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A Buddhist Approach
to Management

Written by Venerable Master Hsing Yun

 © 2014 Fo Guang Shan
International Translation Center

All rights reserved.

Written by
Venerable Master Hsing Yun

Translated by the
Fo Guang Shan International Translation Center

Edited and proofread by

Venerable Yi Chao, Jonathan Ko,
and John Gill
 Table of Contents

I. The Buddha’s Approach to 2

Management

II. Management According to 7

Buddhist Sutras

III. Management in the Chinese Monastery 9

IV. Fo Guang Shan’s Approach to 13

Management
 A Buddhist Approach to
Management

Today, Business Administration is one of the most

popular subjects in college curricula worldwide.
Buddhism has its own philosophies and practices
regarding management which have evolved over
centuries. Even during Sakyamuni Buddha’s time
the sangha, or monastic community, had its own
well-developed system of administration. Over time,
the system has undergone numerous reforms and
evolved sophisticated methods of management and
leadership. When speaking about the Triple Gem, the
Buddha said in the Flower Adornment Sutra: “I take
refuge in the sangha, and wish that all sentient beings
lead the assembly in harmony without any obstruc-
tion.” Thus we can see that the Buddhist sangha is
best when it can bring everyone together in a way
that is organized and harmonious.

1
I. The Buddha’s Approach to Management

After the Buddha’s awakening, he taught the Dharma

to his former attendants at Deer Park. These five mo-
nastics became the first sangha. In time, the commu-
nity grew to include seven groups of disciples: ful-
ly-ordained male monastics, fully-ordained female
monastics, female postulants (siksamanas), male
novices, females novices, male lay disciples, and
female lay disciples. Typically, about 1,250 people
from these seven groups were accompanying the
Buddha. How was the Buddha able to manage all
these people?

1. Equality under the Dharma

The Buddha taught that all sentient beings have
Buddha nature and that all humans are inherently
equal. His teachings dismantled the societal caste
system prevalent in ancient India. He taught that all
things arise from causes and conditions and are not
created by some sort of god. The Buddha used his
teachings on the three Dharma seals and Four Noble
Truths to confirm the validity of the Dharma. The
Buddha often said that, “I myself am just a mem-
ber of the sangha” and “I do not govern, the Dharma

2
governs.” He did not consider himself the leader
of the sangha, but rather that it was the truth itself
that governed the community. Because of this, the
sangha community was governed by its members’
moral conduct. Upon admission, each member had
to give up his or her previous social status, wealth,
fame, and other privileges. All external classifica-
tions and differentiations were discarded. Members
differed only by their level of internal cultivation,
and which category of the sangha they belong to (for
example, fully-ordained male monastics have a set
of precepts, fully-ordained female monastics have a
different set of precepts, bodhisattvas have another
set of precepts, etc.). The only distinctions of privi-
lege between sangha members were distinctions of
seniority, though even then the relationships between
senior and junior members are founded upon mutual
love and respect. When disputes arise, the Buddha
implemented “seven rules of reconciliation” to settle
the conflict.

2. Decentralized leadership
When the Buddha was in the world, he established
precepts for the sangha to abide by. Virtuous monas-
tics would teach the precepts to others. Within each

3
community, a senior monastic was chosen to teach
the Dharma and care for the community. In turn this
senior monastic would report back to the Buddha
about how the community’s practice was developing.

3. Shared support and responsibility

When the first five monastics became the first sang-
ha, the Buddha gave them the “four principles of
living” to guide them toward a virtuous way of life:
Eat only food from alms, wear only cast-off clothing,
live only under trees, and take only discarded medi-
cine. In addition, the monastics were told to discard
eight groups of impure possessions which would
hinder their practice: They were not allowed to own
houses, farms, granaries, servants, animals, jewelry,
lavish utensils, or expensive bedding.
As the size of the sangha grew, the rules were
modified to accommodate the difficulties posed by
the monsoon season and to respond to requests from
benefactors, such that the sangha as a whole was al-
lowed to receive donated clothes, food, houses, and
land. In this way, the sangha operates on a commu-
nal living model, in which most property is held in
common. Individual monastics’ private possessions
are limited to their robes and bowls, while all other

4
supplies, tools, bedding, houses, and land are shared
by the sangha. The responsibility to repair and
maintain communal property is distributed among
members of the sangha. In each individual sangha
community, a senior monastic was chosen to lead the
group through periods of work and rest, maintain the
code of conduct, and pass on any speech and infor-
mation given by the Buddha. Though the specifics of
the monastic lifestyle have changed over time, the
sangha still follows the basic principle of subsisting
on alms, as well as operating on a system of shared
support and responsibility.

4. Mutual respect and harmony

Guided by the Dharma, the sangha practices the “six
points of reverent harmony” in communal living:
• Harmony in view through sharing the same
understanding.
• Moral harmony through sharing the same
precepts.
• Economic harmony through sharing things
equally.
• Mental harmony through shared happiness.
• Verbal harmony through avoiding disputes.
• Physical harmony through living together.

5
5. Communication and interaction

On the eighth and fourteenth or fifteenth of each

month, the Buddha entreated every member of the
sangha to gather and recite the precepts. Such gath-
erings provided an excellent opportunity for interac-
tion between monastics and fostered the values for
productive and harmonious living.

6. Democratic governing
The sangha is governed by “formal acts of the sang-
ha” (sangha karma) which are democratically enact-
ed during monthly meetings held on the fifteenth of
each month. At these meetings, members of a given
community reviewed any violations of the precepts
that occurred during the month, determined the ap-
propriate discipline for the offender, and decided how
it would be carried out. There are two main types of
formal acts: (1) those involving disputes or violation
of the precepts and (2) those that do not. The former
deal with disputes between monastics or violations
of precepts, instances where right or wrong need to
be determined. The latter deal with the daily life of
the monastics, whether or not the affairs of the com-
munity abide by the precepts, and ordaining new

6
members into the sangha. The system of voting upon
formal acts of the sangha provides a framework to
promote fellowship, harmony, and mutual support of
the community. The system allows the community
to function as an ideal moral society in which the
four means of embracing are practiced: giving, kind
words, altruism, and empathy.

II. Management According to Buddhist Sutras

Across the twelve divisions of the Buddhist Canon,
there are many texts that discuss management and or-
ganization. Two such examples are included below:

Amitabha Sutra
The Amitabha Sutra describes Amitabha Buddha as
creating the Western Pure Land of Ultimate Bliss.
The Pure Land itself is an exemplary model of fore-
thought and planning: there are seven tiers of rail-
ings, seven layers of netting, seven rows trees, pa-
vilions made of the seven treasures, and lakes filled
with waters of eight merits. The air vibrates with
heavenly music. The streets are paved with gold,
silver, lapis lazuli, and crystal. The trees and flow-
ers exude delicate fragrances and spices. These
wondrous structures and beautiful scenery create a

7
sense of majesty that cannot be found in the human
world. In this wonderful land, there are no traffic ac-
cidents. Roads direct travelers smoothly and quickly.
There are no quarrels or bickering. Everyone is well-
behaved. There is no private ownership. Given the
perfect economic system, there is no need for pos-
sessions. There are no crimes or victims. Everyone
is absolutely safe, living in peace and harmony with
each other.
Amitabha Buddha is not only an expert in manag-
ing the environment, but also in managing people. He
guides the spiritual development of sentient beings,
teaching them to mindfully to recite his name. Those
in this Pure Land are guaranteed consistent progress
in their practice. In the Pure Land of Ultimate Bliss,
everyone is respectful, compassionate, peaceful, and
joyful.

Universal Gate Chapter of the Lotus Sutra

Avalokitesvara Bodhisattva would also be an ex-
cellent manager. He is able to oversee all living be-
ings and relieve them of their suffering, while be-
stowing upon them wisdom and virtue to satisfy
all their needs. To better help all living beings, he
has the ability to manifest into thirty-two different

8
forms. The Universal Gate Chapter says that, de-
pending on what form is able to best liberate some
sentient being, Avalokitesvara bodhisattva will mani-
fest that form and teach them the Dharma. With his
great compassion, Avalokitesvara Bodhisattva re-
lieves people from suffering and brings them joy.
In the same way, a modern manager should strive
to emulate Avalokitesvara Bodhisattva’s ability to
accommodate the needs of others. He or she has to
establish effective measures to solve problems in
modern organizations. There is much to learn from
Avalokitesvara Bodhisattva’s vows to respond to
whomever there is danger, and liberate sentient be-
ings from the sea of suffering.

III. Management in the Chinese Monastery

In Chinese, the phrase conglin (叢林), “forest of
trees,” is also used to refer to a Buddhist monastery.
This expression evokes an image of a place where
weeds do not sprout and the trees grow tall and true.
It is a lawful, orderly place. As such, Buddhism
strongly emphasizes a congenial relationship be-
tween an individual and the group. This has lead to
the creation of rules governing communal interac-
tion, such as the “six points of reverent harmony”

9
mentioned earlier, and Chan Master Baizhang’s
Rules of Purity.
To maintain an orderly monastery, one must be
self-motivated, self-monitoring, and self-disciplined.
The goal is to create a harmonious sangha, ensur-
ing that the Dharma can dwell in this world for a
long time. A conglin monastery is organized around
shared responsibility and harmonious group relation-
ships. The system may be summarized by the follow-
ing four characteristics:

1. Governing by Virtue
A conglin monastery is a “public monastery”: all
property collectively belongs to the community.
Moreover, the monastery welcomes and accepts
any and all monastics to stay and practice. All mo-
nastics choose the abbot of the monastery together.
Additionally, the abbot is chosen among virtuous
senior monastics from all directions—the abbacy is
not decided based on lineage to previous abbots or
anyone else.

2. Equality in Labor
Chinese Chan monasteries rely heavily on com-
munal labor. The principle of equal labor is strictly

10
followed. Everyone, regardless of rank or seniority,
must participate in communal labor. Chan Master
Baizhang epitomized the model by his famous say-
ing: “A day without work is a day without food.”

3. Shared Responsibility
Under the direction of an abbot, a monastery divides
its responsibilities and tasks among its members.
Everyone has his or her own duties, and everyone
supports one another. Some have administrative du-
ties, and others have task-based duties. Some have
duties within the monastery, some have duties out-
side the monastery. It is the role of the abbot to serve
the community by assigning these duties and main-
taining the harmony of the monastery. Master Zongyi
outlined the purpose of various offices in his Rules of
Purity for a Chan Monastery:

The monastery exists for its members. To

teach members, there is an elder. To mentor
members, there is a head monastic. To up-
hold members, a director is chosen. To main-
tain harmony [through discipline], there is
a weinuo. To make offerings to members,
there is a cook. To manage the members’

11
 general affairs, there is an general director.
To handle finances and materials, there is
a treasurer. To write and keep records for
the members, there is a secretary. To safe-
guard the sacred texts for members, there
is a librarian. To welcome guests, there is a
receptionist. To deliver the members’ cor-
respondence, there is a messenger. To main-
tain the members’ bowls and robes, there is
an attendant. To prepare medicine for the
members, there is an herbalist. To keep the
members clean, there is a bath supervisor
and a barber. To keep the members warm,
there is a wood collector and a hearth super-
visor. To accept donations, there is an alms
collector. To plan the labor of the members,
there are foremen of gardens, mills, and
farms. To keep the monastery toilets clean,
there is a janitor. To serve the members,
there are pure practitioners.

Well-defined job positions and a complete divi-

sion of labor are important factors for the success and
growth of an organization.

12
4. Code of Communal Living

In addition to the Buddhist precepts, monasteries

have developed a set of rules governing their daily
operation. During the Eastern Jin dynasty, Master
Daoan established three sets of rules for his follow-
ers: (1) rules for walking meditation, sitting medita-
tion, sutra recitation, and Dharma talks, (2) rules for
Dharma practice, dining, and chanting for meals, and
(3) The rules and methods for repentance. During
the Tang dynasty, Chan Master Baizhang, Master
Zongyi, and others composed various Rules of Purity
texts, providing a written record of discipline at
­conglin monasteries. These various codes of conduct
were instrumental in the development of the sangha.

IV. Fo Guang Shan’s Approach to Management

I am often asked, “Fo Guang Shan has hundreds of
temples and affiliated organizations across the globe.
How do you lead and manage an organization of this
size?” There are a number of different methods and
techniques I use to manage, but the followed are the
four most fundamental principles:

13
1. Monastics do not have their own private devotees

Fo Guang Shan devotees do not belong to any in-

dividual monastic. All devotees are followers of
Buddhism as a whole. Monastics are only distin-
guished based on the time of their ordination, desig-
nated as the first generation of disciples, second gen-
eration, third generation, etc. Since devotees do not
follow a particular monastic, there are no conflicts or
rivalries between monastics for devotees.

2. No private ownership of money or funds

Fo Guang Shan monastics do not possess private
property or savings. All donations go to the orga-
nization as a whole. Although the monastics do not
possess money, it does not mean that they are left
unsupported. Fo Guang Shan provides monastics
with food, clothing, travel, medicine, study abroad
experiences, and opportunities to visit their fami-
lies. Monastics are even given gifts to present to
their families during their visits home. At Fo Guang
Shan, all the money belongs to the community, not
individuals. All are supported by communally by
the system.

14
3. Mandatory rotation of jobs and positions

Akin to the sayings “Pure water comes from a flow-

ing stream,” and “A rolling stone gathers no moss,”
Fo Guang Shan regularly rotates its monastics’ jobs
and positions. No individual “owns” any branch
monastery, temple, or affiliated organization. One
year, a given monastic may be an abbot, while next
year they may be reassigned to another temple do-
ing entirely different work. There are many benefits
to this kind of job rotation: the chance to learn and
grow, create connections with new and different peo-
ple, and gain experience in many fields.

4. Promotion and performance evaluation system

A monastic in Fo Guang Shan begins with the title
jingshi, “pure practitioner,” (one who doesn’t have
specific duties other than Buddhist practice) and
advances through three successive levels: xueshi,
“learner;” xiushi, “advanced practitioner;” and kai-
shi, “instructor.” Advancement depends on an in-
dividual’s effort and performance in scholarship,
Dharma practice, and service to the organization.
Thanks to this orderly system, Fo Guang Shan
has enjoyed smooth and successful growth.In

15
addition, Fo Guang Shan monastics are trained and
assigned to positions based on evaluation and as-
sessment. Members are classified into the following
groups according to their talents:
• Abbot / Director: An abbot should have
a clear understanding of the principles of
Fo Guang Shan. He or she must also show
loyalty, resolve, initiative, and commitment.
An abbot should be able to deal with both
superiors and subordinates in a knowledge-
able, virtuous, confident, and presentable
manner. He or she should master sutra
recitation, ceremonial rites, and teaching the
Dharma.
• Guest Receptionst: This person must be
calm and authoritative in words and man-
ners. He or she should be familiar with
social customs and etiquette. This person
should be sociable, empathetic, active, posi-
tive, and understand the mission and vision
of Fo Guang Shan.
• Educator / Scholar: A scholar is one who
slowly and meticulously pursues knowl-
edge. They must be logical, clear, and thor-
ough in their studies, avoiding the pursuit

16
 of fame. As an educator, their thoughts must
be pure. They must be capable of motivat-
ing their students and elders alike. They
must adhere to Buddhist values in their
words, avoiding conflict. He or she should
be skilled in gathering, using, and spread-
ing knowledge, constantly publishing new
works.
• Coordinator: A coordinator should be in-
sightful, innovative, familiar with data anal-
ysis, able to keep confidences, and capable
of remaining in the background. He or she
should know how to integrate Buddhism
into mundane society. A coordinator must
able be adept in written communication and
in providing staff support.

Outside of these “career tracks” there are posi-

tions focusing on other talents, such as those with
legal expertise, accounting expertise, and adminis-
trative expertise.
Shared vision and values are of utmost impor-
tance for an organization. Such cohesion of thought
requires a great deal of communication and coordina-
tion within the organization. Meetings are essential

17
to establish a convergence of ideas and opinions.
For this reason, Fo Guang Shan takes meetings very
seriously. It frequently holds meetings in order to
achieve consensus and a shared vision.
Proper use of personnel is another challenging
aspect in management. Buddhism also has long em-
phasized the importance of people and managing
them to their fullest potential. I’ve formulated some
of my own principles regarding a Buddhism ap-
proach to personnel management:

• Consider any effects on the organization as

a whole.
• Divide responsibilities with well-defined
roles.
• Understand the importance of coordination.
• Plan for all things with care.
• Perform to one’s fullest and with
determination.
• Report regularly to keep one’s supervisors
informed.
• Take responsibilities and be accountable for
them.
• Evaluate one’s performance and follow up.

18
 In addition, it is essential that both superiors and
the subordinates be honest in their communication,
have mutual respect, be active in their work, self-
motivating, sincere in their evaluation, , and frequent
in their coordination.
Furthermore a modern manager or leader should
act in the following manner:
• Put a smile on your face, have praise on
your lips, hold criticism inside, and keep
anger in your stomach.
• Avoid hasty and harsh actions. Choose your
words carefully. Criticism accomplishes
nothing, doubt leads to disloyalty.
• Treat others with lenience, but monitor
yourself strictly. Give credit to others, but
take personal responsibility when some-
thing goes wrong.
• Put aside thoughts of personal gain and go
forward. Do not be frustrated or obstinate.
• Keep your eyes on the big picture. Work in
harmony with others. Let communication flow
freely up and down, and strive for consensus.
• Serve others sincerely, live by your words,
plan ahead for dangers, and understand
yourself and others.

19
• Be observant and adaptable, considerate of
others. Take advantage of opportunities, and
make the most of your life.
• Be good-natured, listen attentively, study
carefully, and be respectful of other’s
opinions.

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 talent-
ed employees. A common mistake committed by a
leader is criticizing a subordinate, yet failing to of-
fer guidance. In addition, a leader or senior execu-
tive should frequently engage in self-assessment and
ask subordinates for input. Harmony between a lead-
er and his or her staff is a stabilizing force for any
organization.
How should a monastery be run? My answer is
that the traditional system of administration and mod-
ern management systems should be integrated. The
temple should be self-sufficient economically and
financially. Enterprises compatible with Buddhism
should be permitted. The administrative core of a
temple should interact closely with the surround-
ing community. Effective personnel management

20
requires division of labor in a cooperative environ-
ment. Management should make decisions reaching
out in all directions, and considering past, present,
and future, giving people faith, joy, hope, and conve-
nience. One must be able to give ground, make some-
thing out of nothing, find happiness in emptiness, and
think of all people as oneself. Consider the temple,
the community, the organization, and Buddhism first.
Place others before yourself. Encourage frequently,
give generously, and speak kindly. All the above are
necessary concepts and philosophies for a modern
manager to run a smooth and successful organiza-
tion. How does one master Buddhist management? I
believe that, before one can lead, one must be able to
follow.
The administrative system of Buddhist monas-
teries has evolved over many centuries. With every
passing age, it developed unique characteristics. The
sangha originally established by the Buddha fol-
lowed the principle of “respecting the elders while
empowering the multitude.” It gave authority to for-
mal acts of the sangha, voted upon by the assembled
community, which occupies a role similar to a par-
liament in a democratic society. When it traveled to
China, the monastery administrative system came to

21
emphasize personnel management and division of
labor to maximize the productivity of individuals.
Both represent excellent models of management. In
our search for a new management system, 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 em-
ployees, ensuring the consensus and shared values
necessary to achieve goals. Buddhism has empha-
sized group dynamics, as seen in the six points of rev-
erent harmony, codes of communal living, and Chan
Master Baizhang’s Rules of Purity. Buddhist man-
agement relies on principles such as self-discipline,
self-motivation, self-monitoring, and repentance.
The management philosophy of Fo Guang Shan is to
give people faith, joy, hope, and convenience.

22