Replying to management challenges:Integrating oriental and occidental wisdom by HeXie Management Theory

The purpose of this paper is to address several challenges faced by organizational management in the contemporary context, and how managers can better reply to management challenges by integrating oriental and occidental philosophy and wisdom. The paper first describes the characteristics of the contemporary management context and identifies challenges that managers are likely to encounter. The paper then investigates how oriental and occidental philosophy and wisdom reply to these management challenges, whilst also considering the relative advantages and disadvantages of both traditions. Based on the complementarity of these two traditions, the paper finally proposes a framework that integrates both oriental and occidental wisdom by HeXie Management Theory to better respond to management challenges. The contemporary organizational environment is characterized by four key salient components: complexity, change, ambiguity, and uncertainty (CCAU). Managers are challenged by problems of determining causality, managing holistically, and adaptation to rapid change. Western philosophical approaches to confronting management challenges arising from CCAU, inherent in the wider economic environment, emphasize standardization and rational design on the basis of science, law, and religion. Conversely, Oriental philosophical approaches to management challenges oppose such rigid systems in favour of flexibility and adaptability which emphasize harmony and morality. Essentially, whereas western thought intends to limit the occurrence of unpredicted events through the development of scientific systems, oriental thinking aims to provide a flexible and fluid system which absorbs the effects of CCAU, thus limiting and using its impact. These two perspectives both have their own advantages and disadvantages when facing management challenges in the context of CCAU. By integrating these two complementary approaches, the authors propose HeXie Management Theory (HXMT). HXMT establishes a clear vision and mission to direct the development of organizations; to organize an integrated management system through the HeXie Theme and HeXie Coupling, and to apply the component “He Principle” and “Xie Principle” as basic mechanisms to cope with management challenges. This study contributes to research on relationships between organizations and environment by providing a holistic analysis, and adds knowledge about how to reply to management challenges by constructing ambidextrous organizations based on HeXie Management Theory.