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:

• Bhattacharjee A. (2012), Modern Management Through Ancient IndianWisdom: Towards a More Sustainable Paradigm, School of ManagementSciences, Varanasi

• Chamola S.D. (2007), "Kautilya Arthshastra and the Science of Management:Relevance for the Contemporary Society", Hope India Publications – New Delhi

• Priyadarshni Academy (2009), "Kautilya's Arthashastra: The Way ofFinancial Management and Economic Governance", Jaico Books – Mumbai

• Waldauer Charles, William J. Zahka and Surendra Pal (1996), "Kautilya'Arthashastra : A Neglected Precursor to Classical Economics", IndianEconomic Review, Vol XXXI, No.1, pp 101-108

• Kenneth G.Zysk, “Kautilya’s Arthshastra; A Comparative Study”, Journal ofthe American Oriental Society, Vol. 107, No. 4 (Oct – Dec 1987), pp 838-839

• Torkel Brekke, “Weilding the Rod Punishment – War and Violence in thePolitcal Science of Kautilya, Journal of Military Ethics, Vol 3, No. 1 (2004), pp40-52

• Roger Boesche, “Moderate Machiavelli? Contrasting The Prince withArthshastra of Kautilya, Critical Horizons, 2002, Vol. 3 Issue 2, p253, 24p

• Roger D. Spegele, “Three forms of Political Realism”, PoliticalStudies, Vol. 35 (1987), pp 189-210

• Kauṭiliyam Arthaśāstram. The Arthasastra of Kautilya. Ed. by R.Shama Sastri, Mysore Printed at the Government Branch Press, 1909.Xxi, 429, 6 p. 23 cm

• Bharati Mukherjee, “Kautilya’s Concept of Diplomacy”, August 1976,Minerva Associates Publications, Calcutta, India. ISBN: O-88386-504-1

• V. K. Gupta, “Kautilyan Jurisprudence”, B.D Gupta Publishers, 1987.E. V. Walter, “Power and Violence”, The American Political ScienceReview,Vol. 58, No. 2 (Jun. 1964), pp. 350-360.

• 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