ARTHASHASTRA

PRESENTED BY:

Aakanksha SaxenaAkriti bansalAkshara GaurAnjali Jindal

Anjali PathaniaAnkitaAshma

Ashmi ChhabraAvani Dadhich

Ila Pareek

Kautilya's Arthashastra is an excellent treatise on statecraft, economic policy and military strategy. it is said to have been written by Kautilya, also known by the name Chanakya or Vishnugupta, the prime minister of India's first great emperor, Chandragupta Maurya.

In Arthashastra, Kautilya mixes the harsh pragmatism for which he is famed with compassion for the poor, for slaves, and for women. He reveals the imagination of a romancer in imagining all manner of scenarios which can hardly have been commonplace in real life.

Centrally, Arthaśāstra argues for an autocracy managing an efficient and solid economy. It discusses the ethics of economics and the duties and obligations of a king. The scope of Arthaśāstra is, however, far wider than statecraft, and it offers an outline of the entire legal and bureaucratic framework for administering a kingdom, with a wealth of descriptive cultural detail on topics such as mineralogy, mining and metals, agriculture, animal husbandry and medicine. The Arthaśāstra also focuses on issues of welfare (for instance, redistribution of wealth during a famine) and the collective ethics that hold a society together.

Kautaliya considered king as the most important element of state and explained qualities, duties and power which can be useful in making him powerful.

ABILITY TO ATTRACT FOLLOWERS:◦ inborn (can be cultivated)

-intelligent -honest -honouring verbal

promises -determined -fulfill commitments

◦circumstances favourable -being born in high family -having weak neighbouring princes -not having a mean council of

ministers

QUALITIES OF INTELLECT; Includes desire to learn, listening

ability, learning , reflection & rejection(false views)

 QUALITIES OF ENERGY: Includes valour(bravery),

determination , quickness, dexterity PERSONAL ATTRIBUTES OF A LEADER: Includes a strong memory, keen mind,

well trained good foresight, good governing, knows diff btw right and wrong.◦A leader shud be amenable to guidance◦A leader shud be just◦A leader shud be as effective in crisis as in normal times

◦A leader sud have a pleasant personality  

The leader as a RAJRISHIRAJRISHI means “king wise like a sage”.

A rajrishi is one who has self control,having conquered the senses, keeps his

eyes open through spies, works for the welfare of the people.

The leader as VIJIGISHU  Vijigishu means desirious of ‘VIJAYA’

(victory, achievement) “VIJIGISHU is an encompassing phrase denoting the overall achievement orientation” of a leader.

The concern for people It indicates that the superior should not

be guided by his personal self interest, he has to demonstrate a genuine concern for his subordinate. 

Leader’s use of dand for NEGATIVE as well as POSITIVE reinforcement 

Acc to kautilya administration of ‘dand’ is must to maintain control. ‘Fear of punishment’ is one of the necessary factors for maintaining control of systems, activities, and achievement of objectives.

Kautilya recommends participative decision

making . For quality decisions to be taken, decision of strategic importance should be preceded by consultation of experts who will be implementing it.

Number of advisors should be carefully

considered. Advisors/subordinates should be consulted

individually and then jointly. In this way, leader/manager will be able to have their true opinions.

The objectives to be achieved. The means of carrying out the task. Resources planning and mobilization. Deciding on the time and place factors. Contingency plan against failure.

A time frame has to be alloted to the entire decision making process so that critical timing of undertaking a project/task not lost.

Power and Success are INTERRELATED. 3 types of Power:- Power of Counsel Power of Authority Power of EnergyThese Powers helps to attained SUCCESSLeaders are adviced to use 3 powers to

demonstrate their “achivement orientation”

Man As Shaper Of His DESTINY

Man In Work Situation : Man The Variable

Man In Social Context: Man as An Exploiter

Man In Weaker Moments : Man The Corruptible

Proper Selection Wages & Salary Administration Contract of Employment Obligation of Employees Right of Employees Employee Unions Incentives & Overtime System Competency Enhancement Social Security

The conqueror shall think of the circle of states as a wheel, himself at the helm by the spokes through separated by intervening territory, as its rim.

The options of strategic relationships are as follows>

1.Sandhi (Peace)2.Vigrah (War)3.Asana (Staying Quiet)4.Yana (Preparing For War or Marching)5.Samsarya (Seeking Shelter)6.Dvaidhobhava (Dual Policy)

SANDHI (PEACE)Entering into a treaty is a peace.

Make peace with the equal and stronger. If there is equal advancement in peace and war he

should resort to peace.

VIGRAH (WAR)Doing injury is war. When prospering, he should make war.

open war and concealed war

ASANA (STAYING QUIET)

Remaining indifferent is staying quiet. If he were to think, ‘the enemy is not able to ruin my undertakings, I shall advance (myself) being intent carrying out my own undertakings’, he secures advancement by staying quiet.

YANA (PREPARING FOR WAR OR MARCHING)Augmentation of (power) is marching.Augmenting one’s own resources and powers for some future action or outcomes.

SAMSARYA (SEEKING SHELTER)Submitting to another is seeking shelter. Depleted in power,he should seek shelter.

With one whose strength is superior to the strength of the neighboring enemy.

Dvaidhibhava (dual policy)Resorting to peace (with one) and war (with another)

Many firms get into alliances to compete with their major business rivals. Here the strategy of Sandhi as well as Vigrah is followed.

Managers perspective has been changed nowadays from managing HUMAN RESOURCES to HUMAN RESPONSES, which is a key for organizational excellence.

Kautilya has given various techniques for taking the best out of people. They includes:

1. Proper selection2. Wage administration3. Competence enhancement4. Conflict resolution

Acc. To Kautilya, the competencies to be assessed and the

means to assess them for the selection of a candidate for

managerial position are as follows:>nationality and background>area specific/technical competence>perseverance and intelligence>boldness & presence of mind>energy, drive & ability to bear troubles>strength of character and a balance of

flexibility & stability

WAGE AND SALARY ADMINISTRATIONSecond step in managing human responses at

work place. Kautilya has given some rules regarding following for it:

1.Contract of employment2.Obligation of employees3.Rights of employees4.Obligation for employers5.Rights of employers

OBLIGATION OF EMPLOYEES Shall not refuse to do the work allotted to him,

if he has already received his salary. If there has been an agreement that no one

other than a particular employee may do a specific job, that employee should do the work accordingly, otherwise fined.

OBLIGATION OF EMPLOYERS Payment at proper time to ensure employee

satisfaction & happiness. In case of denial, a higher fine over & above the

wage is required to be paid. If any agreement has been signed, then that work

should not be given to anyone else. If employee does more work than agreed upon, he

should be compensated.

RIGHT OF EMPLOYEES Kautilya did not believe in the system of

“employment bond” An employee is bound for “completion of task” &

not for “ownership” If employee takes initiative and work more than

what is assigned, his efforts must be recognized and he should be compensated.

RIGHT OF EMPLOYERS

If employee does not complete the work in time agreed upon, employer can get it done by another employee, cost of which would be borne by the previous employee.

Employer has the right to disqualify work.

Kautilya gives comprehensive system of conflict resolution for dealing with situtaions of actual conflict.The solutions are conciliation( SAMA), gift (DAMA), dissension (BHEDA) and force (DAND).SAMA- conciliation conciliation is five fold.Praising of meritsmention of relationshipPointing of mutual benefitsShowing advantage in the futurePlacing self at others’ disposal

The methods of sama ie conciliation can be practiced through 6 diff.ways:>prasing the meritsMutual connectionMutual benefitsIdentification of interestsAwards and honours

DAMA ie giftsGifts can be monetary or non-monetary.It can take the following forms:>giving away something which one has the right to own to keep the other party happy>continuing the payment already being made even though one is not getting anything in exchange>returning somethimg which one acquired from other party

BHEDA ie dissension/discriminationCreating apprehension and reprimanding is dissension

DAND ie force/fearKilling and seizure of property constitutes force.

Methods of cognition:1. Directly perceived:seen and confirmd by

individual himself2. Unperceived:communicated by others3. Inference:forming an idea about what

has not been done from what has been done in reference to an activity /project

Purpose of gathering information To know To confirm Removal of doubt Finding out the rest

PRINCIPLES OF EFFECTIVE COMMUNICATION

Excellences of effective writing:

1.Proper arrangement:logical building of content

2.Connection:linking themes3.Completeness:written document being

‘just right’4.Sweetness:using beautiful words5.Exaltedness:use of sober language6.Lucidity:ensure easy understanding

DEFECTS OF WRITING

Absence of charm:unattractive document shows casual approach to communication

Contradiction:incompatibility of themes,message not conveyed

Repetition:makes document uninteresting Incorrect use of a word:using right word in

wrong context,leads to ambiguity Confusion:not grouping similar themes n

grouping dissimilar themes

NON VERBAL COMMUNICATION

Communication becomes stronger if words are accompanied by facial expression and right body language

Judicious use of expressions n gestures

IDEAL BEHAVIOUR OF SUPERINTENDENT

All the Superintendents should be appointed to work according to their capacity.

He should be cognizant of the worker, the office, the place, the time, work to be done and the profit in these undertakings.

Kautilya advocated that the superintendent should keep check on workers to ensure that right work is done at right place and at right time.

Control on the managers is also exercised through a budgeting system.

RESPONSIBILITIES OF A SUPRINTENDENT

Objective and activity planning for the department.

Budgetory planning. Reporting the revenue and expenditure of the

department. Being accountable for achieving profit targets. Using the delegated authority for organisational

excellence.

REVENUE BUDGETING A budget statement has to be prepared

consisting of the revenue estimate, accrued revenue, outstanding revenue, income and expenditure and balance amount.

CALCULATION OF INCOME AND EXPENDITURE

ACTUAL INCOME is calculated under : > Current income. > Transferred income. > Miscellaneous income.

ACTUAL EXPENDITURE is shown under : > Budgeted day to day expenditure. > Unbudgeted day to day

expenditure. > Foreseen periodic-fortnightly,

monthly or annual expenditure.

Consumer Protection measures broadly relate to the following:

FRAUD- Kautilya says it is the duty of the state to protect the people from such persons who are not thieves but neverthless cheat and rob the people indirectly.

CHEATING THROUGH IMPROPER WEIGHTS AND MEASUREMENT- Kautilya insists on only certified weights and measure to be used by traders which should be examined periodically by the supreintendent of markets.

HOARDING AND BLACK MARKETING- The trader who hoard the commodities to create shortage and sell them at higher price should be punished by charging heavy fines.

UNJUSTIFIED PRICE RISE- Traders were supposed to earn maximum profit on imported goods, and they were fined heavily if they raised the prices of commodity.

ADULTERATION- Traders who sell adulterated products of a similar kind, should be punished.

CONTROLLING SERVICES- Services considered for consumer protection included those of weavers, repairers,tailors,etc. quality of service provided was supposed to be consistent.

These six factors if considered in modern corporate context will be good indicator to decide against or in favour of launching a marketing campaign:

Power Place Time Man Power Mobilization Impact of Future Campaign on Present

Operations Losses,Expenses andGains.

POWERPower is(possession of)strength. Power is

three fold : the power ofknowledge is the power of counsel,the

power of the treasury and the armyis the power of might,the power of valour is

the power of energy.

PLACEPlace means earth. That in which there is

terrain suitable for the operations ofone’s own army and unsuitable for those of

the enemy is the best region,theopposite kind is the worst, alike to both is

the middling .

TIMETime is of the nature of cold,heat and rain.It

various parts are:night,dry,fortnight,month,season,half year, year and ‘yuga’.In them, he should start work that would augment his own strength.

MAN POWER MOBILISATIONHe(king) should carry out the raising of

troops so as to withstand enemy troops, in conformity with the sterngth of his own troops and in accordance with the various types of division (and tasks).

Impact of future campaign on present operations.While launching a new marketing campaign,be it a new product launch,or entering into a new territory or segments, care should be taken that it is not at cost of the health of established business.The expectations of a large future gain which is still only an expectation and not the reality is not greater than the reality of benefits of present operation.

Losses, Expenses and GainsThe king shall undertake a march when the

expected gain outweighs the losses and expenses. Loss means loss of trained men and

materials.