PREPARED BY :RASHI SETHSHWETA KUMARSHAGUN ARORASURBHI AGRAWALSAKSHI BANSALSNEHLATASONI AGRAWALSWATI DALALVANITA KUMARI

INTRODUCTION

Vishnugupta,popularly known as Kautilya or Chanakya,was the prime minister of Chandragupta Maurya(313-289 BC). His Arthashastra is the most remarkable and comprehensive treatise on political economy throughout the Hindu period. The Arthashastra is remarkable for its dealing with a vast variety of subjects and its elaborate and detailed considerations of the diverse aspects of ruling a state.Kautilya’s Arthashastra was primarily written as a guide for the king who should be able to rule with justice and equity to ensure protection and prosperity of his subjects.There is hardly any area of human endeavour which Kautilya does not analyse in depth giving real life answers to every conceivable hypothetical situation.

AGE OF ARTHASHASTRA

Strangely enough the Arthashastra was completely lost,and it was only in 1905 A.D. that Dr. R. Shamshastry,the liberarian of the oriental library in Mysore state, discovered a copy and published its text with English translation for the first time in 1990”… many passages in this text expressly describe it as the composition of Kautilya who uprooted the Nandas.Nevertheless,the examination of the contents has convinced some scholars that it was not the work of a single individual but of a school of politics, and that it could not be composed in the 3rd cen. B.C. but probably received its present from 3 or 4 centuries later.However a complete reading of the complete text will show that it is an integral whole.Definitions and special terms explained in one place are picked up and used in the same sense elsewhere.After a comprehensive examination of all points of view, Kangle has concluded that ‘there is no convincing reason why this work should not be regarded as the work of Kautilya who helped Chandragupta to come to power in Magdha.”

RELEVANCE FOR MANAGERS

Although written in a different time span and in different social context,Arthashastra, through Kautilya’s insight into human nature and his immensely practical advice to the king will be found very useful for the modern managers.Kautilya’s penetrating insights in different aspects of management and administration will be highly useful for managerial areas of assumptions about ‘models of man’, theories of motivation and leadership,training and development,decision making,financialadministration,information system and strategic management.These have relevance for efficiently managing the large business and non business enterprises “Arthashastra can be considered as a foundation book for managers”.

Kautilya considering the king as the most important element of state goes to explain in detail the qualities,duties and powers of a king which can enable him to become a successful ruler.If we consider the Kautilyan state to be a modern day organisation and his king as its CEO, then the insight given by Kautilya about what constitutes an ideal king would be very useful in deciding about the required qualities and behaviour of “modern day CEO”.

LEADERSHIP THEORY

QUALITIES OF A LEADER

i. THE LEADER SHOULD BE ABLE TO ATTRACT FOLLOWERS

Born in a high family,endowed wid good fortune,intelligence and spirit,given to seeing elders ,pious,truthful in speech,notbreaking his promise,grateful,liberal,of great energy not dialatory with weak neighbouring princes,resolute,not having a mean council (of ministers),desirousoftraining-these are the qualities of one easily approachable.

ii. THE LEADER SHOULD HAVE THE QUALITIES OF INTELLECT

Desire to learn,listening,learning,retention

through understanding,reflecting,rejecting (false views) and intentness on truth – these are the qualities of

intellect.

iii. THE LEADER SHOULD HAVE THE QUALITIES OF ENERGY

Valour, determination, quickness and dexterity these are the qualities of an energetic king.

iv. PERSONAL ATTRIBUTES OF A LEADER

An ideal king should be eloquent, bold and endowed with a sharp intellect, a strong memory and a keen mind. He should be amenable to guidance.He should be well trined in all the arts and be able to lead the army.Heshould be just in rewarding and punishing.He should have the foresight to avail himself of opportunity (by choosing) the time, place and type of action.He should know how to govern in normal times and in time of crisis. He should know when to fight, when to make peace, when to lie in wait, when to observe treaties and when to strike at an enemy’s weakness.He should preserve his dignity at all times and not laugh in an undignified manner. He should be sweet in speech,lookstraight at people and avoid frowning.He should eschew passion, anger, greed,obstinacy,fickleness and backbiting.

A LEADER SHOULD BE AMENABLE TO GUIDANCE

•A leader specially in today’s fast changing scenario should be amenable to receiving guidance from more experienced or the experts.

A LEADER SHOULD BE JUST

•A leader who is not just in rewarding and punishing,will not be able to mobilisesupport and maintain the motivation level of his followers to accomplish tasks and achieve objectives.

A LEADER SHOULD BE AS EFFECTIVE IN CRISIS AS IN NORMAL TIMES

•In crisis situation especially followers expect guidance from their leader.In such a situation if the leader is able to win the trust and confidence of his followers , he will be able to motivate them to make their best efforts in the normal situations also.

A LEADER SHOULD FOLLOW CONTINGENCY APPROACH

•A wise leader is one who understands that merit of all actions is in relation to situations . So he must decide on his course of action according to the prevalent situation.

THE LEADER AS ‘RAJRISHI’

•A Rajrishi is one who has self control , having conquered the senses , cultivates the intellect by association with elders , keeps his eyes open through spies , is ever active in promoting the security and welfare of the people , ensures the observance (by the people) of their dharma by authority and example , improve his own discipline by (continuing his) learning in all branches of knowledge and endears himself to his people by enriching them and doing good to them.

•Self control which is the basis of knowledge and discipline , is acquired by giving up lust , anger , greed , conceit , arrogance , and foolhardiness. Living in accordance with the shastras means avoiding over indulgence in all pleasures of hearing , touch , sight , taste , smell.

•A king who has no self control and gives himself upto excessive indulgences in pleasure will soon perish , even if he is the ruler of all four corners of the earth.

A Rajrishi shall always respect those councillors and purohits who warn him of the dangers of transgressing the limits of good conduct , reminding him sharply of the times prescribed for various duties and caution him even when he errs in private.

Arthashastra views the man in leadership position as a ‘vijigishu’ iedesirous of ‘vijaya’ (victory , achievement) “Vijigishu is an all encompassing phrase denoting the overall achievement orientation “ of the leader. When applied in the organisational context this concept suggests that a modern business vijigishu’s strategic actions should be guided by his desire to expand his organisation’sterritories. This again however be guided by the organisationalyogakshema.

THE LEADER’s CONCERN FOR PEOPLE

In the happiness of the subjects lies the happiness of the king and in what is beneficial to the subjects is his own benefit. What is dear to him self is not beneficial to the king, but what is dear to the subjects is beneficial (to him).

Subjects when improverished , become greedy , when greedy they become dissatisfied they either go over to the enemy or themselves kill the master.Carrying out his own duty the king who protects the subjects according to law , leads to heaven; of one who does not protect or who inflicts an unjust punishment , (the condition) is the reverse of this.In all situations the king should favourthe stricken (subjects) like a father.

He (king) should carry out what is agreeable and beneficial to the subjects by doing his own duty as laid down , granting favour’s giving exemptions , making gifts and showing honour. He (king) who does not keep his promise becomes unworthy of trust for his own and other people , also he whose behaviour is contrary to that of subjects

LEADER’s USE OF DAND FOR NEGATIVE AS WELL AS POSITIVE REINFORCEMENT

The king severe with the rod, becomes a sourceof terror to beings. The king mild with the rod , is dispised. If (rod) not used at all, it gives rise to the law of fishes for the stronger swallows the weak in the absence of the wielder of the rod. The king just with the rod is honoured. For the rod used after full consideration endows the subjects with spiritual good, material well being and pleasures of the senses.

DECISION MAKING PROCESSES

Kautilya recommends participative group decision-making. For quality decisions to be taken it is desired that every decision and action which is of strategic importance should be preceded by consultation of experts and/or the executives who will be implementing it.Another interesting recommendation that Kautilyagives is that the advisors/subordinates should be consulted individually and then jointly.

The five aspects to be considered in a decision making process are:

i. The objectives to be achievedii. The means of carrying out the tasks i.e. , the

techniques, work methods, and systems to be identified and developed.

iii. Resources planning and mobilisation i.e. , ascertaining the availability and excellence of the required number of workforce and the quantity of material and additional requirement of the same to accomplish the task.

iv. Deciding on the time and place factorsv. Contingency plan against failure.

ASSUMPTIONS ABOUT HUMAN

NATURE

I. MAN AS SHAPER OF HIS DIGNITYThe object slips away from foolish person , who continuously consults the stars ; for an object is the (auspicious) constellation (for achieving) an object: What will the stars do?

II. MAN IN WORK SITUATION : MAN THE VARIABLE

He (superintendent) should constantly hold an inspection of their works, man being inconstant in their minds.Therefore, he should be cognizant of the worker, the office, the place, the time, the work to be done, the outlay and the profit in undertakings.

III. MAN IN SOCIAL CONTEXT : MAN AS AN EXPLOITER

If (authority) not used at all it gives rise to the law of fishes. For the stronger swallows the weak…

IV MAN IN WEAKER MOMENTS : MAN THE CORRUPTIBLE

Just as fish , moving inside water cannot be known when drinking water, even so officers appointed for carrying out works cannot be known when appropriating money.

HUMAN RESPONSE MANAGEMENT

Kautilya has discussed various technique of taking the best out of people through his instructions about proper selection , wage administration , competency enhancement , conflict resolution etc.These insights will be very useful in managing human responses in a positive manner.

PROPER SELECTION

Before appointment , (the king) should make inquiries about nationality, nobility of birth and amenability to discipline, tractability from his kinsmen, test his (training in) arts and possession of the eye of science through those learned in the same sciences, learn about his intelligence, perseverance and dexterity from his handling of tasks, test his eloquence,boldness and presence of mind on occassions of conversations, his energy and power as well as ability to bear troubles during a calamity, his uprightness, friendliness and firmness of devotion from his dealings with others, learn about his character, strength, health and spirit as well as about freedom from stiffness and fickleness from those living with him, and about his amiability and absence of a disposition to animosity by personal observation.

WAGE AND SALARY ADMINISTRATION

The second step in managing human responses at the work place is having satisfactory salary arrangements with the employees. Kautilya has given elaborate rules regarding the contract of labourbetween the two parties – employer and employee.

CONTRACT OF EMPLOYMENT

Those who are near shall note a workers engagement in work. A worker should receive a wage as agreed upon in conformity with the work and time.Dispute shall be settled only on the testimony of witnesses. In the absence of witnesses the (judge) should inquire at the place where the work was carried out.

OBLIGATION OF EMPLOYEES

For a labourer not doing the work after receiving the wage, the fine is twelve panas and detention till it is done. If, when there is a restriction ‘You shall not give this work to another, nor shall I do anyone else work’, … the labour does not do the work, the fine shall be twelve panas. In case the labour misses the proper place and time or does the work in a wrong manner he may not, if unwilling, allow the work as done.

Obligations as recommended by Kautilya are the following:I. An employee shall not refuse to do the work allotted to

him, if he has already received his salary. He shall be detained till he does the work and also fined. In modern organisational context, if such a situation emerges the case will have to be referred to a third party for settlement.

II. If there is an agreement that no one other than a particular employee may do a specific job, that employee shall do the work accordingly; otherwise, he shall be fined. Such would be the situation specially in those jobs which require special attention and expertise. In today’s context the fine would take the form of ‘damages’.

III. An employee shall perform his duties at the right place and time and in correct manner.

RIGHTS OF EMPLOYEES

Rights of the employees as recognised by Kautilya seem to be quite adequate even according to modern standards.I. Kautilya talks of flexibility in employment situation, to the extent

that work can be contracted out by the employee himself at a very small level.

II. An employee is bound to his employer for the ‘completion of the task’ not the ‘ownership’ of his person or expertise time.

III. The mere presence of the labourer does not entitle for payment.IV. Kautilya visualised o form of ‘job security’ which is not absolute but

partial, which is seen and aspired for in the modern world also.V. If the employee takes initiative and work more than has been

assigned then this effort ‘must’ be recognised by the employer and the employee should be compensated accordingly.

OBLIGATION OF EMPLOYERS

In case of delay in the payment of wages the fine is one tenth or six panas.In case of denial the fine is one fifth or twelve panas.If there is a restriction that ‘You shall not give this work to another…. The employer does not get work done by him….. The fine shall be twelve panas.

Recognising the two way situation kautilya also talks of the obligations of the employer.

RIGHTS OF EMPLOYERS

Kautilya enumerates the following rights of an employer:

I. If the employee fails to complete the work as required from him then employer can have it completed by some body else, the cost of which will be borne by the employee.

II. The employer has the right to disqualify the work, for the purpose of calculating the wages due, which is not done at the right time or place or in the right way.

COMPETENCY ENHANCEMENTKautilya places great emphasis on training and continuous skill improvement which is the most powerful tool generating desired human responses at work place.For competency enhancement, self discipline is very important.He identifies the basic qualities of trainable persons. These are:•Desire to learn•Obedience to a teacher.•Capacity to retain what is learnt.•Understanding what is learnt and reflecting on it.•Rejecting false views.•Intentness on truth.Competency enhancement will bear fruit and benefit the employee as well as the organisation only when it is a continuous process.

SOCIAL SECURITY

Kautilya also proposes a system of social security for those in employment , which is very much similar to one applicable in modern organisational context.

CONFLICT RESOLUTION

i. SAMA i.e. concillation / persuation

Among them , concillation is five fold, praising of merits, mention of relationships, pointing out mutual

benefits; showing advantage in the future , and placing self at the others disposal. Among these appreciation of

the merits of birth, body, occupation, nature, learning, property and so

on, praise, adulation, this is praising of merits.

ii. DAMA i.e., gifts

Conferring benefits of money is making gifts.Favours and exemptions or employment in works is gifts.

Gift is five fold-Relinquishing what is due;

Acquiescence in what is taken;Return of what is received;

Bestowal of one’s own wealth;Permission to take something from the enemy.

iii. BHEDA i.e, dissension/discrimination/acknowledging

Creating apprehension and reprimanding is dissension.

iv. DANDA i.e., using force/fear

Killing, tormenting and seizure of property constitute force.

RECOMMENDED METHODS

In that earlier one is lighter than each later one. Concillation is one fold. Gifts are two fold being preceded by concillation. Dissension is three fold being preceded by conciliation and gifts. Force is fourfold being preceded by conciliation, gifts and dessention.

COMBINATION OF METHODS

And in accordance with the seriousness or lightness of the conflicts, there is restriction or option . With this means only not with another this is restriction. With this means or another : this is options.

METHODS OF COGNITION

I. DIRECTLY PERCEIVEDII. UNPERCEIVEDIII.INFERENCE

All the three methods of cognition have to be utilized by manager to treat a situation from every angle. Then only, control can be exercised over systms and targets.

PRINCIPLES OF EFFECTIVE

COMMUNICATION

Kautilya gives six principles of effective writing-1.PROPER ARRANGEMENT2.CONNECTION3.COMPLETENESS4.SWEETNESS5.EXALTEDNESS6.LUCIDITY

DEFECTS OF WRITING

Kautilya enumerates five defects of writing-i. ABSENCE OF CHARMii. CONTRADICTIONiii. REPETITIONiv. INCORRECT USE OF A WORDv. CONFUSION

NON VERBAL COMMUNICATION

Kautilya states that a message can be sent across through non verbal communication also i.e. making use of facial expressions and body language.Sometimes in sensitive situations when one cannot make use of the words, the message can be conveyed by judicious use of expressions and gestures. For example:To show satisfaction:

“Pleasure at (other’s ) site, offering a seat, taking pleasure in talk, paying regard to the other in matter that are to be communicated, appointed to a task with a smile, touching with the hand…..”

THANK YOU…