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Who was Chanakya ?

Born in 3 B.C. Also known as Kautilya and vishnugupta. Chanakya was the world's first management guru. His management thoughts and ideas helped kings and rules for centuries. He was responsible for bringing down the Nanda dysnasty and establishing his able student Chandragupta Maurya on the throne as the emperor. Hence, he is called a King Maker.
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 As a political thinker, he was the first to visualize the concept of a 'Nation' for the first time in Human History. During his time, India was split into various kingdoms. He brought all of them together under one central governance, thus creating a nation called Aryavartha, which later became India.

Kautilyas Arthashastra
Written in Sanskrit It was written by Kautilya in 300 BC. 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
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 Kautilya's Arthashastra is the oldest book on Management available to the world.

The main focus of the book is on creation and management of wealth.

It begins with a narration of how to bring up royal princes and how their education should be. How to protect a king against dangers and risks is also dealt with.

 The book is a masterpiece which covers a wide range of topics like statecraft, politics, military warfare, strategy, selection and training of employees, leadership skills, legal systems, accounting systems, taxation, fiscal policies, civil rules, internal and foreign trade etc.
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 Law and order, the duties of the police, how to control the wealthy citizens and motivate them to make gifts for charitable purposes, methods of preventing wars, duties of the astrologer, the priest and others, tricks to be employed to eliminate enemy kings, and numerous other subjects are discussed by Chanakya.

 According to Chanakya, the primary duty of a king is to protect "Dharma" or righteousness in society. That king who upholds righteousness and virtue will have happiness in this world and also in the next. Another significant statement made by Chanakya is that a king who uses his power improperly and unjustly also deserves to be punished.

7 Pillars of a Business as told by

Chanakya in the Arthashastra : 1. THE KING (The leader) All great organisations have great leaders. The leader is the visionary, the captain, the man who guides the organisation. In today's corporate world we call him the Director, CEO, etc. Without him we will loose direction. 2. THE MINISTER (The manager) The manager is the person who runs the show - the second-in-command of an organisation. He is also the person whom you can depend upon in the absence of the leader. He is the man who is always in action. An extra ordinary leader and an efficient manager together bring into existence a remarkable organisation.
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 3. THE COUNTRY (Your market) No business can exist without its market capitalisation. It is the area of your operation. The place from where you get your revenue and cash flow. You basically dominate this territory and would like to keep your monopoly in this segment. 4. THE FORTIFID CITY (Head office) You need a control tower - a place from where all planning and strategies are made. It's from here that your central administrative work is done. It's the nucleus and the center of any organisation. 5. THE TREASURY Finance is an extremely important resource. It is the backbone of any business. A strong and well-managed treasury is the heart of any organisation. Your treasury is 10 also your financial hub.

 6. THE ARMY (Your team) When we go to war, we need a well-equipped and trained army. The army consists of your team members. Those who are ready to fight for the organisation. The salesmen, the accountant, the driver, the peon - all of them add to your team. 7. THE ALLY (friend / consultant) In life you should have a friend who is just like you. Being, in the same boat, he can identify with you and stay close. He is the one whom you can depend upon when problems arise. After all, a friend in need is a friend in deed.

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Impact of kautilyas arthashastra-

The several concepts of present day management theories have been explicitly explained by Kautilya in his work.

A careful study of Arthashastra will be useful for management effectiveness & expanding business empire.
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 As in the present day management, the importance of vision, mission and motivation is well known. And it was captured in Arthashastra by Kautilya, he advise to rule through Prabhu Shakti (vision), Mantra Shakti (mission) and Utsah Sahkti (motivation). Kautilyas concept of the objectives of a king seem to be virtually adopted by Peter Drucker in his book, Managing For Results. Drucker proposed Economic Performance as corporate objective.

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 Kautilya elaborate that organization should moves to set up policies and procedures i.e. business processes. Arthashashtra has detailed policies for the society, individual industries, labor and employment, calamities and control of vices. He observes that the State, as an organization, is a social organization with economic aim. Here again, Peter Drucker and Kautilya go hand in hand as Drucker defines an organization as having social dimension and economic objective.

Kautilya at this stage, reminds that sound knowledge of complex human nature is essential in effective, efficient and honest running of the State. He warns of two undesirable attitudes of human nature, Pramada, meaning excess and Alasya, meaning inactivity, to be watched for 14 and avoided.

 Kautilyas knowledge about human behavior is really astounding. He advises about six emotional devils which we should avoid. The emotional devils identified by Kautilya are: Kama, Krodha (anger), Lobha (greed), Mana (vanity), Mada (haughtiness) and Harsh (overjoy).

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Conclusion There are many concepts from Kautilyas Arthashastra, A deeper study of the book will open many new areas of management concepts, which is yet to be explored by modern management scholars. More studies in other areas of corporate management such as strategic management, financial management and human resource management from Kautilyas Arthashastra are likely to be undertaken in the near future.
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THANKS

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