Management Practices from Kautilyas Arthashastra (Written by Chanakya, The worlds first Management Guru)

Who was Chanakya ?

Born in 3 B.C. Vishugupta Kautilya Chanakya Pulled down Nanda Dynasty King maker Chandragupta Maurya Responsible for the defeat of Alexander in India Kautilyas Arthashastra & Chanakya Niti Documented towards the end of his life

Kautilyas Arthashastra
Written in Samskrit Contains 15 books, 150 chapters and 6000 sutras (shlokas) Covers over 180 topics. Known as a Book of Economics, state craft, Management, warfare, strategy etc Its a Book of Total Management

Management Topics in Arthashastra

Principles of Management Management Education Accounting systems Corporate Governance Time Management Leadership Skills Contracts Selection of Employees Consulting Strategic Management Handling competition Expansion of Territory etc

Sample of Verses related to Management Topics in

Kautilyas Arthashastra

Definition and the Basic elements of Management

1. The means of starting undertakings (assignments/ projects) 2. The excellence of men and materials 3. Deciding suitable place and time 4. Provision against failure 5. Accomplishment of the work (1.15.42)

Wealth Creation 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 will certainly secure wealth at least after a hundred trails ( 9.4.26)

Corporate Governance

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)

Selection of 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)

Handling Employees

Theory of Motivation
Sama (counseling) Dana (offering of gifts) Danda (Punishments) Bheda (creating a split)

Role of a Consultant
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)

Why is information required ?

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)

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)