1. MONGOL PATTERN AND FEATURES
OF MANAGEMENT
Abstract of the book
By Purev NARANTSETSEG

2. Narantsetseg P. 2
Abstract of book
Ulaanbaatar, 2007
CONTENT
PREFACE
1. BASIC ISSUES OF MANAGEMENT THEORIES AND MODELS
1.1 Management theories and concepts, their development approaches
1.2 Theoretical-methodological issues of Management Pattern
1.3 Mongol features, sequences of Management
Conclusion
2. RESEARCH OF THE INFLUENCING FACTORS TO MANAGEMENT PATTERN
2.1 Research of the external and internal environmental influencing factors
2.2 Analyzing cultural factors
2.3 Comparative analysis of competitiveness
2.4 Comparative analysis of company’s management and governance
2.5 Influencing management style
2.6 Comparative analysis of human resource management
Conclusion
3. MONGOL PATTERN OF MANAGEMENT, THEIR STRUCTURE
3.1 Factor of the supporting core
3.2 Cultural factor
3.3 Strategic factor
3.4 Human factor
3.5 Leadership style factor
3.6 Mentality factor
3.7 Ethical factor
Conclusion
General conclusion
Annex

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PREFACE
Base and necessities of research: The base of scientific work is a view as a system’s crisis is intensifying,
when the management pattern is not adapting to the external and internal environmental change and is not
moving forward to them. The process of this crisis is relating to many factors. So the necessities to analyze
these issues on the theories and methodologies are starting. Mongolia was transferred from the command
economy system to the market economy system since 1990. But the macro-level management was not
adapted to the external environmental conditions, so this crisis was intensified. As well as there were not the
knowledge and experience to manage the market economy. There were the issues that the privatization
strategy was implemented intensively and the old state enterprises were privatized in the short-term, but the
measures of the improving management were not taken basically. The new privatized organizations were
managed by the old managers autocratic leadership style and they became as an owners of the privatized
companies. Underlining, Government supported the activities of the private commercial banks; unfortunately the
loans of banks were not given to the work capacity of the enterprises on the following interest of the
established private commercial banks. The loans were based only on the protecting ordered companies of
politicians and businessman, as well as the state large enterprises built commercial banks in frame of their
power to find the loans. So on the base of these issues, when the external and internal environ mental
conditions were changed in the transferring period to market economy, then the management adapting to the
environmental change was not prepared at the macro and micro level and managers could not work on the
following market economy principles in effective. So the social-economic crisis was intensified in Mongolia; the
indicators including the production decline, the financial un-stability and the living standard of population led to
the lowest than estimated standard by the Government. The Government had taken the restructuring measures
to decide these issues, but the measures were not achieved to the expected results and Mongolia was
occupied on very low place on the many indicators of development comparing with the World perspectives of
development, which were estimated on the International organizations. Ways to decide these issues are the
improving management. The reason of the social-economic crisis was explained connecting to external and
internal environmental factors, but it was not analyzed connecting to the Mongol features, weaknesses and
sequences of management. The autocratic leadership style without management concepts is detected in the
relation between managers and workers. So the comparative analysis of contemporary management theories
was necessary for the processing Mongol pattern of management and their theoretical -research methodologies.
The Mongolian social economics and political system was changed fully, so the World Global Management
approaches are necessary to reflect for the processing Mongol pattern concepts and theoretical-research
methodologies of Management adapting to the environmental conditions. The basis and motives of these
necessities and issues are defined on indicators as the World Global Development approaches and c hange of
cultural environment.
The Globalization process is intensifying in all sides such as an economics, business, politics, culture
and religion; the cooperation and dependence of countries is growing on many sides. So the analysis on
management pattern and the improvements of them were requiring for the implementing concepts to adapt with
the intensively changing environment and to use opportunities effectively. The Mongolian conditions depending
on international environment were increased on the results of measurements of the occupying percentage of
offical development grants in GDP, the depending country from loans and grants, the foriegn loans occupying

4. Narantsetseg P. 4
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in GDP. So it is necessary to dissolve the Mongol features of management in the World Globa l management
approaches to adapt external environmental conditions effectively and to intensify market economy relations on
original meaning.
Mongolia was occupying on the low place comparing with the World Global Perspectives of
Development. The main objective of countries development is directed to the leading general standard of the
World Global development on the improving portfolio indicatiors of development. So it is necessary to
implement concept as a management pattern should be adapting to the exte rnal and internal environmental
change as well as should be moving forward them. Government has taken the reconstruction measures out
economic crisis on many sides, but Mongolia was occupyed on the lowest and most lowest place comparing
World others countries on the competitveness indicators in 2000. The Mongolia economic indicators were
improving in 2006, Mongolia was included in the World competitiveness report in official and it was
expressing results of the reconstruciton and reforms policies. But Mongolia was included in the category of the
lowest and most lowest on the competitveness indicators as a corporation social responsible significance; the
consumer service development level; efficiency of companies board directors; promotion scope of active
initiatives; the professional managers relability; the international market scope; delegation of authority; the
companies ethics position; decision making of state officials on the base of relatives and frieds relations and
CPI. Those all issues are connecting to Mongol Pattern and features of management.
The Globalization of business activities is expressed on the expanding activities of multinational
corporations with sales and production branches in many countries. The success of Global business is the
results of the many kinds cultural cooperation. Mongolian companies are played role as a distributer, branches
and franchising of multinational companies. Holding companies have a hierarchical structure, as well as
elements such as board directors and compliance unit were reflected on the Mongolia laws, it is an
expression of US Management pattern basically. So the change period of international activities and cultural
environment are intensifying in Mongolia. The West cultural management is penetrating to the Mongolian mixed
culture in wide range. Scholars processed a model of Chingis khan leadership style, features and management
techniques in nomadic cultural period implementing in the contemporary social -economic relations. Thus the
cultural environmental change is one factor to improve management pattern. Managers have played role of
cultural professional for the achieving success in international management. Mongolian living style, tradition,
mentality and origin related to nomadic culture and cattle-raising techniques, besides the negative sides
relating to these features are important for the formulating Mongol pattern concept of management.
Research goal: Main goal of the scientific work is directed to the formulating Mongol pattern of management
and their structure on the base of World Global management theories and methodologies taking account of the
culture, tradition and features of Mongolia.
Research objectives: The next objectives are decided for the leading main goal in the scientific work:
-To analyze World Global Management approaches in comparing,
-To analyze the influencing factor to the Management Pattern,
-To conclude analyzing Mongol features, advantage and disadvantages of Management,
-To formulate Mongol pattern of Management and their structure.
Research object: The research object for the processing management pattern was a managerial activity of
organization and their results. For these 4304 managers of 60 Joint-venture companies, government, non-
government and business organizations of six sectors were included in this research.
Research theme: The theme was directed to the formulating basic theory and methodology for the formulating
Mongol pattern of management and their structure to adapt with the external and internal environmental change
effectively.
Basis of theories and methodologies: The theories and methodologies of Japanese, Mongolia’s and US scholars
were used in the research work in wide range. The using methods were theories and methodologies of US
scholars John Dew, Peter F. Drucker, Maslow, McClelland, McGregor, M. Porter, R. Likert, Blake-Mouton,

5. Narantsetseg P. 5
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Hershey-Blanchard, Mick Yates, H. G. Hicks, C. Ray Gullett, V. Robinson, L. Buyers, L. Rue, P. Senge,
R. Shaw, Fukuyama; of Japanese scholars M. Morimoto, K. Toshio, R. Murakami; of France scholar Rene
Grousset.
Research Methods: The base of research methods is the comparative analysis as basic methodologies of
International management. As well as the research methods such as a ratio, experiment, regression,
participation observation, hidden observation, unstructured conversation, survey, primary and secondary analysis,
inductive, deductive, methods of business analysis, case study methods were used for the arguing Mongol
features, advantages, disadvantages, sequences and personal expression of internal essences.
Research originality: The newness of work is expressed on the formulated Mongol pattern of management on
the base of contemporary management theories, concepts and approaches reflecting Mongolia cultural features.
The results and newness of scientific work is defined by formulated model of the Chingis khan management
features.
The another newness is detected by the formulated Mongol features of manageme nt comparing US,
Japanese management; development indicators and specifics of Asian countries and countries in the transferring
economics with Mongolia features and sequences on the base of World global management theories,
approaches and methodologies.
Practice significance: This work becomes as a manual and hand book for the all management level officials,
managers, businessmen, PhD and graduate students, undergraduate students, researchers and scholars, who
are working in field of management.
Research approvals: Author has given 11 scientific speeches relating to the topic “Mongol pattern and features
of management’ on English, Mongolian and Russian in organizations such as Mongolian Management
Association; Federation of Private Universities and Institutions; Management and Economics training and
Research Institutions Consortium; School of computer science and management; University of Science and
Technology; National Productivity center; Mongolian Open Society Forum; Academy of Management; 3rd
International Joint Conference among Korean Association of Logos Management and Management, Economics
training and Research Institutions Consortium and School of Production Technology and Design -University of
Science and Technology since 2000 to 2006. Author published all 62 scientific publications, books, textbook
and manuals since 1992. The published books, manuals, text book and case studies relating to the scientific
work were used for the preparing new subjects as Basic Management, Human resource management, S trategic
Management, Business Ethics, Business Communications and International Management.
Author has wworked as a trainer, researcher and consultant in six projects, which were managed and
implemented by Gobi Regional Economic Growth Initiative, Mongolian Open Society Forum and Case Study
Club of Bizmongolia since 2001 and she analyzed the Mongolia Telecom Joint Venture companies and their
results of privatization, the Mongolian educational reform, restructuring and privatization, the companies
registering process to the State registration and the assets
Structure and Content of the research: The scientific work is consisted of 144 pages of work and 53 pages of
annex including preface, three chapters, 16 sub-chapters, 76 tables, 24 pictures, graphics, chapters and
general conclusions.

6. Narantsetseg P. 6
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CHAPTER 1: BASIC ISSUES OF MANAGEMENT THEORIES AND MODELS
Management theories and concepts, their development approaches The World global management theories,
methodologies, concepts and approaches should be reflect in the defining Mongol pattern of management. For
this, the theories and methodologies of Maslow, McClelland, McGregor, M. Porter, R. Likert, Blake-Mouton,
Hershey-Blanchard, Peter F. Drucker, P. Senge and R. Shaw were analyzed in the scientific work. Maslow
divided human needs to five parts including physiological, safety, social, esteem and self-realization. The
secondary needs were divided in three parts including power, affiliation and achievement in the McClelland
theory. Needs were divided to promotion and hygiene factor in the Herzberg theory. The view centered to
human importance and the human resource management strategy was formulated in the results of th e
comparing research of Maslow, McClelland and Herzberg theories, as well as the measurements of the
management pattern research as a requiring promotion, education, improving factor of productivity and human
development were processed in the results of comparative analysis, content theory of motivation including
needs theories. The comparative analysis and specifics of autocratic and democratic leadership systems of R.
Likert and of concern for people and concern for production behavior of model “Manageria l Grid”, Blake-
Mouton became as a base to formulate the research measurements measuring autocratic leadership style for
the defining human factor and management style. The measurements as a success, results, work climate,
influencing instrument of workers, organizational motivation system, productivity and workers education were the
base to define human resource management pattern of organization according to the motivation model of
Porter-Lawler and the expectancy theory. The measurements to define management pattern have related to
the personal characteristics, leadership style and ability adapting to environmental conditions on the results of
connection of comparative analysis of autocratic and democratic leadership styles, McGregor theory X, Y and
theoretical concepts to change leadership style adapting to changing conditions on Hershey -Blanchard theory
with people-centered view and worker- centered view of managers detected in Mongolia.
Management Pattern directs to reforms, renovations of strategic policy and employees abilities leading
to the new line or level of development. So the theories including P. Drucker concepts, knowledge
management, learning organization theory of P. Senge, new public management theory, organizational sturcture
theory of Minzberg and R. Shaw theory “trust in the balance” reflected in the scientific methodologies of that
work for the defining Mongol pattern of managment and their structure. The new centuries management directs
to the improving productivity of the knowledge worker and knowledge work, so the relevant concepts and
theories were reflect in the processing management pattern.
Theoretical-methodological issues of Management Pattern This issue was analyzed in the frame including
management pattern structure, management and environmental adaptation, historical development of management
and culture. Thus concepts and methodologies of Japan scholars M. Morimoto, K. Toshio and R. Murakami
became as a base for the analyzing management pattern. The external and intern al environmental negative
and positive effects influencing to the management pattern achieve to the expected positive results and the
unexpected negative results, which are given the certain advantage and disadvantage of management pattern.
The management pattern and their structure, features are define by those specifics and features. So the
management pattern expresses culture and features of current country, as well as it is the oriented ways for

7. Narantsetseg P. 7
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the improving management pattern to move forward to the environmental change on the defining management
strength and weaknesses. The Japanese management pattern structure is consisted of factors as a supporting
core, strategy, system custom and acting pattern.
The strategic policy, organizational renovation, workers ability, job content renovations and their
establishing system have important roles for the adaptation of management pattern with the external and
internal environment. If management pattern could not adapt to the environmental change, then the
weaknesses of management pattern are detected and are influenced to the long - term viability of a system
negatively and it would be leading to the system crisis, which achieves to the making optimum renovations.
So the environmental adaptation is defined by the renovations, reforms and their results. The effective
adaptation of management pattern and environment is defined by the organizational renovations and human
development. It is right cultural change should be reflecting in management pattern in the globaliz ation of
business activities.
Mongol features, sequences of Management This issue was analyzed in the scope as a comparative
analysis of Japan and US management and Mongol features. The general features as a competitive and
effective management and lead place in the World market were detected in the Japan and US management
pattern in the results of comparative analysis on the measurements as a competitiveness in the international
arena, developed position and results. The Japan and US management approaches, concepts and principles
were enriched on the following historical development periods and in the final result of management these
countries were occupied the lead place in the World market. The management historical development is
divided to five phases including beginning, classical, new development period, contemporary an d new centuries
management period on the base of concepts and ideas of Japan, US, Mongolia scholars M. Morimoto, K.
Toshio, R. Murakami, H. G. Hicks, C. Ray Gullett, and V. Robinson.
The theories, methodologies, concepts and ideas of US, Mongolia, Russia, France, Chinese scholars Mick
Yates, B. Inginnashi, T. Dorj, Sh. Natsagdorj, Sh. Bira, E. Dashnyam, B. Ya. Vladimirtsov, Erenjin Hara
Davan, Rene Grousset and Zhu Yaoting were used for the defining Mongol features of management on the
historical features. Scholar Mick Yates, US processed “4-E” principles of Chingis khans leadership style and
determined these principles as a learning thing of contemporary businessmen. Scholars said that Chingis khans
open policy, speed, energizer, rules and importance view of trust was implementing in the present US. So on
the base of these works, there is the convenience that Chingis khans management style, model and features
might implement in contemporary society and business development.
On the analyzing Chingis khans style from side of leadership function, the best managerial characteristics
such as wants to achieve goals, honesty, excellent knowledge, talent, ethics to follow law and rules, the
adapting ability to conditions, ability to receive newness, responsibility, belief for others, ability to provide
others help on help, patience, un-extreme attitude to follow one side and ability to respect human intellect,
talent, skillful, knowledge and culture were detected in the Chingis khans leadership characteristics. Chin gis
khan had openness, self-realization ability, decision-making ability to sense conditions and he was original
pragmatic and idolater for speed and power. Chingis khan had the certain goal, certain strategy, certain
organizing to achieve goals and implemented motivation, leadership and controlling functions for the
achievements. Chingis khan used the most of advantages relating to planning, organizing, motivating,
leadership, controlling, decision-making and communication for the achieving goals in effective and in the
results his activities and deal led to the success and results, he established the United Mongolian States. The
concepts formulated by US and Mongolia scholars Mick Yates and T. Dorj, should reflect in Mongol features
of management on the analyzing measurements of contemporary period and newness.
The most of the present Mongolian organizations were managed on the “canoynism” or view to conduct
activities in frame of relatives and friends and it is expressed on the low level of the trust in organizations.
The positive and negative sides of the “canyonism” or view to conduct activities in frame of the relatives and
friends were defined in the work. This view is a expression of Mongolian specifics of mentality. But the main

8. Narantsetseg P. 8
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reason of the Mongolians leadership ability restriction is connected to the “canoynism” or view to conduct
business activities in frame of relatives, countrymen, friends and families relation. The measurement of the
family relation and friends to conduct activities was more important than measurement of business results,
productivity and success on this view. View to conduct business activities in frame of relatives, countrymen,
friends and families relation has the most of negative management sequences such as differentiation ,
unfaithfulness, human resources instability, corruption, detective goods and services, negative social behavior,
un-expecting and unsuccessful results of activities, illegal actions, in-viability and social negative activities.
It is a right to reflect the nomadic mentality features in the Mongol features of management. The
Nomadic mentality feature as a procedure of the thinking, feeling and acting is influenced to management
success and results negatively on many sides. The nomadic mentality features have the negative sequences
and disadvantages, when it is expressing in the present organizational management. It is achieved to the
management decision-making disability, ineffective communication and the “extreme” attitude and is influenced
negatively to human resources appraisal system, motivation policy and final results of human resources
management. When the cultural environment and the human living style are changed intensively, then the
nomadic one side attitude management pattern is not adapting in the changing environment. So the mentality
change is important relating to the management pattern.
Conclusions
-It is a right to reflect the World management theories, methodologies, concpets and approaches for the
defining Mongol Pattern of Management, which fitted with concepts directed to the adaptation with external
environmental change and to move forward of them.
-Should be processing the Mongol pattern of management reflected features of the Mongolian mentality and
fitted to the Globalization and mixed culture including nomadic and European on the base of opinions as the
comparing Management pattern, Mongol features and negative sequences. “Canyonism” or the opinions to
conduct activities on frame of family relation and countrymen and the nomadic mentality feature beginning from
the general to the certain have the negative effects on organizational management. So a concept to
emphasize people should be reflect in the management pattern and implement it.
-The supporting core of Mongol pattern of management is the traditions to respect Mongols intellect and
knowledge, the Chingis khan leadership style and features in the results of the comparing historical
development of management pattern and cultural specifics with Mongol features.
-Businessmen have the convinience to impelement the Chingis khan leadership style and features for the
developing society and economics.
-Ancient Mongols were a talented, skilful, courageous and smart, had a lot of patience and respected
knowledge. But the common attitudes of contemporary Mongol are the extreme, envious and arrogant and the
most of present Mongols have these personal characters, which are an expression of their disabilty and low
knowledge.

9. Narantsetseg P. 9
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CHAPTER 2: RESEARCH OF THE INFLUENCING FACTORS TO MANAGEMENT PATTERN
The analysis was performed on the frame as the external and internal environmental adaptation,
cultural factor, the competitiveness, the comparative analysis of corporation management and governance, the
leadership style influence and comparative analysis of human resource management to argue the Mongol
features, advantages, disadvantages, sequences and personal expression of internal essences, which were
defined on the base of theories and methodologies.
Research of the external and internal environmental influencing factors The management pattern is an important
to adapt with the change of international, macro, social and task environment. The environmental adaptation
with management pattern is defined on renovation of strategic policy, organizational management, employee’s
capacity and knowledge. The measurements relating to the World Global perspectives of development including
in strategic factor; results of privatization and local administration including in leadership style factor and
indicators relating to loans including in ethical factor were used for the measuring renovations. Mongol pattern
of contemporary management was analyzed on the portfolio measurements as a World Global perspective;
results of privatization, loans and ethics, local public administration and their advantages and disadvantages as
a result of analysis were defined in the next:
Mongolia was not included in the offical report of the World competitiveness in 2000, but the country was
included in official report of the World competitiveness in 2005-2006 and it was an expression of reforms
and reconstructions positive results in the economics, political, social and business scope. Mongolia has taken
4.7 points and was occupied the 83rd
place, China was occupied the 113th
place and Russia 101st
place
among 117 countries on the competitiveness indicator as a banking reliability. On the convenience to take
loans, Mongolia has taken 5 points and was occupied the 35th
place of above the average, China was
Advantages
-The international comparative analysis has the convenience
to become as a base of strategic management,
-Convenience to be reflect all sectors renovations in
management,
-Convenience to lead present management to new standard
of management,
-Convenience to improve leadership style adapting to
renovations effectively,
-Positive change of ethical standard.
Disadvantages
-Weak of strategic management adaptng to Global international
environment,
-Reforms results and process was sligthly. Weak of the management
pattern and environmental adaptation,
-Disability to feel environmental change and to affect it to management
pattern,
-Low experience to manage private properties effectively,
-Low main indicators of business activities,
-Sligthly growth of company,
-Low level of the trust,
-Low ethical standartds,
-Low managerial motivation potential

10. Narantsetseg P. 10
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occupied the 105th
place and Russia 61st
place among 117 countries. Thus these indicators expressed the
positive results of business-economics environment.
Analyzing cultural factors The historical and cultural features of the management pattern are expressed features
in the certain times and space and it include the economic, social and local specifics in the certaim historical
period. When Mongolians have processed and followed laws, conducted actitivities, formulated military
knowledge, spread religions and performed tradional custom and habits, then they had used the specfic
techniques of management and organization. Mongolians were surrounded by the natural, cilmate, geographical
and ecological conditions to be born intellectual and skillful people more than others nations. It is an
important factor to formulate traditions and supporting core of Mongol pattern of management. Nomadic cu ltural
development is defined by social-ecological, west cultural development is defined by social-technique, the
mixed including nomadic and west cultural development id defined by social-technique-ecological factors. The
combining technology, person and ecology should be analyzing on the contemporary development approaches.
The nomadic economics, social and cultural success, findings and features are related to management
techniques of Chingis khan, so it is a right to relate it to cultural factor. The crisis is the development
convinience on the model, in which Chingis khan management technique is implemented in the modern
society, on the base of that reforms and reconstructions policy is formulated and implemented. Management
style and mentality should be improving for the adapting conditional change intensively. Systematic methods
and artistic effective organization are necessary for the successful implementation of the reconstruction policies.
Trust is an important factor to conduct activities in the contemporary society. Comparative analysis of
competitiveness The management pattern is influenced to indicators of competitiveness, the growth of them is
influenced to the environment positively and it is expressed the strength of strategic management. T he
declining indicators of competitivenss is influenced to the environment negatively and it is expressed the
weaknesses of strategic management. The results of management pattern increase the organization
competitiveness. So the increasing indicators of organization are influenced positively to macro environmental
factors as an economics, export, investment, financial field and demography. The attractiveness of macro
environment is influenced to results and success of management pattern. So the influence of management
pattern to the environment is defined on the results of comparative analysis of competitiveness indicators. The
most of indicators of Mongolian competitiveness was estimated on low, so management pattern had negative
sequences and weaknesses to the environment. But there is the strength on indicators of agriculture and
human resource development, so the strength should be affecting to the strategic factor for the using
convenience effectively. The competitive strength and features of countries are of great si gnificance to have
convenience for the conducting business in international environment effectively. So the leading results of
management pattern achieves to the increasing competitiveness.
The most of the competitiveness indicators were issued in the field of business and management in
2006. The growth of economic indicators of competitiveness is influenced to the environment positively and it
is expressed the strategic management advantage. Mongolia was included in the low category on the most of
business and management indicators of competitiveness and it is related to Mongol pattern and features of
management. Mongolia’s CPI achieved to the 2.8 and Mongolia included in the most corrupted country. The
new corruption law was confirmed and issued by the Mongolian Parliament and the corruption crimes were
sentenced on the new law, since that the social-economic indicators are improved.
Comparative analysis of companies management and governance For that financial-production group, market
structure and corporation management and governance was analyzed on comparing portfolio measurements. The
base of countries economics and the occupying place of country in international market are defined on
financial-production group specifics and structure of the current country. So measurements of market
development level, frame of business activities, assets sources, and methods of the moving assets, form of
the holding and multinational company were used for the comparing analysis of countries financial -production
groups, US, German, Japan, South Korea and Mongolia. The measurements relating to companies size
including business sectors number, companies revenue, concentration portion of four companies -C4, HHI and

11. Narantsetseg P. 11
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the decision-making features in market were used for the comparative analysis of market structure. The
company’s assets structure, company management and governance were analyzed in the comparing. The
Mongol features, advantages and disadvantages were determined in the results of this research. It is the next:
Advantages and convinience
-Large financial-production groups were occupied main place in
Mongolian economics.
-Companies have the convenience to perform and performed
roles of distribution company, branches and franchising of
multinational corporation.
-Companies had convenience to penetrate in international
market.
-Development of banking and financial system is influenced to
business development positively.
-Mongolian business is conducted in frame of the counry and
had feature, which was expressed on concept to conduct
business in frame of family and friends and it led to the
convenience to nourish family.
-Managers had the experience to succeed in business
management.
-The legal environment built up to conduct business.
-Structure of corporation equities is influenced to investors
attractively.
-Companies management was organized by possible form and
structure on the base of companies law.
-Companies Compliance unit was affected to companies law to
protect the investors interest.
Disadvantages
-Weak of market system developmentl.
-Low experience to manage private properties.
-Business activities were conducted only in frame of country.
-Strategic management oriented to international market is related to export
of raw materials only, it is expressed weak of business management
development.
-Businessmen conducted activities in market of monopolistic competition
and oligopoly.
-Managers had estimated the market features of monopolistic competition
and oligopoly for the decision making.
-High concentration of sectors. Few companies conducted business
activities in market.
-Management mentality had been oriented to conduct business in frame
of family.
-Internal and external auditing was oriented to protect shareholders only.
-There was not the auditing in company from employees side.
-Market was divided to few large companies and small companies have
not performed roles in market.
-Limited voting rigth for independent members of Board in directors on
the following Mongolian law of company, it led to view for the conducting
activities in frame of family and countrymen for corporation management.
-Low buisness ethical standards.
The Mongolia Company’s ethical position communicating to state officials, politicians and enterprises are
in the low on the competitiveness indicators as a company’s ethical position in 2005-2006. The relatives and
friends are occupying the top management level position in Mongolia mainly in the results of research on
measurements of competitiveness indicator as reliability professional managers. On the analyzing measurements
as a company’s effective board of directors, the features of investors and company governance of board
directors are defined on the little responsibility of managers.
Influencing management style The improving leadership style is an important for the adaptation of management
pattern with environment. The leadership style renovations are defined by renovations of employee knowledge,
job content, strategic human resource policy and strategic human resource management. The renovations
measurements are the measurements as personal characteristics, leadership style and ability relating to a dapt
conditions. In the results of the research on the portfolio measurements, the management advantages and
disadvantages are defined on the next:
Advantages
-Mongolian managers had positive opinion that they have had a
good social-economics education.
-Managers had positive opinion that the base of business
success is a knowledge and education.
-They followed principle of equity and faith.
-They had liked achieving to main goal.
-They had attention to influence on good communication.
-They had right opinion that they motivate workers, when
Disadvantages
-Low management knowledge,
-Disability to use knowledge in practice,
-Managers did not use many kinds personal characters and abilities to
conduct business activities well and they had not good knowledge
about that,
-They had not program to develop employees in organization,
-They did not support and motivate employees,
-Managers had autocratic leadership style,

12. Narantsetseg P. 12
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productivity is increased. -Managers activities and organizational structure was a bureaucratic,
-Managers did not find new idea and initiative in business environment,
-Disability to conduct reforms and to change organization,
-Managers and workers did not feel the success and change of
organizational activities,
-Managers had negative mentality to conduct business activities,
-Main power of influence was a money, friends relation and concept to
conduct business in frame of family,
-Managers estimated their education in false and it was related to
feature of Mongolians mentality,
-Disability to feel change of external environment,
-Managers had the opinion to differentiate workers and it was one form
of features of Mongolian mentality,
-Managers had not attention to workers education.
-Main instrument to select employees is a connection of friends and
familiars,
-Managers could not manage employees for the oriented results and
had coordinated on informal communication mainly.
-There was not competitive motivation system in organization.
-Managers could not estimate employees’ contribution to the
organization.
-The managers opinion on motivation was related to features of
Mongolian mentality,
-Managers had opinion that the attractive climate in organization was
the influence of political group to organization and selected employees
from political parties. It was related to feature of Mongolians mentality,
-There was not program of human resources development,
-Human resource management function was not implemented in
organization,
-Few of managers, who were satisfied international standards and
requirements,
-Low participation of employees in decision making,
In parallel of my scientific work between 2000-2003, the official research works including the World
competitiveness report, Mongolian economic freedom index and research of Mongolian Chamber of commerce
and industry were determined in the work. On the results of the Mongolian economic and business
environment, 62.8 percent of analyzed companies replied that the easy way to communicate with the state
officials is to take the helps of the friends and relatives, who work in the state organizations. The
bureaucracy and corruption was included in the most difficulties to conduct business in Mongolia, 2006. Top
managers do not delegate power to the low level or top managers make important decisions and perform
controlling function in Mongolia on the competitiveness indicator as a delegation power. It is expression of
autocratic leadership features. Mongolia state officials make decisions relating to strategy, policy and contracts
on the base of important friends, connected companies and individuals on the results of competitiveness
indicator as a decision making ability of state officials on the relations friends.
Comparative analysis of human resource management Management pattern is influenced to competitiveness
indicators of human development and it has been influenced to the demografhic and social environment
positively and negatively. The growth of competitiveness indicators is influenced to the environment positively
and it is expressed strength of strategic human resources management. The positive influence defines the
increasing management pattern results. The declining indicators of competitiveness are influenced to the
environment negatively and it is exprssed weaknesses of strategic Human Resources Management. The

13. Narantsetseg P. 13
Abstract of book
negative influence achieves to the decreasing results. The Japan and US human resource management pattern
was analyzed in comparing on the human resources and technological competitivenss indicators. Mongol
features, strength and weaknesses of management were defined as a results of analysis in filed of
technological and human resources competitiveness indicators and Human Resources Management. It is the
next:
Advantages
-Great number of scholars and engineers,
-Strength of Mongolian human development on education,
-Mongolian ancient tradition to respect knowledge as a
supporting core of management pattern,
Disadvantages
-Dominated mentality to communicate with wealthy people in society,
-There was not human resources policy,
-Lost equity of the authority between leaders and employees,
-Function of human resource management was not implemented on
the following market principle,
-Weak of relation between management and workers
-Managers had the autocratic opinion on workers.
Conclusions
-It is argued that there is the convenience to use the research methods such as experiment, ratio, graphic,
regression, participation and hidden observations, un-structured, conversation, survey, business analysis
methods, primary and secondary analysis, inductive, deductive and scheme to analyze the Mongol features,
advantages and disadvantages of Management and the influencing factors to them.
-There is the convenience to define the Mongol features, advantages and disadvantages of Management on
the research results to define the external and internal environmental adaptation by measurements as a World
Global development approaches, praivatization results, loans or ethical factor, internal motivation potential of
local administrators.
-There is the convenience to detect the Mongol features, advantages and disadvantages of Management on
the results of comparative analysis on the competitivenss indicators to define Mongol features of Management
and the external environmental adaptation, their advantages and disadvantages.
- There is the convenience to determine advantages and disadvantages of strategic human resource
management in the results of comparative analysis of competitiveness indicators for the defining Mongol
features of management and external adaptation.
-It is argued that there is the convenience to detect the Mongol features, advantages and disadvantages of
Management on the results of comparative analysis on measurements including in the financial -produvtion
group, market structure and companies management and governance.
-It is argued that there is the convenience to detect the Mongol features, advantages and disadvantages on
the research results on the measurements as a personnel character, leadership style and the adapting ability
to the changing conditions for the defining leadership style renovations.
-The Mongol features and negative sequences, which were detected in communication between organizational
management and employees, are relating to the mentality factor on the research results as participation and
hidden observations, conversations, experiment and comparative analysis.
-The specifics of American organization as a short-term recruitment, own decision making and own
responsibility were identical to the several specifics of model “M” in the results of comparative analysis of
models A, J, and M, in which were reflected the human resources management issues. So there is the
convenience to reflect the American Human Resources Management functions in human resources policy of
Mongolian organizations.

14. Narantsetseg P. 14
Abstract of book
CHAPTER 3. MONGOL PATTERN OF MANAGEMENT, THEIR STRUCTURE
Structure of Mongol pattern of management was determined on the scope of supporting core, cultural,
strategic, human, leadership style, mentality and ethical factors. (Annex. Structure of Mongol pattern of
management)
Factor of supporting core The features to lead success of the Chingis khan leadership style related to evaluate
knowledge and capacity, to select on knowledge and capacity and to delegate career position in the fitting
capacity. He concerned to skiilful people, so he could attract many knowledge and capable people and it was
his core of success. So the supporting core of Mongol pattern of management is a tradition to respect
knowledge and intellectual people. It was related to management pattern success in the certain periods. It is
an optimum that new knowledge is the supporting core factor. So the policy that knowledge is the supporting
core factor, is an important to implement in organization.
Cultural factor It is a right the Mongolian nomadic cultural findings and success relate to Chingis khan
management techniques, findings and success. Chingis khans management features are an expressing factor of
nomadic culture. He stregntened European and Asian cultural relations. So on the base of Chingis khans
management techniques, the present organizational managers should follow principles to implement long -term
strategy, invision and policy for the contributing development of country; to implement general policy to have
powerful in the international arena without conflict in domestic conditions; to respect others; to believe others;
to follow faithfulness; to use the modern technological success in the developing business activities; to
establish right informationa system; to evaluate human knowledge and capacity on honesty; to imp lement
motivation system trust in the futures; to give the convenience to work and to think freely for others. The
success, results and growth of business activities are depended on the using cultural convenience in the
international business according to the contemporary approaches of management. So conutries cultural
environm,ent should be analyzing. Cultural factor has to reflect un management pattern for the adapting
international environmental conditions and the moving forward it. For that, the World g lobal management
approaches and theories, which reflected in strategies and policies, should be implementing for developing
nomadic culture and west culture in Mongolia.
Strategic factor The right selection of international business and development strategy is improved the
competitiveness concerned for increasing occupying place in the World and regional development. So the
strategic lead management including geopolitics, human resources and product/service strategic policies are
played main roles in Mongolian development.
Human factor Organization should formulate important policy concerned human factor for the achieving
success and results. For that, organizations should formulate the capacity and knowledge based human

15. Narantsetseg P. 15
Abstract of book
resource policy, the result-oriented human resource policy, the human resource policy to work on high
standard of ethics and policy to support human talent.
Leadership style factor Autocratic specifics were detected in the leadership style, so renovations are an
important in leadership style. For that, managers should follow the principles to formulate and implement policy
of strategic human resources; to work following leadership ethical principle in high -standard; to develop the
effective coordinating opinions among employees in the attractive climate of the organization; to establish the
effective relation between society, economics and business; to provide the growth of the organization
economics efficiency and to renew and change autocratic leadership style.
Mentality factor The Mongolian mentality features have the negative sequences to diagnose, to define, to
determine, to decide issues and problems and to evaluate people, so it is achieved to the disadvantages and
mistakes in the organizational and human resource management. For that, the mentality factor should be
reflecting in the Mongol pattern of management.
Ethical factor For the achieving goal, managers should follow the Ethical Principles of Management, principle
to respect Law, respect native land, citizens, consumers, principle to work honestly, principle of State service,
principle of Business and principle of the motivating work results in equity honestly. The ethics are defined
the business and social effective relation, so ethical principles are influen ced to the management pattern
structure in full.
Conclusions
-There is the convenience to analyze Mongol pattern of management in frame of the supporting core, cultural,
strategic, human, leadership style, mentality and ethical factors to correct the Mongol features and
disadvantages detected in the results of portfolio analysis.
-The supporting core of Mongol pattern of management is the Mongolian tradition to respect knowledge
directed to the adaptation with the external environmental change. The Ch ingis khan management style and
features to concern knowledge and capacity should be reflecting in the supporting core for the developing
Mongolia economics, society and business in the present.
-It is a right the following policies to develop nomadic culture and west culture reflecting World Global
management approaches including classical, contemporary and new centuries approaches of management as
well as management pattern approaches for the implementing cultural factor in Mongol pattern of management.
-It is a right the following the strategic lead management including policies reflected Mongolian human
resource strategic peculiarity, territorial strategic peculiarity and strategic product/service peculiarities for the
implementing strategic factor.
-Should be following the capacity and knowledge based human resource policy, result-oriented human
resource policy, human resource policy to work on high standard of ethics, policy to support human talent for
the improving human factor.
-Should be renewing the autocratic leadership style and following principles to formulate and implement policy
of strategic human resources, to work following leadership ethical principle in high -standard, to develop the
effective coordinating opinions among employees in the attractive climate of the organization, to establish the
effective relation between society, economics and business, to provide the growth of the organization
economics efficiency for the developing leadership style.
-Should be formulating and implementing standard relating knowledge, capacity-result-ethics-talent, and
necessary to develop this standard as an intellectual standard in organizational management for the developing
mentality factor.
-Should be following ethical principles to respect Law, to respect native land, citizens, consumers, to work
honestly, principle of State service, principle of the motivating work results in equity honestly for the
developing ethical factor.
General Conclusions
-Should be affecting Mongol features of management, management pattern approaches and World management
approaches including classical, contemporary and new centuries approaches of Management to the defining
Mongol Pattern of Management. Mongolian features are related to opinion to conduc t activities in frame of

16. Narantsetseg P. 16
Abstract of book
relatives and counrymen, nomadic mentality beginning from the general to the certain, mixed culture of
nomadic and West life, human development, territorial strategic peculiarity, Mongolian tradition to respect
knowledge, talent, ability to learn new knowledge, ability to adapt to any conditions.
-The management pattern expresses culture and features of the current country, as well as it is the oriented
ways for the developing management pattern to move forward to the environmental change on the defining
management advantages and disadvantages.
-There is the convenience to analyze Management Pattern on portfolio measurements in frame of issues of
the external and environmental adaptation, competitiveness, corporation management and governance, leadership
style and human resource management in the results of portfolio analysis directed to the Mongol features and
sequences.
-There is the convenience to include factors of the supporting core, cultural, strategic, human, leadership
style, mentality and ethical in the structure of Mongol pattern of management. The including policy and
principles in these factors of Mongol pattern of Management, should be improving for the adapting to the
external and internal environmental change.
-The scientific work on Management pattern is argued that World Management theories, approaches and
concepts were fitted for the developing west or non-nomadic culture of Mongolia as a European. For the
developing nomadic culture of Mongolia the implementing policies are an important to correct negative
sequences and weaknesses, which were related to the features of nomadic mentality, concept to conduct
activities in frame of relatives, countrymen and decision-making on the base of negative information.

17. Narantsetseg P. 17
Abstract of book
Annex.
Structure of Mongol pattern of Management
Ethical factor
-Ethical Principle
of Management,
-Ethical Principle
to respect Law,
-Ethical principle
to respect native
land, citizens,
consumers,
-Ethical principle
to work honestly
-Ethical principle
of State service
-Ethical principle
of Business
-Principle of the
motivating work
results in equity
honestly
Factor of the
Mentality
To formulate and to implement standard of knowledge, capacity-result-ethics-talent, to develop this
standard as an intellectual standard of organization management, to formulate the certain methods
to implement and execute certain work and activities for the achieving success,
Factor of the
Leadership
Style
-To formulate and implement policy of strategic human resources
-To work following leadership ethical principle in high-standard
-To develop the effective coordinating opinions among employees in the attractive climate of the
organization
-To establish the effective relation between society, economics and business,
-To provide the growth of the organization economics efficiency,
-To renew and change autocratic leadership style,
Human Factor -Capacity and knowledge based human resource policy,
-Result-oriented human resource policy,
-Human Resource policy to work on high standard of ethics
-Policy to support human talent
Strategic
Factor
-Strategic leading management including policies affected Mongolian human resource strategic
peculiarity, territorial strategic peculiarity/geopolitics and duct/service peculiarities
Cultural
Factor
-Policy to develop nomadic culture
-Policy to develop non-nomadic culture as an European of Mongolia on the following World
Management approaches such as classical, contemprorary and New Centuries approaches of
Management
Factor of the
supporting
core
-To implement policy of the supporting core on the ancient Mongolian tradition to respect
knowledge,
-Support on the best managerial characteristics concerned knowledge and capacity for
the Mongolian business-economics-social development.