the productivity of consumption society. I put this issue in the second chapter of the book. Because of the limits of size, I cannot fully discuss all contents related to this issue. Therefore, in Productivity Science of Consumption Society, I intend to fully discuss every aspect related to the issue of the productivity of consumption society. I expect this work to be available on the market in May 2012.

In this way, all my study results are presented to readers in three books: Consumption and Management (three volumes), Consumption and Management (a refined and re-edited version of the former three volumes), Leadership Management Science and Productivity Science of Consumption Society.

Readers of my works are divided into four groups: academic researchers, theoretical educators, state administrators, enterprise managers, and marketing personnel. Academic study needs new theoretical innovation; theoretical education needs new thoughts and new theories that conform to the developing situation development; state administration needs theories guiding social operations from a macro and micro perspective; state administrators and marketing personnel need the support of more operative theories. Besides, there are specific discussions on family consumption and financing, which offer a correct guiding sense for each family.