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Thank you for downloading this free ebook from Buddha s Light Publishing. More booklets from the Buddhism in Every Step series are available on our website, www.blpusa.com. Let us know how you enjoyed the book by e-mailing us at info@blpusa.com! Copyright 2010 Buddha s Light Publishing All rights reserved

A Buddhist Approach to Management Buddhism in Every Step 15 Written by Venerable Master Hsing Yun Translated by Otto Chang, Ph.D.

Published by Buddha s Light Publishing 3456 S. Glenmark Drive Hacienda Heights, CA 91745 U.S.A. January 2006 by Fo Guang Shan International Translation Center All rights reserved Translated from the Chinese by Otto Chang, Ph.D. Edited and proofread by Venerable Miao Hsi and Louvenia Ortega Cover design and book layout by Mei-Chi Shih and Kevin Hsyeh Printed in Taiwan

Table of Contents I. Management: Buddha s Approach II. Management According to Buddhist Sutras III. Management in the Chinese Monastery IV. Management: Fo Guang Shan s Approach 2 7 10 14

A Buddhist Approach to Management Today, Business Administration is one of the hot subjects in college curricula around the world. In this area, however, Buddhism has its own unique management theory and practice, which has evolved over a long period of time. As early as Sakyamuni Buddha s time, the sangha community has had a well-developed administration system. Over time, the system endured numerous changes and evolved sophisticated methods of management and leadership. In the Avatamsaka Sutra, commenting on the Three Refuges, Buddha said: Taking refuge in the Sangha means one should make the Sangha a well-administered and harmonious community for all sentient beings. From this comment, it can be seen - 1 -

that Buddhist sangha communities were organizations that excelled in managerial skills. I. Management: Buddha s Approach After the Buddha was enlightened, he taught the Dharma at Deer Park to his former attendants. The five bhiksus became the first sangha community. In time the community grew into a congregation that included the seven groups of disciples, i.e., the bhiksus, the bhiksunis, the siksamanas, the sramaneras, the sramanerikas, the upasakas, and the upasikas. From these groups, about 1,250 monastics were usually at the Buddha s side. How did the Buddha manage such a huge group of people? A. Equality under the Dharma The Buddha teaches that all sentient beings have Buddha nature and that all humans are inherently equal. In effect, his teaching dismantled the societal caste system prevalent in India at that time. He taught that all things arise from causes and conditions and were not created by gods or God. True deliverance depends on the Four Noble Truths and the Three - 2 -

Dharma Seals. The Buddha frequently made the following comments: I myself am just a member of the sangha and I do not govern, the Dharma governs. The Buddha never considered himself the leader, rather he let the truth govern. The sangha community was ruled by the members respect for moral conduct. Upon admission, each member had to give up his or her previous social status, wealth, fame, and other privileges. All external classifications and differentiations were disregarded. Members differed only in their stages of internal cultivation. The operation of the sangha community was based on mutual respect and love, and sometimes on the order of seniority. Thus, the bhiksus, bhiksunis, and the others each had their own rules. When disputes arose, the Seven Reconciliation Rules made by the Buddha were followed to settle the conflict. B. Decentralized leadership The Buddha, as the head of the sangha community, led by his teaching and by establishing the precepts for the group. He selected knowledgeable and virtuous bhiksus and bhiksunis to be the instructing monastics to teach the Dharma and precepts. Among - 3 -

them, he further selected the elders to counsel, to advise, and to monitor the progress of the monastics under their supervision. C. Shared support and responsibility When the initial sangha of the five bhiksus was formed immediately after his enlightenment, the Buddha established the Four Principles of Living to guide them toward virtuous living: Eat only food from alms, wear only cast-off clothing, live only under trees, and take only discarded medicine. Further, the monastics were warned to shun eight groups of impure possessions that were considered to be hindrances to their practice: houses and gardens, plantations, grain storage, servants and slaves, pets and animals, money and jewels, blankets and utensils, and beds decorated with ivory and gold. As the size of the sangha community increased, and in response to the problems caused by the rainy season and constant requests from their benefactors, the rules were modified to allow receipt of donated clothes, food, houses, and gardens. But regardless of the summer retreat during the rainy season, and throughout ordinary daily life during the rest of the - 4 -

year, a communal form of living was maintained. The communal rule required that except for each monastic s own clothing and bowls, all other supplies, tools, bedding, houses, and gardens were community goods, not to be individually possessed. Repair and maintenance of equipment and tools were distributed among the members. In each of the sangha residences, an elder was elected to lead the daily operation, teach the Dharma, maintain the code of conduct, and channel any speech and information delivered by the Buddha. Although the lifestyle changed somewhat over time, all sangha communities still followed the basic principle of an alms system, as well as sharing support and responsibilities. D. Mutual respect and harmony Guided by the Dharma, the sangha community practices the Six Points of Reverent Harmony in communal living. They are: (1) doctrinal unity in views and explanations to ensure common views and understanding, (2) moral unity in upholding the precepts to achieve equality for all under the rules, (3) economic unity in community of goods to affect fair distribution of economic interests, (4) mental unity in - 5 -

belief to provide mutual support in spiritual cultivation, (5) oral unity in speech to nurture compassion and love, (6) bodily unity in behavior to assure nonviolence and harmonious living. E. Communication and interaction The Buddha periodically convened all members of the sangha community on the eighth and fourteenth or fifteenth of each month to recite the precepts. Such gatherings provided an excellent opportunity for interaction among the members and a way of fostering shared values for productive and harmonious living. F. Democratic governing The Karma Assembly system was the highest authority governing monastic life. The goal of the system was to promote a democratic way of life. The Karma Assembly Meetings were regularly convened on the fifteenth of each month. At these meetings, members of the Assembly reviewed any violations of the precepts that occurred during the month, determined the appropriate discipline for the offender, and decided how it would be carried out. There were two types of karma cases: (1) cases involving disputes and - 6 -

violations, and (2) cases not involving disputes and violations. The former dealt with disputes and disagreements among monastics or violations of precepts in which right or wrong had to be determined. The latter dealt with the appropriateness of the monastics daily behavior and their proper guidance, or the admission of a new member into the Sangha community. The Karma Assembly provided a formal and rigorous mechanism to promote fellowship, harmony, and mutual support of the sangha community. It enabled the community to become an ideal moral society where the four all-embracing virtues of giving, affectionate speech, beneficial deeds, and teamwork were always practiced. II. Management According to Buddhist Sutras In the twelve divisions of the Buddhist Tripitaka, discussions related to management are everywhere. Examples from two familiar sutras are illustrated below: - 7 -

A. Management Perspective from the Amitabha Sutra In the Amitabha Sutra, the Western Pure Land of Ultimate Bliss built by the Amitabha Buddha is an exemplary model of management excellence. In the Western Pure Land, there are seven levels of parapets and balustrades, seven layers of curtains and networks of precious stones, seven rows of spice trees, seven story pavilions decorated with seven jewels, and eight lakes filled with pure water. The air vibrates with celestial harmonies. The streets are paved with gold, silver, lapis lazuli, and crystal. The trees and flowers exude delicate fragrances and spices. All these numerous decorations and adornments make it the most beautiful land. In this wonderful land, there are no traffic accidents; all traffic moves smoothly. There are no quarrels or bickering; everyone is well-behaved. There is no private ownership; there is no need, given the perfect economic system. There are no crimes or victims; everyone is absolutely safe and tries to live in peace and help each other. The Amitabha Buddha is not only an expert in ecological management, but also an expert in human resources management. He guides the spiritual de- - 8 -

velopment of sentient beings, teaching them to recite his name with mindfulness. Everyone in this pure land is guaranteed to never retreat from practice. In this land of ultimate bliss, everyone is respectful, compassionate, peaceful, and joyful. B. Management Perspective from the Lotus Sutra (Avalokitesvara s Universal Gateway Chapter) Avalokitesvara is a remarkable expert in management. He manages people by relieving their suffering, bestowing upon them virtues and wisdom, and satisfying all of their needs. He transforms himself into thirty-two different identities to facilitate his edification of people. The Universal Gateway Chapter states that Depending on which identity is most conducive to the liberation of a sentient being, Avalokitesvara will transform himself into that image to elucidate the Dharma. With his great compassion, he relieves people from suffering and brings them joy. A modern manager has to be equipped with Avalokitesvara s power of accommodating people s needs. He or she has to establish effective measures to solve problems in modern organizations. One can learn an - 9 -

enormous amount from Avalokitesvara s dedication to responding to whoever is desperate and wherever there s danger and forever liberating sentient beings from the sea of suffering. III. Management in the Chinese Monastery In Chinese, the phrase Conglin (forest of trees) refers to a monastery where monastics live. It has the connotation of a place where weeds do not grow and the trees are upright due to the presence of specific rules and measures. Buddhism strongly emphasizes a congenial relationship between an individual and the group. Thus, communal rules such as the Six Points of Reverent Harmony and the Rules of Ethics, instituted by Chan Master Baizhang, existed. The management of a Chinese monastery relies on principles such as self-commitment, self-monitoring, and self-discipline. The goal is to create a congruous sangha community so that the Dharma can dwell in this world permanently. The Chinese monastery thus placed its management emphasis on shared responsibility and a harmonious group relationship. The system may be summarized in the following four characteristics: - 10 -

A. Governing by Virtue In the monastery, all property is commonly owned. There are rules for hosting visiting monastics from the ten directions. In a public monastery that is open to all, the abbot is chosen externally from renowned elders of the ten directions. In a private monastery that is not open to the public, the abbot is selected from internal elders who have distinguished themselves in virtue and knowledge. B. Equality in Labor Chinese Chan monasteries rely heavily on collective farming. The principle of equal labor is strictly followed. Everyone, regardless of rank or seniority, has to participate in fieldwork. The Chan Master Baizhang set a perfect example when he insisted: If I did not work today, I will not eat today. C. Shared Responsibility Led by the abbot, a monastery usually divides the responsibilities and tasks among members. Everyone has duties, with each supporting the other. The personnel assignments are categorized into dichotomies of administrator versus manual or operational - 11 -

and internal service versus external service. The leader s sole goal is to serve the sangha community by maintaining the harmonious order of the monastery. The Regulation for Chan Monastery says, The monastery exists for its members. To edify members, the elder is elected. To mentor members, the head monk is designated. To uphold members, a director is chosen. The job of a karmadana is to maintain accord among members by distributing duties fairly. The job of a cook is to take care of the food for members. A general affairs administrator is installed to plan the operation for all members. A treasurer is assigned to handle financial matters. A clerk writes and maintains the records for members. A librarian keeps the Tripitaka safe for members. The receptionist welcomes guests of the members. An attendant is a messenger for members. An attendant watches over clothes and bowls for members. A medicine specialist prepares medicine for members. A bathing room host provides bathing services to members. The wood collector gathers wood before the approach of winter. The fire tender makes sure that, before meditation and breakfast, there is adequate wood and charcoal - 12 -

for the burners. Alms seekers gather offerings from the street for members. The foremen of gardens, mills, and farms produce food for members. Maintenance workers clean the facilities for members. Housekeepers serve members. Well-defined job positions and a complete division of labor are important factors driving the success and growth of an organization. D. Code of Communal Living In addition to the Buddhist precepts, Chinese monasteries have developed a set of rules governing the daily operation of monastery life. For example, Master Daoan during the Eastern Jin Dynasty established the following three sets of rules for his followers: (1) The rules for walking meditation, sitting meditation, sutra recitation, and Dharma talks, (2) The rules for practice, dining, and daily routines, and (3) The rules for task assignment, renewal of vows, and repentance. The Rules of Ethics enacted by Chan Master Baizhang during the Tang Dynasty and other rules such as those in the Regulation for Chan Monastery are documented evidence of monastic discipline. These well-defined codes of conduct were - 13 -

instrumental in the development of sangha organizations. IV. Management: Fo Guang Shan s Approach Several times, I have been asked the following question: Fo Guang Shan has hundreds of temples and affiliated organizations all over the world. How do you lead and manage an organization of this size? My response is always the same: Of course, there are many ways to do it. The following are four fundamental principles: A. No fixed association between devotees (followers) and monastics None of the Fo Guang Shan devotees are permanently attached to any individual monastic. All the followers and disciples belong to Buddhism and the Order. They are only distinguished by the time of entry into the Order, such as 1 st generation, 2 nd generation, 3 rd generation and so forth. Because the devotees do not follow a particular monastic, there will be no rivalry or conflicts between them. - 14 -

B. No private ownership of money or funds No one in Fo Guang Shan is allowed to own property or accumulate savings. All the money goes to the Order. Although the members do not possess money, it does not mean that funds are not available for their support. The Order usually takes care of their food, clothing, travel, medicine, study abroad experiences, and visitations, including gifts for their parents on their home visits after shaving their heads (to formally become monastic practitioners). At Fo Guang Shan, all the money belongs to the Order, not individuals, but everyone enjoys comfortable support under an excellent cooperative system. C. Mandatory rotation of jobs and positions Following the principle that fresh water comes only from flowing water; a rolling stone gathers no moss, Fo Guang Shan rotates its members jobs and positions. No one owns any branch temple, worship place, or affiliated enterprise. This year, one may be the abbot or abbess of a particular temple. Next year, he or she may be reassigned to another temple. There are many benefits from job rotation. Among them are opportunities for learning and - 15 -

growth, for interaction and networking, and for gaining additional experience. D. Promotion and performance evaluation system A member of the Fo Guang Shan Order starts with the title of Purifier, progressing through Bachelor, to Practitioner, to Instructor. Advancement depends solely on each individual s effort and performance in scholarship, Dharma practice, and service to the organization. Because of this orderly system, Fo Guang Shan has enjoyed a smooth and successful growth over the years. In addition, members of the Order are trained and assigned to positions after their career orientations are evaluated and assessed. For example, members are classified into the following groups according to their talents: a. Abbot/Director: this person should have a clear understanding of the principles of the Order, loyalty, resolve, initiative, and commitment. Such a person should be able to deal with both superior and subordinate in a - 16 -

knowledgeable, virtuous, confident, and presentable manner. He or she should master sutra recitation, ceremonial rites, and elucidation of the Dharma. b. Public Relations: this person should be poised and calm with a pleasant appearance. He or she should be familiar with social customs and etiquette. This person should be sociable, empathetic, active, and positive, and should also understand the mission and vision of the Order very well. c. Educator/Scholar: this person appreciates humanity and is not aggressive in pursuit of fame or wealth. This person should be logical, philosophical, and persuasive. He or she should think critically, understand the educational mission and style of the abbot and the needs of students, and should not be involved in conflicts of interest and or political debates. He or she should be skilled in literature review, research and analysis, teaching, advising, and should seek to be published in professional journals. - 17 -

d. Planner: this person should be insightful, innovative, familiar with data analysis, and able to keep confidences and remain in the background. He or she should know how to integrate Buddhism into ordinary knowledge and be adept in written communication and in providing staff support. e. Other talents such as legal expert, accounting expert, and administrative expert. Shared vision and values are of utmost importance for an organization. The formation of shared vision and values requires a great deal of communication and coordination within the organization. Productive meetings are essential to establish a convergence of ideas and opinions. For this reason, Fo Guang Shan takes meetings very seriously. It frequently holds meetings to shape consensus and a shared vision. Human resources management is another challenging aspect in management science. Traditionally, it receives great attention in Buddhism. I would like to offer some principles regarding Humanistic Buddhism and its application to human resources man- - 18 -

agement: a. Consider and care for the organization as a whole. b. Divide responsibilities with well-defined job descriptions. c. Know the importance of coordination. d. Plan the details with best intentions. e. Execute with full effort and determination. f. Report frequently and timely to inform one's supervisors. g. Take responsibilities and be accountable for them. h. Evaluate performance and follow up. In addition, it is essential that between the superior and the subordinate there should be honest communication, mutual respect, active participation, self-motivation and evaluation with sincerity, frankness, and frequent consultation and coordination. I also believe that a modern manager or leader should act in the following manner: - 19 -

a. Keep smiles on the face, praises on the mouth, questions in the heart, and anger inside the stomach. b. Avoid hasty and harsh reactions, choose words carefully; criticism accomplishes nothing, doubt leads to disloyalty. c. Treat others leniently, monitor one s self strictly, give credit to others, take responsibility when something is wrong. d. Put aside any personal gain or loss and go forward; do not be frustrated or obstinate. e. Understand the big picture, make peace with everyone, let communication flow freely up and down, and strive for agreement. f. Serve others, keep your word, look forward and plan, understand self and others. g. Adjust and adapt, be considerate of others, take advantage of any opportunity, and make the most of your life. - 20 -

h. Be humorous, listen attentively, study carefully, and pay respect to other s opinions with a kind response. A leader also needs to know how to develop, cultivate, and nurture a competent staff. He or she should be able to recruit, train, and empower talented employees. A common mistake committed by a superior is criticizing a subordinate without offering any guidance. In addition, a leader or senior executive should frequently engage in self-assessment and ask subordinates for input in decision making. Harmony between the general and his staff is a stabilizing force for an organization. What kind of administrative system should be adopted by modern monasteries? My answers are: The traditional monastery system should be integrated with modern society. The temple should be self-sufficient economically and self-supporting financially. Operation of enterprises compatible with Buddhism should be permitted. The administrative core of a temple should interact closely with the surrounding community. Effective management of human resources requires division of labor in a cooperative environment. Furthermore, The - 21 -

management should try to reach ten directions and encompass past, present, and future in making decisions. Give people faith, joy, hope, and skillful means. A manager should compromise sometimes in order to make progress, and accomplish goals even with very little support. Gain nothing but remain joyful, put yourself into others shoes. Rank the abbot's and the enterprise's priority first, your own priority second. Consider others first, self second; Buddhism first, self second. Respect others with sincerity, relate to others with humility; live modestly but give generously; labor willingly to make others happy. Encourage frequently, donate generously, and speak affectionately. All the above are necessary concepts and philosophies a modern manager must have to run a smooth and successful organization. How does one master Buddhist management? I believe that before one can lead, one should be led first. The administrative system of Buddhist monasteries has evolved over a long period of time, with some unique variations exhibited in different time periods. The sangha system originally established by the Buddha followed the principle of respecting the - 22 -

elders while empowering the multitude. It gave authority to the Karma Assembly, which has a role similar to a parliament in a democratic society. The Chinese monastery administrative system emphasizes personnel management and division of labor to maximize the productivity of human resources. Both represent excellent models of management practice. In our search for a new management science, we should enhance both systems by adapting them to the needs of our modern society. Modern management focuses on organizational interaction and coordination. Strong group dynamics synchronize the steps of upper management and operational employees, ensuring the formation of consensus and shared values necessary to achieve the organizational mission and goals. Buddhism has emphasized group dynamics, as evidenced in the creation of the Six Points of Reverent Harmony, the Code of Communal Living, and the Baizhang s Monastic Regulations. Buddhist management relies on principles such as self-discipline, self-motivation, self-monitoring, and repentance. The management philosophy of the Fo Guang Shan Order is to give people faith, joy, hope, and skillful means. - 23 -