Artha Shastra

MANAGEMENT SYSTEM IN ARTHASHASTRA

WHAT IS ARTHASHASTRA ??

An ancient Indian treatise which consists of 15 chapters, 380 Shlokas and 4968 Sutras.

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.

Arthashastra deals with four main topics namely:

1. Treatise,2. Statecraft,3. Economic policy and4. Military strategy.

DEFINITION OF ARTHASHASTRA

Arthashastra- An ancient Indian treatise on economics and politics written by "king maker" CHANAKYA (also known as KAUTILYA) in the 4th century B.C during the rule of the MAURYAN DYNASTY.

Central theme of Arthashastra:- No kingdom can survive without an efficient and solid economy.

ARTHASHASTRA IS-

In the happiness of his subjects lies the

happiness of the king."

ARTHASHASTRA IN THE CONTEXT OF MANAGEMENT

Can be considered as foundation book for managers.

Oldest book on total management available to the world.

Written by KAUTILYA in 300 BC.

Literal meaning “Scripture of Wealth”.

Main focus of book- creation and management of wealth.

NEED OF ARTHASHASTRA IN MODERN MANAGEMENT

KAUTILYA ‘s penetrating insights in different aspects of management and administration is highly useful in various managerial areas of assumptions about :

Models of man, Theories of motivation and

leadership, Training and development , Decision making, financial

administration information systems and strategic management.

LEADERSHIP MODEL

Chanakya says- Essence of leadership lies in justice and ethics.

Modern-day management begins with a leadership team committed to the organization’s core values, purpose, mission and vision. The same was true 2,400 years ago when Chanakya proceeded to help build an empire.

He put vision, mission, and motivation ahead of everything else.

QUALITIES OF AN IDEAL KING OR LEADER

A LEADER: Should be

able to attract followers.

Should have the qualities of intellect.

Should have the qualities of energy.

PERSONAL ATTRIBUTES OF A LEADER: Should be amenable to guidance. Should be just in rewarding and punishing.

Should be as effective in crisis as in normal times.

Should follow contingency approach. Should have pleasant personality. Should have concern for people. Should use Dand for negative as well.

LEADER AS RAJRISHI KAUTILYA says- Effective king is one

who is a ‘Rajrishi’ i.e. a ‘a king wise like a sage’.

Rajrishi - one who has self control, having conquered the senses, keep his eyes open through spies, is active in promoting the security and welfare of people.

A king who has no self control and gives himself unto excessive indulgences in pleasure will soon even if he is the ruler of all 4 corners of the earth.

THE LEADER AS VIJIGISHU

Arthashastra views the man in leadership position as ‘vijigishu’, i.e. desirous of ‘vijaya’ (victory, achievement) .

In modern organizational context – a modern business vijigishu’s strategic actions should be guided by his desire to expand his organization’s territories; including the product and market territories as well as influence territory.

Thus, A SUCCESSFUL AND

RESPECTED LEADER IS ONE WHO CONSIDERS THE ADVICE

OF HIS STAFF MEMBERS &

TRUST THEIR WISDOM.

DECISION MAKING PROCESSES

Kautilya recommends participative decision making . For quality decisions to be taken, decision of strategic importance should be preceded by consultation of experts who will be implementing it.

Number of advisors should be carefully considered.

Advisors/subordinates should be consulted individually and then jointly. In this way, leader/manager will be able to have their true opinions.

5 aspects to be considered in decision

process The objectives to be

achieved. The means of carrying out

the task. Resources planning and

mobilization. Deciding on the time and

place factors. Contingency plan against

failure. A time frame has to be

alloted to the entire decision making process so that critical timing of undertaking a project/task not lost.

ARTHASHASTRA IN HR

• Proper Selection

• Wages & Salary Administration

• Contract of Employment

• Obligation of Employees

• Right of Employees

• Employee Union

• Incentives & Overtime System

• Competency Enhancement

• Social Security

CONFLICT RESOLUTION

• SAMA- Appeasement, non-aggression pact

• DAMA-Gift, bribery, Monetary, Non Monetary .

• DANDA-Strength, punishment, Force, Fear.

• BHED-Divide, split, separating opposition, Discrimination.

EFFECTIVE COMMUNICATION

• Excellences of Effective Writing-

Proper arrangement

Connection Completeness Sweetness Exaltedness Lucidity

Defects of writing

Absence of Charm Contradiction Repetition Incorrect Use of Word Confusion

Non Verbal Communication

ARTHASHASTRA IN ACCOUNTING MANAGEMENT

Revenue Budgeting Income, Expenditure &

Balance Auditing of Accounts Planning a Strategic

Campaign Losses, Expenses &

Gains Product Pricing &

Market Control

Consumer Protection

ARTHASHASTRA IN PLANNING & STRATEGIC CAMPAIGN

Arthashastra , The science of

Securing the Material well

being.

8 FACTORS OF STRATEGIC COMPAIGN

1) Power -Power of Intellect. -Power of Might. -Power of Energy. 2) Place3) Time4) Man Power

Mobilisation

5) Impact of Future Campaign on Present operation

6) Losses, Expenses and Gains.7) Product, Pricing, & Market Control.8) Comsumer Protection.

STRATEGIC RELATIONSHIPS

• Sandhi- Peace;

Entering Into a Treaty Is PEACE.

• Vigrah – War;

Doing Injury is WAR

• Asana-Staying Quiet;

Remaining indifferent is staying quiet

•Yank- Preparing For War or Marching;

Augmentation of Powers Is Marching•Samsarya-Seeking Shelter; Submitting To Another Is Seeking Shelter.•Dvidhibhava-Dual Policy;Resorting To peace with one & war With Another is Dual Policy.

CONCLUSION

Arthashastra is not merely a book. Its all About The Business Strategy. Its not only deals with one aspect of Business, it covers all the areas

As we seen it explains its importance in all the activity of Management

So we can say that Arthashastra is a complete Package of Management , Marketing, Finance, Production & communication, Which guides any enterprise to make his organization a profit making organization.

THANK YOU

UNDER THE GUIDANCE OF :

MS. NAMITA BHATNAGAR

PRESENTED BY:

JYOTI RATHORE JYOTSHNA KHUSHBU GOYAL KRITIKA AGARWAL MEETA BHATIA NEHA CHATURVEDI

NIDHI SHAKYA PALAK GARG PRATIBHA VERMA PRIYANKA GAKHAR