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Evolution of Indian Management: Towards a New Paradigm of Knowledge

Creation in Management and Leadership

Conference Paper · February 2020

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Subhash Sharma
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Evolution of Indian Management: Towards a New Paradigm of
Knowledge Creation in Management and Leadership*

Subhash Sharma

Director, Indus Business Academy, Bangalore

Introduction

Current management models are not holistic as they do not take into account aspects such as liberation,
culture, spirituality and deeds (karma). Western theories also do not focus on the higher order purpose
of existence. This is where Indian Management/ Bharatiya Management can play a big role. As Indian
Management/ Bharatiya Management is rooted in spiritual and cultural ideas, it can plug the gaps in
current management models and create holistic models with a focus on human quality development.

To see how this can be done, we need to understand the evolution of Bharatiya Management/ Indian
Management in detail and identify opportunities in which Bharatiya Management can flourish.

Phases in the development of Indian management

Evolution of Indian management can be categorized in terms of following six phases:

● Phase I started in the early 1960s and 1970s with a replication of Western management models
and ideas. This phase was referred to as ‘Management in India’ and dealt with how effectively
Western models were implemented in Indian context.
● Phase II happened in the 1980s when some scholars in IIMs and outside started exploring Indian
concepts in management. Professor J B P Sinha proposed the concept of ‘integrative
indigenisation’. This was the beginning of introducing Indian concepts in management.

*Keynote address delivered at Bharatiya Management Workshop organized by Centre for

Educational and Social Studies in collaboration with IIMB, IIMT and AICTE, held at REVA
University, Bangalore, Oct 18 and 19, 2019.

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 ● In Phase III in the 1990s there was an attempt to connect management and culture, partly
inspired by Japanese management. Professors J B P Sinha, Rajen Gupta and others worked on
this path. This was followed by linking management with human values and Indian scriptures.
Professor S K Chakroborty of IIM Calcutta started working on this and it resulted in the setting
up of the Management Center for Human Values (MCHV) at IIM Calcutta.

● In Phase IV in the 1990s and 2000 , there was a spread of Indian ideas in management. This led
to the establishment of WISDOM (Women’s Institute for Studies in Development Oriented
Management) at Banasthali University, Banasthali, Rajasthan. The idea of management was
changed and expanded to link it with the idea of development. The emphasis was not just on
corporate management (which was the focus of IIMs at that point in time). There was a focus
on the broader idea of development oriented management and nation building. This was a
breakthrough concept. A basic course on Indian ethos and human quality development (HQD)
was introduced. The Western idea was HRD and we took the idea further and gave the Indian
concept of HQD.
● In Phase V, research in Indian management gained momentum. Many Phd thesis were
submitted, particularly in Banasthali, to create a new pool of knowledge in Indian management.
● Now we are into Phase VI, which is overlooking the future, when there will be a global spread
of Indian management ideas. Globalizing Bhartiya Managemnt/ Indian Management is the
keynote of this idea.

Streams of knowledge creation in Indian management

Knowledge creation in Indian management can be classified in terms of following knowledge streams:

● Stream I: This is the replication stream, wherein we replicate the Western and Japanese
management models in the Indian context and write case studies on replication experiences.
● Stream II: It is the grounded praxis approach, which finds out how concepts are operating at
the ground level and documents those experiences. The challenge is in converting such tacit
knowledge into explicit knowledge.
● Stream III: This is the search for management and leadership ideas in ancient literature and
ancient wisdom (e.g. Gita, Vedanta, Kautilaya’s Arthashastra, Panchatantra). A large umber of
scholars have contributed to this stream. However challenge is to identify ideas that are
available in scriptures but are not available in Western management literature.
● Stream IV: This is opening new doors to knowledge creation, through a model-building
approach with roots in Indian wisdom, scriptures, Indian realities and nation development
imperatives. Earlier, Indian management had only a story-telling technique. The gap analysis
had not been done properly. The new idea is to develop models in Indian management,

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 something that is not present in Western and Japanese management systems and develop
holistic models.

Transition of Indian management from ancient times to current times

In the ancient times, the focus was on the kingdom (e.g. Arthashastra deals with effective management
of a kingdom). In modern times, the focus was on nation (Gandhi’s Hind Swaraj is a good book for
management and leadership.) In the post-modern/ New Age and contemporary times, there is
development focus and corporate focus. In this context, there is a need for new books on Indian
management and good case studies on Indian experiences of excellence e.g. Amul, Patanjali, Indian
elections, Kumbh Mela, dabbawallahs and Swachh Bharat etc.

Three approaches to knowledge creation

There are three approaches to knowledge creation viz. structural approach, cultural approach and
spiritual approach. The structural model focusses on structural ideas. Western management and
technology is largely rooted in this model. The culture model tries to conceptualise what is coming
from different cultures of nations. The third model is the spiritual model wherein spirituality is the
foundation for new knowledge creation.

The above models can be viewed in the following manner:

● Through windows: This model involves looking outside at the reality from the windows. This
methodology was perfected in the Western world (Western windows). This is the methodology
of science (scientific approach to knowledge creation).
● Through doors: This model involves coming inside and experiencing the reality and then
conceptualising that experience and creating something new. This was the idea perfected in
India during the ancient times, resulting in yoga, and focus on self development/ spirituality,
which are now getting global attention (Eastern doors).
● Through corridors: This model involves exploring the corridors of higher consciousness.

Indian management is rooted in the cultural and spiritual models. We can draw from these and create
new management models. For this we need a new creative and meditative approach to do research in
developing new models.

Key ideas of Indian management

Following three ideas constitute foundation for the concept of Bharatiya Management: These ideas
draw upon ancient wisdom rooted in Purushartha theory and Triguna model of human existence.

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1. Basket of needs

2. Modes of thinking

3. Hierarchy of deeds

Basket of needs

Western models of motivation theory are not holistic enough; they only belong to one space or the other.
The Basket of Needs model is an Indian model with root in Purushartha approach to life. The basket is
also a part of our tradition and dominant in our consciousness. It is a cultural idea, which has been
converted into a new model of thinking.
The concept of ‘Basket of Needs’ is based on six dimensional view of human beings (Western
Windows Eastern Doors, pp. 102-106) in terms of Biological, Economic, Political, Social,
Psychological and Spiritual dimensions. These six dimensions can also be represented in terms
of following three models :

I. Human being as Bio-Spiritual entity

II. Human being as Socio-Political entity
III. Human being as Psycho-Economic entity

As Bio-Spiritual entities, human beings not only seek to fulfill their biological needs but also seek to
explore their inner dimension/ inner self and its relationship with the world outside. As spiritual entities
they tend to seek happiness, ‘self realization’ and enlightenment. As social beings they tend to seek
fulfillment in social relationships and as political beings they tend to display power need. As
psychological entities, they tend to seek self esteem and self-actualization and as economic entities they
tend to maximize ‘utility’ and seek wealth. The idea of ‘Basket of Needs’, wherein the basket combines
above presented three models, leads us to at a holistic model of human beings. It may be indicated that
the idea of ‘Basket of Needs’ not only takes us beyond Maslow’s Hierarchy of Needs but also provides
us an analytical framework for ‘social-analytics’ as we can use it to analyze the social dynamics in terms
of dynamic interactions of the six dimensions of human personality and their manifestations in human
societies. Fig.1 presents thee model of basket of need.

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 Fig.1: Basket of Needs

Modes of Thinking
Human mind operates on five modes of thinking (Western Windows Eastern Doors, p. 15). These five
modes defining a pentagon model are as follows:

1. Power acquisition
2. Calculative and acquisitive: Wealth seeking
3. Knowledge seeking
4. Concern For Others (CFO)
5. Liberation From Oppression (LiFO)

In Western theories, the idea of liberation is not present, perhaps because the Western world is used to
dominating others. So, this idea never came to their consciousness.

Different human beings display different mix of these five modes of thinking. Cultures, societies and
nations also differ in their emphasis and mix of these modes of thinking. In fact, different cultures and
nations can be studied from the viewpoint of their ‘modes of thinking’.

Spider diagram: This is an Indian theory of personality based on five mode lof thinking, very different
from the Western theories of personality. Fig, 2 presents an illustrative spider diagram of human
personality based on self rating by a person on five modes of thinking on a five point scale where 1
represents low score and 5 represents high score.

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 Fig. 2: Illustrative Spider Diagram based on Self ratings

Hierarchy of deeds/actions

(Western Windows Eastern Doors, 1996, p. 174)

In Western thinking, the focus is on needs. In Eastern thinking, the focus is always on deeds (karma
theory).

Typology of deeds/actions: Deeds or human actions can be classified on the basis of Triguna
approach, in terms of Tamas, Rajas, Sattva

When converted into modern language, the three types of deeds/ actions can be explained by the 3G
Model. G1: Greed, G2: Goodness, G3: Graceful deeds/actions. Fig. 3 presents the concept of the
hierarchy of deeds.

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 Fig. 3: Hierarchy of Deeds

We get a new perspective from this Indian model. On the x-axis, we have the needs and on the y-axis,
deeds are required. Western models are x-axis models. The y-axis is generally missing in many of these
models. So, Indian management can complement the Western models with the y-axis and arrive at a
holistic approach.

We can revisit all the motivation theories using above mentioned ideas of Indian
management. Table 1 presented below provides Western and Eastern models of motivation based on
Western Windows and Eastern Doors approaches to knowledge creation.

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 Table 1: Western and Eastern Theories of Motivation

Some Examples of Indian Models

There are other Indian models such as OSHA, Theory K of enlightened leadership, Corporate Rishi.
and HOPE model. Following provides a brief discussion on these models. Readers interested in
detailed discussion may refer to Management in New Age: Western Windows Eastern Doors (1996).

OSHA Model
This model with roots in Triguna theory of Tamas, Rajas and Sattava qualities of nature and
human beings identifies four levels of human behaviour. These four levels are as follows:

O: Oneness

S: Spiritual

H: Humanistic

A: Animalistic/ Aggressive

As a theory of personality, this model identifies four types of persons viz. 'O', 'S', 'H'
and 'A' type depending upon the presence of the most dominant component. It may
be indicated that S element has its close equivalent in sattva, H in rajas and A in
tamas.

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"O" level or oneness is metaphorically described through "Oceanic experience". It
implies oneness with self and oneness with nature. This may find its manifestation
in an individual's inner quest for SOS - Search Of Shanti. O level also incorporates
within itself mystical meaning of shunya and its counter part ananta (infinite).
Experience of such "fullness of void" i.e. experience of infinite at O level is variously
described in spiritual literature. It is interesting to know that in mathematics such
fullness of void is represented by O/∞ leading to indeterminate quantity known as
brahm (brahman) in spiritual literature. Symbolically, O also stands for a circle - a
circle of consciousness. As an individuals' circle of consciousness expands, creativity
shows its continuous natural flow. For an atheist, "O" level simply implies oneness
with nature. When oneness with nature is disturbed, ozone layer disappears and
acid rain becomes a reality!

"S" level indicates the spiritual aspect indicative of supreme goodness in human
nature, represented by values of love, amity mercy and so on. These arise as a result
of seeing self in others and seeing SELF in everyone. This also represents the
connecting thread between various spiritual philosophies influencing the human
psyche.

"H" level stands for the humanistic dimension and is represented by humanistic
values such as empathy, dignity, liberty and so on.

"A" level stands for "animalistic" or aggressiveness aspect of human nature that can
be easily seen in many conflict situations. "A" level also stands for authoritarian as
well as "asuri" (fascist / demonic) tendencies.

Different models of human emanate depending upon the emphasis given to O, S, H

and A element. Further, within each element certain assumptions are made to refine
or define some new models to fill up the details. For example within A type behaviour,
several behaviour patterns can be elaborated leading to formulation of several
theories of man and his personality.

Fig. 4 presents the OSHA model.

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 Fig. 4: OSHA Model of Human Behaviour

OSHA model can also be used as a framework for analysis of inter-personal

behaviour. For this purpose an inter-personal interaction matrix as presented in Fig.
5, could serve as an analytical framework. This matrix represents two persons
interaction in their various modes, viz. the spiritualistic, humanistic or animalistic
mode. These modes are: (S, S), (S, H), (S, A), (H, H), (H, A) and (A, A). Notation (S, S),
represents interaction between two persons at S level. Similarly (A, A) represents
interaction between two individuals both dominant in 'A' i.e. animalistic or
aggressiveness level. (H, A) represents an interaction between two persons with one
person dominant in H level and other person dominant in 'A' level.

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 Fig. 5: OSHA Interaction Matrix

Theory K
Idea of Theory K is rooted idea of organization as Kutumbh or family/ community and is
derived from the Indian concept of “vasudhev kutumbhkam” i.e. entire world is our family. In
corporate context, a corporation can be viewed as a community/ kutumb of stakeholders.

In managing a family or kutumbh, parents use a combination of approaches which includes

use of theories, X, Y or Z depending upon the situational requirements. Accordingly theory
K is essentially a combination theory where K is a combination of X, Y and Z. In real life
situations, exclusive use of only X or Y or Z is not possible. Indeed a mix of the three can be
easily seen in operation. Exceptions apart, most individuals are neither pure dictators nor
100% saints. Each individual is a mix of X, Y and Z represented in different shades depending
upon the social and cultural upbringing. Societies that promoted colonialism are more likely
to be high on theory X particularly in its X- form. Similarly ideologies that are rooted in
violence are more likely to promote theory X. However, long term implications of exclusive
use of theory X particularly in its X- form are there to be seen in the collapse of colonialism
as well as the Russian empire. This collapse has occurred because “need for freedom” has
always been very strong and in history it has been manifested in the form of freedom
struggles.

Fig. 6 we represent Theory K in an equation form.

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 Fig. 6: Theory K of Enlightened Leadership

The equation K = Xa Yb Zc also represents a personality theory. Depending upon the values of
a, b and c an individual’s personality would have X, Y or Z tendencies or orientations.

Corporate Rishi model of enlightened leadership

Corporate rishi is a leader who can see and re-see events, opportunities and threats in new ways. For
example, JRD Tata, Azim Premji and Narayana Murthy were the rishis of the corporate world, because
they had the ability to see and re-see things in new ways and create strategies accordingly.

HOPE: Higher Order Purpose of Existence

In India, ancient gurus and rishis always focussed on the Higher Order Purpose of Existence: HOPE. In
the Western models, this idea has been missing, as their management thinking is driven by the
Darwinian model of survival of the fittest and elimination of the rest. The Indian model of HOPE gives
us a new model of leadership: Arrival of the best to lead the rest. The world needs this new kind of
model. HOPE model is also at the roots of the idea of ‘Corporate Spiritual Responsibility’. Corporations
must ask the basic question as to what is their Higher Order Purpose of Existence.

Some Innovations from Indian Management

This author has been experimenting some creative and innovative approaches to teach Indian
Management. Following three ideas have been tested during MBA course and in MDPs at Women’s
Institute for Development Oriented Management (WISDOM) at Banasthali University, Banasthali and
at Indus Business Academy (IBA), Bangalore. They also been documented in academic journals.

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 ● Corporate Rhymes: Poetic approach:
https://www.researchgate.net/publication/305143738_Learning_Management_Leadership_Le
ssons_from_Corporate_Rhymes
● Candle Light Experiment:
https://www.researchgate.net/publication/307597777_Candle_Light_Experiment_for_Inner_I
nvocation_Lessons_for_Management_Leadership_and_Creativity

● Osmotic Meditation:
https://www.researchgate.net/publication/308172035_Osmotic_Meditation_A_New_Tool_for
_Stress_Management_and_Mind_Expansion

Conclusion

Concepts such as liberation, culture, spirituality and deeds are dominant in the Indian consciousness.
We need to draw from these and create new models in Indian management that are comprehensive and
holistic in nature. When this is done, there will be a global spread of Indian management ideas. In this
presentation I have presented some new concepts and some new models that are now becoming part of
the ‘received knowledge’ of Indian Management and have found citations in academic journals.

Recommended reading

Sharma Subhash (1996), Management in New Age: Western Windows Eastern Doors, New Age
International Publishers, New Delhi

Sharma Subhash (2007), New Mantras in Corporate Corridors> From Ancient Roots to Global
Routes, New Age International Publishers, New Delhi

Sharma Subhash (2012), Wisdom & Consciousness from the East: Life, Living & Leadership, IBA
Publication, Bangalore

Sharma Subhash (2013), New Earth Sastra: Towards Holistic Development & Management (HDM),
IBA Publication, Bangalore

Sharma Subhash (2013), Three Paradigms in Management: American, Japanese and Indian,
International Journal of Organization Theory & Behavior, 16 (1), pp. 30-41

Sharma Subhash (2015), Globalizing Indian Thought through Indian Management Knowledge Tree,
IIM Kozhikode Society & Management Review, 4 (1), pp. 1-14

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