Arthashastra. Lessons from Management Theory and Practice. Tejal Dhulla. Jyotsna Golhar. Shobhana Panikar

Transcription

1 Arthashastra Tejal Dhulla Jyotsna Golhar Shobhana Panikar Lessons from Management Theory and Practice

2 DELIVERABES 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

3 ORGANISATION

4 MODERN MANAGEMENT Vision, Mission, Motivation KAUTILYA ORGANIZATION'S VISION MISSION MOTIVATION Leadership team committed to the organization s core values, purpose, mission, and vision SMART-specific, measurable, attainable, relevant, and timebased goals Vision (Prabhu Shakti), Mission (Mantra Shakti), and Motivation (Utsah Shakti) Need to focus on: leadership requirements organizational strategies human dimensions GOALS TIME MGMT Understand the determined goal Note everything (Assignments) Prioritize the commitments Check the list regularly

5 Vision, Mission, Motivation MODERN MANAGEMENT 1. Financial Stability 2. People Stability 3. Learning Stability 4. Vision Stability POLICY MAKING KAUTILYA The policy, following which he were to see the achievement nor the decline of his own undertakings, constitutes stable condition (7.1.28)

6 ORGANISATION STRUCTURE (Prime Minister) Mantris Ministers Senapati Defence Minister Purohit Chief Justice Yuvaraj (identified successor )

7 SOVEREIGNTY MODERN MANAGEMENT 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) Danda Army Mitra Friend Swami King Elements Of Sovereignty Kosha Treasury KAUTILYA Durga Fort Amatya Minister Janapada Country Source: Chapter II "Peace and Exertion " in Book VI, "The Source of Sovereign States" of the Arthasástra of Kautilya. End of the ninety-eighth chapter from the beginning. With this ends the seventh Book "The Source of Sovereign States" of the Arthashastra of Kautilya.]

8 LEADERSHIP

9 Traits and Attributes of a Leader-AMATYA MODERN MANAGEMENT KAUTILYA Stogdill (1990) Kautilya ( ) Adaptable to situations Have foresight to avail himself of the opportunities by choosing the right time, place and type of action Know when to fight and when to make peace Alert to social environment Ambitious & achievement oriented Assertive Grasping, retaining, understanding, rejecting false views, and adhering to true ones Eloquent, having lofty aims Bold Source: Bass & Stogdill's Handbook of Leadership: Theory, Research & Managerial 3 Sub edition (July 23, 1990)

10 Traits and Attributes of a Leader-AMATYA MODERN MANAGEMENT KAUTILYA Stogdill (1990) Kautilya ( ) Cooperative Decisive Listening to others Just in rewarding and punishing Dependable Energetic Persistent Self confident Tolerant of stress Willing to assume responsibility Disciplined, not breaking promises, not being dilatory Energetic, quick, and dexterous Determined Well trained in all the arts, able to lead the army Should eschew passion, anger, greed, obstinacy, fickleness and backbiting Should 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)

11 King (a leader) should be a Rajarishi wise like a sage MODERN MANAGEMENT Avoiding extremes Having self-control KAUTILYA Knowledge Being well-educated in various branches of knowledge Information gathering Cultivating intellect by associations with elders and keeping eyes open through spies Corporate Governance Ensuring observance of dharma (righteousness) by people by authority Business Ethics Avoiding associations with harmful persons / indulging in harmful activities Source: Bhattacharjee A. (2012), Modern Management Through Ancient Indian Wisdom: Towards a More Sustainable Paradigm, School of Management Sciences, Varanasi [Online] Available from:

12 Decision Making Ancient Indian books start with: invocation of a deity Arthashastra begins with invocation of two great Acharyas Sukracharya 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 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

13 Style of Leadership MODERN MANAGEMENT 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) KAUTILYA 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: Leadership%20&%20Management.pdf

14 Time Management for Leader Source: Pillai R. Management Fundamentals in Arthashastra

15 Competency Management MODERN MANAGEMENT KAUTILYA Knowledge Skill Attitude MANTRI Drudhachitta (power of concentration), Shilavan (character), Pragna (thinking capability), Vangmi (communication skills) Daksha (observation/ vigilance)

16 Pearls of wisdom from Arthashastra Planning By failing to plan, you are planning to fail. Every effective performance is based on thorough preparation. You should be firm about your goal, but flexible about the process of reaching the goal Success Most important basis of success in any venture is pragmatism. Do not ask where the new idea came from or who thought of it first. does it work? Ignorance of universal laws is no excuse. Violation of these laws forces one to pay full penalty through underachievement, frustration and failure. Success needs action. Action needs initiative. For sustaining success, initiative to collect feedback is important. Feedback allows you to take 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

17 BUSINESS ETHICS & CORPORATE GOVERNANCE

18 FUNCTIONAL AREAS

19 FINANCIAL MANAGEMENT Distribution 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 these when enjoyed to an excess, hurts not only the other two, but also itself. -business organization distributes and manages its profit to determine future financial well being -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 fraud detection. Kautilya had listed several ways by which funds are misappropriated. Some of these frauds 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 scrutinized perfectly, 'It is possible to mark the movements of birds flying high up in the sky; but not so is it possible to ascertain the 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,TKM Institute of Management,Kollam, Kerala

20 Profit Distribution Model: Kautilya's Arthashastra Balancing Approach The successful companies of our contemporary world, like TATA, INFOSYS, Ford and Microsoft Corp. are virtually working by the same approach of profit distribution. They show a prudent balance in their dividend distribution, retention of funds and in philanthropic activities.

21 HUMAN RESOURCE MANAGEMENT

22 HUMAN RESOURCE MANAGEMENT MODERN MANAGEMENT Emphasizes having the right people on the bus as the top priority for any executive. Non-technical qualities required as attitude, knowledge, and skill KAUTILYA Great emphasis on human resource development Identified basic non-technical qualities required 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: Leadership%20&%20Management.pdf

23 Foreign Policy Assumption: Every nation acts to maximize power and self-interest; moral principles or obligations have little or no force in actions among 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 s power. 54 War or peace depends entirely upon the self-interest of, or advantage to, 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, but because one is strong and can advance one s own self-interest as well as 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 selfinterest even times of peace have the potential to turn abruptly into times of war, allies into enemies, and even enemies into allies.

24 Mandala Strategy Foreign Policy Source: Chairil T. (2013), Historic Antecedents of Realist IR Theories (2): Kautilya [Online] Available from:

25 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:

26 Knowledge Management 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 become known, removal of doubt in case of two possible alternative, finding out the rest in matter that it is partly known this can be achieved with the help of ministers ( ) According to Kautilya there are 4 types of Information: Some information we get which may already familiar to us On other cases we may get a half bake resources, which would require another information source to understand clearly. Some times we may get controversial news, first news which we received may be positive but next time we may get a negative one. Some times the information reached to our end may be overloaded, or may contain Gossips, rumors and personal view points etc.,

27 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 these differences, 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 of knowledge. Each breakthrough in knowledge creates new opportunities that expand and multiply. Thinking is creative. You can create your world by the way you think. Situation and 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 your mind.

28 Science and Technology/Knowledge 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. ( : 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. ( : 512) Source: Boesche R. The First Great Political Realist: Kautilya and His Arthashastra [Online] Available from:

29 Different kinds of spies (particular role & status) king's five eyesinternal intelligence primarily stationary deployment four kinds of spies (short term) travel, move around, and may even be deployed in realms beyond their own high status spies business leaders, aristocrats or intellectual - only communicate with the head of intelligence or directly with the king. Amatya (King) women spies -conduit of information between the stationary and roaming branches of espionage, -sole crucial link between the two branches of intelligence gathering students, teachers, ascetics, entertainers, jugglers, beggars, traders, farmers, and so on can be recruited to serve as spies with different roles, inducements and rewards 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

30 DIPLOMACY

31 DIPLOMACY Sandhi Yana Vigraha Samsarya Asana Dvaidhibhava Kautilya elaborates on strategies for not only the strong king and the aggressor but also explains the strategies a weak king should follow to defend himself

32 CSR

33 CSR Kautilya s Arthashastra provides some tips for the Effective CSR they are: Take Responsibility Contribute to Society Encourage People

34 "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."

35 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

36 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 blind person Once you start a working on something, don't be afraid of failure and don't abandon it. People who work sincerely are the happiest

37 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 and Honest 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

38 References Pande P. (2009), Timeless Concepts of Leadership & Management, The CEO Advantage Journal [Online] Available from: Bhattacharjee A. (2012), Modern Management Through Ancient Indian Wisdom: Towards a More Sustainable Paradigm, School of Management Sciences, 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 of Financial Management and Economic Governance", Jaico Books Mumbai Waldauer Charles, William J. Zahka and Surendra Pal (1996), "Kautilya' Arthashastra : A Neglected Precursor to Classical Economics", Indian Economic Review, Vol XXXI, No.1, pp Kenneth G.Zysk, Kautilya s Arthshastra; A Comparative Study, Journal of the American Oriental Society, Vol. 107, No. 4 (Oct Dec 1987), pp Torkel Brekke, Weilding the Rod Punishment War and Violence in the Politcal Science of Kautilya, Journal of Military Ethics, Vol 3, No. 1 (2004), pp 40-52

39 References Roger Boesche, Moderate Machiavelli? Contrasting The Prince with Arthshastra of Kautilya, Critical Horizons, 2002, Vol. 3 Issue 2, p253, 24p Roger D. Spegele, Three forms of Political Realism, Political Studies, Vol. 35 (1987), pp Kauṭiliyam Arthaśāstram. The Arthasastra of Kautilya. Ed. by R. Shama Sastri, Mysore Printed at the Government Branch Press, Xxi, 429, 6 p. 23 cm Bharati Mukherjee, Kautilya s Concept of Diplomacy, August 1976, Minerva Associates Publications, Calcutta, India. ISBN: O V. K. Gupta, Kautilyan Jurisprudence, B.D Gupta Publishers, E. V. Walter, Power and Violence, The American Political Science Review,Vol. 58, No. 2 (Jun. 1964), pp Roger Boesche, Kautilya s Arthashastra on War and Diplomacy in Ancient India, The Journal of Military History, Vol. 67, (January 2003), pp 9-38 Ritu Kohli, Kautilya s Political Theory Yogakshema: The Concept of WelfareState, 1995, Deep and Deep Publications, ISBN x

40 QUESTION AND ANSWERS DISCUSSION