Case
Teaching Notes
Supplementary Resources
Abstract
This case explores the grounds and prospects of the utopian managerial approach of Tecsun (Suzhou) Homes that features paternalistic leadership. It explains the founder’s management philosophy with “education” and “enlightenment” as the core, and it demonstrates his leadership style of “paternalistic” in China and “godfather” in the West from multiple perspectives. It further analyzes the influence of the founder’s leadership style on employee activation and on the growth mode of the company, offering students insights into the challenges faced by the company and prompts them to think about the issue of sustainability.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1. Quotations From Shengzhe (Excerpts)
- A person who does not obey rules is not reliable, nor is a nation that does not abide by rules.
- A task completed without following (correct and flawless) procedures is not a success, but rather a failure with endless repercussions.
- We should simplify complications and solve problems based on thorough analyses. Do remember not to mistake simplicity for carelessness or complexity for carefulness.
- Passion alone is not enough.
- We should not miss out on the “self-reflection process.” In case of any dispute or trouble, we should reflect on ourselves first and think about our fault. Without self-reflection, we will only put the blame on someone else.
- Employees are never the owner of the company they work for. How could the owner get fired? Do not lie to employees. The key is to maintain good labor relations, secure employees’ benefits, and make employees proud and dignified. This is profoundly different than the illusive sense of ownership.
- We should put staff on an equal footing. The relationship between employers and employees is based on employment. From this sense, it is an exchange relationship, and employers should treat employees fairly.
- Managers wear a name tag that says “I’m first and foremost a great staff.” Please do keep it in mind and understand its implications.
- You will be valued by the company if you handle your work well. You will not be put on key positions if your performance is not that good. If you cannot do a good job, then you do no good to the company. So it is not a matter of how important the company thinks of you as, but something you can use your own judgment about based on your performance. I once told an employee who handed in his resignation, “If you leave today, someone new will fill your position tomorrow.” This is my stance.
- Tecsun should form an atmosphere where honest and devoted persons are the most respected.
- At Tecsun, an employee who becomes arrogant is to be fired sooner or later. If many arrogant employees are seen in the company, then it is doomed to shut down.
- For employees, innovation refers to improvement and perfection of the work they are experienced at.
- Employees with integrity should be rewarded and cared for so that they feel proud and delighted.
- What a person holds on to says the most about him or her. Even the slightest progress and positive change would make a difference.
- Do not feel annoyed if your subordinate asks you questions one after another. He may be a good employee who could get things done in the right way. Some employees seem to know everything but end up making mistakes constantly.
- We should make it a rule that senior executives should regularly undertake frontline tasks and learn more specifics. Otherwise they will simply make ineffective decisions that cannot be applied to practice. We need our team to stay vibrant, nonbureaucratic, and invincible.
- There are without doubt some “loopholes” in our regulations and processes. Just like what Microsoft regularly does to update its patches for the Windows system, we should constantly review and update our management system to avoid dysfunction or intentional breaches.
- A good manager is not only a tutor who corrects subordinates’ mistakes, but also a secretary who reminds subordinates of important things to do.
- Do not mess around when you are extremely busy. Do remember to follow procedures at any time, by which you will not panic or make mistakes when you have many tasks at hand.
- A nation can thrive without history or culture, but not without effective education.
- Intelligence is inherited, but excellence can be taught.
- A mediocre PhD degree holder may not be of greater value to the society than a devoted carpenter.
- We should talk, work, and live like civilians. China needs civilians who are righteous, devoted, courageous, and selfless with a strong sense of social responsibility.
- Education is a process where educators, with their strong will, repeat a point over and over until the ones being educated partially take it in, as is the case with management.
- What I have is not exceptional capabilities but a good work (learning) attitude.
Source: Zhou Zhiyou, Tecsun staff handbook (updated), China Machine Press, July 2014.
Exhibit 2. Tecsun’s Management System
| Components | Regulations and Requirements | Guidelines on Implementation | Procedures of Supervision and Inspection |
| Main content of each section | 34-article code of conduct for employees and related regulations | Regulations about punishment, staff probation, regulation study sessions, statement and vows, reimbursement, procurement, directors and chief operators, retraining, after-sale services, inventory management, construction safety and protection measures, and report on (preparations for) start of construction | Check and balance, 1-8-5-5 rule, hearings, warnings, judiciary (investigation and review) committee, process center, Tecsun announcements, quality supervision, personal credit system, undercover visitors policy, tutorship, letters of declaration on anticorruption |
| Proportion | 1 | 2 | 3 |
Source: Wen Decheng, Tecsun management, Xinhua Publishing House, 2009.
Exhibit 3. Organizational Structure of Tecsun Homes
The organizational structure of Tecsun Homes is listed as follows:
- CEO
- Legal Department
- Implementation Department
- Process Center
- Supervision Department
- Justice Officers
- Inspectors
- Undercover Visitors
- Quality & Regulations Supervisors
- Punishment Department
- HR Department
- Happy Work & Joyful Life Center
- Engineering & Other Departments
Source: Company files.
Exhibit 4. Photos of Portland Street
Source: Company files.
Exhibit 5. Photo of a Study Session on Tecsun Regulations
Source: Company files.
Exhibit 6. Tecsun Announcement (an Example)
Source: Company files.
Exhibit 7. A Photo Taken on Tecsun’s Construction Site
Source: Company files.
Exhibit 8. We Sincerely Thank (Tecsun Enterprise Song)
Author: Nie Zhao, Composer: Tian Hua
We thank God,
For the benevolence He bestows on us.
We thank our parents,
For bringing us into this world.
We thank our company,
For offering us jobs.
We thank our colleagues,
For the caring they show us.
We thank ourselves,
For being industrious and rectitude.
How are you!
Dear motherland and my family.
How are you!
The beautiful new world.
Source: Company files.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
