Management Practices from

1
Management Practices from Kautilyas
Arthashastra (Written by Chanakya, The worlds
first Management Guru)
2
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

3
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

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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

5
Sample of Verses related to Management
Topics in Kautilyas Arthashastra
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Definition and the Basic elements of Management

• The means of starting undertakings (assignments/
  projects)
• The excellence of men and materials
• Deciding suitable place and time
• Provision against failure
• Accomplishment of the work
•  (1.15.42)

7
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)

8
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)

9
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)

10
Handling Employees

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

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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)

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Why is information required ?

• To know what is not known
• Finding out the rest in a matter which is partly
  known
• Definite strengthening of what has become known
• Removal of doubt in case of 2 possible
  alternatives
• (1.15.20-21)

13
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)