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“Human element” – the core of business management

Oct 26-2018   



Prof.Chen Chunhua

Speech at A Conference of MU LAN College


Prof.Chen Chunhua

Stages and actual starting point of entrepreneurships.

There are four phases to the development of an enterprise – start-up phase, growth phase, development phase, and eventually sustainability phase. While going through these four phases, enterprises shall encounter challenges each to their own uniqueness. Regardless of which phases it is in, the success or failure  of an enterprise attributes mainly to its corporate strategies. Theoretically, corporate strategies shall dictate corporate survivability, and the requirements to these corporate strategies vary at different phases of business development. The core strategy to deploy during start-up phase, is to develop goods and services of highest quality, so as to ensure smooth penetration into the market. Suffice to say, the ‘entry ticket’ to access the market, depends more on products and services, than mere capital injection.

Entrepreneurs should establish their product strategy at the earliest phase. The most important aspect in establishing an enterprise, is to convert ideas into solid products, as consumers only recognize products, among everything else. Once products are manufactured, enterprises shall move on to growth phase from startup phase, where sales and marketing strategy become highly relevant. Resources must be diverted in full towards implementing marketing strategies, by focusing on the needs and requirements of customers and front-line employees, who are the most important indicators in setting marketing targets. The survivability of enterprises lies on their capability and effectiveness in marketing.

Towards the later phases of growth, enterprises’ strategies positioning and development phases are ascertained through measurement of their business volume. As such, they have to benchmark their volume against others from similiar industry, as different industries shall have different yardsticks to measure basic survivability. When customers loyalty is attained, businesses shall commence its deployment of branding strategies. Lastly when it comes to sustainability, the relevant corporate strategy shall be on corporate culture.

Fundamental Concepts of an Organization

The pre-requisite of entrepreneurship and business growth, is to have a good team. Goals cannot be achieved without a committed team. The team structure at early stage, is very much the structure of an organization. First, there needs to be an organization before a team can be assembled. However, mere establishment of an organization does not necessarily guarantee effective teamwork, as the forming of an effective team shall require the followings: common goal, compatible characteristics, and mutually complimenting skills. Only through fulfilling the aforementioned, that an effective team is said to have formed. Therefore, the process of building entrepreneurial structures, is also the process to form a team.

Organization gathers personalities who commit into ‘systematism effort’, so as to materialize a common goal. An organization first appears as mere entity, and subsequently evolve into becoming “formal organization”, by grouping everyone under three core concepts: authorities, responsibilities, and goal. Alternatively, it can appear as “non-formal organization’, where members are grouped along their sentiment, interests, and hobbies. People often felt pressured when being part of a “formal organization”. However, enterprises must strive to become formal organizations. An organization that asserts both pressure, and respect to its employees is a healthy organization; whereas, an organization that asserts pressure without giving much individual attention to its employees, is considered as being “normal”; an organization that cares too much about its employees' benefits without asserting any form of pressure, shall be eliminated by the market.

The focus of an organization is on its’ people. However, this does not refer to actual human being, and only refers to the roles these people play. There are many roles within an organization, and no one is indispensable. As long as human resources are adjustable, organizations shall continue to survive. To prevent overly dependent on any specific individual; corporate authorities, responsibilities and goals are separated and delegated to different roles, in ensuring efficiency of the organization. Therefore, the true nature of an organization is reflected by its practice of division of labour. If we are to become a member of an organization, we must first execute our prescribed roles competently. Only by doing so we are able to maintain healthy employee-organizational relationship. The core of an organization boils down to its goal, which the organization’s survivorship depends upon solely, as opposed to otherwise – where its’ existence is for its members. Therefore, an organization will only provide opportunities to its employees, on the basis that they commit into servitude towards the organization’s goal. Such, is the distinguished concept of an organization.

In-Depth Understanding of Management

Whilst an organization focuses on “achieving goal”, management focuses on “human”. Management, is defined as a work process that optimizes employees’ output and resources from both internally and externally, towards a common goal. Management is a work process, it is neither a position, nor a symbol of power. Therefore, a manager must always work hard, and in the process commit into resolving three issues – recruitment, resources, and goal completion – only by doing so one is deemed to have owed up to the expectation of a manager. There are few misconceptions among managers: first, unquestionable and overriding authority; second, absolute subordination; third, lack of following up on delegated tasks. In fact, management is a process that requires mutual participation, as it is a form of ‘companionship’.  Even as we delegate tasks to our employees, we must see through the completion of these task along with them.

Distinct characteristics of a well-managed company: Operational orientated, lean and efficient workforce, consistent relationship management with customers, increased productivity through good human resources management, granting franchise licenses to promote entrepreneurism, emphasis on certain corporate value, focus on their area of strength,  and assert versatile control.

The core-concept in management, is to manage human element. Therefore, decision makers should provide clear guidance on operational affairs, and to make aware their subordinates on the company’s priority. The greatest trait of an effective manager is reflected best by the growth of his subordinates. A good manager focuses not on performances, such is merely the characteristic of a good team player.  A good entrepreneur must first be a good manager, in ensuring sustainable growth through grooming and promoting talents.

Management is a form of knowledge, and it has its own framework. There is no right or wrong in management – essentially it is all about managing reality and ensuing consequences. There are 2 main aspects to the role of an Operational Manager – managing work related issue, and managing human. It is imperative that a manager shall always undertake to respect and understand his employees, regardless of how he felt about the work done.  The key in management, is to ensure access of resources by those who have performance accountability - first-tier employees, so that they can utilize resources efficiently.

Relevant Concepts of Management

First, managements are accountable to business performances and hence they place more emphasis on efficiency and efficacy. However, many companies’ performance assessment systems are overly focused on assessing employees’ behaviors, rather than on their capability in improving performances. Adopting such approach might eventually lead to the decline of company’s performance. Having said that, we should also pay attention to subscribed values and ethics of our employees, especially when it comes to recruitment and promotion, where those with higher morality should be given priority. Management’s incumbent role is to prevent employees from committing mistakes, as opposed to taking mere calculated bet that they won’t be making any mistake at all. To decipher management process, is to observe humanism, where improvement made to management shall benefit us individually.

I encouraged female entrepreneurs to dedicate more of their time to their children, as they represent the future. They should be patience while trying to understand the youth, and in the process educate themselves. No effort is wasted while doing so. Next, in improving relationship managements, one must realize that he is the one who determines everyone’s KPI, and when he thinks there are mistakes incurred by subordinates, he should first reflect and improve on himself. Such is the fascinating aspect of management. Management, in general, entails efficient maneuvering of both human and resources. However, different individuals manage human and resources differently from one another, resulting in varying outcomes. That is why management is a fascinating subject. I hoped that all that attended the talk would be able to appreciate the value and appeal of management, I wish to all that attended the 5 days course in Mu Lan college.

“Human element” – the core of business management

Oct 26-2018   



Prof.Chen Chunhua

Speech at A Conference of MU LAN College


Prof.Chen Chunhua

Stages and actual starting point of entrepreneurships.

There are four phases to the development of an enterprise – start-up phase, growth phase, development phase, and eventually sustainability phase. While going through these four phases, enterprises shall encounter challenges each to their own uniqueness. Regardless of which phases it is in, the success or failure  of an enterprise attributes mainly to its corporate strategies. Theoretically, corporate strategies shall dictate corporate survivability, and the requirements to these corporate strategies vary at different phases of business development. The core strategy to deploy during start-up phase, is to develop goods and services of highest quality, so as to ensure smooth penetration into the market. Suffice to say, the ‘entry ticket’ to access the market, depends more on products and services, than mere capital injection.

Entrepreneurs should establish their product strategy at the earliest phase. The most important aspect in establishing an enterprise, is to convert ideas into solid products, as consumers only recognize products, among everything else. Once products are manufactured, enterprises shall move on to growth phase from startup phase, where sales and marketing strategy become highly relevant. Resources must be diverted in full towards implementing marketing strategies, by focusing on the needs and requirements of customers and front-line employees, who are the most important indicators in setting marketing targets. The survivability of enterprises lies on their capability and effectiveness in marketing.

Towards the later phases of growth, enterprises’ strategies positioning and development phases are ascertained through measurement of their business volume. As such, they have to benchmark their volume against others from similiar industry, as different industries shall have different yardsticks to measure basic survivability. When customers loyalty is attained, businesses shall commence its deployment of branding strategies. Lastly when it comes to sustainability, the relevant corporate strategy shall be on corporate culture.

Fundamental Concepts of an Organization

The pre-requisite of entrepreneurship and business growth, is to have a good team. Goals cannot be achieved without a committed team. The team structure at early stage, is very much the structure of an organization. First, there needs to be an organization before a team can be assembled. However, mere establishment of an organization does not necessarily guarantee effective teamwork, as the forming of an effective team shall require the followings: common goal, compatible characteristics, and mutually complimenting skills. Only through fulfilling the aforementioned, that an effective team is said to have formed. Therefore, the process of building entrepreneurial structures, is also the process to form a team.

Organization gathers personalities who commit into ‘systematism effort’, so as to materialize a common goal. An organization first appears as mere entity, and subsequently evolve into becoming “formal organization”, by grouping everyone under three core concepts: authorities, responsibilities, and goal. Alternatively, it can appear as “non-formal organization’, where members are grouped along their sentiment, interests, and hobbies. People often felt pressured when being part of a “formal organization”. However, enterprises must strive to become formal organizations. An organization that asserts both pressure, and respect to its employees is a healthy organization; whereas, an organization that asserts pressure without giving much individual attention to its employees, is considered as being “normal”; an organization that cares too much about its employees' benefits without asserting any form of pressure, shall be eliminated by the market.

The focus of an organization is on its’ people. However, this does not refer to actual human being, and only refers to the roles these people play. There are many roles within an organization, and no one is indispensable. As long as human resources are adjustable, organizations shall continue to survive. To prevent overly dependent on any specific individual; corporate authorities, responsibilities and goals are separated and delegated to different roles, in ensuring efficiency of the organization. Therefore, the true nature of an organization is reflected by its practice of division of labour. If we are to become a member of an organization, we must first execute our prescribed roles competently. Only by doing so we are able to maintain healthy employee-organizational relationship. The core of an organization boils down to its goal, which the organization’s survivorship depends upon solely, as opposed to otherwise – where its’ existence is for its members. Therefore, an organization will only provide opportunities to its employees, on the basis that they commit into servitude towards the organization’s goal. Such, is the distinguished concept of an organization.

In-Depth Understanding of Management

Whilst an organization focuses on “achieving goal”, management focuses on “human”. Management, is defined as a work process that optimizes employees’ output and resources from both internally and externally, towards a common goal. Management is a work process, it is neither a position, nor a symbol of power. Therefore, a manager must always work hard, and in the process commit into resolving three issues – recruitment, resources, and goal completion – only by doing so one is deemed to have owed up to the expectation of a manager. There are few misconceptions among managers: first, unquestionable and overriding authority; second, absolute subordination; third, lack of following up on delegated tasks. In fact, management is a process that requires mutual participation, as it is a form of ‘companionship’.  Even as we delegate tasks to our employees, we must see through the completion of these task along with them.

Distinct characteristics of a well-managed company: Operational orientated, lean and efficient workforce, consistent relationship management with customers, increased productivity through good human resources management, granting franchise licenses to promote entrepreneurism, emphasis on certain corporate value, focus on their area of strength,  and assert versatile control.

The core-concept in management, is to manage human element. Therefore, decision makers should provide clear guidance on operational affairs, and to make aware their subordinates on the company’s priority. The greatest trait of an effective manager is reflected best by the growth of his subordinates. A good manager focuses not on performances, such is merely the characteristic of a good team player.  A good entrepreneur must first be a good manager, in ensuring sustainable growth through grooming and promoting talents.

Management is a form of knowledge, and it has its own framework. There is no right or wrong in management – essentially it is all about managing reality and ensuing consequences. There are 2 main aspects to the role of an Operational Manager – managing work related issue, and managing human. It is imperative that a manager shall always undertake to respect and understand his employees, regardless of how he felt about the work done.  The key in management, is to ensure access of resources by those who have performance accountability - first-tier employees, so that they can utilize resources efficiently.

Relevant Concepts of Management

First, managements are accountable to business performances and hence they place more emphasis on efficiency and efficacy. However, many companies’ performance assessment systems are overly focused on assessing employees’ behaviors, rather than on their capability in improving performances. Adopting such approach might eventually lead to the decline of company’s performance. Having said that, we should also pay attention to subscribed values and ethics of our employees, especially when it comes to recruitment and promotion, where those with higher morality should be given priority. Management’s incumbent role is to prevent employees from committing mistakes, as opposed to taking mere calculated bet that they won’t be making any mistake at all. To decipher management process, is to observe humanism, where improvement made to management shall benefit us individually.

I encouraged female entrepreneurs to dedicate more of their time to their children, as they represent the future. They should be patience while trying to understand the youth, and in the process educate themselves. No effort is wasted while doing so. Next, in improving relationship managements, one must realize that he is the one who determines everyone’s KPI, and when he thinks there are mistakes incurred by subordinates, he should first reflect and improve on himself. Such is the fascinating aspect of management. Management, in general, entails efficient maneuvering of both human and resources. However, different individuals manage human and resources differently from one another, resulting in varying outcomes. That is why management is a fascinating subject. I hoped that all that attended the talk would be able to appreciate the value and appeal of management, I wish to all that attended the 5 days course in Mu Lan college.