chanakya and its management principles 1.rtf1

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Introduction of

CHANAKYAOne of the greatest figures of wisdom and knowledge in the

Indian history is Chanakya. He is estimated to have livedfrom 350 - 283 B.C. Chanakya is touted as the "Pioneer

Economist of India". Chanakya was the adviser and Prime

Minister of Emperor Chandragupta. Chanakya was a

professor at the University of Takshila (located in present

day Pakistan) and was an expert in commerce, warfare,

economics, etc. His famous works include Chanakya Neeti,

Arthashastra and Neetishastra.

Chanakya is also known by the name of Kautilya and

Vishnugupta as is mentioned in his text. His famous workcalled Arthashastra is a classic example of statecraft and

politics and is read in Europe even today. It basically

consists of the principles of politics and how the state

works. An able ruler has to be a ruthless leader to make

sure that the state works smoothly and efficiently. The

legends associated with Chanakya are very interesting and

provide a testimony of his greatness.


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Legends:

When Chanakya was born he had a full set of teeth,

which is a sign that he would become a king or anemperor. But since he was born in a Brahmin

family, it was considered inappropriate. Thus, his

teeth were broken and it was predicted that he

would make another person a king and rule throughhim.

Even as a child, Chanakya had the qualities of aborn leader. His level of knowledge was beyond

children of his age.

Chanakya was thrown out of the court of KingNanda as he was a blunt man and spoke his mind

clearly. Chanakya swore he would take revenge.Chanakya comes across Chandragupta as a youngchild. Even at that age, he was a born leader and

showed the qualities of an able Emperor. He wasthe guiding force behind Chandragupta and the vital

person who made him an able Emperor.

Chanakya adds poison in little amounts daily inChandragupta's food in order to make him immune

to poison, lest some enemy tries to poison him.However Chandragupta was unaware about this andonce gave a little food to his wife who was in the

ninth month of pregnancy. She didn't survive butChanakya cut open her belly and took out the baby.

This baby grew up to become an able emperornamed Bindusara. He had a minister named

Subandhu who did not like Chanakya. He told

Bindusara that Chanakya had killed his mother.

Without assessing facts, Bindusara confrontedChanakya. On knowing the whole story, he feltashamed at his hasty actions and begged for

forgiveness. He asked Subandhu to go and

apologize and make Chanakya come back.


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SIX STRATEGIES TO DEAL WITH

COMPETITION

SANDHI

Sandhi means to get into the contract for peaceful running

of business and not to harm each other. An organization

should not indulge into any controversy because it affects

the image of the organization. While entering into the

agreement, the party should not include any of the clause

which is not acceptable by the other party.

VIGRAHAM

Vigraham means WAR or COMPETITON, this strategy

tells that there should be competition between the

organizations but these competition should not be unethical

i.e one should upgrade the quality of his business to give

competition but should not counter attack directly on the

other party.

Eg: Rin v/s Tide.

Pepsi v/s Sprite.

ASANAM

ASANAM means waiting for proper time. A businessman

should wait for the proper time to act upon the situations.

Because doing right things at the wrong time is considered

wrong.

Taking the example of MC. DONALDS, it was failed to

build goodwill because MC. DONALDS first started with

non-veg foods which was not accepted by Indian people at

that

time.


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SHARANAM

SHARANAM means providing shelter. As shelter is one ofthe basic need of human so as an organization it should

provide shelter to their employees to motivate them

towards the work. Along with shelter, an organization

should also provide additional benefis like allowances,

perks, bonus etc.

YAANAM

YAANAM means acquiring new territories. An

organization should always think about acquiring new

business or to expand the existing business. As expanding

of business will provide high profit as well as security, if

one branch is unable to make profit then other branch

which is running in profit can balance the balance sheet of

the business.

DWAIDHI

BHAAVADWAIDHI BHAAVA means dual policy. Resorting to

peace with one and war with another is dual policy.

According to this strategy one should make good

relationship with one competitor and indulge into war with

other competitor. Because if there will be any problem

going to occur in the near future then he should have

someone to help him for surviving in the market.

Chanakya applied, practiced and succeeded in each of these

strategies in dealing with Alexander, Nandas, Malayakethu

and many other leaders. With the help of these strategies he

assured victory.


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Two books are attributed to Chanakya:

Arthashastra and Nitishastra which is also

known as Chanakya Niti.

The Arthashastra discusses monetaryand fiscalpolicies, welfare, international relations , and war

strategiesin detail.

Nitishastra is a treatise on the ideal way of life, andshows Chanakya's in depth study of the Indian way

of life.

SUTRAS AND THEIR RELEVANCE IN

TODAYS BUSINESS WORLD

1) "Learn from the mistakes of others... you can't live

long enough to make them all yourselves!!"

One of the most important sutra which is relevant in

todays time after the Satyam episode. All the senior

management must have this sutra on their desktops.

Business must be conducted in a ethical manner though the

motive is profits. Maximization of profit must not be at the

cost of cheating people and unethical trade practices.

2)"A person should not be too honest. Straight trees are

cut first and honest people are screwed first."

Most of us would have experienced this in relation to our

government services. You try to be transparent and open to

the government officials. If you have broken the rules, but

the policeman favors the person who has violated the traffic

rules and offers him a bribe. In the worldly life, survival is


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of great importance. Every individual must be able to apply

these rules for his livelihood and survival.

3)"Even if a snake is not poisonous, it should pretend to

be venomous." -

A wise person will never get angry on himself and others,

he will only show anger just like a mother does to her child.

Similarly, in business if your competitors are ahead of you

and a threat to your market share then ensure that your

marketing strategy is competitive enough to entice the

customer and give the competition a tough fight.

4)"The biggest guru-mantra is: Never share your

secrets with anybody. It will destroy you."

I am sure the patent, trademark theory in business

originated from this sutra. That is the reason that many

corporates today patent their inventions and protect their

trademarks, logos and any developments in research. In

business terms any new technological innovation can be

monetised and if it has to saved from the competitor then it

has to be patented.

5)"There is some self-interest behind every friendship.

There is no friendship without self-interests. This is a

bitter truth

This relationship is so true in todays context where a

media company supports a particular political party. Or a

political party is too friendly with a media channel. Its a

relationship of TRPs and reaches to a better voter base. The

bitter truth is very evident by the media coverage. We are

made fools by our very own people and media. Similarexample is of freebies that are being offered by the retailers

to clear of their inventory. But human beings keep on

accumulating loads of stuff which is not necessary for

them.


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6)" Before you start some work, always

ask yourself three questions - Why am I doing it,

what the results might be and Will I be

successful. Only when you think deeply and find

satisfactory answers to these questions, go

ahead."

Such a beautiful anecdote given by Chanakya on planning

before proceeding with any kind of project. Create the

objective and scope of the project clearly before proceeding

for execution. More often projects are started with huge

investments without a clear idea of their feasibility and

success rate.

7)"As soon as the fear approaches near, attack and

destroy it."

We all have fear in some form or the other. Fear of

speaking in public, fear of heights etc. Slowly and steadily

we need to work on our way to fearlessness individually

and professionally also. Some companies also do not come

out in open fearing that they may lose business or theirmanpower would be captured. However, this fear has to be

removed by empowering people within the company and

creating a good professional reputation for the business.

8)"The world's biggest power is the youth and beauty of

a woman."

In India currently our population is 50 % youth and this is

the best time to get the youth to vote and getgoodleadership in the country. Todays youth has a global

outlook and is willing to take lot of responsibility for the

country. Many of them run their own service projects and

NGOs dealing with specific social and rural issues. Woman

empowerment has also helped women seek better careers


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and professions which was just a dream in the past. Women

are born leaders.

9)"Once you start a working on

something, don't be afraid of failure and don't

abandon it. People who work sincerely are the

happiest." -Chanakya

If you look this sutra in the Indian concept it could be said

as KARMA KARO PHAL KI CHINTA MAT KARO

ifone works hard or sincerely and if the result comes even

negative then also one will be happy because atleast he

tried and learnt something which will help him in future.

10)"The fragrance of flowers spreads only in the

direction of the wind. But the goodness of a

person spreads in all direction." - Chanakya

This sutra is applicable to all the people who devote

themselves in the strive of the poor and the needy and

empower people in all ways. In our current times Mata

Amritanandamayi, Sri Sri Ravi Shankar, Baba Ramdev etc

are doing good social service and empowering the globe

helping in peace efforts, betterment of health, stress

management. If any organization does CSR for good cause,it will help them to create good image in the minds of the

people.

11) "A man is great by deeds, not by birth." -

Chanakya

The other day I had got a forward asking me to remember

the last 10 Nobel Prize winners. With great difficulty I

could manage 2 names. But when i was asked to name the

people who put a smile on my face, who could help me in

troubled times, I could easily list 5 names. Every personhas immense potential and it just needs to blossom. It is not

necessary that all big brands and big organization are good,

but sometimes small organizations are also memorable

because of their good deed towards their share holders,

competitors, customers, etc.


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12) "Education is the best friend.

An educated person is respected

everywhere. Education beats the beauty

and the youth." -Chanakya

The need of the hour in India is the

education of the rural youth, children and women.

We will pave our way for success if we empower

the rural public. They are more action oriented and

need direction. Only Youth can empower youth and

You, so let each one of us take responsibilities in

whatever way possible. An organization should takean initiative to teach the youth of rural area, as an

activity of their CSR.


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CHANAKYAS SEVENPILLARS

OF BUSINESSES

Swamya, Amatya, Janapada, Durga, Kosha, Danda,

Mitra-Shatru

1. SWAMI (The Leader):

He is the captain. He is the man who leads

the organisation. In todays corporate world we

call him the director / CEO etc. Without him we

will lose direction.

Qualities of SWAMI (The Leader) under

(6.1.3):

Intelligence and spirit

Given to seeing elders

Truthful in speech

Not breaking promise

Grateful

Desirous of training

Easily approachable

2. AMATYA The minister (The manager):

The man who runs the show.The second person in-charge

of an organisation. He is also the person whom you can

depend upon in your absence. He is the man who is always

in action.

Qualities of AMATYA (The Minister /Manager):


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Desire to learn

Retention

Through understanding

Intentness on truth

Able to lead an army

Sweet in speech (Bridge between

management and staff / labour)

JANAPADA - The country (Your3. market):

Your area of operation. You basically

dominate this territory and would like to keepyour monopoly in this segment.

Qualities of JANAPADA -The country (Your

market):

Strong position in center and frontiers

Capable of sustaining in time of distress

(Globalisation)

Easy to protect

Providing excellent means of livelihood

(cash flow)

Capable of bearing taxes and fines

4. DURGA Fortified city (The head

office):

Your control tower. This is from where your central

administrative work is done.

Qualities of DURGA Fortified city (The head office):

Charming (peaceful)


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Beneficial to men (employees and self)

Staff devoted to work

Men loyal and Honest

KOSHA The treasury:5.

It is the backbone of any business. A strong and well

managed treasury is the heart or any organisation.

Qualities of KOSHA The treasury:

Acquired lawfully by ancestors and oneself(expand)

One that can withstand calamity (Insurance)

One Even when there is no income for long time

6. DANDA The army (Your team):

The army consists of your team members. Those who are

ready to fight for you. Your salesmen, your accountant,

your driver all of them add to you team.

Qualities of DANDA The army (your team):

Obedient

Not disappointed during marches

Able to put up with troubles

Has fought many battles (experience)

Skilled in war and weapons

No separate interest (no side commissions)


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MITRA - The ally (friend / consultant):7.

He is the one whom you can depend upon for all

your problems. A friend in need is a friend in deed.

SHATRU The enemy:

He brings out the best in you

The sleeping giant will awaken (Kumbhakarna)

Taste of fish is better which swims harder

Challenges makes you strong

Swimming coach - Push in water to learn swimming


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MANAGEMENT LESSONS GIVEN BYCHANAKYA

Throughout history, wars have left an indelible mark on

human psyche. Serious debates have been held on themorality of and the strategic necessity for war. And yet,

like every dark cloud that has a silver lining, wars too at

times leave a society wiser. India is no stranger to wars.

And there are many lessons to be learnt from each of those

battles -- management lessons, to be precise. Here wepresent the third in a series of articles on management

lessons drawn from Indian history. This one picks out

management gems from the role of the redoubtable

Chanakya in the rise of the Mauyra empire.

Rise of the Maurya empire: Role of Chanakya (circa 320

BC)

Chanakya was also known as Kautilya and Vishnugupta.

He wrote Arthashastra, the ancient Indian political thesis.There are several stories on Chanakya. One of them goes

like this: Alexander's invasion of western India, circa 326

BC, led to political turmoil that provoked Chanakya, a

renowned teacher of Takshila, to sew up a coalition to take

on the Greek forces.He tried to convince many kings, butnone agreed to his plans. Finally, he came to Patliputra, the

capital of Magadha, ruled by the powerful Nanda dynasty.

He went to their palace and found ten golden thrones. Nine

were for the Nanda princes and their father, and the tenth

was for the most learned person. Chanakya quietlyoccupied it.

When the princes came back, they asked him to vacate the

seat, but Chanakya didn't and demanded a debate to prove

his supremacy. The Nandas rejected the debate demand and

did not give him any position. Lesson: Even thoughChanakya was reputed and famous in Takshila, it does not

mean he would be famous in Patliputra too. So his asking

for the debate is justified to prove his worth. Similarly, a

high performer' in one team or company needs to prove his

worth in a new environment to gain the same tag.


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Chanakya was prepared to face it. But he could try a

different approach for the desired result. In the corporate

world, referral plays a major role in hiring key senior

employees. If any of the key ministers of the Nandas hadreferred or introduced him, he might have got the position.

Image: Alexander the Great Chanakya did not vacate the

golden seat, and the Nanda princes physically pulled him

down. During this process, a lock of his hair got ruffled up.

At this moment, Chanakya took a vow to redo the hair onlyafter defeating the Nandas.

They were about to punish him with the death sentence, but

one of the ministers prevailed upon the princes to forgive

him. Chanakya went out of Magadha and metChandragupta, who was waiting for him.There are manystories on how Chanakya first met Chandragupta, but one

thing was clear: Chanakya could sense the inherent

qualities in Chandragupta and trained him as he wanted to

build an empire by making him the king who could protect

India from the Greek invasion.


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Lesson: Fearlessness, perseverance and patience are the

key attributes of any leader. This helps in setting lofty goalsand fuels the determination to achieve them by executing

against the well-laid-out plan. Another great quality

exhibited by the leader is in spotting talents and grooming

them to take bigger challenges.

Image: Chandragupta Maurya Empire

Chanakya's first step was to sneak in a spy to keep a watch

on the Nandas' inner circle. He knew one Jeevasiddhi, who

was intelligent and could do the job. Chanakya told

Jeevasidhi about some of the secrets of the palace learnt

from Chandragupta who had heard about these from hisfather.They sent Jeevasiddhi to the palace. Jeevasiddhi

convinced the Nandas that he possessed supernatural

powers by narrating the secrets hidden in the palace. The

Nandas started leaning on him and consulting him before

making any major decision. Slowly, he became a part oftheir coterie.

Lesson: A background check is required for most hires, but

a detailed one is a must for senior positions to ensure right


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fit. At a very senior level, where information regarding

tender, bid, intellectual property and other trade secrets is

involved, company must take steps to protect it.

Many companies ask people to sign the non-disclosureagreement and, at times, activate special clauses restraining

them from joining rival or competing companies for a few

years.

Image: Nanda Dynasty Empire

Meanwhile, Chandragupta started helping the people of

Magadha. His popularity started soaring. This acted as athreat to Nandas. The Nandas had an intelligent minister in

Amatya Rakshasa. He advised the Nandas to killChandragupta. Jeevasidhi learnt of the plan and helped

Chandragupta escape.Chanakya encouraged Chandragupta

to take over the Magadha throne. Chandragupta networked

with people and built the Mauryan army. Most of them

were people disillusioned and unhappy with the Nandarule. Chanakya and Chandragupta Maurya announced a

battle plan and ensured that the Nanda army could be

diverted to reach a distant battlefield to fight the Mauryan

army. In the meantime, a civil war erupted in Magadha.Chanakya manoeuvered popular support for Chandraguptaand the Nandas were uprooted without any fight.

Lesson: A peaceful handover to the new management is

desirable as it saves the company from infighting that could

weaken it. It would be faster and fruitful to scale newheights from a stable company rather than a wrecked one. It


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helped Maurya kings to reach new heights faster not only

due to their great leadership skills, but also due to peaceful

transition.

Image: Chandragupta Maurya

It was a monumental task to build an efficient government

for Chandragupta Maurya. Chanakya convinced Rakshasa

to continue to be the minister of Chandragupta by sharing

his grand vision of fighting against theinvasion.Chandragupta was able to leverage Rakshasa's

excellent skills in administer ing the kingdom. Chanakyaassumed the position of an elder statesman.

Lesson: One needs to perform and show results to beconsidered as a key resource. Key people are always in

demand, but more so during organisation's

transformation.People are the main asset. Their knowledge

and expertise can provide a big leap to any activity. They

should be retained. Managers should not be biased inworking with high performers' even if they used to work

with their adversaries in the past, provided the person

maintains loyalty and confidentiality.Top performers areattracted by lofty visions/goals and are willing to face

difficult challenges.


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Image: A Magadha dynasty period sculpture

while serving Chandragupta Maurya, Chanakya started

adding small amounts of poison in his food so that he could

get immune to it and would survive any attempts at

poisoning.One day, his queen, Durdha, shared the food

with the Emperor while she was pregnant. She died andChanakya extricated the baby from the womb. A drop

(bindu in Sanskrit) of poison had got into the foetus, and

hence Chanakya named him Bindusara.

Bindusara would go on to become a great king, and his son,

Ashoka, would emerge as one of the greatest emperors.Chanakya had a political adversary called Subandhu, who

was in the court of Bindusara. He kept looking for

opportunity to defame Chanakya in the eyes on Bindusara.

On finding the right occasion, he mentioned to the king that

Chankaya had killed his mother. However, the bigger

question that remains is: why did the Maurya kings keepSubandhu when his envy towards Chanakya was well

known?

Lesson: In a healthy organisation, diversified and divergent

views can exist. One needs to have people with great skillswho can deliver better results by having a good team work

and right division of work. Peer pressure helps in extracting


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best from the people, but it should be managed well to

avoid destructive peer relationship. If team work is

becoming difficult, the leader should clearly identify roles

based on strengths and in such a way that there is minimaloverlap to avoid conflict. Team with high performers helps

in better results and also cushions attrition.

Image: Teh Sanchi Stupa I which was built by MauryanEmperor Ashoka, son of Bindusara

Bindusara became angry with Chankaya. On knowing this,

Chanakya walked out of the city, donated all his wealth and

sat on a fast. When Bindusara learnt the truth, he

feltashamed and asked Subandhu to apologise to

Chanakya.Subandhu hatched a plan to meet him and asked

him to forgive him. But secretly, he set Chanakya's abode

on fire. Chanakya was killed in the fire.

Lesson: The important lesson here is a long-standing allyand staunch supporter of the Maurya empire was mistrusted

by the king without understanding the complete picture. A

vital resource like Chanakya was lost due to this lack of

trust.Managers should demonstrate maturity by having anhonest one-on-one with the employee and listening to the

other side of the story with an open mind before taking any


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drastic step. It takes time to build the trust, but it takes a

moment to destroy it.

chanakya and its management principles 1.rtf1

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