Management Practices from

‘Kautilya’s Arthashastra’
(Written by Chanakya,
The world’s 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
• Kautilya’s Arthashastra & Chanakya
Niti – Documented towards the end of
his life
Kautilya’s 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
• It’s a Book of ‘Total
Management’
Management Topics in Arthashastra

• Principles of • Contracts
Management • Selection of
• Management Employees
Education • Consulting
• Accounting • Strategic
systems Management
• Corporate • Handling
Governance competition
• Time Management • Expansion of
• Leadership Skills Territory etc
Sample of Verses related to
Management Topics
in
‘Kautilya’s 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)
For Training / Consultancy Contact :

Radhakrishnan Pillai

ATMA DARSHAN
www.atmadarshan.com
radhakrishnan@atmadarshan.com
91-98203 74796 / 98198 25474