Management Practices from

Kautilyas Arthashastra
(Written by Chanakya,
The worlds first Management Guru)
Who was Chanakya ?

Born in 3 B.C.
Vishugupta Kautilya Chanakya
Pulled down Nanda Dynasty
King maker Chandragupta Maurya
Responsible for the defeat of
Alexander in India
Kautilyas Arthashastra & Chanakya
Niti Documented towards the end
of his life
Kautilyas 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
Its a Book of Total
Management
Management Topics in Arthashastra

Principles of Contracts
Management Selection of
Management Employees
Education Consulting
Accounting Strategic
systems Management
Corporate Handling
Governance competition
Time Management Expansion of
Leadership Skills Territory etc
Sample of Verses related to
Management Topics
in
Kautilyas 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
(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

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
(1.15.20-21)
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)