Methodical Approach of the XXI Centuries Mongolian Management Development Philosophy and Model

37

Methodical Approach of the XXI Centuries
Mongolian Management Development
Philosophy and Model
Batkhurel Gombodorj*

Abstract

This study provides to deﬁning a management philosophy is important of the developing
new century’s management concept. “A”,”B”,”C” and”D” models of the management
philosophy are deﬁned the patterns of the USA, Japan, China and Sweden. Therefore, offered
the alternate model of the Mongolian management philosophy and new century’s management
logic. Designed and formulated the theoretical basis of the”MM” theory, which is focused on
how to lead Mongolians, whose way of living and thoughts are nomadic civilization. Althoughsummarized and compared with Mongolian management’s “MM” theory and “X”,”Y”,”Z”
theories.
Key words: Model, nomadic culture, thought, interest, logic, theory, concepts

FOREWORD
It is already over 20 years for Mongolia after the transition from the centrally plannedsystem into economic democracy however, the current condition requires the nation to develop
in same speed as others matching the development approach of the 21st century and studying
the worldwide business culture, classic and neoclassical theories in market economy andmanagement. Mongolia, a country with quite long history and rich administrating and managing
heritage of state, military, law and economy, is a nation that impacted on the civilization
establishing its Great Empire. From this point of view, there is a facing issue to design an
economic development of Mongolia, management concepts and philosophy, and Mongolian
characteristics of management of the 21st century.
The study trying to analyze and evaluate the Mongolian management thought developmentin economics approach, nomadic culture and value of management thought of Mongolia, thoughto build the new management theoretical concept, philosophy and Mongolian management
model in the 21st century.

*Author: Director of Computer Science and Management School of MUST38

social system review Vol. 3

METHODICAL APPROACH OF MONGOLIAN MANAGEMENT PHILOSOPHY
The fundamental element of the concept designing of the new management development for
a new century is to deﬁne the management philosophy. Management philosophy is a combined
expression of an individual, group or public concept and thought, and their belief and interest todevelopment and change of any system.
Concept of management philosophy is different in every country due to their decision-taking
procedures on issues concern to national, organizational or individual interest and need, anddeﬁning their connection, implementation and mechanism. The principal concept is to resolveorganizational facing issues co-coordinating national, organizational and individual interests bygiving importance to the interest and supplying the connection of them properly. As a theory oforganizational management philosophy, it is studied in three levels:− National− Organizational− Leaders.
Any model of management philosophy for any organization and system shall be accepted by
the people, supported by the state and shall be possible to be implemented by the government. In
other words, the philosophical origin of the organizational policy by the state organizations shallmeet the public concept and thought. This is the main requirement.
We have an idea that there are 4 different models of the management philosophy which arefollowed worldwide.
“A” model. The model that is popular in western developed countries focuses on anindividual need and interest to decide any organizational management issues clearing out it howto adapt to a group’s need and interest and then the group’s interest to the national interest. Laws
and all other relevant documents approved by the government meet the present concept of themanagement philosophy. The key representative of the management philosophy is USA and themanagement philosophy which is followed there is a model that respects individual interest.
“B” model. Organizational management philosophy of Asian countries adapt an individualinterest to an organizational interest ﬁrstly, then national or social interest to an organizational.
Then the two interests shall meet the organizational interest reversely. Asian countries utilize theprinciple in the decision-taking procedures on issues concern organizational facing management
problems. The biggest representative of the B model is Japan and the management philosophy
which is followed there is a model that respects group’s interest.
“C” model is a management philosophy based on principles to respect social right andinterest. In the frame of the philosophy, facing issues are decided in a manner that to adjust
social interest to a group interest, then the group’s interest is adapted to an individual interest
which is also adjusted to the social interest. The biggest representatives of the C model arecountries with centrally planned system. For example; People’s Republic of China. The
management philosophy of China is a model that respects social interest.
“D” model is a very distinctive management philosophy that based on principle that
respects social interest. The “D” model adjusts social interest to national and group’s interest,
and then group’s interest is adapted to an individual interest which is adjusted to alsosocial interest to decide facing issues on management. The representatives of the model are
Scandinavian “democratic socialist” countries. Sweden management philosophy is included inMethodical Approach of the XXI Centuries Mongolian Management Development Philosophy and Model

39Figure 4.2. Philosophycal models of management in the new century

the model and it is a mixed model that respects social interest. (ﬁgure 4.2.)
Management philosophy of Mongolia is included in “A” model of the above models which
is a model of management philosophy that focuses on individual interest. The main feature ofMongolian management philosophy is management concept that regulates individual interest
and choice along group’s interest and choice that are in line with social interest and choice. The
social interest and choice are also ruled by national interest and choice which are also consideredin line with international interest and choice. (ﬁgure 4.3.)

Figure 4.3. The philosophycal model of management for Mongolia in the new century

40social system review Vol. 3Time, structure and function evolutions of Mongolian management theory shall beclarified by formulating and designing the theoretical basis of Mongolian management
feature scientifically. For this purpose, we have designed “MM” theory using the following
methodology.

Figure 4.4. Methodology to build the “MM” theory

Logical model of management development is management relationship which manages
others selecting proper management thought, concept and strategies that meet characteristics
of personal, psychological and thought of Mongolians based on ecological management,
development approach of global management and feature of nomadic culture. (ﬁgure 4.5).

Methodical Approach of the XXI Centuries Mongolian Management Development Philosophy and Model

41

Figure 4.5. Logical model of management development in the century

We have designed a probable model of “MM” theory that based on Mongolian management
feature from point of view of modern concept of management theory.
1. Employment relationship. The relationship covers organization, term and principlethat regulate relationship between employers and employees. In the frame of thenomadic husbandry, the relationship always based on the family relation. There is anatural division of nomadic labor between males and females, and youths and elders
in the traditional life-style of nomadic peoples. The men look after military andadministrative activities; engage in hunting, herding the larger animals, and caravan
trading; and making and repairing carts, saddles, stirrups and weapons. The slaughterof animals is also customarily restricted to the males. The work and activity of thewomen includes caring for the children and old folks, boiling tea, preparing meal,
milking animals, sewing, doing general housework, making milk products such as
cheese, butter, husking millet, working felt, making such domesticx objects as cart,
gathereing dry dung for fuel, herding sheep and goats in the vicinity of the yurt, andtaking care of the very small animals. Also, the labor division relies on geographicaland weather conditions as well as changing labor types frequently. Therefore, the mostimportant factor to promote labor production for Mongolians is a frequent labor andenvironmental change. In addition, short and middle-term employment agreementthat states to assign an employee to any other position changing his/her condition as
Mongolians are eager to get bored from similar frequent labors.
2. Decision-making. An elder who is responsible for a group of households makes
decision on issues concern to animal husbandry discussing all together during thenomadic period. Thus, there are not many phase of Mongolian management structure
and administration. In modern days, leadership is based on management that settled on

42social system review Vol. 3discussion.
Duty. An individual is responsible for a charge as the decision was made by a leader
discussing with others. It is very different system from Japanese system in which all areresponsible for a charge together.
4. Evaluation of labor forces. Mongolians choose a cautious elder who manages all
household activities and knows custom and tradition well as a leader of their householdgroup. It shows that the nation gives value to various talents. However, there are afew youths who are leading their households. Mongolians trust their managing bodies
preferring their talent, skill and experience, innovation, knowledge on local area andanimal husbandry and reputation more.
5. Monitoring on decision implementation. Mongolians are cautious about any negative
information’s on themselves and their business following the principles “A goodname better than riches”, “Sticks and stones may break my bones, but words will
never hurt me.” Nomadic protect their reputation and status as well as how hard andwell they worked out. As we said before negative information plays important role
among nomadic. The decision was implemented to make him/her shy or faulty by theirinternal control procedure.
6. Career management. Mongolians consider applicants’ talent, ability, skill andexperience especially except his origin to promote someone to a leader of an aravt,
zuut or bag. Specially, they highly valued applicants’ knowledge on their land and its
nature. Unfortunately, some scholars named the qualiﬁcation as “thought of locality”
mistakenly. The thought cannot be considered separately from human and social
relation.
7. Materialistic interest. Like in other Asian nations, the concept of family is a wide
understanding that includes parents and all relatives for Mongolia where nomadic
culture dominates. Therefore, almost all Mongolians’ materialistic interest can beexplained as “earn for or pay family livings.” Thus, status and needs of parents,
relative and families were the most essential factor to work successfully and achieve
good results. However, an individual interest shall be focused on more in modernmanagement.
The above mentioned 7 key factors were studied comparatively with the methodologies ofthe X, У and Z theories and then were connected to the consequences of the nomadic culture ofMongolia. The management theory that can be arisen due to the nomadic culture of Mongolians
was named as “Mongolian management” or “MM”.
3.

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Methodical Approach of the XXI Centuries Mongolian Management Development Philosophy and Model

Figure 4.6. “MM” theory for Mongolia

Table 1. Comparison on key factors of X, У and Z theories to “MM” theory
Factors

Urban civilization

Nomadic culture“X” theory“У” theory“Z” theory“MM” theory

Employment

Short-termLife-long

Long-term

Short, medium, dynamicand environmental change

Decision making

An individual
onlyConcessious

Concessious

Concessious, key role ofleaderDuty

An individual
onlyGroup or teamAn individual only

An individual

Evaluation oflabor force

SpeedyGradually

GraduallyTalent, knowledge andskills ability

Monitoring

External andformal

Internal and common

Double internal simple
monitor through external
formal occasions

Duplex internal withleader’s monitoring

Qualiﬁcation tobe promoted

Focusing on
profession

No focusing on profession,
more focusing on age

Less focusing on
profession

Ability, experience andinnovation

Employee’sinterest

Employee only

Whole interests of anindividual

Whole interests withfamily

Considering in individualinterest

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social system review Vol. 3

CONCLUSION
The following conclusion may be reached to base in the brief comparative study:“MM” theory based in Mongolian management is characteristic of its nomadic culture andthought while X, У, and Z theories based on the urban civilization.
For Mongolians who have domination of nomadic culture is not right to imitate directly
foreign management theories that based on urban civilization even it can result in socioeconomic dramatic consequences.
“MM” theory which originated from nomadic culture is very signiﬁcant not only to leadstate and private sectors of Mongolia also foreign invested and international organizations that
conduct their business in Mongolia or employ Mongolians.
Designing management theory based on cultural heritage of a given nation is enormously
essential for developing countries, namely for nations which are in the transition period of its
development. This is why “MM” theory can work in any nation which has nomadic civilization.

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