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CMS
2,1 A comparison between I-Ching’s
early management
decision-making model
52
and western management
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decision-making models
Mu-Lan Hsu and Kuan-Yao Chiu
Shih Hsin University, Taipei, Taiwan
Abstract
Purpose – The purpose of this paper is to determine the value of I-Ching (also called Book of
Changes), the ancient Chinese book of wisdom, which has been used for thousands of years to help
people make decisions in daily life. Recently, eastern and western scholars have begun discussing how
to apply the wisdom of I-Ching to the field of business administration, particularly decision-making
practices.
Design/methodology/approach – A content analysis method was adopted to uncover possible
modern management decision-making constructs. The single words approach did not find frequently
appearing words that integrated decision-making constructs in the context of I-Ching. Further
uncovering I-Ching’s administrative decision-making approach, the managerial decision-making
model of I-Ching is explained, including the premises, the decision contingencies, and the decision
process.
Findings – By using an academic comparative analysis method, as it applies to managerial decision
making, I-Ching’s early management decision-making model is subsequently compared with western
management decision models, which include rational decision making, bounded-rationality
decision making, intuitive decision making, implicit favorite decision making, and garbage-can
decision making.
Research limitations/implications – The majority of scholars that study I-Ching focus on
“practice divination” research, paying attention to the interpretation or critique of the text only.
Unfortunately, related literature based upon a social science research foundation is limited.
Originality/value – The value of I-Ching was determined to lie in allowing flexibility in the
decision-making process.
Keywords Managers, Decision making, China, Business administration, Oriental philosophy
Paper type General review
Introduction
The study to uncover managerial wisdom in ancient Chinese literature has received
considerable attention in recent years. Some Chinese scholars who are dedicated to the
study of managerial wisdom in ancient China are now examining and analyzing
ancient thought and literature including:
Chinese Management Studies
.
I-Ching (Zeng, 1991, 1997; Hsu, 1991; Lin, 1997; Guang, 1998; Shi and Sun, 2000).
Vol. 2 No. 1, 2008
pp. 52-75
.
Taoism thoughts and “Tao Te Ching” (Yu, 1996; S.Y. Yang, 1996).
q Emerald Group Publishing Limited
1750-614X
.
Confucius and Mencius thoughts or Confucianism (Yu, 1996; S.Y. Yang, 1996;
DOI 10.1108/17506140810866241 Luo, 1996; Hsieh and Fang, 1986).
.
The Art of War thoughts (Huang, 1986; Li et al., 1995; Zhang, 1994; Lin, 1994; I-Ching’s
Lo, 1995). decision-making
.
Legalism thoughts (Hsieh, 1995). model
.
Enterprise ethics theories of Discourse on Salt and Iron and Biographies of
Merchants (Hsu et al., 1997).
Foreign scholars generally attach great importance to the study of Confucius thoughts, 53
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as is the case in “Tao Te Ching” and The Art of War (Frosch, 2000; Hensler et al., 2000;
Wong et al., 1998; Rarick, 1996; Boar, 1995; Wee, 1994; Floyd, 1992) which dealt with
the study of ancient Chinese managerial thought. Such an approach may lead to a new
solution to the managerial academic bottleneck that Chinese scholars face in finding
managerial wisdom in ancient Chinese literature. If intuitive perception, as interpreted
in I-Ching, can be further compared and integrated with corresponding modern
western managerial thoughts, it may possibly lead to significant contributions to
managerial academic studies.
I-Ching, known as the Ching of Chings, describes the core of ancient Chinese
wisdom integrating the empirical achievements of the exploration of natural and social
rules in the long historical development of Chinese civilization by summing them up
into subtle philosophical thinking (Cheng and He, 1999). Recently, many scholars have
interpreted I-Ching from different aspects including philosophy, medicine, chemistry
and mathematics. And, with the changing life style and the emerging industrial and
commercial focus, scholars have started gradually to explore the relationship of
I-Ching to managerial philosophy. For example, Cheng and He (1999) believed that the
I-Ching philosophy could enhance the philosophical thinking of a manager as
suggested by Katz (1974). The latter stated that managerial skills are different at
different managerial hierarchies. The manager at a high level of responsibility
regarding the major development of the organization is most urgently in need of
conceptual skills in addition to technical and interpersonal skills. He must have the
ability to analyze himself and the environment he is into conceptualize the complex
situation and consider the organization from all viewpoints. Only in this way can the
manager prove to be excellent. If a manager can apply the spirit of I-Ching in a flexible
way in managerial behavior, he will be able to predict successfully and conduct
accordingly.
The Chinese academic world has not paid enough attention to exploring the treasure
of I-Ching. Any hidden managerial thoughts and the spirit in which to understand
them have not been discerned and elaborated in a scientific way. Most scholars have
been involved in the study of “Practice Divination” paying attention to the tracing and
interpretation of text only. Therefore, I-Ching’s own values and functions are limited
within a small and narrow range. If we can sum up and integrate the spirit, principles,
thoughts and methods of I-Ching in a scientific and systematic way in keeping with
modern managerial academics, we may be able to establish an empirical managerial
system based on combining the thoughts from ancient Chinese with those of
modern western world managerial approaches (Cheng and He, 1999). Within the
above-described framework, the authors intend here to explore I-Ching’s early
managerial decision-making model.
Literature references that apply I-Ching to management are few both in Asia and
abroad. Most deal with the interpretation and deduction of specific Kwas (pictures),
CMS and are difficult to compare and integrate with existing modern western managerial
2,1 thought. Most of the literature is in books covering practical management and
expresses those authors’ personal limited experience, demonstrating questionable
applications of I-Ching. Scholars mainly take a humanistic approach and rarely
consider a social science framework. It is difficult to elaborate on Chinese-style
decision-making contained in I-Ching in a framework of science and theory. It is
54 equally difficult to conduct any comparative study and dialogue of Chinese and
western management decision-making thoughts.
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Purpose of study
The challenges presented above caused the authors to undertake by content analysis, a
single-word, classified statistical approach aimed at interpretations of Kwa, Kwa Ts’i,
and Yao Ts’i (Chinese words) that may show possible common but hidden constructs
or meanings related to modern managerial decision making.
The major research effort followed a social science approach. By systematic and
scientific analysis of I-Ching, we attempted to distill and explain Chinese-style
decision-making thoughts using modern management language and vocabulary. Also, the
paper expounded on similarities and difference between I-Ching and renowned western
models to identify common thoughts that may have led to creation and development of
Chinese-style management. This assumes that the early management decision-making
model is a typical example and that creativity and development are similarly addressed in
cross-cultural comparative managerial academics. I-Ching, however, has been developed
during the Spring and Autumn Period (770-476BC) extending across Han, Tang, Song,
Ming and Qing dynasties with respective different new philosophies at different ages. The
authors, to grasp as much as possible the original meanings of I-Ching decision-making
philosophy, limit the study range and purpose to the early management decision model of
I-Ching of the Spring and Autumn Period.
Literature review
The Spring and Autumn Period (770-476BC), and the Warring States Period
(475-221BC) constituted the golden age of knowledge in Chinese history allowing
the co-emergence of several schools of thoughts. The philosophical systems of these
schools have had deep impacts on the core values, life attitudes and behavior of the
Chinese for thousands of years. Many of these philosophies contain managerial
conceptual frameworks or models, into which scholars from China and the western
world have directed attention in recent years. A general conclusion is that these
long-standing traditional managerial approaches have some aspects identical to
modern western management and some are even deemed better. The Ching of Chings,
I-Ching is the most familiar and most influential. It uses simple pictures ( Kwa and Yao)
and words (Kwa Ts’i, and Yao Ts’i) to represent the boundless things of the universe.
The content is perceived to be very abstract and hard for people to understand. Hence,
the authors will first explain I-Ching to help clarify the evaluation being presented.
the increasingly complex human relationships after Xia (2070-1600 BC) and Shang
Dynasties (1600-1046 BC), the eight Kwa system was too simple to predict what would
happen in a complex world and the system was unable to characterize the complexities
of the rapid social development. Following the eight Kwa I-Ching, later versions were
developed during the three Dynasties noted in the preceding paragraph and these
comprised a more complex Kwa I-Ching system with 64 different symbols each with
corresponding names and interpretations. As the Zhouyi edition with Zhuxi’s
annotations was regarded as being canon from then on, the authors elaborated on the
Kwa, Kwa Ts’i, and Yao Ts’i of the Zhouyi edition only.
When Zhuxi made his annotations, he pointed out in the Upper Ching of Zhouyi (See
A Complete Version of I-Ching compiled by Nan Huaijin with Zhuxi’s annotations) that
Emperor Zhou Wenwang created Kwa Ts’i and Duke Zhou created Yao Ts’i. Emperor
Zhou Wenwang divided the eight Kwas into upper Kwas and lower Kwas and the
separation created altogether 64 Kwas. Namely, each Kwa has six Yaos for divination to
explain the recycling of things. This is the origin of I-Ching diagrams, which are termed
as “King Wenwang eight-Kwa” or “The Late eight-Kwa.” Subsequently, interpretations
of each of the 64 Kwas were added to explain the diagrams’ meanings. These were the
Kwa Ts’i of I-Ching. Duke Zhou, the son of Emperor Wenwang, believed that Kwa Ts’i
could not represent the complexity of Kwa changes. Hence, he explained the symbols
known as “Yao” one by one, thus creating the Yao Ts’i of I-Ching. Therefore, I-Ching
became more colorful and diversified assuring its acceptance as the major tool for
divination practiced by ancient Chinese (Shi and Sun, 2000; Cheng and He, 1999).
Each Kwa Ts’i represents a general statement as well as generalization of the Kwa
while the six Yao Ts’i of each Kwa are the detailed explanations of six situations,
which define six changes of that Kwa. It is believed that Confucius explained the
meanings of Kwa symbols by words in his book I-Ching Interpretations to upgrade the
practice of divination to philosophical thinking (Shi and Sun, 2000; Cheng and He,
1999). Confucianism tried to understand I-Ching with respect to life and education
while Taoism, Ying and Yangism and Moism tried to interpret I-Ching from aspects of
science and technology as well as philosophy and business management. Things in the
universe have long been interpreted by I-Ching. But, the interpretations and
applications of I-Ching differed because of situation differences associated with the
various dynasties and ages. In the course of history, I-Ching has been extended in its
application to astronomy, science, management and decision making (namely, the
application in management decision making).
2,1
56
CMS
Table I.
natural phenomena
Eight Kwa symbols and
Kwa symbols
Kwa name Qian Dui Li Zhen Xu Kan Geng Kun
Natural Heaven Pond Fire Thunder Wind Water Mountain Earth
phenomenon
Kwa Te Strong Gentle Complimentary Vibration Lying Low Risky Knowing Humble
(characteristics) limit
Corresponding Aggressive, CI, product Promotion, Mobilization, MIS Crisis Financial Change
modern sustainable packing brands and execution and information management management management
management development, advertising, sales, sales human resources management
concept or meaning strategic organizational management management,
management culture, salary organizational
management behavior
it is called a three-Yao Kwa. According to the Zhou Dynasty feudalism system, the I-Ching’s
Preliminary 9, the 2nd 9 and the 3rd 9 of the lower Kwas represent the people on the decision-making
street, the bureaucrats and the three senior Dukes (equivalent to mid- and senior levels
of management in modern companies), respectively. They comprise the management model
team without kinship while the 4th 9, the 5th 9 and the Highest 9 of the upper Kwas
represent feudal servants (directors and major shareholders), emperor (president, CEO)
and the temple (board of directors), respectively. They are representative of the 57
business management team and their kinship. Hence, in a family businesses, talented
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strangers can only climb as high as the 3rd 9 level (mid- and senior-management level
such as the general manager). See Table II for status classification of Yao positions for
the Qian Kwa as an example.
Temple Highest 9 Upper Kwa (out Kwa) Qian Kwa Highest 9 Yao
Emperor 5th 9 Qian Kwa 5th 9 Yao
Feudal servants 4th 9 Qian Kwa 4th 9 Yao Table II.
Dukes 3rd 9 Lower Kwa (in Kwa) Qian Kwa 3rd 9 Yao The meaning of Yao
Bureaucrats 2nd 9 Qian Kwa 2nd 9 Yao positions of I-Ching (take
Common people 1st 9 Qian Kwa 1st 9 Yao Qian Kwa as an example)
CMS predict the changes of nature, society and human affairs. When people explore the
2,1 characteristics and types of changes of heaven, earth, things and affairs by each Kwa
and the special relationship between Kwas as well as Kwa interpretations in an
appropriate and unique way, they can discern advice regarding fortune or misfortune,
success or failure.
For more than 2,000 years, I-Ching has remained a very important decision-making
58 tool and a foundation for intuitive perception or a guideline for regulating mind and
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behavior of Chinese people. Business people often apply I-Ching in predicting what will
happen to their business. A variety of applications in obtaining predictions are
commonly employed. These include applying Kwa by money, time, position, object, size,
number as well as character, pronunciation and color. Additionally, some still use the
ancient tortoise bone cracks and the grass method. To date, however, there is no
quantitative application known. The divination results often serve as references for
establishing factories, making investments or even arranging human resources. To
convert I-Ching into practical principles and methods, people in ancient as well as
contemporary times created concrete prediction methods to deduce astronomy,
geographical changes, climate changes and the fate of the nation and the people. Less
global applications involved subjects such as family, individual lot and concrete things.
Published reports attest to a very high accuracy of these uses (Cheng and He, 1999).
Shi and Sun (2000) discussed enterprise business management principles that may be
deduced from the content Kwa Ts’i. For example, from the evaluation of Ying and Yang,
they deduced that people or business can benefit by changing their attitude. Principles
set down by ancient scholars should be adhered to in business management in addition
to collecting advice from others, practicing retrospective thinking, evaluating key points
and discussing business management from the aspect of Kwa principles. One example is
that an incapable senior leader shall treat his capable subordinates in a pleasant and
humble way as illustrated by the Dui Kwa of the Preliminary eight Kwa. The 64-Kwa
may illustrate possible business management troubles. Moreover, the 384 Yao Ts’i can
be used to explain 384 possible situations and decision-making strategies.
Based on the creation, change and evolution theory of Ying and Yang reigning over
things, Hsu (1991) considered that I-Ching regarded the world as a harmonious entity
by stressing the harmony of heaven and human affairs as an appropriate way of
reigning over the state. His approach was to take a Kwa, illustrate its meaning and
deduce the appropriate way of governing the state. Lin (1997), according to the
concepts of fortune and misfortune stated in I-Ching interpretations, took the
foodstuffs industry as an example and devised a related co-efficient equation of theory
in business management from the aspect of mathematics. One aspect of this example
was that proprietor’s rights were conjoined to wood, the profits to water, and fixed
assets to dirt and so on. Zeng (1991), by way of divination, analyzed managerial
problems. He measured the related accessible data to find out why and how to improve
management by applying I-Ching widely in power allocation, organizational
development, organizational managerial decision making, exception management,
target management, time management, self-control, human nature management and
mid-level personnel management. Analyses of applications of I-Ching, by the above
authors are generally descriptions of individual experiences.
Guang (1998) weighed organizational climate based on the theoretical framework of
I-Ching to perceive eight different spirits of the organizational system by integrating
the Chinese philosophical foundation and managerial scientific statistical methods I-Ching’s
(factor analysis). Such a research approach has a relatively more modern scientific decision-making
foundation. However, the discussion, comparison and integration of corresponding
Chinese and western managerial thoughts are seldom considered and there are still model
many doubts on the objectivity of weighing organizational climate.
I-Ching was introduced to western countries as early as the sixteenth century when
first translated by a French Jesuit missionary. Up to the present time, the translations 59
and academic studies of I-Ching are flourishing in countries across Europe and
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America. However, these studies are conducted from aspects such as linguistics,
comparative religion, and Chinese history, literature and even philosophy, particularly
Confucianism. They are known as Iology or I-Ching studies. Nevertheless, any study
related to management is seldom undertaken (Yang, 1996a, b, c).
It may prove beneficial to study the hidden messages contained in I-Ching, which can
serve as counterparts for dialogue or comparison to modern western managerial
decision-making concepts from the academic aspect of modern business management.
Independently, I-Ching is often applied to help in making personal decisions. For this
reason, the authors began examining individual managerial decision-making to determine
whether there are some hidden messages or concepts contained in I-Ching, which can be
converted into modern decision-making management thinking. Additionally, the authors
conducted a comparative study between these hidden messages and western individual
decision-making models to explore for similarities and differences, expecting to make
contributions to cross-cultural comparative management studies.
Methodology
Intuitive perception (divination) using Kwas and the resulting interpretations as well
as Yao Ts’i are often applied as a reference in making personal decisions and
evaluating behavioral criteria. Therefore, this research began by interviewing a
renowned domestic I-Ching master to become familiar with the Kwa names, the
meanings and applications of Kwa Ts’i, and Yao Ts’i. Subsequently, by content
analysis, the authors note the word content of all the Kwas, Kwa Ts’i, and Yao Ts’i to
find out any possible important decision-making concepts and meanings hidden in
I-Ching. Next, a preliminary sum up of the premises, situations, methods and
procedures integrated into steps for using I-Ching in making personal decisions would
be undertaken. Finally, we conducted a comparative study between the Chinese model
and several renowned western managerial decision-making models to identify
differences and similarities.
To achieve the aforesaid research objectives, we first developed a considerable
understanding of the basic content and framework of I-Ching in order to compare it
with western individual managerial decision-making models. This comprehensive
understanding allowed us to elaborate on the managerial decision-making concepts
contained in the wording of I-Ching. That effort consisted of interviews with Dr Henry
Lee (The Director of I-Ching Association) numerous times including five sessions of
question and answer discussions for a total time of 18 hours spent with him on July
14-30, August 6-29 and September 5 in 2003. From these sessions, we gained
confidence in our ability to apply I-Ching to managerial decision making.
The explanations and applications of early managerial decision-making concepts
in of I-Ching used in this research trace back to two main resources: the first,
CMS A Complete Version of I-Ching” recommended by Dr Henry Lee (Published by Laogu
2,1 Culture Co., Ltd) and secondly, recordings as well as dictation taken from discussions
with Dr Henry Lee. The first provided the original texts defining Kwa, Kwa Ts’i, and
Yao Ts’i of I-Ching and the latter provided explanations of those texts and the sharing
of his personal of experiences in applying I-Ching in managerial decision making.
60 Data analysis
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The authors, using content analysis with a single word as the analysis unit, initially
attempted to list the 100 most commonly repeated words in all Kwas, Kwa Ts’i, and
Yao Ts’i as well as their total number of appearances relating to an understanding of
any possible concepts or meanings in managerial decision-making theory.
Content analysis also known as information analysis or documentary analysis
refers to the analysis of information concretely broadcast by mass media, particularly
the content of newspapers or magazines in a format of words. At present, content
analysis has been widely applied in many social sciences and behavior sciences and
has become a major data analysis method. The analysis uses the contents of interviews
or literature examinations as the analysis targets. By taking advantage of previously
developed analysis classifications as the foundation, results are obtained to reach
conclusions on the contents of interviews or literature reviews. The research reported
herein adopted a theme as the analysis unit to sum up words of similar meanings into a
theme that constitutes a single analysis unit..
Bowers (1970) focused on the value of content analysis believing that real content
analysis should be directed toward the content of speech of specific people to find out
some relevant point. The main value of content analysis is in the classified statistics
reported in systematic, objective and quantified ways and in the descriptive
explanations based on the statistics.
The major focus of research reported herein is a comparative literature study that
first focuses on the fundamental spirit and management decision-making process of
several major western individual managerial models and sums up the basic spirit and
the managerial decision-making process of I-Ching’s early management model.
Additionally, a comparative discussion of eastern and western decision-making
models is presented with emphasis on their similarities and differences.
words are types of nouns, verbs, adjectives and auxiliaries, which are not relevant in
terms of modern management decision-making construct or meaning. Even,
combinations of two single words or more cannot be easily interpreted in relation to
modern decision-making concepts. The interpretations of Chinese single words rely
often on context and consideration of complete phrases containing them can only allow
understanding of the correct expression. Therefore, we would be able to define the
meaning of these words only in terms of a complete phrase that includes the Kwa, Yao
Ts’i, and Kwa Ts’i.
relying on probability or other factors including the life wisdom of ancient Chinese in
predictive information.
In the garbage-can decision-making model, the final solution comes via a random
process, relying on the concurrent interactions of the problem, the solution, the
participant and the selection opportunities. This aspect is similar in some degree with
I-Ching’s flexible management decision-making model (regarded as a random method).
The two models mainly differ in that the decision maker in the garbage-can model
cannot manipulate to get a specific management decision-making reference result, or in
other words he cannot know or manipulate the concurrent interactions of the four
factors in the random process. In the practice of divination, however, the decision
maker can get a given management decision-making reference by way of a definite
self-serving behavior and activity.
In the rational model, the bounded rationality model, the implicit favorite model and
the intuitive model the decision maker can choose the management decision-making
principles and feasible action plans by his favoring and disfavoring, experiences and
expectations leading to relatively high flexibility. However, in I-Ching’s flexible
management decision-making model, the decision maker relies on the will of Heaven to
get the Kwa (which is the stimulation or change of the natural phenomena) and he
relies heavily on his understanding and interpretation of the Kwa Ts’i and Yao Ts’i.
This is the so-called concept of “harmony of heaven and man” in I-Ching.
The garbage can model relies mainly on process and is unable to involve highly
definite personal favorites of the decision maker. Hence, by comparison, it is relatively
rigid, more limited by probability and lacks flexibility.
Another point regarding the aforesaid western management decision-making
models is that they seldom talk about or offer possibilities to accommodate the
changing trends of the final management decision. Particularly, they are relatively
lacking in management decision-making weightings of various factors. By contrast,
I-Ching’s flexible management decision-making model offers changing viewpoints that
are able to foretell the decision maker the probability of rapid changes and the
responses including the aforesaid active Yaos (the Yaos may lead to a change of Kwa)
as well as the demands on whether the Kwa is in place plus Dezhong or having a
response. This makes the decision maker psychologically prepared to foretell or accept
the results of the final decision. The decision maker can even fine tune during
implementation to control the appearance of the final decision-making results.
Practicing divination regarding the prediction and understanding of the future
development of things is to conduct self-approval and self-modification continuously in
the development process without knowing certain conditions that may offer a similar
reference system. This offers a direction in which things develop and creates a positive
attitude for people, in spite of uncertainty, to be active in the development of things
allowing them to achieve the development ends (Cheng and He, 1999).
CMS It is notable that once the final management decision is made according to western
2,1 management decision-making models, it is axiomatic to implement the winning action
plan by steps. However, as far as I-Ching’s flexible management decision-making
model is concerned, besides the six possible management decision-making approaches,
the Kwa, Kwa Ts’i, and Yao Ts’i which were created by ancient Chinese during a
different epic and its social and cultural background are now expected to cause current
68 operatives to differ in interpretations thanks to different backgrounds, traditional
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Premises Uncertain with no Relative consistent Relative consistent Very explicit favor Consistent favor with Ambiguous and
understanding of favor, grasping favor, grasping with final solution in enough related hetero-nature favor,
principles management management mind management problem, solution and
principles and action principles and action decision-making participant as well as
plans plans experiences selection opportunity
Information Medium High Low medium Low Medium Low
Decision Probability or Decision maker Decision maker Decision maker Decision maker Problem, participant,
maker natural force solution and selection
opportunity
Rationality Process-limited Fully rational Medium-bounded Rational in form but Medium-bounded Low-bounded
degree result – high rationality irrational in nature rationality rationality
Procedure See text supra See text supra See text supra See text supra See text supra See text supra
Assisting Coins, bones, time, Rational Rational Rational Past experience Random results of
tools etc. management management management four factors
decision-making decision-making decision-making
steps steps steps in form, the
irrational one led by
implicit favor
Applications Cases of high Cases of high Relatively unstable Moderately stable High uncertainty, High instability, high
uncertainty no certainty and and uncertain cases of no precedent uncertainty and high
precedent or clue stability or clue, time-pressing complexity
Type Descriptive Normative Descriptive (random) Descriptive (random) Descriptive (random) Descriptive (random)
(random) (customary)
Objective Satisfying solution Optimized solution Satisfying solution Favorite solution Satisfying solution Random unstable
solution
Flexibility Procedure-low Procedure-high Procedure-high Procedure-high Procedure-low Procedure-low
Result-high Result-low Result-low Result-low Result-high Result-low
decision-making
I-Ching’s early
Table III.
69
CMS Compared with the spirit and procedures of western rational decision-making models,
2,1 it must be conceded that the management decision-making behavior presented by
practicing divination is relatively lower in rationality. It can be understandably
assumed to have something to do with random process and hence mysticism. After all,
it is difficult to prove that tossing coins or burning bones to determine an event has
high degree of modern rationality.
70 Nevertheless, the authors agree with Cheng and He in their viewpoint about the
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Conclusions
I-Ching has been the standard reference for Chinese people in deciding major things in
life from ancient times up to the present. The decision-making element is the most
important element of I-Ching. Therefore, it should be useful to apply this approach to
decisions in business administration. An initial study to sum up the classifications and
appearances of single words in all the Kwas, Kwa Ts’i, and Yao Ts’i of I-Ching hoped
to identify possible management decision-making constructs contained therein. It was
determined that most of the single words are auxiliaries and nouns or adjectives
related to misfortune or fortune. The analysis, therefore, was unable to distinguish any
type of modern management decision-making construct or concept within 100 of the
most commonly occurring single words. A likely reason for this is that combinations of
words make sense in the context of management decision-making situations instead of
single words. I-Ching is so holistic in its approach to problem solving, it is almost
axiomatic that a single-word content analysis would fail in identifying constructs that
could directly relate to the decision-making process. The I-Ching model allows for
change to occur and be incorporated during the decision process thus de-contextualized
words would not be expected to offer appreciable reference to principles for managerial
practices. Furthermore, one cannot fully and precisely determine the original meaning
of I-Ching’s management decision-making structure.
A second and more successful approach was a comparative study of the Chinese and
western management decision-making models attempting to explain their similarities
and differences. Under the comparative analysis approach, the research first explained
how the eastern societies apply I-Ching widely to help in making management decision;
then looked for the similarities and differences between the Chinese flexible
management decision-making model and western modern management
decision-making models. This yielded a glimpse of ancient Chinese management
decision-making philosophy and modern western management decision-making
theories regarding thinking, method of implementation, uniqueness of procedures and
degree of compliance. Extending understanding of both systems should assist the
Chinese to more successfully apply the flexible management decision-making model of
I-Ching, which represents the eastern management decision-making philosophy that has
lasted for more than 1,000 years and allow us to translate it into modern management
decision-making vocabulary.
Yang (1988) proposed two concepts of the Taiwan Chinese, that of the traditional I-Ching’s
personality and behavior and a contrasting modern personality and behavior. The decision-making
former refers to that gestated in a traditional agricultural economy, social structure and
social pattern including extra-controlled attitude, submission to nature, past-oriented model
and reliance mentality. While the modern personality and behavior characterizes
personalities and behaviors gestated in the transition from traditional agricultural to a
modern industrial society, social structure and pattern including inner-controlled 71
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Appendix
A total of 100 most commonly used words in Kwa Ts’i and Yao Ts’i
Corresponding author
Mu-Lan Hsu can be contacted at: mulan@cc.shu.edu.tw
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