The Ruling class in old Tibet embraced government officials and land owners, who were mainly nobles and Lamas. They all kept a tight hold over the reins of power. When Tibetan Buddhism began to penetrate into various aspects of daily life worshiping the Living Buddha become a major part of Tibetan Buddhism and an official system characterizing the temporal and religious administration gradually formed.

Living Buddha, pronounced zhugu in Tibetan language, means reincarnation. It has been used in the inheritance system of the Lama chieftains of different monaseries. Dalai and Panchen, the two highest Living Buddhas, are the political and religious leaders of inner and outer Tibet. Due to different territories and the number of dependent people, the Dalai and Panchen have varying political rights, but one religion, they are absolutely equal.

The Dalai Lama has always been considered as the incarnation of Avalokitesvara or Buddha of Mercy. He usually lives in Potala Palace, and moves to Norbulingka in summer. His own domestic support system, called Lharang in Tibetan language. In Lharang, there is a Chikyap Khenpo, or indoor butler, whose status equals to Galoin and can show up in Kashag conference representing the Dalai Lama himself.
There is also a Zhoinnyern Qinbo in charge of information, a Simboin Khenpo supervising the Dalai Lama's daily life, a Suboin Khenpo in charge of his eating and drinking and a Qoiboin Khenpo taking care of his daily religious activities.

They are supplemented by bodyguards responsible for day to day security and several Zeqags, in charge of personal property and finances.
The Panchen Lama has always been regarded as the incarnation of Amitabha or Buddha of Infinite Light. The Panchen Lama lives in Tashilhunbu Monastery, one of the six biggest monasteries of Tibetan Buddhism. Directly under the Panchen Lama, a Tibetan language organ, the Nangmekang, handles political and religious affairs. It is comprised of important Khenpos with the Department of Internal Affairs. During the period of the ninth Panchen Lama, the organ was changed to "The Council of Panchen's Khenpos," and in the period of tenth Panchen Lama, it was again changed to "Commission of the Council of Panchen's Khenpos." The Panchen Lama himself also has the similar service structure as that of the Dalai Lama, providing him with daily advice on religious, economic and living affairs.

Gyaibo Zhugu, a Living Buddha, is ranked next to the Dalai and Panchen Lamas. His name means Big Living Buddha and he acts as Prince Regent. Because Hutogtus carry out the role, their religious and political positions are important. Each Hutogtu has his own monastery - Living Buddha Razheng belongs to the Gyaichacang of Sera Monastery, while his own is the Razheng Monastery. Even if they did not not act as Prince Regent, they could have a generous income, and lead a comfortable life. Each hutogtu has a Lharang, and has housekeepers in their manor in charge of Collecting rent and administrering the serfs.

In Tibet, Big Living Buddhas have absolute seniority in their own areas. They grasp the religious and political rights within their territories, even the Kashag government could not put their orders through without the assistance of the Big Living Buddhas, like Hotogtu Ragbalha in Qamdo Prefecture. There are also many Small Living Buddhas whose political position is higher than that of Lamas. Few Small Living Buddhas have their own temples or manors, usually lodging in a monastery, living on the name of Living Buddha and his donations. Their reincarnation is not assured, however, and sometimes the lineage ceases after several generations.

In Tibet, the monastic social group is the same as society, with rigid stratification and different labor division. Some Lamas chant scriptures, practice divination and pray for the happy life for laity during their birth, death, wedding, funeral and disease. Other lamas are responsible for general duties including physical labor while others are artisans, specifically in charge of sculpting, painting, printing and block cutting within the monasteries. Some Lamas study medicine and astrology, while others safeguard the security and order of the monasteries during important religious activities.

Previously, Lamas in monasteries were divided into different strata, Living buddha, Khenpo, monastery-keepers and Lamas of important position were the upper class, accounting for about four percent of the total. They monopolized power in the monasteries, and enjoyed special privileges. The remaining Lamas neither had any powers nor rights. Some of them were driven into the monasteries bycold and hunger, some of them hoped to escape from hard work or seek shelter and some were forced to enter the monasteries to carry out unpaid work. An investigation in two small temples under the Drepung Monastery in the early 1950s found of 287 Lamas, 124 had been taken to the monastery when they were very young, 126 were carrying out hard labor to pay off debts and 31 were forced to enter the monastery as a way of corvee. Only six entered of their own free will - just two percent.
Monks had to undertake a series of feudal obligations as well as labor. According to the regulations of the monasteries, the feudal obligations and labor could be substituted by paying money. Few Lamas could afford the money, so they had to serve upper-class Lamas day and night, and generally led a miserable life. The Drepung Monastery stipulated that if someone want to be exempt from labor had to donate a meal to all Lamas of his temple, and distribute 15-grammes silver to every Lama, 30-kilogrammes silver to the temple fund - an amount which easily totalled between 300 and 400 kilogrammes and totally unaffordable.
Nobles, another section of the ruling class, included governmental officials, and the families of the Dalai and Panchen. Throughout Tibetan history, there have been around 400 families who were recognized as nobles including Lama officials. The succession was sometimes discontinued because of the death of the patriarchies or the disability of male members. Some of their properties were confiscated and some titles were abolished for political reasons. By 1959, there were less than 200 noble families in Tibet. They were divided into three categories - tribal chiefs of Tubo Dynasty, who had been considered as the subordinate of imperial court, with the family history being traced back to the reign of Songzan Gambo, such as Dokar family, families that rendered outstanding services to previous dynasties and families of Dalai and Panchen of all generations, called Yaoxi.

From the seventh Dalai Lama to the 14th, seven families had been formed, such as the Lhangdun and Lhalu families. The 200 noble families have strong political and economic powers. Half the laymen and Lama officials in local Tibetan government were from these families. Each hereditary noble family has several with large areas of land. Dorin himself had more than 40,000 ke in land. A noble name was hereditary and promotion from a small noble to a big one was difficult. Although the small nobles occupied a certain position in the government, power was centralized in the hands of the over 20 big nobles. If a senior noble committed a crime he was downgraded to a lesser nobility - or even stripped of his status. If a serf or farmer wanted to be a noble, he had to be a family member of a reincarnated Dalai or Panchen. The current 14th Dalai Lama was born in a common farmer's home in Qinghai Province, China. After he became the 14th Dalai Lama, his family obtained the position of big noble.