Management «.

m Industrialization to the 19th century same

is management to the 20th century

m Management - most important activity

today.

m Gained importance during industrialization

and world war.
m Rncient Chinese Managers 500 B.C.

m Contribution of the Greeks 400 B.C.

m Contributions of the Romans 284 R.D.

m Roman Catholic Church

m Management in Rncient India

- Kautilya 400 B.C.

 Management in earliest days
5000 B.C.

m =umerian civilization

m Rncient Egyptian
civilization
 Chinese Managers
500 B.C.
m Mencius, a Chinese
manager emphasized
that

´ Whoever pursues
business in this world
must have a system. R
business which has
attained success
without a system does
not existµ
 áew leadership tips from
The Great Plan and
The Officials of Zhou
m ´The three virtues are correct procedure,
strong management and mild management.
Rdhere to correct procedure in situations
(times) of peace and tranquility, use strong
management in situations of violence and
disorder, apply mild management in
situations of harmony and order.µ
m ´If rulers attend carefully to their personal
improvement, with concern for the long-
term, they will be able to show unselfish
benevolence and to draw perceptive
distinctions among people.µ

m ´Rll intelligent people will exert themselves

to serve their rulers.µ =uccess in
management comes from ´knowing people
and keeping people satisfied.µ
 Greeks
400 B.C.
m Plato, the famous philosopher and thinker
wrote ´which would be better ² that each
should ply several trades or that he should
confine himself to his own? He should
confine to his own. More is done, and done
better and more easily when one man does
one thing according to his capacity and at
the right moment.µ
 Greeks
400 B.C.
m Whether or not the same person could
manage an army as well as a chorus,
=ocrates stated, ´that over whatever a man
may preside, he will, if he knows what he
needs, and is able to provide it, be a good
president, whether he has a direction of a
chorus, a family, a city or any army.µ
 ROMR = m Romans successfully
284 R.D established empire
extending from great
Britain to =yria.
m They evolved the
mental and military
structure to govern
there empire.

ÿTheir system was based on

decentralization.
 The Roman Catholic Church
m Manage churches in far flung
areas.
m Hierarchy of authority was
established, based on scalar
change of command right
from the pope, through the
bishops and to the priests.
m Introduction of
functionalism, job description
and staff principle
m Rlbert Lepawsky observes ´information on
many current issues of modern
management can be found in a variety of
historical sources. The ancient Egyptian
had a long experience with bureaucratic
organization. Civil services system was
highly developed by the Chinese. The
Greeks had a system of democratic control
over administration, whatever we may
think of it and the roman's could teach us
much about large scale management and
international affairsµ
ÿResponsible for the defeat
of Rlexander in India

ÿKautilya·s Rrthashastra
& Chanakya iti ²
Documented towards the
end of his life
 Kautilya·s Rrthashastra
m Written in =anskrit

m Contains 15 books, 150

chapters and 6000 sutras
(shlokas)

m Covers over 180 topics. Known

as a Book of Economics, state
craft, Management, warfare,
strategy etc·

It·s a Book of ¶Total Management·

 Management Topics in
Rrthashastra
m Principles of Management m Contracts
m Management Education m =election of Employees
m Rccounting systems m Consulting
m Corporate Governance m =trategic Management
m Time Management m Handling competition
m Leadership =kills m Expansion of Territory
etc
=ample of Verses related to
Management Topics
in
¶Kautilya·s Rrthashastra·
 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
benefitµ ²
 =election of Employees

Rppointment of trainees

R ¶trainable· person is the one who has the

following qualities

1.Desire to learn
2.Effective listening ability
3.Rbility to reflect (think from all angles)
4.Rbility to reject false views
5.Intentness on truth not on any person
 Handling Employees

Theory of Motivation
m =ama (counseling)
m Dana (offering of gifts)
m Danda (Punishments)
m Bheda (creating a split)
 Role of a Consultant
Consultation
m ´Rll 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 secrecyµ

m Therefore sit and counsel with those who

are matured in intellect
 =WOT Rnalysis

´Rfter 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 marchµ
 Kautilya On Leadership
m Kautilya had stated that as a king (leader) is,
so will be his people (followers) ² yatha raja,
thatha praja. Kautilya emphasized the
importance of leadership by example. The
leader of any organization should be able to
maintain high standards while running an
organization.
m If the king is energetic, his subjects will be equally energetic. If the
leader is slack (and lazy in performing his duties) the subjects will also
be lazy, thereby, eat into his wealth. Besides, a lazy king will easily fall
into the hands of the enemies. Hence, the king should himself always be
energetic.
 Dharmasya mUlam arthah ²
the basis of righteousness is resources
å Rccording to Kautilya, dharma without
resources is toothless & resources without
dharma is useless.
å Resources will make ethical conduct or
behavior possible & vice versa.
å =ubha (goodness or auspiciousness) must come
first,then lRbha (gain or profit).
å Management must strive to generate resources
based on ethical conduct or behavior.
 Rrthasya mUlam rajyam ²
the basis of resources is kingdom
å To generate resources you need an enterprise,
organization, team or a unit.
å Resources generated by organizations includes
manpower development, money, machinery,
materials, methods & markets.
å áurther generation of resources requires expansion
of the kingdom (organization) not by war but
through market & product development, market
penetration and diversification strategies.
 Rajya mUlam indriyajayah ²
organization is rooted in the
conquest of senses

Indriyajayasya mUlam vinayah ²

conquering the senses is
rooted in training
‡
 The Impact of Kautilya·s
Rrthashastra
åChandragupta Maurya was considered to be the
unifier of India during the 4th Century B.C.

åMauryan Empire was continued by his son

Bindusara and by his grandson King Rsoka .

åMauryan Empire expansion included

Rfghanistan,all the way to the border of Persia
(Iran),extending to Bengal.

åToday, a careful study the Rrthashastra will be

useful for expanding business empire.