Download `Kautilya`s Arthashastra`

Management Practices from
‘Kautilya’s Arthashastra’
(Written by Chanakya,
The world’s first Management Guru)
Who was Chanakya ?
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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
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
‘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
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(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
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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
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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)