Tejal Dhulla Shobhana Panikar Jyotsna Golhar Lessons from Management Theory and Practice Arthashastra
Tejal Dhulla
Shobhana Panikar
Jyotsna Golhar
Lessons from Management Theory and Practice
Arthashastra
Organisation
Vision Mission Motivation
Structure
Sovereignty
Leadership
Traits and Attributes
Style of Leadership
Time Management
Competency Management
Business Ethics & Corporate governance
Functional Areas
FM
HR
Foreign Policies
Defense
Knowledge Management
Diplomacy
CSR
DELIVERABES
ORGANISATION
Vision, Mission, MotivationMODERN MANAGEMENT KAUTILYA
ORGANIZATION'S VISION MISSION MOTIVATION
Leadership team committed to the
organization’s core values,
purpose, mission, and vision
Vision (Prabhu Shakti),
Mission (Mantra Shakti), and
Motivation (Utsah Shakti)
Need to focus on:
leadership requirements
organizational strategies
human dimensions
GOALS
SMART-specific, measurable,
attainable, relevant, and time-
based goals
TIME MGMTUnderstand the determined goalNote everything (Assignments)Prioritize the commitmentsCheck the list regularly
MODERN MANAGEMENT KAUTILYA
POLICY MAKING
1. Financial Stability2. People Stability3. Learning Stability4. Vision Stability
The policy, following
which he were to see the
achievement nor the
decline of his own
undertakings, constitutes
stable condition (7.1.28)
Vision, Mission, Motivation
ORGANISATION STRUCTURE
(Prime Minister)
Mantris Ministers SenapatiDefence Minister
PurohitChief
Justice
Yuvaraj
(identified successor )
SOVEREIGNTY
Elements Of
Sovereignty
Swami
King
AmatyaMinister
Janapada
Country
Durga
Fort
Kosha
Treasury
Danda
Army
Mitra
Friend
Source: Chapter II "Peace and Exertion " in Book VI, "The Source of Sovereign States" of theArthasástra of Kautilya. End of the ninety-eighth chapter from the beginning. With this ends theseventh Book "The Source of Sovereign States" of the Arthashastra of Kautilya.]
7 Pillars of leadership, management and business
THE KING (The leader)
THE MINISTER (The manager)
THE COUNTRY (Market)
THE FORTIFID CITY (Head office)
THE TREASURY(Accounts)
THE ARMY (Team)
THE ALLY (friend / consultant)
MODERN MANAGEMENT KAUTILYA
LEADERSHIP
Traits and Attributes of a Leader-AMATYA
Stogdill (1990) Kautilya (6.1.2-6)
Adaptable to situations Have foresight to avail himself of theopportunities by choosing the right time,place and type of actionKnow when to fight and when to make peace
Alert to social environment
Grasping, retaining, understanding,rejecting false views, and adhering totrue ones
Ambitious & achievement oriented
Eloquent, having lofty aims
Assertive Bold
Source: Bass & Stogdill's Handbook of Leadership: Theory, Research & Managerial 3 Sub edition(July 23, 1990)
MODERN MANAGEMENT KAUTILYA
Traits and Attributes of a Leader-AMATYA
Stogdill (1990) Kautilya (6.1.2-6)
Cooperative Listening to others
Decisive Just in rewarding and punishing
Dependable Disciplined, not breaking promises, not being dilatory
Energetic Energetic, quick, and dexterous
Persistent Determined
Self confident Well trained in all the arts, able to lead the army
Tolerant of stressShould eschew passion, anger, greed, obstinacy, fickleness and backbiting
Willing to assume responsibilityShould know how to govern in normal times and in times of crisis
Source: Bass & Stogdill's Handbook of Leadership: Theory, Research & Managerial 3 Sub edition(July 23, 1990)
MODERN MANAGEMENT KAUTILYA
King (a leader) should be a “Rajarishi” wise like a sage
Source: Bhattacharjee A. (2012), Modern Management Through Ancient Indian Wisdom: Towards aMore Sustainable Paradigm, School of Management Sciences, Varanasi [Online]Available from: http://www.inflibnet.ac.in/ojs/index.php/PS/article/viewFile/1053/911
MODERN MANAGEMENT KAUTILYA
Avoiding extremes Having self-control
Knowledge Being well-educated in variousbranches of knowledge
Information gathering Cultivating intellect by associationswith elders and keeping eyes openthrough spies
Corporate Governance Ensuring observance of dharma(righteousness) by people by authority
Business Ethics Avoiding associations with harmfulpersons / indulging in harmfulactivities
Decision – Making
Edward de-Bono:“The most intelligent man is the one who can look at two different contradictory viewpoints at the same time and arrive at his own decision.”
Source: Pillai R. Management Fundamentals in Arthashastra
Ancient Indian books start with: invocation of a deity
Arthashastra begins with invocation of two great AcharyasSukracharya and Brihaspati (Gurus) of the Asuras and the Devas. “Om Namah Sukra-brihaspatibhyam‖
Kautilya considered differing viewpoints of the extremes before reaching any decision.
Arthashastra based on logical discussions taking into consideration all kinds of ideas of various Acharyas
Style of LeadershipMODERN MANAGEMENT KAUTILYA
Servant leadership
―Intense will and humility are
the most important characteristics
of leaders in the 21st century…
Leaders strive to build enduring
greatness through a paradoxical
blend of personal humility and
professional will!‖ (- Jim Collins)
Self-discipline, integrity,
courage, decisiveness,
sensitivity towards others,
humility and selflessness
Sensitive to needs, feelings,
and motivation of the people
they lead
(Source: Pande P. (2009), Timeless Concepts of Leadership & Management, The CEO Advantage Journal [Online] Available from: http://www.theceoadvantage.com/advisors/articles/Timeless%20Concepts%20of%20Leadership%20&%20Management.pdf
Time Management for Leader
Source: Pillai R. Management Fundamentals in Arthashastra
•Knowledge
•Skill
•Attitude
Competency Management
• Drudhachitta
• (power of concentration),
• Shilavan
• (character),
• Pragna
• (thinking capability),
• Vangmi
• (communication skills)
• Daksha
• (observation/ vigilance)
MANTRI
MODERN
MANAGEMENT
KAUTILYA
Pearls of wisdom from Arthashastra
Planning
• By failing to plan, you areplanning to fail. Every effectiveperformance is based onthorough preparation.
• You should be firm about yourgoal, but flexible about theprocess of reaching the goal
Success
•Most important basis of success in any venture ispragmatism. Do not ask where the new idea camefrom or who thought of it first. does it work?
•Ignorance of universal laws is no excuse.Violation of these laws forces one to pay fullpenalty through underachievement, frustrationand failure.
•Success needs action. Action needs initiative.
•For sustaining success, initiative to collectfeedback is important. Feedback allows you totake corrective action, which sustains success.
•For every effect, there is a specific cause.
•Success is not an accident.
•Success is not based on chance.
•Success is not a matter of luck.
•Success is the result of well thought out action
BUSINESS ETHICS &
CORPORATE GOVERNANCE
FUNCTIONAL AREAS
FINANCIAL MANAGEMENTDistribution of Profits/Earnings: Kautilya's Arthashastra "…..He may enjoy in equal degree the three
pursuits of life, charity, wealth and desire, which are inter-dependent on each other. Any one of thesewhen enjoyed to an excess, hurts not only the other two, but also itself.“
-business organization distributes and manages its profit to determine future financial wellbeing
-wealth is important for charity and desire depend upon wealth for their realization
Examination and Auditing: stress has been given both on fraud prevention as well as frauddetection. Kautilya had listed several ways by which funds are misappropriated. Some of thesefrauds relevant in today's corporate environment are as follows:
(a) Falsification with a motive of personal profit.
(b) Misrepresentation (of income received or expense incurred) with a motive of personal profit:
(c) Discrepancies (arising out of willful fraud) in:- Personally supervised work
- Account heads
-Labour and overhead charges
-Work measurement
Kautilya admitted that some degree of corruption would always exist, and cannot be scrutinizedperfectly,
'It is possible to mark the movements of birds flying high up in the sky; but not so is it possible to ascertainthe movement of personnel of hidden purpose.'
-strictest punishment, both material and corporal, as a disincentive to cheat.
Source: Compiled By Mrs. Gayathri Ranjit,Senior Lecturer, Operations & Systems,TKMInstitute of Management,Kollam, Kerala
Profit Distribution Model: Kautilya's Arthashastra Balancing ApproachThe successful companies of our contemporary world, like TATA, INFOSYS, Ford andMicrosoft Corp. are virtually working by the same approach of profit distribution. Theyshow a prudent balance in their dividend distribution, retention of funds and inphilanthropic activities.
HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENTMODERN MANAGEMENT KAUTILYA
Emphasizes having the“right people on the bus”as the top priority for anyexecutive. Non-technical qualitiesrequired as attitude,knowledge, and skill
Great emphasis on human resourcedevelopment Identified basic non-technical qualitiesrequired for every effective executive:
Character (Shilavan)Ability To Concentrate (Drudhachitta)Ability To Think (Pragna)Ability to communicate (Vangmi)Ability to observe (Daksha)
Yuvraj Training on:economic administration (Arthashastra) foreign affairs (Nitishastra)political science(Dandaniti )
(Source: Pande P. (2009), Timeless Concepts of Leadership & Management, The CEO Advantage Journal [Online] Available from: http://www.theceoadvantage.com/advisors/articles/Timeless%20Concepts%20of%20Leadership%20&%20Management.pdf
Foreign Policy
• Assumption: Every nation acts to maximize power and self-interest;moral principles or obligations have little or no force in actionsamong nations.
• An alliance will last only as long as it is in both sides’ self-interest– “an ally looks to the securing of his own interests in the event of
simultaneity of calamities and in the event of the growth of the enemy’spower.”54
• War or peace depends entirely upon the self-interest of, or advantageto, one’s kingdom:– “War and peace are considered solely from the point of view of
profit.”55
• One keeps an ally not because of goodwill or moral obligation, butbecause one is strong and can advance one’s own self-interest as wellas the self-interest of the ally– “when one has an army, one’s ally remains friendly, or (even) the enemy
becomes friendly.”56
• Nations always act in their political, economic, and military self-interest even times of peace have the potential to turn abruptlyinto times of war, allies into enemies, and even enemies into allies.
Mandala Strategy– Foreign Policy
Source: Chairil T. (2013), Historic Antecedents of Realist IR Theories (2): Kautilya
[Online] Available from: http://tghchrl.weebly.com/2/post/2013/09/historic-
antecedents-of-realist-ir-theories-2-kautilya.html
DEFENCE
• 5 forms of peace– Peace with no definite terms (aparipanita)– Peace with no specific end (akritachikírshá)– Peace with binding terms (kritasleshana)– The breaking of peace (kritavidúshana)– Restoration of peace broken (apasírnakriyá)
• 3 forms of war– Open battle– Treacherous battle– Silent battle
Source: Chairil T. (2013), Historic Antecedents of Realist IR Theories (2): Kautilya[Online] Available from: http://tghchrl.weebly.com/2/post/2013/09/historic-antecedents-of-realist-ir-theories-2-kautilya.html
It is very important for a person to be well informed, but the important question is, why is this information required?
Coming to know what is known, definite strengthening of what has becomeknown, removal of doubt in case of two possible alternative, finding out the restin matter that it is partly known – this can be achieved with the help ofministers (1.15.20-21)
• Some information we get which may already familiar to us
• On other cases we may get a half – bake resources, which wouldrequire another information source to understand clearly.
• Some times we may get controversial news, first news which wereceived may be positive but next time we may get a negative one.
• Some times the information reached to our end may beoverloaded, or may contain Gossips, rumors and personal viewpoints etc.,
According to Kautilya there are 4 types of Information:
Knowledge Management
Knowledge Management
Small difference in ability can lead to enormous differences in results.
Main aim throughout one's career is to identify, acquire and develop thesedifferences, which yield superior results.
Knowledge is important. Knowledge is cumulative. Once it exists, it grows.Every new piece of knowledge reveals connections with other areas ofknowledge. Each breakthrough in knowledge creates new opportunities thatexpand and multiply.
Thinking is creative. You can create your world by the way you think. Situationand people have the meaning you give them. When you change your thinking,you change your life. To take control of your life, you must take control of yourmind.
Science and Technology/Knowledge
Source: Boesche R. The First Great Political Realist: Kautilya and His Arthashastra [Online] Available from: http://www.defencejournal.com/2003/mar/kautilya.htm
Like Thomas Hobbes, Kautilya believed - Goal of science was power.
“An arrow, discharged by an archer, may kill one person or may not kill (even one); but intellect operated by a wise man would kill even children in the womb.‖ (10.6.51: 453.)
Beyond projecting the kingdom, the King who uses Kautilya’s science “can bring to himself and his subjects the three goods of life — material gain, spiritual good and pleasures.” (9.7.60: 431.)
―The science which is the means of the attainment and protection of that earth is the Science of Politics‖. (15.1.1-2: 512)
Different kinds of spies (particular role & status)
Amatya (King)
king's five eyes-internal intelligence primarilystationary deployment
four kinds of spies (short term)
•travel, move around, and•may even be deployed in realms beyond their own
use of mentally and physically disabled people for gathering
intelligence, acknowledging in a deeply practical manner, that many of these are least likely to be suspected
students, teachers, ascetics, entertainers, jugglers, beggars, traders, farmers, and so on can be recruited to
serve as spies with different roles, inducements and rewards
high status spies –
business leaders,
aristocrats or intellectual -
only communicate with
the head of intelligence or
directly with the king.
women spies -conduit of information between the stationary and roaming branches of espionage, -sole crucial link between the two branches of intelligence gathering
DIPLOMACY
DIPLOMACY
Sandhi
Vigraha
Asana
Dvaidhibhava
Samsarya
Yana
Kautilya elaborates on strategies for not only the strong king and the aggressorbut also explains the strategies a weak king should follow to defend himselfand protect the state.
CSR
CSR
• Kautilya’s Arthashastra provides some tips forthe Effective CSR they are:
Take Responsibility
Contribute to Society
Encourage People
"The King should look to the bodily comforts of his servants by providing
such emoluments as can infuse in them the spirit of enthusiasm to work. He
should not violate the course of righteousness and wealth. Thus, he shall not only maintain his servants,
but also increase their subsistence and wages in consideration of their
learning and work."
Some lessons in nutshell
Good governance and financial stability go hand in hand
There is stability if rulers (managers) are responsive, responsible,accountable, removable, and recallable, otherwise there would be instability
There is no country without people, and no kingdom without a country
Some lessons in nutshell
Education is the best friend. An educated person is respected everywhere.Education beats the beauty and the youth.
Books are as useful to a stupid person as a mirror is useful to a blindperson
Once you start a working on something, don't be afraid of failure and don'tabandon it. People who work sincerely are the happiest
Some lessons in nutshell
As soon as fear approaches near, attack and destroy it
A person should not be too honest. Straight trees are cut first andHonest people are screwed first
Before you start some work, always ask yourself three questions -Why am I doing it, what the results might be and will I be successful.Only when you think deeply and find satisfactory answers to these questions, go ahead
References• Pande P. (2009), Timeless Concepts of Leadership & Management, The CEO
Advantage Journal [Online] Available from:
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• Bharati Mukherjee, “Kautilya’s Concept of Diplomacy”, August 1976,Minerva Associates Publications, Calcutta, India. ISBN: O-88386-504-1
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• Roger Boesche, “Kautilya’s Arthashastra on War and Diplomacy inAncient India”, The Journal of Military History, Vol. 67, (January 2003), pp 9-38
• Ritu Kohli, “Kautilya’s Political Theory – Yogakshema: The Conceptof WelfareState”, 1995, Deep and Deep Publications, ISBN 81-7100-802-x
References
DISCUSSION
QUESTION AND ANSWERS