Campuses across the Republic of China are experiencing a phenomenon well known to those in the West--continuing education. But the students involved are not housewives who have decided to pick up their last few credits for a diploma nor are they high school teachers who are interested in catching up on the latest computer technology. These students have already achieved a measure of success in their respective fields. They are in fact, the business leaders of Taiwan: General Managers and Chairmen of the Board of some of Taiwan's most respected companies. Why are these men willing to go back to the student's life after having already succeeded in business?

China Productivity Center (CPC), the first institution to offer continuing education in Management Studies, has only filled its classrooms in the last few years of it s 30-year history. In the beginning, industry in Taiwan couldn't satisfy the expanding market for her products. It was enough just to concentrate on production, relegating management to a minor role in the development process. That was fine until Taiwan's own success came back to nullify the competitive advantages that she had enjoyed in the world market place. Gone are the days of cheap labor, low overhead and the simplicity of the plastic toy market. Taiwan has graduated from the labor intensive, living-room factory economy to the sophisticated economy of capital intensive industries, computer components and massive investment in R&D. Industry and government realized that in order to maintain profit margins in this new and highly competitive environment, Management Science would have to assume a greater role in directing the development of Taiwan's economic future.

As General Manager of China Grinding Wheel Co. Frank S. Lin makes clear, "The successful businessman probably didn't come from management circles. And even though they have practical experience in the market, they don't possess the theoretical background to envision the future and the steps needed to face that future." Comments a returning student, "It's time to recharge our business batteries."

A problem that is particularly serious in Taiwan is nepotism. In a society that is hesitant to hand over the family business to an outsider, nepotism has choked off some of the vital creative and innovative juices that management sorely lacks. It's imperative that business leaders direct their companies in a way that brings about maximum efficiency and results, points out National Chengchi University's Dean of Business Management, Liu Shuei-shen.

CPC has recently unveiled plans to open an "Heir to Business" class, beginning this August, aimed at the second generation of industrialists. In order to insure the smooth and efficient transfer of economic power, it was felt necessary to open this trial class. Comments CPC's General Manager Shih Tzu-yi, "Too many of the self- made businessmen look to their own families when the time comes to select a successor. These family members have not necessarily been involved in the day-to-day operations of the firm and indeed, may not even be suited to the high pressures of running a large scale industrial concern. It's essential that they are prepared psychologically as well as intellectually for the demands of the job." CPC sends prospective students through a series of rigorous personality tests and interviews before they are finally accepted. If a prospect is found to be unfit for the long road ahead, CPC will immediately advise the parent that it would be wise to reconsider their decision. By releasing a son or daughter from a future of heartaches and headaches it is hoped that industry and society as a whole will also benefit.

Of the many Management Training Centers now opening their doors, National Chengchi University's is one of the oldest and most respected. But being accepted into Chengchi's program is only a 1 to 5 shot. Chengchi uses a 5 point screening process that "grades" prospects before enrollment. The five criteria are: 1) Present position and level of authority. 2) Age: 30-40 rated the highest. 3) Level of education. 4) Size of company. 5) Awards and publications. Acceptance into Chengchi is only the first step in a long and difficult 2.5 years.

The class-load at Chengchi is the same as it is for regular MBA students. In fact, some of the classes are taken together with the regular students. This points out one of the singularly most difficult aspects for the returning students--the dramatic change in roles between being a general manager by day and switching to the role of student at night. In the office their word is final, no questions asked. In the classroom their's is but one voice of many, subject to the final approval of the professor. Beautiful Hair (Taiwan) Corp. General Manager C.C. Lee went so far as to change into jeans and T-shirt before class to help him make the psychological adjustment.

Because the admission standards are high the quality of the student is also very high. Only when they are out of the country on business or a very important client is in town do they miss class. Because of their positions and age most students are very diligent and feel particularly embarrassed when they can't answer a question (which are numerous) from the professor. Class time is charged with eagerness from both the students and professor, knowing that everybody else in the room has earned their right to be there. From the moment class begins everybody is on the firing line and if you aren't prepared it soon becomes apparent. For some, the pressure and demands are too much. On the average, after the program is completed, only 14 to 15 of the original 20 have survived the entire program.

In the classroom opinions are offered and discussed freely, from the theoretical offered by the professor to the practical experiences of the students--an atmosphere markedly different from the stiff and guarded world of business. In a very real sense the students feel much freer to throw out an idea for everybody to discuss than they normally would in an office setting. In this situation it's very easy to make friends and in one case, some classmates got together to form a trading company.

For the students it isn't necessary to wait for graduation to put to use what they learn. The concepts presented in class can be used the next day at the office. In one example, the professor found out that some of the students were calling the office at breaktime to find out what was happening. He immediately halted the practice to encourage the students to delegate authority to subordinates. By concentrating on the overall running of the business, instead of the day-to-day affairs, a manager can be more effective. It can also increase the confidence and performance of the middle managers. The mix of theory and practical experience is a powerful combination.

Although the program is the same as the MBA program at Chengchi the students don't receive any diploma because they never formally registered into the department. But as one student explains, his diploma is reflected in his company's in- come statement. If a student passes the entrance exam and elects to write a thesis he can obtain a certified diploma, though.

Through the Management Training Centers the newest techniques in management are being employed in Taiwan today. Not only do the individuals involved benefit but so do their companies in particular and industry in general. It's an education that everybody can learn from.

(Kirby Chien)

[Picture Caption]

Students discussing case studies at Chengchi University's Management Tra ining Center.

1. China Productivity Center's General Manager, Shih Tzu-yi. 2. National Chengchi University's Dean of Business Management, Liu Shuei-shen points out, "The quickest, most effective way to bring about an economic transformation is to change the conceptions of the business leaders."

1. Professor Szu-t'u guides students in a meticulous unraveling of a case study. 2. After work, it's school for a growing number of businessmen.

1. China Productivity Center's General Manager, Shih Tzu-yi.

2. National Chengchi University's Dean of Business Management, Liu Shuei-shen points out, "The quickest, most effective way to bring about an economic transformation is to change the conceptions of the business leaders.".

1. Professor Szu-t'u guides students in a meticulous unraveling of a case study.

2. After work, it's school for a growing number of businessmen.