Principles of Management from Kautilya's Arthashastra PDF

Okay, I will convert the attached document or image into a structured markdown format. ## Welcome Principles of Management from "Kautilya's Arthashastra" ## Salutations to Chanakya (The first Management Guru) Rashtrothana Parishad ## CHANAKYA... * Who was he? * When did he live? * What did...

Okay, I will convert the attached document or image into a structured markdown format. ## Welcome Principles of Management from "Kautilya's Arthashastra" ## Salutations to Chanakya (The first Management Guru) Rashtrothana Parishad ## CHANAKYA... * Who was he? * When did he live? * What did he do? * Why is he a legend? ## History tells us... * Bhramana (Kerala?) born in 3 B.C. * Vishugupta - Kautilya - Chanakya * Youth - Vowed to Pull down Nanda Dynasty * Dasi Putra - Chandragupta - King * Ashoka - Grandson of Chandragupta * Responsible for the defeat of Alexander in India * Kautilya's Arthashastra & Chanakya Niti - Documented towards the end of his life ## His uniqueness * Often quoted * His works are still applicable * Never did he rule * German view point - No royal clothes or ornaments * Taught his skill to many students across the globe ## Is it practical today? * Over 2000 years old * Does it have relevance in today's Management * Its about running a kingdom not business * How can it solve my particular problems ## Indian System 1. Over 5000 years old 2. Time tested (others perished) 3. Based on.. Dharma - Artha - Kama - Moksha 4. West is looking towards India.. ## Kautilya's Arthashastra ## Kautilya's Arthashastra * Written in Samskrit * Contains 15 books, 150 chapters and 6000 sutras (shlokas) * Known as a Book of Economics, state craft, punishments, warfare, strategy etc * It's a Book of 'Total Mangement' ## What all it contains? * Over 150 topics * Internal and foreign Policy * Civil rules * Military tactics * Commerce * Judicial system * Education system * Measures and weights * Selection of employees * Grades of payment * Gemology * Time management * Metallurgy ## Where is it used presently? * Its practical implications nearly lost to our generation * Shivaji -last recorded king to have used Arthashastra for managing his kingdom * Army * Politics * Management - still to catch up with the idea.. ## Today's Topic Principles of Management from 'Kautilya's Arthashastra' ## Aspects of Management that will be covered.. * Definition and the basic elements of Management * Wealth creation and wealth management * Handling employees * Pointers on Leadership ## Definition and the Basic elements of Management ## Definition and the Basic elements of Management 1. The means of starting undertakings (assignments/projects) 2. The excellence of men and materials 3. Suitable apportionment of place and time 4. Provision against failure 5. Accomplishment of the work * (1.15.42) ## Wealth Creation and Wealth Management "The objective of any king (leader) or state (organization) is to create, expand, protect and enjoy wealth" - this has to be based on Dharma. ## Wealth creation and Wealth management * "Be ever active in the management of the economy because the root of wealth is economic activity; inactivity brings material distress. Without an active policy, both current prosperity and future gains are destroyed" (1.19.35,36) ## Wealth creation and Wealth management * "Wealth will slip away from the foolish person, who continuously consults the stars; for wealth is the star of wealth; what will the stars do? Capable men ivil certainly secure wealth at least after a hundred trails" (9.4.26) * Handling Employees.. ## Handling Employees "In the happiness of the subjects lies the benefit of the king and in what is beneficial to the subjects is his own benefit" -(1.19.34) ## Handling Employees * Theory of Motivation * Sama (counseling), * Dana (offering of gifts), * Danda (Punishments), * Bheda (creating a split) ## Handling Employees * "The King severe with rod (punishment) becomes terror. A king with mild rod is despised. The king just with the rod is honored" (1.4.8-10) ## Handling Employees * Why to use the rod (punishment) at all? because - * "If the rod is not used at all the stronger swallows the weak in the absence of the wielder of the Rod" (1.4.13-14) ## Handling Employees * "He (leader) should constantly hold an inspection of their works, men being inconstant in their minds" (2.9.2-3) ## Handling Employees * "A wage is for work done, not for what is not done" (3.14.8) ## Handling Employees ### Qualities to be tested before appointment 1. Technical competence - In that particular field through those person learned in that science. 2. Intelligence, perseverance and dexterity 3. Eloquence, Boldness and presence of mind 4. Ability to bear troubles during emergencies 5. Uprightness, friendliness and firmness of devotion in dealing with others 6. Strength of character * (1.9.3) ## Handling Employees ### Appointment of trainees A 'trainable' person is the one who has the following qualities 1. Desire to learn 2. Effective listening ability 3. Ability to reflect (think from all angles) 4. Ability to reject false views 5. Intentness on truth not on any person * (1.5.4-5) ## Pointers on Leadership ## Pointers on Leadership * Be ever active * "If the king is energetic, his subjects will be equally energetic. If he is slack (and lazy in performing his duties) the subjects will also be lazy, thereby, eat into his wealth. Besides. a lazy king will easily fall into the hands of the enemies. Hence the king should himself always be energetic" (1.19.1-5) ## Pointers on Leadership * Consultation * "All undertakings should be preceded by consultation. Holding a consultation with only one, he may not be able to reach a decision in difficult matters. With more councilors it is difficult to reach decisions and maintain secrecy" (1.15.2,35,40) * Therefore sit and counsel with those who are matured in intellect (1.15.20-21 ## Pointers on Leadership * Power * Power consists of 3 factors 1. Intellectual (Knowledge) Power, 2. Military / money Power 3. Power of enthusiasm and morale. * (R.R page 625) ## Pointers on Leadership * Be well informed * Collection of information is for - 1. To know what is not known 2. Finding out the rest in a matter which is partly known 3. Definite Strengthening of what has become known 4. Removal of doubt in case of 2 possible alternatives * (1.15.20-21) ## Pointers on Leadership Accountability * "In addition to reporting in detail as well as in aggregate, there is also an individual accountability for the revenues and the expenditures" (2.7.24) ## Pointers on Leadership * Accounting systems * "He (leader) should check the accounts for each day, group of 5 days (a week), fortnight, month, four months quarterly) and a year" (2.7. 30) ## Pointers on Leadership Accounting systems * "He should check the income and expenditure with reference to the period, place, time, head of income / expenditure, source, bringing forward, quantity, the payer/paid, the person causing payments to be made, the recorder and the receiver" (2.7.31-32) ## Pointers on Leadership * Competition and Strategy * (similar to SWOT analysis) * "After ascertaining the relative strength or weakness of powers, place, time, revolts in rear, losses, expenses, gains and troubles, of himself and of the enemy, the conqueror should march" (9.1.1) ## Tips in planning your life * Discuss money more often * Start your own business * Protect your nation's wealth * Never forget the prime aim of our lives - to give happiness to others There should be a focused approach to intellectual property rights and related issues. Our ancient knowledge and culture too are part of our resource base and needs to be protected. Dr. A.P.J. Abdul Kalam (President of India) For the sake of the village give up your family; for the sake of country give up the village; for the sake of the world give up the country; for the sake of the lord give up the world... - Chanakya ## Acknowledgements * Chinmaya Mission * Shyama Shastry (1st commentry) * Dr Kangle (2nd Commentry) * RangRajan (3rd commentry) * Various scholars and Management thinkers