Mao Tsedung's democratic principles of organizational construction took place in the time of Jingangshan revolutionary base. Their contents and the origins of modem management theories were illustrated from modern management logic. It is proved by the theoretical models that labor cooperation organization as flattening governance structure dominates hierarchy structure when risk is large enough. It is shown that participative management, which delegating part of the homogeneous managerial function to employee in the distribution of decision right, will improve organizational efficacy. These imply that the rationale of Mao Tsedung's democratic principles of organizational construction was demonstrated. Its significant effects on management practices were also explained by management sciences.