Stephanie Chong and Liang Li examine performance management systems in the ancient Qin state.
One model of institutional change explains how institutions such as businesses move through four stages: adaptation, to establish a place for themselves in the world; design, to deliberately reposition themselves; collective action, to adjust to issues like growth; diffusion, to maintain position over time. In ancient Chinese history the Qin family demonstrate these stages over an extended period of time, as the family moved from low status in 1046 BC to become rulers of a united China in 221 BC.
Otago Polytechnic's Stephanie Chong, with Liang Li from Xi’an University, looked at the records for this period of history and found that the Qin family instituted rigorous performance management systems. Standardisation was paramount, to achieve a consistently high quality of products and processes in all aspects of civil and military life. Compliance was enforced with the strict application of rewards and punishment, both for the individual worker or soldier concerned and for his family.
Although the Qin family united China, they ruled for only 15 years before being deposed by nobles who wished to return to a feudal state. This suggests that the rigorous performance management systems imposed by the Qin were successful only in the first three stages of institutional change, but were not adequate or appropriate to keep them in power.
This historical example also confirms that the informal systems, such as culture and ideologies, are as important as the formal systems for performance management. In the Qin state the predominant ideology was a high level of control, and the culture valued obedience, and status and success of the family, above personal freedoms and innovation. Status continues to be important in modern China, and this historical perspective also helps to explain how North Korea operates today. Different businesses today have their own culture and ideologies which will be relevant to how they can and should best manage business performance.
Read more about Stephanie Chong's research here.