Confucius and Total Quality Management

Charles A. Gallagher and Charles A. Rarick

Abstract
With the rise of China as a key economic partner for the Western world, questions of the compatibility of managerial philosophies between East and West arose. In an effort to explore this issue, the authors take the sayings of Confucius as representative of Chinese managerial philosophy and Total Quality Management (TQM) as representative of the best in current western management thought. To operationalize TQM, the framework of the US Malcolm Baldrige National Quality Award is used. The authors find considerable agreement between the thinking of Confucius and TQM. Keywords: Confucius, Total quality management.

Introduction With China about to enter the World Trade Organization, greater Western involvement in Chinese business is expected to raise an important question: Will Western management practices clash with Chinese culture? The authors seek a partial answer to this broad question by examining the compatibility between Confucianism and Total Quality Management (TQM). For over two thousand years Confucius has influenced people and governments. He is the subject of debate for his very existence (Allen, 1999), his theories of organization (Hahn & Waterhouse, 1972), and his influence on contemporary values (The Economist, 1998; Cac, 1996; Rarick, 1999; Scarborough, 1998, p. 50). Most importantly here, Confucius is still a primary reference for Chinese managerial philosophy (Zhang, D.S.Y. and Hulpke, J.F., 1999; Martinsons, M.G., 1996, 1999). TQM is the most notable Western management theory currently available. While not without its
Charles A. Gallagher Dr. Charles A. Rarick Andreas School of Business 11300 NE 2nd Avenue Miami Shores, Florida, USA

critics and certainly not easily implemented (Grant, 1994; Hendricks & Singhal, 1999) its impact can be seen in the 30,000 US registrations under ISO 9000, benefits in organizational performance (Hendricks & Singhal, 1997, 1999), and improvement in stock performance (The Quality Management Forum, 1999). Methodology To carry out this research, the work of Confucius must be identified and a definition of TQM established. Herein, The Analects of Confucius, Translation and Notes by Simon Leys (1997) have been adopted. Leys book is simply presented - he numbers each analect sequentially with chapter first (e.g., 2.11, 12.9). For reference purposes, the authors will cite analect number rather than page number as this is more precise and easily found in Leys. To define TQM, the authors have chosen the seven measurement categories of the American Malcolm Baldrige National Quality Award: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results (United States Department of Commerce, 2000). These, along with eleven Baldrige core values, are well thought out, comprehensive, and operationally viable.

Both authors studied the Baldrige categories and the analects of Confucius. What follows is their judgment of the correspondence between them. Leadership Leadership is a core value as well as a measurement area for the Baldrige Award. The leadership core value calls for senior management to ... set directions and create a customer orientation, clear and visible values, and high expectations (United States Department of Commerce, 2000, p. i). As a measurement category, leadership includes public responsibility and citizenship and is weighted second only to business results, carrying 125 out of the possible 1,000 total points. Confucius had much to say on leadership, seeing it as an obligation: ... It is not right to withdraw from public life. One cannot ignore ... the mutual obligations between prince and subject. ... A gentleman has a moral obligation to serve the state, even if he can foresee that the Way will not prevail (Leys, 1997, 18.7). It is interesting that this analect shows Confucius considered leaders (princes) to be servants of the state. The directions Confucius called for were to steer straight (Leys, 1997, 12.17; 13.6), guide and encourage subordinates (Leys, 1997, 13.1), enrich and educate subordinates (Leys, 1997, 13.9), and overall ensure ... the prosperity of the country (Leys, 1997, 13.15). Admirable as these are, they leave several questions unanswered. For example, what does it mean to steer straight? How should one balance the often-competing interests of stockholders, employees, and customers when pursuing the aim of ensuring the prosperity of the country? Perhaps the answers lie in virtue: He who rules by virtue is like the polestar, which remains unmoving in its mansion while the other stars revolve respectfully around it. (Leys, 1997, 2.1) In values, Confucius stressed trust, dignity, good faith, civility, justice, honesty, objectivity, and loyalty (Leys, 1997, 1.5, 12.7, 14.41, 17.23,

14.22, 15.24, 7.25). When asked to define humanity, Confucius replied: Whoever could spread the five practices everywhere in the world would implement humanity. ... (These are) courtesy, tolerance, good faith, diligence, generosity. (Leys, 1997, 17.6) Most consider the primary value advocated by Confucius to be reciprocity, a bedrock of his philosophy; it is what Christians call the golden rule. When asked if there was a single word that could guide ones entire life, the Master said: Should it not be reciprocity? What you do not wish for yourself, do not do to others. (Leys, 1997, 15.24) On public responsibility, Confucius advocated harmony between man and nature. In Analect 6.18 of Leys (1997), Confucius observed: When nature prevails over culture, you get a savage; when culture prevails over nature, you get a pedant. When nature and culture are in balance, you get a gentleman. He also advocated tempering the pursuit of profit with justice. An accomplished man ... does not lose his sense of justice at the sight of profit... (Leys, 1997, 14.12). Again, in Analect 19.1 of Leys (1997): ... a prospect of profit does not make [a gentleman] forget what is right ... Strategic Planning Confucius did not consider himself a military analyst and so, spoke little of military strategy. Still, he could admire and appreciate it as shown in Analect 7.11, Leys (1997). A student asked: If you had command of the three armies, whom would you take as your lieutenant? The Master said: He should be full of apprehension before going into action and always prefer a victory achieved by strategy. Confucius advocated a long-range view of the future. With proper planning for tomorrow, the day will be more enjoyable when it arrives. He noted in Analect 15.12, Leys (1997): A man with no concern for the future is bound to worry about the present.

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Strategic planning includes setting goals and Confucius would likely endorse what we today call stretch goals - high aspirations. The Master said: A gentleman reaches up. A vulgar man reaches down. (Leys, 1997, 14.23) Customer and Market Focus In Confucius time, most people devoted themselves to agriculture. There were some craftsmen, government workers and, of course, the army. Business was limited to relatively few traders generally held in low esteem. We can infer, however, what Confucius might think about customer focus by looking at the advice he offered to the provincial rulers of his time. Consider, for example, Leys (1997) Analect 13.16 - when asked about government, The Master said: Make the local people happy and attract migrants from afar. To Confucius, the quality of service provided by a governor was measured by the satisfaction of the citizens, i.e., customers. Another analect shows that Confucius believed rulers should govern for the benefit of the governed. A student asked: Once the people are many, what next should be done? The Master said: Enrich them. Once they are rich, what should be done? The Master said: Educate them. (Leys, 1997, 13.9) Information and Analysis TQM and the Baldrige Award place a great deal of emphasis on the need for accurate and timely information about organizational performance. Indeed, management by fact is one of the Baldrige core values to ensure that management does not have a distorted view of reality. Truth must be the goal for both information gathering and analysis. Lifes realities was one of the four things Confucius made use of in his teachings according to Leys (1997, Analect 7.25). Confucius also wanted top management to hear the truth. When asked how to serve a prince, Confucius replied,

Tell him the truth even if it offends him. (Leys, 1997, 14.22) When analyzing information, Confucius placed emphasis on separating fact from fiction. In Leys Analect 16.10 (1997), Confucius held that a gentleman should take care ... when looking, to see clearly; when listening, to hear distinctly; ... and when in doubt, to question. Confucius made clear the benefits of having a true picture of reality. In Analect 2.18 (Leys, 1997), The Master said: Collect much information, put aside what is doubtful, repeat cautiously the rest; then you will seldom say something wrong. Make many observations, leave aside what is suspect, apply cautiously the rest; then you will seldom have cause for regret. With few mistakes in what you say and few regrets for what you do, your career is made. Human Resource Focus Job design plus employee education, training and development are the focus of this area of the Baldrige Award. On job design, Confucius offered the following sage advice: If you let people pursue what is beneficial for them, arent you being generous without having to spend? If you make people work only on tasks that are reasonable, who will groan? (Leys, 1997, 20.2) Confucius love of learning and continuous improvement is well established and can be seen in many of the analects - 7.28, 8.13, 15.30, 19.5, 19.13 (Leys, 1997). He also makes clear the reason: ... A gentleman keeps learning in order to reach the truth. (Leys, 1997, 19.7) Asked what would make the people respectful, loyal, and zealous, Confucius replied: Approach them with dignity and they will be respectful. Be yourself a good son and a kind father, and they will be loyal. Raise the good and train the incompetent, and they will be zealous (Leys, 1997, 2.20). This incorporates his advice to promote men of talent. ... Raise the straight and set them above the crooked, and you will win the hearts of the people. (Leys, 1997, 2.19)

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Process Management This measurement category of the Baldrige Award focuses on operations and support processes plus supplier relations. It is, perhaps, the most removed from the wisdom of Confucius, at least in time. After all, factories did not appear until over two thousand years after Confucius. Still, his writings suggest that he would endorse modern process management. He took, for example, a systems view as shown in Analect 2.14 (Leys, 1997): ... The gentleman considers the whole rather than the parts. The small man considers the parts rather than the whole. Confucius also addressed the need for preparation: ... A craftsman who wishes to do good work must first sharpen his tools (Leys, 1997, 15.10). And for fast response: ... A gentleman should be slow to speak and prompt to act. (Leys, 1997, 4.24) On suppliers, Confucius recognized the need for good quality parts and materials. ... Rotten wood cannot be carved; dung walls cannot be troweled (Leys, 1997, 5.10). In dealing with suppliers, as with all others, Confucius argued for reciprocity: ... What you do not wish for yourself, do not impose upon others. (Leys, 1997, 12.2) Business Results Scoring for the Baldrige Award emphasizes on results 450 points out of the total of 1,000, are distributed into five categories: customer focus, financial/market, human resource, supplier/ partner, and organizational effectiveness. This provides a very comprehensive definition of results. Confucius welcomed both the emphasis on results and the broad manner in which results were judged. Several of the analects, for example, addressed his impatience with mere thought: I cannot abide these people who are capable of References

spending a whole day together in a display of wits without ever hitting upon one single truth. (Leys, 1997, 15.17); and, There was a time when I used to listen to what people said and trusted that they would act accordingly, but now I listen to what they say and watch what they do.... (Leys, 1997, 5.10) Despite the emphasis Confucius placed on acquiring knowledge, he clearly saw action as the aim: The Master said: A gentleman would be ashamed should his deeds not match his words. (Leys, 1997, 14.27) That results should be measured broadly conforms to the way Confucius judged people thoughtfully and comprehensively. The measure of a man is what defines his image in society, i.e., his reputation: The Master said: ... In a country where the Way prevails, it is shameful to remain poor and obscure. ... (Leys, 1997, 8.13); ... a gentleman worries lest he might disappear from this world without having made a name for himself. (Leys, 1997, 15.20) Conclusions Based on this analysis, the authors find considerable agreement between the wisdom of Confucius and the tenets of TQM. Though some have argued that Confucius favored stability over progress and ritual over science, yet we will only say that we disagree. Confucius argued repeatedly for learning, trust, civility, justice, diligence, honesty, and honor. He clearly expected leaders, i.e., managers, to serve their subjects by improving the lot of all within their purview. While other aspects of China today, notably communism, may cause conflicts with Western management, TQM, with its emphasis on customer service, continuous improvement and learning, valuing employees, and trusting, responsible relationships with suppliers and the community, is fully compatible with the wisdom of Confucius.

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2. Cac, P. V. (1996), The Confucius confusion, The Economist, 338(7954): 40. 3. Grant, R. M., Shani, R. and Krishman, R. (1994), TQMs challenge to management theory and practice, Sloan Management Review, 35(2): 25-37. 4. Hahn, C. K. and Waterhouse, W. C. (1972), Confucian theories of man and organization, Academy of Management Journal, 15(3): 355-363. 5. Hendricks, K. B. and Singhal, V. R. (1997), Does implementing an effective TQM program actually improve operating performance? Empirical evidence from firms that have won quality awards, Management Science, 43(9): 1258-1274. 6. Hendricks, K. B. & Singhal, V. R. (1999), Dont count TQM out, Quality Progress, 32(4): 35-42. 7. Leys, S. (1997), The Analects of Confucius, W.W. Norton Company, New York. 8. Martinsons, M.G. (1996), Cultural constraints on radical reengineering: Hammer & Lewin meet Confucius, Journal of Applied Management Studies, 5(1): 85-96. 9. Martinsons, M.G. (1999), The 1999 PRISM Pacific Rim leadership summit - management in China after two decades of an open door policy, Journal of Applied Management Studies, 8(1): 119-127. 10. Rarick, C. (1999), The Confucian Advantage, Cummings and Hartaway, New York. 11. Scarborough, J. (1998), The Origins of Cultural Differences and Their Impact on Management, Quorum Books, Westport, CT. 12. The Economist (1998), Asian values revisited: what would Confucius say now? 348(8078): 23-28. 13. The Quality Management Forum (1999), Baldrige Index outperforms S&P 500 for fifth year, 25(1): 1-2. 14. United States Department of Commerce, National Institute of Standards and Technology (2000), Baldrige national quality program 2000 criteria for performance excellence, Gaithersburg, MD. 15. Zhang, D. S. Y. and Hulpke, J. F. (1999), A management culture revolution for the new century? Journal of Applied Management Studies 7(1): 135-138.

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