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VOL. 13, ISSUE 1 (2026)
Modern management interpretation and integrated model of the legalist thought of Fa, Shu and Shi
Authors
Dr. Lung-Tan Lu
Abstract
This paper aims to
systematically explore the pre-Qin Legalist thought, especially the modern
management implications of Han Feizi’s core concepts of Fa (law), Shu (method),
Shi (power) and the "rationality of reward and punishment", and
construct an integrated theoretical framework. The study finds that Legalist
thought takes the human nature assumption of "seeking profit and avoiding
harm" as its starting point, and its three elements of Fa, Shu and Shi can
be translated into three core dimensions of modern organizational design—the
institutional norm dimension (Fa), the performance control dimension (Shu), and
the power allocation dimension (Shi). These three form a closed-loop governance
logic of "institution-supervision-authority-institutional reinforcement".
On this basis, the Legalist theory of reward and punishment has a profound
structural similarity with modern management tools such as the behaviorist
reinforcement theory, Management by Objectives (MBO), and Key Performance
Indicators (KPI). Moreover, its proposition of "the law does not favor the
noble" enters into a dialogue with the procedural justice and distributive
justice dimensions in the organizational justice theory. However, Legalist
thought also has inherent limitations: neglect of intrinsic motivation,
inhibition of innovative activities, and dilemmas in the management of
knowledge workers. Accordingly, this paper proposes the Balanced Institutional
Model, advocating the integration of the value care of humanistic management on
the basis of Legalist institutional rationality. Through the dynamic balance
between the rigid institutional layer (defining the bottom line) and the
flexible empowerment layer (stimulating potential), the model simultaneously
reduces agency costs, trust costs and coordination costs. This paper makes a
theoretical contribution to the modern translation of Eastern management
thought and also provides a practical path for contemporary enterprises to seek
a balance between efficiency and humanity.
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Pages:566-576
How to cite this article:
Dr. Lung-Tan Lu "Modern management interpretation and integrated model of the legalist thought of Fa, Shu and Shi". International Journal of Multidisciplinary Research and Development, Vol 13, Issue 1, 2026, Pages 566-576
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