Management aspect derived from kautilya's arthashastras

Management Fundamentals
in Kautilya’s
)HJD=ID=IJH= – I
RADHAKRISHNAN PILLAI

This is the first of a series of articles on management principles as
seen in Kautilya’s Arthashastra. The author, Sri Radhakrishnan Pillai,
has done the ‘Interdisciplinary Sanskrit and Indology Course’ on
Arthashastra in the Chinmaya International Foundation, with
Dr. Gangadharan Nair, Dean of Shree Shankaracharya Samskrit
University, as his study guide. Radhakrishnan is also the founder-
director of Atma Darshan, which has won even international honours
in the field of spiritual tourism within a short span of three-and-a-half
years. His experience in the field of marketing and logistics in the
last thirteen years gives an interesting practical edge to the articles.

Introduction courses from best possible
Management is a subject that institutes due to this demand.
evolved as a science starting A company or a corporation
mid-20th century. Peter Drucker today is much more than a busi-
is crowned with the title of ness machine. They are employ-
‘Father of Management’ and is ment generators, wealth cre-
also called a Management Phi- ators and socially responsible
losopher. Today we find that entities. No doubt most of the
mangers including ‘manage- Fortune 500 companies are
ment trainees’ are in high ‘Semi-Governments’ by them-
demand in the corporate world selves. They have a large say in
and it is the highest paid pro- decision making and policy for-
fession across the globe. We can mation at both national and
see the large number of students international levels. Therefore
who are racing to do MBA Management and managers

have direct and indirect import ‘knowledge’. We have contri-
on our daily lives. buted some of the greatest theo-
The quality of managers ries and concepts in all fields
being produced at Management which had helped in the deve-
institutes and the output of lopment of human civilisation.
managers in various organisa- Today, most of the compa-
tions is an essential area that we nies are run, based on concepts
need to monitor on a regular that evolved from the West,
basis. Countries are getting mostly America, and Japan.
compressed and the world is Every country has its own
becoming a global village. Only unique culture and so its Man-
if our generation can generate agement style also has to be
value-based and principle- unique to fit into its own
centred leaders, can we look for- culture. Americans developed
ward to a peaceful, co-operative their own management system,
and productive world which is so did the Japanese. So, what is
the dream of great visionaries. the Indian Management System
Good and effective managers and how is it different from
are required in most fields and other systems and theories?
not just in business enterprises. Do we have anything
The areas of politics, science, ‘unique’ to contribute to the
law, health, defence and even evolving thought of Manage-
spiritual organisations are look- ment research and study? This
ing forward to good managers is an area of discussion in most
and to opinions and suggestions of the Management forums,
of management thinkers. seminars and conferences.
Indians are occupying top When such questions criss-
positions in some of the best cross our minds, we need to ask
companies across the globe. ourselves a fundamental ques-
They are in high demand to run tion – is Management just a 50-
companies productively and year-old science? What are the
efficiently. Many of them have Management principles due to
also started companies which which India was such a pros-
show tremendous growth rates perous nation for over 5,000
year after year. years of history?
India has always been a To understand this we need
country of ‘thinkers’. Bharat to look back into our ancient
means a country that revels in Scriptures. While digging the

treasures of knowledge our able student Chandragupta
Rishis left for us, we come across Maurya on the throne as the
a unique book called Kautilya’s emperor. Hence he is called a
Arthashastra. ‘King Maker’. He is also cre-
dited to have masterminded the
Background of Arthashastra
defeat of Alexander in India
Kautilya’s Arthashastra is the when the latter was on his
oldest book on Management march to conquer the world.
available to the world. It was As a political thinker, he was
written by Kautilya (also known the first to visualise the concept
as Chanakya and Vishnugupta) of a ‘nation’ for the first time in
around 350 BC. When literally human history. During his time
translated, it means ‘Scripture of India was split into various
Wealth’. The main focus of the kingdoms. He brought all of
book is on the creation and them together under one cen-
management of wealth. tral governance, thus creating a
However, the book is a mas- nation called ‘Aryavartha’,
terpiece which covers a wide which later became India.
range of topics like statecraft, He documented his lifelong
politics, military warfare, law, work in his book Kautilya’s
accounting systems, taxation, Arthashastra. For ages, rulers
fiscal policies, civil rules, inter- across the world have referred
nal and foreign trade etc. It also to the Arthashastra for building
covers various technical subjects a nation on sound economics,
including medicine, gemmo- based on spiritual values.
logy, metallurgy, measures of Emperor Ashoka is supposed to
length, tables of weights and have built and expanded his
divisions of time, among many kingdom on the principles
others. described in this book. Shivaji,
No wonder scholars down the ruler of Maharashtra, is said
the centuries have time and to have studied this book in
again described Kautilya as a order to plan and defeat the
rare mastermind who could be Mughals. The forts that he built
an expert in so many varied and and the navy he created stand
specialised fields. till today as an example for all
Kautilya was responsible in of us to be proud of.
bringing down the Nanda Even though India and
dynasty and establishing his Indians never forgot the

Arthashastra, the study and Om. Salutations to Sukra
practical application of the book and Brihaspati
lost its importance for quite a There is an important insight
few centuries. we can get from this. Kautilya
However, apart from being invokes the two great Acharyas
seen as a scholarly work, this (Gurus) of the Asuras and the
book today needs to be once Devatas. We find in the Puranas
again presented to all, for prac- that the Asuras and the Devatas
tical application in today’s were enemies and hence had
world. The book has many prin- two different viewpoints. This
ciples and techniques, which means that, Kautilya has con-
once applied, can cause a tre- sidered both the differing view-
mendous improvement even in points of the extremes before
our day-to-day management of reaching any decision. Edward
things and situations. de-Bono, the world-renowned
Kautilya’s Arthashatra thinker of ‘Lateral Thinking’
said, “The most intelligent man
We find the roots of Artha- is the one who can look at two
shatra in the Rig Veda. The Artha- different contradictory view-
shastra deals primarily with Eco- points at the same time and
nomics, Politics or Statecraft and arrive at his own decision.” This
Punishments; therefore it is also is the quality that a leader has
called Dandaniti. The Arthashas- to develop when there are peo-
tra is a book based on pure ple coming to him with contra-
logic, Anveshiki. Most of our dictory viewpoints. The book is
ancient Indian books start with based on logical discussions tak-
the invocation of a deity before ing into consideration all kinds
the writing of a book – in most of ideas of various Acharyas.
cases, Ganesha, the Lord who The Arthashastra contains
removes obstacles, and Saras- nearly 6000 sutras divided into
wati, the Goddess of Know- 15 books, 150 chapters, and 180
ledge. However, in Arthashastra, sections. The 15 books contained
we find that Kautilya begins by in the Arthashastra can be clas-
invoking Sukracharya and sified in the following manner:
Brihaspati. Book 1 on ‘Fundamentals of
Om Namah Sukra- Management’, Book 2 dealing
brihaspatibhyam with ‘Economics’, Books 3, 4

and 5 on ‘Law’, Books 6, 7 and Management Aspects
8 on Foreign Policies, and Books Though the book covers vari-
9 to 14 dealing with ‘war’. Book ous topics, in the following
15 deals with the methodology series of articles, we will be lim-
and devices used in writing the iting ourselves to the Manage-
Arthashastra. ment areas in the Arthashsatra.
Another interesting and Book 1, ‘Concerning the Topic
note-worthy fact is that Kautil- of Training’, is taken up, as
ya’s Arthashastra is not the first many aspects of the Fundamen-
Arthashastra. From a number of tals and Foundations of Man-
quotations and references in agement are contained in it. It
later works, we know that there has 500 sutras, divided into 21
were at least four distinct chapters and 18 sections. We
schools and thirteen individual will also be making a few refer-
teachers of Arthashastra before ences to the other books of
Kautilya. Throughout the book Arthashatra where topics of
he makes references to these Management have been dealt
various Acharyas who include with.
Bharadvaja, Visalaksa, Parasara, The areas covered under
Manu, Pisuna and Kaunapa- Management include - training,
danta, among others. The great- management education, leader-
ness of Kautilya was that he ship skills, selection of employ-
made the principles contained ees, consultation, crisis manage-
in his Arthashastra so applicable ment, risk management, strate-
that probably the previous gic management, corporate gov-
Arthashatras got lost with pas- ernance, information systems,
sage of time. The very reason intelligence network, competi-
that this book has come down tion, mergers and acquisitions,
to our generation after over 2200 etc. among many others.
years shows that he had really We will be taking an overall
fine-tuned each concept in such view of all these topics in the
a detailed manner that it sur- following articles.
vived the test of time. This Some may ask, ‘Is this book
shows the farsightedness of written over 2200 years ago still
Kautilya. He has worked on the applicable in today’s Manage-
psychology of the human mind ment world?’ To this, great
that never changes with time. thinkers have responded, ‘The

Arthashastra is a book about the agement consultants, intelli-
management of the ‘human gence agencies, public/civil ser-
mind’, which has remained vants, government officials,
quite the same over the ages’. military personnel, students of
Who can benefit from the various fields, etc. In fact Kau-
Management insights from the tilya’s Arthashastra is a must for
Arthashastra? They could be every intelligent person irre-
business leaders, managers, spective of which profession he
politicians, chartered accoun- belongs to.
tants, human resource person-
nel, management trainers, man-

in Kautilya’s
)HJD=ID=IJH= – II

The Topic of Training ‘knack’ of effective management
that consists of quick decisions,
When we study the lives of strategic movements, a quick
great businessmen and some of insight into the crux of any
the most productive managers, problem is not just acquired by
we note that very few of them a formal management training.
have had a formal education in
management. Both Bill Gates, Management is a
the richest man in the world. ‘Mindset’
and Warren Buffett, the second
richest man in the world have As we study the lives of
had no formal management these great leaders of society,
education. Many others like we observe that they have de-
Walt Disney or Akio Morita, the veloped an ‘intuitive’ insight
creator of Sony, too never went into situations that demand
to business schools. How is it their attention. Today our gen-
they could manage such huge eration has started considering
business empires? When and management as a subject that is
how did they achieve these learnt in various colleges and
great managerial skills? institutions. However , manage-
Even though formal educa- ment is not just a subject, but a
tion is very important, it is not ‘mindset’. This mindset can be
everything in management. The developed by anyone with ba-
sic education and a long period
of trial and error methods, con-
The author may be contacted by email at tinuous learning and years of
radhakrishnan@atmadarshan.com experience.

16 May 2005

The good news is that these Kautilya, who wrote the Artha-
great leaders can transfer their shastra, it took him years to train
managerial skills and years of Chandragupta Maurya to con-
experience to the next genera- quer the cruel Nanda King.
tion through a process of sys- Just like the ‘Law of the
tematic training. Farm’, in training too, we have
Training deals with selecting to go through the whole natu-
the right candidates, mentor- ral process. Selecting the right
ship, management of the senses seed, sowing it, watering it,
and continuous learning. Most waiting for it to sprout, pro-
importantly, it requires a lot of viding it the right amount of
patience. Training is not a sunlight, letting it grow in the
quick-fix solution. It is a long- right environment – none of the
term gain. It is looking at the stages can be avoided. Only in
larger picture in spite of short the right season and right time
term loss or failure. Today many do we enjoy the harvest.
companies are focusing on this Training deals with impart-
training aspect in a big manner. ing an understanding of some
Large groups like Tatas, Infosys, of the deeper secrets of the hu-
Wipro, Mahindra and Mahindra man mind. Most importantly,
etc. have their own full-time training is a matter of disciplin-
training centres. ing the mind. We will examine
All great leaders of history a few verses that deal with the
have emerged from a long pro- topic of training, in Kautilya’s
cess of training. Mahatma Arthashastra.
Gandhi took 21 years in South
Africa before he returned to Selection of Trainees
India to fight for our freedom. In one of his lectures to MBA
Shivaji was trained right from students, Sri Rajesh Kamath, the
his childhood before he formed Deputy General Manager (H.R.
his own army to defeat the Department) of the Mahindra
Mughals. Pujya Gurudev him- and Mahindra Group, said, “If
self spent ten long years with I have to fire someone for non-
Swami Tapovan Maharaj before performance, it is due to my
he came down to the plains to mistake, not his. I have to be
build the worldwide Chinmaya careful during the selection pro-
Mission. Even in the case of

Tapovan Prasad 17

cess.” Selection of trainees is the of desire to learn, listening,
key to any effective training retention, thorough understand-
programme. Otherwise we end ing, reflection, rejection of false
up frustrated, with huge loss of views and intentness on truth
time, energy and money. and not on any other person.
Kautilya, in his Arthashastra, (1.5.5)*
deals with the aspect of train- Thus a ‘trainable’ person is
ing in a detailed manner. The the one who has the following
first book of Arthashastra itself qualities:
is titled Vinayadhikarikam mean-
1. Desire to learn
ing ‘Concerning the Topic of
2. Effective listening ability
Training’.
3. Ability to reflect (think from
Kautilya says that selection
all angles)
of the right candidate to be
4. Ability to reject false views
trained is very important. Dur-
5. Focus on truth, not on any
ing those days in the fourth
person.
century B.C., when the caste
system was prevalent, Kautilya 1. Desire to learn – The
selected Chandragupta Maurya, trainee should be keen to
who was not a kshatriya, to be- acquire more knowledge. His
come the next emperor and take focus should not be on immedi-
over the Nanda dynasty. This ate monetory or material gains.
shows that the choice of a right He should keep himself sur-
candidate for management or rounded by and learn from
leadership training should not experienced people under
be limited to birth, caste, colour, whom he can learn more.
creed, religion or country. 2. Effective listening ability
In the following verse, he – Listening is ‘hearing plus
defines the qualities that we thinking’. At a higher stage of
need to look for in a person, listening, the mind itself calms
before taking him as a trainee. down. It is a total receptive
This verse is very important for state. The trainee should focus
the H R departments who have on listening more and try to get
to continuously keep recruiting
management trainees.
*(1.5.5) - Book 1, Chapter 5, Verse 5. This
The training disciple is the one same method will be followed through-
whose intellect has the qualities out, while referring to the verses in
Kautilya’s Arthashastra.

18 May 2005

a deeper insight into the words Mentorship
of his teacher. He should not get Once the right trainee is se-
into arguments trying to prove lected, he has to be nurtured
his point. with the help of a senior who is
3. Ability to reflect (think experienced in that particular
from all angles) – After listen- skill. This system of mentorship
ing to the viewpoints of vari- has taken strong roots in today’s
ous people, he should be able corporate training structure.
to sit back and reflect on his Even experienced people have
own. He should consider all now started calling themselves
angles before coming to a con- mentors more than leaders.
clusion. Both logical thinking Narayana Murthy is now offi-
and creative thinking are quali- cially designated the Chief Men-
ties of the mind that are tor of the Infosys Group. A
required. mentor is more like a catalyst
4. Ability to reject false who guides the process without
views – Rejecting false views taking part in the reaction.
does not mean being rigid. He Training and discipline are
should come to his own conclu- acquired by accepting the
sion, after correct thinking and authoritativeness of the teachers
analysis. He should be able to in the respective fields.
reach his own decisions with (1.5.6)
intellectual conviction. We need to have an attitude
5. Focus on truth, not on any of surrender to our mentor, our
person – A trainee should not Guru. This will lead to disci-
just get carried away by the pline. We should be able to ac-
viewpoints of different people. cept that our mentor under-
He should be able to arrive at stands the subject better than we
the truth after careful analysis. do. Even though at certain times
He should look at the situation we find it difficult to accept
objectively. He should be able certain decisions of his, we still
to see the problem as separate need to follow his orders. The
from the person. full picture will become clearer
The selection of the right to us in due course of time.
trainee is the first step. This is Swami Tejomayanandaji
like checking the quality of the once said, “At times I used to
seed before we sow it. wonder why Swamiji (Gurudev

Tapovan Prasad 19

Swami Chinmayananda) used come a self-discipline. The mind
to take certain tough decisions. has to be trained through regu-
However, in spite of not totally lar practice. One should be able
agreeing with him, I never lost to handle lust, anger, greed,
faith in him. Today when I am arrogance of knowledge and
in his position (leading the power and should not get over-
worldwide Chinmaya Mission), excited due to sudden gain or
I understand why he did so.” dejected due to unforeseen loss.
Management of the A king, behaving in a contrary
senses manner and having no control
Without managing the over his senses quickly perishes,
senses, no leader can progress. be he the ruler right up to the
As you keep going up the lad- four ends of the earth.”
der of success, temptations keep (1.6.4)
coming your way. Often, the
downfall of great leaders hap- Lack of sense-control will
pens when their senses take surely ruin a leader in the long
over. Sex scandals, shattering run. Greed for power and posi-
decisions taken in a fit of anger, tion comes out of lack of sense-
over-indulgence in power, etc. control. We have seen so many
are due to handing over the children from wealthy homes
reins to the senses. and big business empires ruin-
Control over the senses, which ing the hard-earned wealth of
is motivated by training, should their forefathers, due to lack of
be secured by giving up lust, an- sense-control. Though one may
ger, greed, pride, arrogance and possess great wealth and power,
over-excitement. it will all be slowly lost if one
(1.6.1) does not handle the senses well.
Control over the senses is
initially motivated externally by Continuous Learning
proper training. It is a process Learning is a continuous pro-
of disciplining of the mind. cess. You have to keep yourself
However, no external pressure updated with the latest happen-
can help one to maintain this ings around. The most impor-
discipline for long. Initially it tant part of continuous learning
may be out of fear imposed by is to associate yourself with
seniors, but slowly it has to be-

20 May 2005

persons who are more experi- not just gathering more and
enced and knowledgeable than more information. As Swami
you. Vivekananda said, “If know-
He should have constant asso- ledge was available in books, all
ciation with elders in learning, the libraries in the world would
for the sake of improving his have been sages!” Information
training, since training has a collection is just the first step.
root in that. Nowadays information is rea-
(1.5.11) dily available through the inter-
The root of training lies in net, television and various other
associating oneself with seniors. sources, thanks to the techno-
It is by being around with them logical revolution. However, in-
that we come to know the way formation gathered has to be
our seniors look at certain situ- converted into knowledge by a
ations with a deeper insight process of thinking, analysis
than we can obtain on the sur- and reflection.
face. Once, a person who was Even knowledge is not the
climbing the corporate ladder final step. Knowledge has to
fast was asked, “How do you evolve into wisdom. A wise
keep getting promotions so man is greater than a know-
fast?” “I keep observing what ledgeable man. He can look into
my boss does and learn to the crux of any problem within
acquire his skills,” came the a split second.
reply. Practical application – Our
knowledge has to have some
From continuous study ensues
usefulness. Hence, Kautilya says
a trained intellect, from the
its practical application is very
intellect comes practical appli-
necessary. Otherwise it just re-
cation, and from practical appli-
mains a mere theory, with no
cation, self-possession.
usefulness either to the person
(1.5.16)
or to the society around. This
Kautilya, in this verse, gives
application has to be for the
us the three steps of acquiring
good of others. It has to be use-
expertise in any field.
ful to take the society to a pro-
1. Continuous study
ductive state and to a higher
2. Practical application
level of consciousness.
3. Self possession
Self possession - By apply-
Continuous study – Study is
ing in the practical world the

Tapovan Prasad 21

concepts a person has devel- juniors. That golden moment
oped by thinking, he comes to never comes. You have to start
have a higher level of confi- it here and now.
dence in himself. The success of When I was in CIF (Chin-
his theory in the practical world maya International Foundation),
also crowns him with many studying the Arthashastra, I
other worldly benefits like asked Swami Advayanandaji,
appreciation, money, honour, the Acharya in charge of CIF,
etc. He thus becomes an expert “Swamiji, in our Chinmaya Mis-
in the very area or field he has sion the various Acharyas get
been working on for so long. transferred every now and then.
Self possession is a ‘state of When do you decide when to
being’. He has become one with start training the others to take
his subject. He has perfected the over, while you may have to go
art. From this point onwards his to some other centre?”
work is just a sport for him. He
Swamiji’s reply gave the gist
develops an intuitive wisdom.
of training in the most beauti-
ful manner –
Pass It On To Others
“Training your juniors starts
Management training is a the moment you join. It is being
continuous process. One learns ready to leave the position at
and teaches. One does not have any given point of time. The
to wait to become an expert to system has to run by itself.”
teach others. There are seniors Training is working in a de-
who know more than you; at tached manner and yet giving
the same time there are juniors your best to it. Its an under-
who know less than you. Keep standing that no one is indis-
learning from the seniors, and pensable. You realise that you
with your own experience, keep are not the owner but just a part
teaching the juniors. Thus the of the whole. Like the Guru-
circle of life will get completed. Shishya Paramapara, the wisdom
Many people wait for a golden has to flow from one generation
moment to start training their to the other.

22 May 2005

in Kautilya’s
)HJD=ID=IJH= – III

Leadership Qualities shastras like Mahabharata, Rama-
yana etc. are more popular, as
Throughout the Arthashastra, they are written for the masses,
references have been made to to teach dharma to every indi-
more than a hundred qualities vidual, while the Arthashastras
of leadership, along with the are limited in appeal, as they are
methods of developing them. written specifically keeping
The main focus of the Arthashas- leaders in mind. In every soci-
tra is on creating an ideal society, the leaders are few and the
ety, which can be done only followers numerous. Therefore,
through inspired leaders. many thinkers have also said
Hence, we can say that Artha- that Arthashastra is addressed to
shastra is a book on ‘Creation of a particular section of the soci-
Leaders’. ety, especially the intellectually
Sri L.N.Rangarajan, a politi- oriented people who can guide
cal economist, in his translation the society towards material
of Kautilya’s Arthashastra, says, welfare and prosperity.
“There is a basic difference be- In this month’s article we
tween the Dharmashastras and will be looking at some key
the Arthashastras. Our Dharma- qualities that a leader should
shastras address themselves to have. Leadership qualities are
individuals, teaching them their not the monopoly of any indi-
dharma, while Arthashastras are vidual, race, country or genera-
addressed to rulers.” tion. Leadership is an art that
Hence we find that Dharma- can be developed by any indi-
The author may be contacted by email at vidual from any background.
radhakrishnan@atmadarshan.com The only way to develop it is to

18 June 2005

have a higher goal or ideal in himself always be energetic.”
front of us. The goal itself will (1.19.1-5)
inspire us and, through us, the The first and foremost qual-
others around us. Great leaders ity of a leader is to be active.
are born when they sacrifice No other quality can replace
their individual pursuit for hap- this. The enthusiasm of the
piness, for the sake of the hap- leader is itself an inspiration to
piness of others. From an aver- others. As the famous saying
age lawyer, a ‘Mahatma’ Gan- goes, ‘People learn more by
dhi was born. From a Narendra, watching actions than listening
the great Swami Vivekananda to sermons.’ Leaders are the
was born. ones who have a positive energy
In the Arthashastra, chapter field around them. Only if he/
19 of Book 1, titled ‘Rules of a she is energetic and active, the
King’ describes the various subordinates will also display
qualities of a leader. A complete energetic enthusiasm. The best
and detailed study of this sec- example is our Gurudev Swami
tion can prove very fruitful to Chinmayananda himself. At the
various students and teachers, age of 75, he had the enthusi-
who want to develop leadership asm of a 25-year-old, which was
qualities. It gives exhaustive, infectious and difficult to resist.
step by step guidelines about What attracted most people to
the kind of life a leader should him was this energy level,
lead, right from his daily time- which is still felt in a vibrant
table, to his method of conduct- way throughout the Chinmaya
ing himself with different types Mission. Even after a decade,
of people. since he left his mortal coil, he
continues to inspire those who
Be Ever Active have not even seen him. Such is
“If the king is energetic, his the magnetic power of a truly
subjects will be equally energetic. enthusiastic leader. It is very
If he is slack (and lazy in perform- contagious.
ing his duties) the subjects will also One cannot afford to be lazy
be lazy, and thereby eat into his in front of one’s juniors. If the
wealth. Besides, a lazy king will boss comes late to the office and
easily fall into the hands of the is found sleeping there, what
enemies. Hence the king should can one expect from one’s sub-

Tapovan Prasad 19

ordinates? The Bhagavad Geeta However great the vision of
(Ch.3, 21) says that people gen- the leader may be, he cannot
erally follow whatever the keep others truly inspired, if his
leader does. A good leader heart is not full of love.
should be able to take quick and “In the happiness of the sub-
effective decisions. If he keeps jects lies the benefit of the king and
postponing important matters, in what is beneficial to the sub-
his subordinates too will do the jects is his own benefit.”
same. Such a leader will soon (1.19.34)
lose control over the subordi- Leaders of most societies
nates. Without any control, the look at their individual happi-
subordinates will start spending ness and the attainment of self-
the excess money of the organi- ish goals as the primary crite-
sation in unnecessary areas. rion, while taking key decisions.
Since the leader is not vigilant They think that by this particu-
and alert, the enemies and com- lar method, they will be able to
petitors will easily overtake keep themselves happy forever.
him. So, in order to inspire oth- But the fact is quite different.
ers, to maintain and expand the Happiness is interdependent; if
wealth of the organisation, and others are happy, it is condu-
also to be in touch with the lat- cive to one’s own happiness. If
est developments around, the a person just tries to keep him-
leader should be ever active and self happy, neglecting the hap-
energetic. piness of other people around
Love for the Team him, it will hit him back very
hard over a period of time.
Members A leader understands this
A leader can create a team, point very clearly – in the hap-
but there can be no team with- piness of his subjects lies his
out a leader. He is the nucleus own benefit. In fact, this should
around which everything takes be the prime objective of the
place. At many points, he takes leaders. A king does not have
tough decisions that may seem any individual desire left. The
harsh to a few people. However, only desire left is the welfare of
he has to take into consideration others.
the overall benefit of the team When the subjects are ben-
and not just his individual benefited, the king will naturally be
efit.

20 June 2005

happy. There are many leaders before taking any decision in
in the political as well as the matters regarding that particu-
corporate circles, who do not lar area. This consultation
want to educate their juniors out should be done in a spirit of
of the fear that if they get edu- humility, with a desire to learn
cated or empowered, they and understand more.
would overtake the leader him- “All undertakings should be
self. By doing this, one is just preceded by consultation. Holding
suppressing the hidden poten- a consultation with only one, he
tial of a person. On the contrary, may not be able to reach a decision
if one offers appropriate train- in difficult matters. With more
ing to the subordinates, after counsellors it is difficult to reach
identifying the core unique ar- decisions and maintain secrecy.”
eas, not only will they become
(1.15.2, 35, 40)
fully productive, they will also
be thankful to the leader for “Therefore sit and counsel with
giving them the timely help and those who are mature in intellect.”
support that was needed and (1.15.20-21)
repay him ten-fold. A selfless Any important undertaking
man gets more than what he should be preceded by due con-
requires. This is a natural law sultation with experts in that
which a leader has to under- field. There should be more than
stand and follow in order to be one consultant, because a single
successful. individual may have a narrow
or biased vision. Therefore it is
Consultation important to heed the view-
There are various areas that points of at least two to three
the leader has to look into. It people. After examining these
may not be feasible for him to viewpoints, he can come to his
take care of all these areas him- own decision.
self. Hence he should take help Further, care has to be taken
and guidance, consulting ex- that he should not go on con-
perts in various fields. Today sulting more and more people,
we find that even the President leading to confusion and inde-
or Prime Minister of a country cision; there is also the fear that
has specialists like the principal these important matters will
scientific adviser, chief security lose their secrecy. Therefore, it
adviser etc., whom he consults

Tapovan Prasad 21

is advised that one should only special seat for the acharya, a
consult a few, and only those religious teacher, who used to
who are mature in their intel- be consulted before taking any
lect, meaning experienced and key decision in the society. The
sharp persons. leader himself understands that
We find the same advice he is not the ultimate. Therefore,
being given by Lord Rama to he looks for guidance from the
his brother Bharata in Ramayana, acharya. The acharya, in turn,
telling him how to run the king- understands that he too, as a
dom effectively, while asking person, is not the ultimate. His
him to go back to Ayodhya with validity comes from his deep
the Padukas. understanding of dharma. He
gives suggestions or decisions
Respect Spiritual People based on dharma. Thus the
This is a unique quality whole society runs on the basis
found in the Indian manage- of dharma.
ment system that cannot be Today, our parliamentary
found anywhere else in the system of governance, adopted
world. India, right from its very from the West, has no place for
birth, has been a spiritual coun- any spiritual masters. Every-
try. It has taken spirituality as body takes decisions based on
its national ideal. Centuries his own individual judgments,
have passed, yet we never gave without consulting anyone su-
up our search for Truth. Our perior to him in moral stan-
gurus and spiritual masters have dards. It is the state of the blind
been our role models and also leading the blind. Only if our
our benchmark for excellence. law makers can understand
We have gone back to them once again that there has to be
again and again to check if we a seat for a spiritual guide in
have missed the right track our system of governance, can
somewhere. we go back to the glorious days
In ancient India, hermits, of India.
ascetics and spiritual masters Throughout the Arthashastra,
were respected and revered. we find that acharyas were given
They were invited to the courts a patient hearing on various
to take important decisions. In matters and also invited to court
various religious books and sessions, where they had the
stories, we find mention of a highest and the most important

22 June 2005

seat offered. The king could knowledge and the skills that he
start the session only after of- has acquired in his years of ex-
fering salutations to these great perience. As he trains his jun-
masters. iors, he naturally takes up
Pujya Gurudev Swami Chin- higher responsibilities and
mayananda said, “A leader is moves up the ladder. A true
one who creates more leaders.” leader understands the golden
This is what Gurudev himself principle that ‘the best way to
did. A leader does not stick to keep rising higher and higher
power, position or authority. He is to give more responsibilities
trains potential people in the to the persons below you.’

Tapovan Prasad 23

in Kautilya’s
)HJD=ID=IJH= – V

Social Responsibility perform charity for self-projec-
tion. They will not donate if
What would happen if we their names are not inscribed on
were to hold our breath for a temple walls or announced from
long time? Simply, we would the dais in public functions.
suffocate. We have to let go of Our ancient thinkers under-
our breath to let the next breath stood that the creation of wealth
come in. The same is the case is through the network of
with wealth creation. You have society and hence has to be
to let go of the money in your given back to the society.
hands for new money to come Man is a social animal and is
in. In fact, if wealth comes to dependent on the society for his
us, we have to understand that survival. While some people
it is given by the Lord, to be have more wealth and some
shared with the less privileged. less, the important point is that
Unfortunately, the reverse is the wealth has to flow from the
case; the more we have, the privileged to the less privileged.
more we try to keep. The secret Equal distribution of wealth has
of being blessed by the wealth been one of the main challenges
you have created is to give a of many thinkers in the field of
good part of it back to the Economics. Even the idea of col-
society. lecting taxes is to ensure the
What exactly do we give flow of wealth for the better-
back? Just money? Many people ment of the society, to create a
prosperous nation.
The author may be contacted by email at If individuals keep distribu-
radhakrishnan@atmadarshan.com ting their wealth to the right

people, everyone including the India and Social
giver will be highly benefited. Responsibility
Corporate Social Responsibi-
lity (CSR) is the key word in India has always been a so-
many companies today. They cially responsible country. In
understand that being a socially Indian culture we have been
responsible company creates taught to give back more than
trust among its customers. A what we get. In fact, working
good brand image is created for the upliftment of the society
and because of good values, the is considered to be a very noble
company attracts more and virtue.
more customers. It is our culture to donate
The Tata group of companies Rs. 101 instead of Rs. 100 or
is one of the best examples in Rs. 1001 instead of Rs.1000. Why
this aspect. For over a hundred do we add that extra one rupee?
years, this organisation has Our forefathers have taught us
given back to the society much that it is an indication of our
more than anyone could have intention to continue giving in
expected. The foundations and future also. Further, that one
the various trusts of the Tata extra rupee also signifies that
Group have contributed to we should always give a little
social causes in the fields of more than expected, more than
education, employment genera- what we need to give. This
tion, science etc. It is worthy of additional one rupee symbolises
being taken up as a case study prosperity and abundance, an
by any student of Management. overflowing that defies the
We find the same kind of finality of a rounded sum.
social responsibility in various Even after God Realisation,
international organisations like some great masters work in the
Ford Foundation, UNICEF, society, as they consider it their
Commonwealth etc. The main responsibility to lead the soci-
objective is to give back to the ety to a better quality of life, a
society the wealth that also higher level of living. As busi-
belongs to the society. nessmen, leaders and managers,

we have a moral commitment building the Aryavarta – the In-
to the people around us. dia of the golden era.
In the Chinmaya Mission
Pledge, Pujya Gurudev Swami Qualities of a
Chinmayananda has used two
beautiful statements, which rep-
Responsible Society
resent the Mission’s commit- Cleanliness: While making a
ment to the society, of ‘giving blueprint of the society that he
more than what we take’ and wanted to create, Kautilya em-
‘producing more than what we phasised cleanliness. No build-
consume’. These are the ideals ing plans were cleared by the
of our nation. governing bodies without en-
suring proper cleanliness. Main-
Creation of an tenance of cleanliness, sanitation
Ideal Society and hygiene was a part of the
house building regulations. The
Kautilya was a master plan- following verse will give an idea
ner of the society. He planned of how the roads were during
out an ideal state in his mind that period.
and also created a golden era in
Indian history during this pe- “For throwing dirt on the road,
the fine shall be one-eighth of a
riod. The Arthashastra contains
pana, for blocking it with muddy
a large number of verses that
water, one quarter.” (2.36.26)
give us an insight into the kind
of society that he had in mind. When we look at the condi-
Most of the important concepts tion of the roads in India today,
of cleanliness, respect to others, we should really feel ashamed
taking care of the under-privi- of ourselves. Spitting, urinating,
leged etc. were taken into ac- indiscriminate digging and gar-
count, while creating the bage disposal on the roads are
Kautilyan society. very common. However, things
We will study a few verses, have been drastically changing
which deal with the aspects in the last couple of years. Pun-
Kautilya had considered, while ishments in the form of fine im-

posed on the person throwing set up a benchmark for other
dirt or blocking the road shows companies to follow.
how much importance they had Women’s Employment –
placed on the maintenance of Even during the 4th century,
public property. It was not just when women did not have ad-
a matter on paper, but was equate social rights, Kautilya, as
implemented under strict con- a revolutionary thinker, in-
ditions. cluded women’s employment in
his plan for an ideal society.
Shifting of Over-popula-
References are made to rights
tion: Migration to the country-
given to women, especially mi-
side was encouraged in order to
nor girls, widows and elderly
prevent overcrowding in the cit-
women, throughout the Artha-
ies. This also ensured wide
shastra. There were special prop-
spreading out of the population
erty rights for women, too.
across the nation, not just con-
In the second book of the
centration in particular cities or
Arthashastra, the Chief Textile
national capitals.
Commissioner, while setting up
“He should cause settlement rules for the textile industry, has
of the country, which had been been advised to provide
settled before or which had not been employment to women to the
settled before, by bringing in people extent of allowing them to work
from foreign lands or by shifting the from their own homes. The raw
overflow of population from his own material would be reached to
country.” (2.19.1)
them in the morning and the
Kautilya also encouraged finished or semi-finished pro-
and invited people from other duct collected in the evening.
places to come and settle down “Those women who do not stir
in the countryside. He also un- out – those living separately,
derstood that a man will not widows, crippled women – who wish
shift alone. So he encouraged to earn their living, should be given
shifting and migrating in work by sending his own female
groups. This concept of build- workers to them with a view to
ing new cities was encouraged support them.” (2.23.2)
also for employment generation.
Fairness in Treating a
Jamshedpur, created by Jam-
Conquered Territory – Many
shedji Tata, as a residential set-
have considered Kautilya as a
tlement for his employees, has

very crafty administrator, who conqueror should give them tax
would do anything to actualise exemptions, gifts and also
his dreams. This is not really honour suitable candidates. He
true. The following verse will should not force anyone to
give an idea about how he change to his own lifestyle;
treated the people of a instead, he should be willing to
conquered territory. adopt the dress, language and
“The conqueror shall substi- customs of the local people and
tute his virtues for the defeated their traditions. Instead of
enemy’s vices and where the enemy breaking their places of wor-
was good, he shall be twice as ship, he should show the same
good. He shall follow policies which devotion to their gods and
are pleasing and beneficial to the should himself participate in
constituents, by acting according to their festivals and enjoy their
his dharma and by granting favours amusements. The leaders and
and tax exemptions, giving gifts and chiefs of the towns and various
bestowing honours. He shall adopt communities of the conquered
the way of life, dress, language and territory should also be given
customs of the people and show due respect and their opinions
devotion to the gods of that territory should be considered. Further,
and participate in the people’s
he should ensure that the ill and
festivals and amusements. He shall
the helpless are cared for.
please the chiefs of the towns,
In fact, a whole chapter of
country, castes and guild; the ill,
and the helpless shall be helped.” the Arthashastra, chapter 5, sec-
(13.5.3-15) tion 176 of book 13, is fully
devoted to this aspect and titled
The conqueror shall add his
‘Pacification of the Conquered
own virtues to those of the
Territory’.
defeated enemies. If he finds
There is a lot that today’s
good qualities in them, he shall
corporate world can learn from
try to acquire them. Today we
these concepts in the Arthashas-
find that after wars, the people
tra. Internationally, there are
of the newly acquired territory
lots of mergers and acquisitions
are not given any importance.
(M & A) that are happening.
Here, Kautilya suggests policies
Once the new management
which are pleasing and benefi-
takes over, there is a cultural
cial to the conquered popula-
shock in the whole system. In
tion, based on dharma. The
most of the cases, people are

told to leave the organisations tor of all, has to replenish the
due to down-sizing and cost- pocket of his devotee – only, the
cutting. giver must have absolute faith
Here, Kautilya gives top pri- and indomitable courage.”
ority to the people. He under- Gurudev here rightly points
stands that the main asset of any out that modern Economics has
organisation is its people. It is not dared to experiment deeply
very important to keep them with the quality of giving.
happy, even if they happen to Wealth always comes back ten-
be in an acquired territory. fold to the person who gives,
this is a natural law. Many good
Give, Give, Give companies have the practice of
Pujya Gurudev Swami Chin- giving 2% to 10% of the profit
mayananda says, in his advice to social causes. Once a chair-
to householders, “The secret of man of a Fortune 500 company
getting is GIVE-GIVE-GIVE. was told about this concept of
Worldly people of small keeping aside 10% of the pro-
crumpled hearts can never fits for social projects. He
understand it and modern eco- started thinking deeply. Asked
nomics has not dared to what happened, he replied, “I
expound it. Give away the last was wondering why the per-
penny, and ten pennies must centage to give back to the soci-
and will come. He, the Protec- ety is so little!”

in Kautilya’s
)HJD=ID=IJH= – VI

The Running of an importance to the economic
Organisation aspect of a state. He says that
wealth is the foundation of a
Kautilya emphasises that the nation. Bhishma in the Maha-
foundation of an organisation is bharata also says that artha is the
its financial strength, its foundation of this world, and
economy. No good organisation spirituality is the foundation for
or country can run effectively that. Even spiritual organi-
without having its economy in sations require the support of
good condition. Kautilya’s strong finances to carry their
Arthashastra makes many refer- noble messages across the globe.
ences to the methods of A leader should understand this
management of an organisation. first.
They can be broadly classified “The objective of any king
into three: (leader) or state (organisation) is to
1. What a leader should know create, expand, protect and enjoy
2. Handling the employees/ wealth.”
people There are various dimensions
3. Keeping a good accounting to wealth. It is not enough just
system. to create wealth; a leader should
also know how to expand and
1. What a Leader/King protect it. A good businessman
Should Know is not satisfied with just what
Arthashastra gives prime he gets; he has an industrious
spirit to expand what he has
The author may be contacted by email at got. He needs to have the drive
radhakrishnan@atmadarshan.com to produce more wealth.

Next, he should know that “Be ever active in the man-
the wealth earned has to be agement of the economy, because
protected as well. Otherwise it the root of wealth is economic activ-
would be like a vessel which ity; inactivity brings material distress.
has a hole in its base. We may Without an active policy, both cur-
go on filling the vessel, but due rent prosperity and future gains are
to the hole, all that is put in it destroyed” (1.19.35,36)
leaks out. The net result is It is important to be active
‘zero’. in the management of the eco-
Having protected the wealth nomy. Activity brings wealth.
he earned, he should also know Can you imagine an organisa-
how to enjoy it. This is true even tion that is lazy and also rich?
at the individual level. The Without continuous activity,
prime responsibility of the head whatever is earned will be dis-
of a family is to earn bread and sipated, without leaving much
butter for his family. Not stop- hope even for future wealth.
ping with that, he has to
expand, that is, earn more
2. Handling the
money for a comfortable living Employees/People
and the higher education of his There can neither be a leader
children. He also needs to without followers, nor a king
protect his hard-earned money without subjects. Having earned
in good investments. Finally, he enough wealth and knowing the
has to know how to enjoy the strategies of how to handle it,
wealth he has earned by using he also has to understand how
it for himself and others. Spend- to handle people.
ing of wealth in the right direc- A good leader is first a good
tions is as important as earning ‘people’ manager. Without
it. Or else we would just become knowing how to handle people,
misers, without knowing what he cannot run the organisation
to do with the wealth earned. properly. Understanding people

is to understand their minds. to good advice. Then we need
People have different tempera- to use the second method -
ments, attitudes and mindsets. daana, the offering of gifts – ‘If
How to handle each one is a you do this I will give you that.’
study in itself. Among the most Incentives, promotions, a good
famous of Kautilya’s theories is vacation, raise in pay etc. are
the one known in today’s cor- offered by various companies
porate world as the ‘Theory of today to motivate employees
Motivation’. towards better productivity.
Well, some employees do not
Theory of Motivation get motivated by external
benefits. The leader now has to
Saama – counselling
take corrective action. He has to
Daana – offering gifts
start using punishment. This
Danda – punishment
has to be implemented to
Bheda – separation
continue to retain control. The
This theory is used by punishment can be severe or
Kautilya in various areas like mild, depending on the
the running of a state, making a situation.
plan for warfare, passing judg- If punishment does not yield
ments over criminals etc. the desired result, one has to
Let us see an example to resort to bheda or separation.
understand the application of ‘Divide and rule’ is a very prac-
this theory in today’s corporate tical and effective way of han-
world. You may find that one dling certain difficult situations.
of your employees is not work- In the Indian context the phrase
ing properly. The first step that ‘divide and rule’ has gathered a
you take is to speak to him and very negative meaning because
try to understand him. This is of its association with the policy
saama – counselling, the prelimi- adopted by the British to subju-
nary round of discussion. Most gate India. However, the policy
of the problems in life start due of ‘divide and rule’ can be used
to lack of communication. Once creatively for the welfare of the
we sit down across the table and very people concerned. For ex-
discuss things straight, many ample, if two students are very
issues can be resolved. noisy and troublesome together,
However, some employees the school teacher separates
are such that they never listen them and seats them far away

from each other so that they will (punishment), becomes a terror. A
be attentive and learn the les- king with a mild rod is despised.
son well. In the organisational The king who is just with the rod is
context, sometimes a single in- honoured”. (1.4.8-10)
dividual can become a negative Punishment does not mean
force by creating a small coterie that you have to become a
around him with his personal Hitler, and kill indiscriminately
charisma and ability to influ- just to prove your strength and
ence people to his way of think- power. A king who is very
ing. This can be handled by geo- severe with the rod becomes a
graphical relocation, or alloca- terror. However those who do
tion of duties in different de- not punish at all, are not taken
partments, or promotion of one seriously. The one who is just is
or more of the group to a dif- honoured by one and all.
ferent role of responsibility de- What happens if the king
manding their energies in a dif- does not punish at all?
ferent direction altogether, thus “If the rod is not used at all, the
weakening the negative force of stronger one swallows the weak in
the group. Here the separation the absence of the wielder of the
of the group of people actually rod.” (1.4.13-14)
unifies them in the cause of the If the king does not mete out
organisation. Finally, if none of just punishments, the people
the above methods work, one working under him will take
has to resort to the removal of things for granted. They may
the person from the organi- appear to be working, but in
sation altogether. course of time their productiv-
ity will go down. The most deli-
Punishment cate part is that the people in
We may wonder if it is nec- the higher rungs may misuse
essary to punish at all. Parents their powers when the king is
have this conflict while dealing absent. It is likely to become like
with their children. Kautilya the law of the jungle without
says punishment is necessary, any control. The strong will
but it has to be just and within swallow the weak. The whole
the right limits. One of the other legal system may end in a state
names of Arthashastra is Danda of crisis.
Niti, the art of punishment. “He (leader) should constantly
“The king, severe with the rod hold an inspection of their work,

men being inconsistent in their productivity of a person. He
minds”. (2.9.2-3) says there is no scope for a
The human mind is unpre- person to get paid just to sit idle.
dictable. It can slip from its Results are very important. Why
balance at any moment. It is should the state treasury pay a
very necessary for a leader to person for not working? Wages
regularly inspect each one’s are paid only to those who
work. This can be done by work.
checking reports every now and Today our government orga-
then. He can organise a good nisations need to implement this
Management Information message in its fullest measure.
System (MIS) for creating Just sitting in the office will not
records. But he should not be suffice if the country has to
totally dependent on reports progress. The managers of
alone. He needs to keep a physi- various government institutes
cal check on each activity need to pull up their socks and
happening at the ground level. do the same with their junior
Meeting even the lowest of the staff too.
employees and finding out
problems with the help of intel- 3. Maintaining a Good
ligence services is recom-
mended by Kautilya.
Accounting System
We see this throughout our “He (leader) should check the
ancient history books also. Be it accounts for each day, group of 5
Lord Krishna or Shivaji, they days (a five-day week), fortnight, a
used to go around their king- month, three months (quarterly) and
dom incognito, even at night, to a year.” (2.7.30)
ascertain the ground level We can clearly see from this
realities. verse that the modern way of
If inspection is not held on a daily, weekly, monthly, quar-
regular basis, the king will lose terly and annual accounting
control over his employees first, methods were used by Indians
then his subjects and finally his more than 2300 years ago! It is
whole kingdom. advised that the leader should
“Wage is for work done, not keep a check on the accounts in
for what is not done.” (3.14.8) a systematic manner. Kautilya
This verse shows how says that the king needs to take
focussed Kautilya is on the full control of two aspects of

any state – the treasury and the individuals who are responsible
army. If he loses control over for revenues and expenditures
either of them, there is a good from the treasury.
possibility of take-over by the Next, Kautilya explains how
enemy. Kautilya also lays stress the records are to be maintained
upon the aspect of keeping with details of each entry. The
control over the accounts by mastermind that he was, he
stating that the first thing a king looked into the details of each
should do after getting up in the aspect of the treasury. It is
morning hours is to check his surprising to see the way he has
accounts. handled this subject in a most
Apart from keeping track of practical and efficient manner.
the total accounts, the king “He should check the income
should keep control over the and expenditure with reference to
individual accounts too. the period, place, time, head of
The individuals in an organi- income/expenditure, source, bring-
sation make up the total ing forward, quantity, the payer/paid,
organisation. There is a possi- the person causing payments to be
bility that a few of the employ- made, the recorder and the
ees are misusing the financial receiver.” (2.7.31-32)
powers given to them or are not The financial record books
maintaining proper records. needed to have these columns,
Hence he suggests, where the entries about the
“In addition to reporting in de- period, time and place of the
tail as well as in aggregate, there is transaction could be done. It
also an individual accountability for also had to maintain details of
the revenues and the expenditures.” the source of the income or
(2.7.24) expenditure, who brought it or
There are various people who spent it, the person who
who are responsible for the received it, etc.
revenues which flow into the Thus, a total plan was made
government treasury and others by Kautilya in a systematic
who are responsible for the manner to manage the economy
expenditure. These two extreme of a state properly. No wonder,
ends of revenues and expendi- with such amazing standards
ture are likely to be the most set up by him, India in those
easily corrupted. Therefore it is days saw the golden era in our
necessary to keep a check on history.

in Kautilya’s
)HJD=ID=IJH= – VII

Basic Principles of keep accepting higher and
Management higher responsibilities.
How does one face the
Like adversity, prosperity problems that success brings
has its own quota of problems. along with it? To put it in
We may be surprised at this, but simple words, ‘Back to the roots,
any successful person will back to basics.’ Every now and
vouch for the fact that prosper- then, it is important to take
ity brings its own problems. We stock of oneself. One has to
generally think that not being remember where one started
successful is the problem and from, and where one is heading.
once we are at the top, every- Otherwise, it will be the same
thing will be easy. An old story of starting to reach a
airconditioned office, excellent particular place and landing up
cars, a large number of people somewhere else.
working under you – well this Looking back gives us the
is the dream of a corporate per- strength to move forward. It
son. But success also brings a gives us an opportunity to look
greater measure of responsibili- at our struggling days, the
ties. One of the best ways of dreams that we wanted to
continuing to be successful is to achieve, the hurdles that we
crossed, among others. It also
gives us a chance to look at the
The author may be contacted by email at ‘simple’ yet basic principles of
radhakrishnan@atmadarshan.com dealing with any problem.

So, in this issue we will once 1. The Means of Starting
again take a look at the basics Undertakings (Assignments/
of what we started to explore – Projects)
the Management ‘Fundamen- In order to manage, firstly,
tals’ of Kautilya in his Arthashas- some project or assignment is
tra. needed. In the case of an
employee, certain assignments
Definition and the Basic are given. For example, the
Elements of Management account statements have to be
Management is largely a ready by a particular date, the
‘mindset’. Once we develop this sales team has to achieve a par-
mindset, we need not worry ticular sales target, etc. Assign-
about whether we have done ments are usually given by the
our formal education in man- seniors to the juniors. It is a
agement or not. However, a process of delegation to com-
continuous empowerment is plete a particular task.
always necessary. What are the Projects are basically started
basics of Management? What by the top management.
are those principles that, once Companies and organisations
understood, make the whole work on projects. Either one
complex world of Management takes up projects (which have
become simple? been outsourced from other
Kautilya, in his very first organisations) or starts one’s
book of the Arthashastra, states own projects. Many companies
clearly the foundations and work on multiple projects at any
basic elements of the Manage- given point of time, but there
ment world in just one simple are some which work on a
verse. single project for a long period
“The means of starting under- of time.
takings, the excellence of men and Assignments usually take
material, (suitable) apportionment
less time to complete compared
of place and time, provision against
to projects.
failure (and) accomplishment of
work – this is deliberation in its five The leader needs to start or
aspects.” (1.15.42) undertake projects in order to
Therefore the basics of Man- assign jobs. This gives the
agement can be summed up in organisation something to do,
its five simple aspects thus: something to contribute. With-

out projects or assignments even more and more work. For this
the best talent is useless. he has to keep an eye on the
current trends in the market
2. The Excellence of Men and scenario, and also observe
Materials continually, the various changes
The second aspect of man- that are bound to take place
agement is productivity. When- there.
ever any work is started, it However, one cannot just
requires two basic elements – keep running a machine day
the men (the people who do the and night. Maintenance work
work), and the materials that are needs to be considered too.
used by these men. The materi-
als may include money, machin- 3. Deciding the Suitable Place
ery and various other tools to and Time
process a particular task. This is the single most
An efficient manager will be important factor for strategy in
responsible for bringing out management. There are various
productivity from both men and factors that affect a business
materials. Productivity also environment. The global and
includes efficiency. political scenario, the various
One has to bring out the best initiatives taken by the competi-
from the people. Having hired tors, all have to be considered
them and trained them, they before planning your move.
have to be useful to the organi- The right timing is the key
sation. By setting targets, to success in any undertaking.
encouraging them and con- For example, we can note that
stantly guiding them, the companies wait till the budget
excellence of men will be each year before declaring the
achieved. new prices of various products/
How does one bring out the services. Quite often, a company
best from materials and waits to watch the acceptance
machines? This is where plan- of the competitor’s product in
ning comes into the picture. One the market before launching its
may buy good machines with own.
the latest technology. But what The other factor is the right
does one do if there is no work? place to attack. In the field of
It is the responsibility of the management, this is technically
manager to keep bringing in called ‘positioning’. Your

product or service should be should be a plan B ready. What
positioned in the right place. if plan B fails? Plan C should
There is no point in trying to be ready.
sell an aeroplane to the lower There are various tools avail-
income group living in villages, able to handle the risks
or a first standard text book to involved. Insurance is a good
a postgraduate student. tool. One can easily insure one’s
life as well as various materials
Companies across the globe
in case of unforeseen calamities.
are spending huge amounts of
Another backup plan is to save
money to do R&D (Research
for the bad season. In various
and Development) to analyse
industries, the market is very
and conclude if the positioning
seasonal. How does the man-
of their product is in the right
agement then provide for the
segment. Offering financial ser-
salaries of the people during the
vices like loans for tractors to
‘slack’ season? They should
farmers living in the rural areas
keep a ‘reserve’ of funds for
is ‘right’ positioning. While of-
such needs.
fering the same loan to a teacher
At the governmental level, a
working in a metropolitan city
country generally makes provi-
is ‘wrong’ positioning.
sions for natural calamities and
disasters in its budget.
4. Provision against Failure
Failures are stepping stones 5. Accomplishment of Work
to success. In any project we Finally, management is all
undertake, there are more about the completion of work.
chances of losing than winning. All of us start different kinds of
The best way of avoiding fail- work at different times, but
ure is to be well prepared for it. most of us do not generally
Thinking from all possible complete them. A great thinker
angles, taking into consideration once remarked, “I believe more
all the risks involved, is very in completing a few tasks that I
essential for any manager. One have undertaken, than starting
needs to have backup plans. many new tasks.”
There should be various alter- Experimenting with various
natives available in case the ideas is good, but finally one
direct path does not work. What has to focus on successfully
if plan A does not work? There completing at least a few of

them. Otherwise one lands up L.N. Rangarajan, in his
in a circle, going round and translation of Arthashastra, gives
round without reaching any- a summary of the concept of
where. power as Kautilya emphasised:
In the final tally, results
“Power for Kautilya is not just
alone matter. People do not military might or the economic
keep count of the process, they strength backing it. Intellectual
see only the results achieved, power, which enables a king make
just as in a cricket match, even an objective analysis and arrive at
though one has made good the correct judgment, is the most
runs, if the team loses finally, it important. Intellectual power,
has little value other than military might, enthusiasm and mo-
embellishing the player’s rale – these are the three constitu-
personal performance history. ents of power.” (pg. 625)
Results, results and results! Therefore ‘power’, according
It is the bottom line for which a to Kautilya, has three constitu-
manager is appointed. ents:
1. Intellectual Power (Know-
Power ledge)
Every person in a high posi- 2. Military/Money Power
tion is endorsed with certain
3. Power of Enthusiasm and
decision-making powers. These
Morale.
executive powers are meant for
accomplishing certain tasks, not 1. Intellectual Power
to be misused for selfish (Knowledge)
benefits.
In the Arthashastra, the high-
When it comes to the leaders
est importance is given to intel-
of the various nations, the
lectual power. It is the power
control and power they possess
of knowledge. A bright, analyti-
is very high. Every manager is
cal and sharp mind is always
like a leader of his organisation
ahead in any chosen field.
in his own way. Therefore a
Kautilya himself was a giant
correct understanding of the
intellect. Dull people cannot be
term ‘power’ is very essential
good leaders. Leaders have to
for him to function and achieve
be men who are decision-
the expected results.
makers. These decisions affect

a large number of people within It is difficult to beat a person
and outside the organisation. who has control over these two
Therefore one has to be sharp- factors.
witted enough to keep oneself
3. Power of Enthusiasm and
updated with not only what is
Morale
happening around, but also
foresee future events. A highly energetic man is a
powerful man. Hitler, though
2. Military/Money Power for the wrong reasons, was a
passionate speaker. He could
Money is a very powerful
move the masses with his
tool. To a great extent, it is
oratory. Enthusiasm is highly
power by itself. It has the
contagious.
capacity to buy men as well as
Finally, the most powerful
various materials. The military
men are the men of moral
is perhaps the most powerful
strength who are doubly
force in any society. It is well
fortified with the strength of
trained as well as well equipped
conviction. A simple, yet firm
with various weapons. In the
Gandhiji could pull down the
corporate world, these two refer
British Empire with his high
to the financial strength of the
morale and dedication.
company and the skilled and
efficient workers in its employ-
ment.

G

Om Chinmaya Sadguravena Maha

MANAGEMENT FUNDAMENTALS BASED ON
‘KAUTILYA’S ARTHASHASTRA’

- Radhakrishnan Pillai

(This research Paper is based on studies done on the book Kautilya’s Arthashastra, at
Chinmaya International Foundation (CIF) under the guidance of Dr. Gangadharan Nair.
CIF is the Academic wing of Chinmaya Mission, based in Ernakulam, Kerala. Dr.
Gangadharan Nair is the Director of Shree Shankara Univeristy of Samskrit, Kalady,
Kerala. He has over 36 years of teaching experience in Samskrit and philosophy).

Introduction

In the current corporate and Management scenario, we find a lack of business ethics.
Even though modern corporations have developed a basic framework on ‘Corporate
Governance’ it has merely become a piece of yet another document which the
Management signs as another process for the functioning of a company. Even some of
the top Multinationals have a very well defined Corporate Governance structure.
However, the practical application is hardly being noticed. This has become a very
serious problem to be considered when Corporations are becoming the prime movers of
the society. We need to rework the basic Fundamentals of Management. The current
paper is based on ‘Kautilya Arthashastra’ written in 4th B.C. by Kautilya, also called as
Vishnugupta, and popularly known as Chankaya. Various Management Gurus have also
referred to him as the world’s first Management Guru.

Research Methodology

The current paper is based on the critical edition of Kautilya’s Arthashastra by Dr.
Kangle (1972) which was taken as the primary source for this study. Other books and
translations on the same subject have been used for reference; namely, the works by
Dr.Shamashatry, Mysore University,(1908)Ganapati Shastry (1924)and by Rangarajan
(1992). The complete list of books used in this research is given in the reference section.

Apart from the academic interpretation of the subject I felt it was necessary to explore the
work’s practical relevance in today’s society, the management world in particular. The
aim is to give a basic framework derived from conceptual level to application level. For
this purpose during the course of the research I also spent time interacting, learning and
sharing his view point with professionals in various fields. I presented my views and
papers at two national level conferences, one in the field of Management, and the other in
the legal field. Interacted with about 20 Management ‘Guru’ and teachers, 2 CEOs, Met
up with 3 Chartered accountants and 2 senior Judges, one of the supreme court and
another the High Court of Kerala followed by a a visit to a Law college and meeting with
its registrar. I also met up with the Vice Chancellors of two universities of Kerala along
with their registrars. I interacted with the Governer of Kerala State, the District collector
of Ernakkulam and spent some time with a Member of a Legislative assembly (MLA).
During one of the conferences I also had a chance to listen to the Chief Minister of
Kerala on ‘ Effective Governance’. I attended a workshop on ‘Character Analysis’ and
conducted a workshop, for a group of youngsters on ‘Creative Thinking’. Finally I gave a
lecture for a group of students of an M.B.A programme on ‘Management Principles from
the Arthashastra’. On the research front, I also prepared a research paper titled ‘The life
of Adi Shankara - a Management Lesson’ which gives an ‘ideal’ of an organizational
leader in the context of the Modern Management Gurus.

The prime objective of this course of study to find the ‘Truth’, which Dr Gangadharan
Nair, described, should be the solo objective of any research work.

Kautilya’s Arthashastra

We find the roots of Arthashatra in the Rig Veda(Nair.G) . The Arthashastra deals
primarily with Economics, Politics or Statecraft and Punishments, therefore it is also
called as Dandaniti. Arthashastra is a book based on Pure logic, Anveshiki (1.2.1). Most
of our ancient Indian books starts with the invocation of a deity before the writing of a
book, in most cases, Ganesha, the Lord who removes obstacles and Saraswati, the
Godess of Knowledge. However in this book we find that Kautilya, who is also referred
to as Vishnugupta, towards the end of the commentary, begins by invoking Sukracharya
and Brihaspati.

“Om Namah Sukrabrihaspatibhyam”

Om. Salutations to Sukra and Brihaspati

There are two important insights we can get from this. The first is that he invokes the two
great Acharyas (Gurus) of the Asuras and the Devatas. We find in the Puranas that the
Asuras and the Devatas were enemies, hence their Gurus would also would have had
different view points. This means that, Kautilya has considered both the different view
points of the extremes before reaching any decision. Secondly as we proceed we find that
the book is completely based on logical discussions taking into consideration all different
view points.

The Arthashastra totally contains 5363 Sutras, 15 books, 150 chapters, and 180 Sections.
The 15 Books contained in the Arthashastra can be classified in the following manner:
Book 1, as a book on ‘Fundamentals of Management’, Book 2 dealing with ‘Economics’,
Books 3, 4 and 5 on ‘Law’, Books 6, 7, 8 describes Foreign Policies. Books 9 to 14
concerns subjects on ‘war’. The 15th book deals with the Methodology and devices used
in writing the Arthashastra.

However, it also needs to be stated that these are general classifications from the writer’s
view point. We can learn of areas covered in one book in other books also. For example,
we can learn about the Fundamentals of Management from not only Book 1 but also from
Books 2, 8 and 10.

We find that Kautilya describes various specialized sciences in the Arthashastra
including Gemology, Ayurveda, Architecture etc. What is really interesting to note is that
in this process we come close to the mind of Kautilya who appears before us a ‘master
mind’ who could specialize in so many different areas within one single book.

Another interesting revelation is that Kautilya’s Arthashastra is not the first
Arthashastra. From a number of quotations and references in later works, we know that
there were at least four distinct schools and thirteen individual teachers of Arthashastra
before Kautilya (Rangarajan, pg 16). Throughout the book he gives references of these
various acharyas which include Bharadvaja, Visalaksa, Parasara, Pisuna and
Kaunapadanta among others. The greatness of Kautilya was that he made the principles
contained in his Arthashastra so applicable that probably the previous Arthashatras got
lost with passage of time.. The very reason that this book has come down to our
generation after nearly 2000 years shows us that he had really fine tuned each concepts in
detailed manner that it survived the test of time. This shows the farsightedness of
Kautilya. He has worked on the psychology of the human mind that never changes with
time.

This book was written by Kautilya for his disciple king Chandragupta Maurya. Basically
in this research paper we will limit ourselves to the Management aspects given in the
Arthashatra.

Management aspects

Book 1, ie ‘Concerning the Topic of Training’, is taken as the Fundamentals and
Foundations of the Management aspects contained in the Arthashastra. It has 500 sutras,

divided into 21 chapters and 18 sections. As in any Management system, the book starts
by defining what areas are going to be covered. Kautilya tells us before hand what is
going to be taught in the following chapters. He wants the students to be aware what they
are going to learn. This is done by giving a basic structure of the Arthashastra starting
with the Enumeration of Sections and Books and also Enumeration of the Sciences
(chapters 1 to 4).

The next important aspect concerns, Training. Unlike in today’s Management system of
just learning in a Business school, Kautilya starts in his more traditional manner of
learning through a Guru-Shisya Paramapara, by learning under knowledgeable and
experienced persons. Hence the following chapter, no 5 is titled ‘Association with
Elders’. Its very important for us to understand at this point that any knowledge that we
need to gather cannot be learnt just by mere theory. It is gained only by careful
observations by people who are skilled in that science. This is the concept of Mentorship
that we observe in today’s corporate scenario.

Kautilya, also commonly known as Chankaya, has been generally criticized by many
people as a very cunning person. Historians have also compared him to Machiavelli, the
author of ‘The prince’, which contains methods that could seem adharmic or unrighteous.
However this comparison may not be justified, as Kautilya gives a lot of stress on Self
Control and proper methods of winning over the enemy. The following chapter 6 titled,
‘Control over the senses’, brings out a totally different aspect of Kautilya which many
current interpretations of Kautilya’s Arthashatra generally miss. In this chapter he
elaborates in 12 sutras the importance of control over the senses by giving up Kama,
Krodha, Lobha, Mana, Mada and Harsha i.e., lust, anger, pride, arrogance and fool-
hardiness. He also gives various examples of kings who perished, having over indulged
in the senses. Finally in the 12th sutra he concludes by quoting King Jamdagnya and
Amarisa who enjoyed the earth for a long time having controlled their senses. Therefore
the first teaching of Kautilya is, To conquer the internal enemies before you conquer the
external enemies.

This idea is further discussed in the next chapter 7, section 3 covering the topic of a ‘Sage
king’. By casting out the group of six enemies he (the king) should acquire control over
the senses, cultivate his intellect by association with elders, keep a watchful eye by means
of spies, bring about security and well-being by (energetic) activity, maintain the
observance of their special duties (by the subjects) by carrying out (his own) duties,
acquire discipline by (receiving) instruction in the sciences, attain popularity by
association with what is of material advantage and maintain (proper) behavior by (doing)
what is beneficial. (1.7.1)

Here we come to note that for Kautilya a ‘Sage King’ is the ideal. He has clearly set in
front of us what is expected out of an ideal king by describing him in the very beginning
itself. The later chapter goes on to explain all the details in the above sutra.

Among the three Purusharthas, of Dharma, Artha, and Kama, Kautilya gives top
priority to Artha. ‘Material well-being alone is supreme’, says Kautilya, for spiritual good
and sensual pleasures depend on material well-being (1.7.6-7). This makes Kautilya
different from the other thinkers. He has stressed the foundations of Artha for success in
worldly life. Hence, the book is rightly named Arthashastra. This may seem a bit
confusing to newcomers, especially with a religious background. Hence Kautilya’s
Arthashastra is addressed to rulers in particular and not to the common man. This is not a
Dharmashastra but Arthashastra. Moreover the primary responsibility of a king is to
maintain the material and physical well being of his subjects. Having a strong material
foundation (Artha) will make Kama and Dharma easy to achieve.

Appointment of Amatyas (persons who are close to the king) is the next important aspect
of Management (1.8). This is followed by the appointment of the Mantri and Purohita i.e.
Councilors and Chaplain . The duties of all three is to advise the king on various matters
and be with him through thick and thin. Hence their selection process is very carefully
considered. This is followed by Ascertainment of their integrity by means of secret tests
(1.10) We can directly relate it today’s corporate world where the Managers are required

Management aspect derived from kautilya's arthashastras

Management aspect derived from kautilya's arthashastras

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (15)

Ähnlich wie Management aspect derived from kautilya's arthashastras

Ähnlich wie Management aspect derived from kautilya's arthashastras (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Management aspect derived from kautilya's arthashastras