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International Journal of Business and Management Tomorrow Vol. 2 No. 3

ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 1

Superior Modern Management Framed and Applied in

Oriental India – Chanakya the Management ‘Guru’

Dr. S. P. Rath, Professor, Management Studies, Institute of Hotel Management

Dr. Biswajit Das, Professor, Marketing & Communication Area, School of Management, KIIT University

Dr. Shivshankar Mishra, Director Academics, Institute of Hotel Management

Abstract Indian History has a lot in its store house to deliver to the modern world management. Accepting such a reality

is a tough job for the Western scholars. Maurya Period had a dynamic time, which gave the world great rulers,

many philosophers, scholars, statesmen who were the masters and maestros of their scientific streams. Strategic

management of that time was designed by a great visionary and pragmatic philosopher who not only gave India

an ideal emperor but also united India as one empire, in realty who controlled the time not time controlled him. Such works, practices, philosophies, doctrines, arguments and logic of Chanakya were never ever delivered by

any other philosopher or thinker of the world. Chanakya was the end in itself in the social science researches not

his theory of “End justifies the means”. The world is governed by the three major management systems called

American, European & Japanese. Nothing is available as Indian Management System that reflects the

dominance of the Japanese Management System over the industrial, corporate and organizational practices.

Quality Mantras of the Japanese are dominating the world management practices as the champion of the time

and need. Oriental management of India and the theories and practices of Mauryan period were delivered by

Chanakya in a systematic codified manner for corporate good governance and excellent corporate governance.

More than anything Chanakya’s contributions to scientific management are enormous. A systematic study

conducted on the works and practices of Chanakya provides ample scope for a new disciplinary approach of

management stream – Oriental Indian Management System, which can be followed in the modern management

system of the 21st century. Chanakya’s works, doctrines and theories are valid and have scientific application for the modern management. Only the context to be modified as per the time and application needs to be



conceptualized as per the requirements. That’s what justifies Chanakya as the Modern Management Guru.

Attempts have been made to synthesize Chanakya’s works in management terminologies for this research paper.

Contextual use of Chanakya’s doctrines is examined in the context of the management validity in modern times.

The results of this research justifies the pioneering efforts required by the Indian scholars to establish a new

order to be called as (IMS) “Indian Management System’ for the modern world of corporations, companies, organizations and the governments. A revival research is required for establishing IMS from the Oriental Indian

Management Practices to contribute the world order in advanced management practices.

Keywords: Oriental Indian Management, Chanakya, Theories of Indian origin, Doctrines of Chanakya,

Practices of Maurya Period, Strategic Management, Corporate Good Governance

1. Research Methodology Qualitative research methodology is used as the core concept of this research paper. Available sources from

secondary streams are used for the comparative analysis, those include literature of ancient Indian history,

philosophy of India, Greece, China and Japan, political thought of the West and the East, political economy,

diplomacy, military science, Sanskrit texts, interpretation works of oriental literature and texts, and other

commentary works which are found relevant to the time and the context. Some of the discourses of the

specialized symposiums and seminars were used for the conceptualization of this research. Focus groups and some discussions were also used for framing the research process. Depth interviews of the experts were taken

for diversified aspects of the Maurya period in the ancient Indian history. Management approach is followed in

this research to rediscover and explore the core competencies of the works of Chanakya and his time. In the

primary front some of the micro films and the manuscripts preserved in the private libraries in U.K. & European

countries were referred as some of the authentic sources of first hand references. Many of the Pali script texts

were referred for the purpose of the research and to establish the Chanakya’s original management skills and

strategies in delivering one of the best management systems in the period of before Christ. All the examinations

of the sources were to bring out a management dimension out of the ancient Indian history, philosophy and

practices.

2. Introduction Pragmatism is the gift of the India’s logical learning system, very well felt and recognized in the contributions

of Ancient India’s great learning center and university “Taxila Gurukul”. The professor with timeless validity, philosopher defined social sciences with scientific temper and accuracy, great diplomat who changed the time

and situation with great strategic management of Ancient India, Achraya Visnugupt – well known as Chanakya

– Kautilya was one of the brilliant scholar of Taxila University. Taxila university delivered methodical

progression approach with logical validity in the streams of Social Science, Medicine, Military Science, Political

Science, Political Economy, Philosophy, Psychology, Diplomacy, Public Administration and other streams like

Geography and Physical Sciences and produced many statesmen of the phase of Ancient India for different

Janapadas of India. As the citadel of learning, Taxila University of Ancient India was well reputed across Indian

Sub-Continent. Taxila located in Punjab province, now in Pakisthan use to govern the wisdom of India up to

down south Kerala in the sub continent. Army Generals, Ministers, Statesmen, Kings and Rulers, Judges,

Political Economists and Professors and Teachers of the intellectual masses of the then greater India were

trained in Taxila Gurukul. Taxila of the time was intellectually at par or above the contemporary Greek schools

of philosophy and training institutes. Greek learning system had the influence of theosophy and dogmatism; vice versa Taxila had the strong influence of logic and scientific progression philosophy. Evidences are well depicted

in the history by penalizing capital punishment to Socrates in Greece. India with historical facts of the time and

evidence never tried any scholar with capital punishment for philosophical differences; historians with the

influence of the contemporary literature may disagree but cannot rule out. The role of Taxila University in

delivering Indian learning system from B.C. 500 till B.C. 150 is well recognized with historical and

philosophical evidences. India has grown intellectually very strong with pragmatism in the Ancient Phase with

contributions of centers of learning. Another contribution in learning excellence was indirect social movement

factor of encountering Buddhism and philosophy which was happening in social gatherings and knowledge

discourses at intellectual conferences of learning centers under royal sponsoring. Buddhism by virtue of its

scientific nature, well defined philosophy has been perfectly narrated in the gospels. Preachers and trainers of

Buddhism were very well trained and learned ‘Monks’ who used to carry the learning background backgrounds from the great learning centers had superbly polished the logic and argument skills in support Buddhism

philosophy versus existing Hinduism philosophy of social and ethical life and lifestyle. Intellectual clash of two

living standards and philosophies enlightened the professors and scholars of Ancient Indian Universities.

The ancient civilization of India differs from those of Egypt, Mesopotamia and Greece, in that its traditions have

been preserved without a breakdown to the present day. Until the advent of the archeologists, the peasant of

Egypt or Iraq had no knowledge of the culture of his forefathers, and it is doubtful whether his Greek



counterpart had any but the vaguest ideas about the glory of Periclean Athens. In each case there had been an

almost complete break with the past. On the other hand, the earlier Europeans to visit India found a culture fully

conscious of its own antiquity – a culture which indeed exaggerated that antiquity, and claimed not to have

fundamentally changed for many thousand years. To this day legends known to the humblest Indian recall the

names of shadowy chieftains who lived nearly a thousand years before Christ, and the orthodox Brahman in his daily worship repeats hymns composed even earlier. India and China have, in fact, the oldest continuous cultural

traditions in the world. Until the last half of the 18th century Europeans made no real attempts to study India’s

ancient past, and her early history was known only from brief passages in the works of Greek and Latin authors.

A few devoted missionaries in the peninsula gained a deep understanding of contemporary Indian life, and a

brilliant mastery of vernaculars, but they made no real attempt to understand the historical background of the

culture of people among whom they worked. They accepted that culture at its face value, as very ancient and

unchanging, and their only studies of India’s past were in the nature of speculations liking the Indians with the

descendants of Noah and the vanished empires of Bible. A few Jesuits succeeded in mastering Sanskrit, the

classical language of India. (Basham, 1954) Classical writers show that when, in 326 B.C., Alexander of

Macedon crossed the Indus, the climate of North West India was much as it is today, though perhaps a little

moister. The river valleys were fertile and well wooded, though the coastal strip to the west of the Indus, now called the Makran, and much of Baluchistan, were already dry and desolate. At the courts of Ancient Indian

kings careful records were kept of the events of chief importance to the realm, but unfortunately these archives

are completely lost to us. The Cylon chronicle (Mahavamsa) is primarily a history of Buddhism in Ceylon,

though it gives reliable information on political history. (Basham, 1954)

2.1. Macro Management of the Time Many scholars of strategic historical management believes, political situations and foreign invasion by Greeks brought Chanakya and his doctrines to be realized in the intellectual community as the need of the time

“Akhand Bharat” i.e., united sub continent of India under single governance. Critics have logical validity of

justifying the doctrine and perpetuated theory of Chanakya “End justifies the means” as his personal avenges

against Magadh empire and the ruler Dhanand. So they compare ‘Machiavelli’ of Europe of similar school of

thought and philosophy. A small interpretation of Chanakya’s doctrine, “End justifies the means” was implied

for the greater benefits of the state and the masses not for individual purposes of attaining vested interests and

goals. Chanakya’s doctrine of state interest was above any individual or social interest. None of his theories

support any personal gains for the king or the emperor. Layman analysis as projected in history texts reveals the

Kautilya methodology as individual centric and supports monarchy system to deliver good governance. Survival

of the ruler on throne is possible by illusion creation of delivering good governance to the state. Comprehensive

analysis of Chanakya’s texts evidently justifies the best possible chances of delivering good governance by the learned leader with the support of efficient teams of specialized professionals which is well explained by the

veteran scholar in his immortal management text ‘Arthasastra’. Arthasastra is not about ‘Economics and

Politics’ it is a time tested valid management theories book for more than 2300 years if analyzed positively.

Chanakya was not the doctrine creator alone, rather the seasoned timeless valid pragmatic philosopher of India

on Management. Intellectual churning of his writings are simply nothing but management theories through well

defined research methodologies. Scientific social research is his greatest credibility. Undoubtedly political

situations of the time compelled the professor to have direct involvement in the national and international

politics actively. That’s the reson, his doctrines and theories of management will be largely used by the Indian

scholars for establishing “Indian Management System” by borrowing from the “Oriental Indian Management

System’ for a management learning “Renaissance”. This period was witnessing anarchy by the rulers and

xenophobia of of Greek invasion under the leadership of the Alexander the Great. Dhanand the most powerful emperor of the time of Magadh was not playing any leader role in uniting the other Janapadas/ Princely states to

retaliate the Greek invasion. North Indian kingdoms supported the Greek power to attack neighbouring

provinces. Such a disaster was witnessed by history in the event of King Ambi King Porus war with military

support of Greeks. The Janapadas of India were without any strategy goal for blocking the foreign invasion with

unity for the greater interests of the Indian subcontinent. Role of the central Indian kingdom especially Magadh

had no vision and mission plans for the governance of good order. Political future was in doldrums. Non

availability of national leadership was likely to destroy the social system, trade and commerce, social and citizen

security, knowledge patronage, social order, village system, community revenue sources and above all

individual prosperity. Contemporary alternatives in its best form of options was a strong & wise ruler that’s a

monarch, more than this an emperor to protect and restore the political and social stability in the country as

propagated by Chanakya with sound logical findings in that period of time is nothing but a simple strategy as adopted in corporate leadership of the management science and techniques. With all available military strategy

Chanakya devised the winning method to control the political instability of the period i.e., by replacing the ruler

on the Magadh throne of Central India.



2.2. Taxila University – Knowledge Management and Strategic Leadership Taxila University had appropriate knowledge and resources in delivering the finest learning system to the top

statesmen, scholars sponsored by royal courts and meritorious students with achieved scholarships. The

university education management system can be compared with any modern world university in retaining

faculties and trainers, headhunting eminent professors, attracting meritorious students across India, from remote

villages to prosperous Janapadas (Urban areas). Financial strength of the university was ample enough to

support all students of merit.sponsers of such noble causes were coming from royal courts of the kingdoms and

trade houses. Eminent teachers were paid salaries as per their demands of remuneration and perks. University

was involved in providing consultancy services to kings and different departments of the kingdoms under the

team leadership of the faculties. University had a unique revenue model of generating funds through

consultancy services. Such a financial strategy use to keep the university with sufficient cash reserves for research and development in science, technology, social science and management. Expertise of knowledge and

professional excellence was attracting recruiters from different parts of the country to come to the campus for

selecting and recruiting professionals even at the rank of departmental heads, ministers, army generals,

professors, economists etc. what the professional and technical universities of modern world at the top of the

world are able to achieve in campus recruitments today were already in the ballgames of the Taxila University

of those days before the Christ period in the Ancient India. Taxila University had produced the torch bearers of

the social enlightment of the subcontinent, holding hagh positions in the society and administration through

efficiency, in the other words top CEOs of that period were produced in the classrooms of the university. To

keep up the excellence n the knowledge and expertise track university teachers use to participate in the ‘Gyan

Sabha” in different parts of the country and were winning awards to justify the uniqueness and top learning and

training position of the university in the country. Taxila university had established its pinnacle position in the

country in producing wisdom. Facts of history cannot denounce such achievements of Taxila Gurukul, university at the top of the world that time. Contemporary to it the learning centers of Greece pioneered by

Socrates, Plato & Aristotle like scholars had limited achievements. Similarly learning centers in China had

contributed in the civilization growth in that period but had limited access for the students and teachers.

Confucius in the Chinese front was a great pragmatic philosopher of that time. His scholarly works were great

but comparatively Chanakya superseded in pragmatism. Lesser known other worlds of that time doesn’t have

much contribution in pragmatic philosophy. Taxila university was the lifeline of the macro policy decisions of

the country through different kingdoms. chanakya was one of the eminent professor of Taxila University along

with it was a strategic adviser on state affairs to many rulers of the Janapadas.

2.3. Thinker, Philosopher and Management Guru - Chanakya Greek invasion was considered as the biggest national and security threat of the country. It acted as the fuel for

the common uprising in the public and existing rulers of some Indian kingdoms. King Ambi of Gandhar Janapad

supported Greeks, rather invited the Greek general to fight against the neighbouring king Porus. As obvious,

Gandhar ruler turned as a puppet in the hands of the Greeks. Gandhar was the kingdom where University of

Taxila was located. University scholars very well felt the threats to national security and India’s interest of self

rule. This turned as the major concern for the university to actively participate in the causes of waging a third

party war against the Greeks. Chanakya being the professor of the Taxila University planned the third party war

against Greeks with the support of the trained students and faculties the public uprising was communicated to the villages and the population settlements. Holistic support of the university generated funds and contributions

for the public war against the Greeks. Expelled military experts, defeated rulers soldiers and army officials,

university military science students, paramilitary professionals under the leadership of Chandragupta Maurya

waged the war against the Greeks. Society at large was involved in this third party war against the Greeks.

Chanakya had his trained students like Chandragupta and Akshaya were able to take up the generalship of the

newly organized army. In this war Guerilla warfare strategies were adopted along with battlefield wars against

Greeks. Third party army had a very well organized logistics and supply chain management of receiving arms,

weapons, food, horses, and other war resources along with the properly planned paramilitary supports. In the

society, professional warriors and war veterans were available for the cause to hire. Management of finance by

the university as per Chanakya’s strategies was organized to pay for the compensation and remuneration to the

army engaged in the war. Chanakya received the intellectual support of Taxila and society for his strategic plans of defeating the Greeks. Chanakya was the finest professor of management strategy of Taxila University which

can be claimed, in reality management was part of the then learning streams of politics, diplomacy and political

economy. Chanakya’s influence on the learning streams of university was highest. Strong teamwork, well

planned starategy, committed professionals, sound communication support provided by the Taxila University

made Chanakya successful in his military strategy of a third party war against Greeks. University participation

and full support for a public war against Alexander the Great’s forces was the reason of a successful army

leadership of Chandragupt Maurya a scholar of Taxila University, trained by Chanakya to take up the Magadh

rulership as per Chanakya’s strategic planning of “Akhand Bharat”. A golden chance was provided to

Chandragupt to justify his army leadership by the university community. Chanakya the veteran professor of



strategy had clear cut plans and provisions for the future governance of the country, which he tested through

logical discourses and discussions of the university. Championing such a strategy was defined by Chanakya’s

management tool “elimination of small errors at every stage” and “alternative planned strategy for every stage”

for a successful long term strategy. In later stage Chanakya proved his pragmatism by dethroning Magadh

emperor Dhananand and uniting India under Magadh empire. To some scholars such strategists are never born twice. Contemporary philosophers of Chanakya in other worlds were banking on philosophy for a possible

change. Chanakya was banking on management to achieve the goal ‘Change’. Philosophy of Chanakya was

logic and truth incorporation in planning, which makes his philosophy pragmatic.

2.4. Advanced Management Learning from Foreign Military System Alexander the Great was a general trained in the great Greek philosophical school under the veteran guidance of the philosopher Aristotle. Greek learning centers had adequate expertise to prepare the generals to conquer the

Asian world. Greek schools proved the strategic organizational power of winning March till the North Indian

Territory. Greece to Punjab of India in the period of before Christ era as an empire territory was beyond any

achievement. Greek power established the organizational excellence through military regimentation. By the time

some Indian kingdoms occupied by the Greeks, the military strength was tired psychologically and physically.

Before India experience winning battle, king Ambi invited foreign force to defeat neighbouring kingdom with

vested interest. Taxila University criticized the move and devised the strategy of “Guerilla Warfare” as a public

uprising. Public uprising was not a natural reaction, rather designed and strategized by Chanakya. Such superior

strategy was devised by Taxila Gurukul by analyzing the military methods of the Greeks, which used to be

considered as unethical in the war techniques of the time. University was reluctant logically for such unethical

strategy; discourses and conferences of the university were dominated by Chanakya’s doctrine of defeating the

foreign invaders in the interest of motherland “Akhand Bharat”. That led Chanakya to Justify “Means justifies the end”, which brought the fame for the philosopher and Taxila University as the most pragmatic management

cult. Chanakya received the status of the greatest “Management Guru” of the Indian subcontinent, his logical

justification of the theme “Means justifies the end” if the end is in the benefit of greater community and nation.

Chanakya’s justification turned the doctrine of “Pragmatic Theory”, time tested doctrine turned the philosophy

to be followed by the different schools of philosophy in the later parts of the history of the world.

Indian scholars learned several military science strategies from the Greek invasion and modified as per the time

and situation in the later phase. Chanakya championed these management theories and established the practice

through several research, which are well defined in his great works in books like “Arthasastra”, “Chanakya Niti”

etc. in later times. Wars with Greeks at different phases made Chanakya the finest diplomat of the time. His

diplomacy and policy theories were meant for the nation building. Examinations of his treatise on diplomacy and policy tactics are nothing but modern management practices and theories. Chanakya heavily borrowed his

management theories from military science and social sciences. Undoubtedly strategic management learning and

wisdom of Taxila University scholars were fine tuned through encounters with European Military Methods

especially the Greek army.

3. Theory of United India - For Challenges Not For Survival - Chanakya Chanakya as a scholar and philosopher had experienced a phase of national politics with mixed reactions and

turmoil. Background of the studentship and professorship in Taxila University was one of the greatest

experiences and by handling advisory and consultancy services of different kingdoms he gained prominence in

the Janapadas. Taxila used to be the centre of grooming wisdom, training future rulers and influencing the state

policies and politics. Greatest assets of the teaching faculties were the Taxila community, which was involved in

majority of the Janapadas in national decision making and administration. Political and strategic diplomacy of

the kingdoms used to be examined in the knowledge forums of Taxila. Advisory and consultancy assignments of

the professors were predominantly influencing the rulers, kings and departmental heads. Magadh the largest kingdom of the time had many scholars of the Taxila University in the court yard at different departmental head

positions. Magadh was dominating the national politics through military hegemony and financial strengths.

Kingship of Magadh was controlled by a dynasty of “Nand” disliked by majority of the kingdoms. Dhananand

the king of Magadh was an able ruler ruler by virtue of of his courtiers and army generals. Public welfare was

highly objectionable in Magadh due to tyrannical administration of the king and the Amatyas (Heads of

Departments). National developmental policies were degrading due to anarchy in the ruling system. Taxation

was comparatively high on the citizens due to huge government expenditures and huge salaries of the employees

of the state. The king in his policy was believing and practicing the strategy of handful remuneration to keep the

employees happy and protect the throne of the dynasty. Kingship was justifying any new taxes on the citizens by

the comforts of the king’s employees. Magadh used to receive huge revenue from the subordinate kingdoms and

governors of different Janapadas through military hegemony. Chief advisor Amatya Rakshayas, the scholar of Taxila University, known for his diplomatic strategies, managed the Magadh empire with excellent military

hegemony and maintained the dominance of Magadh on the other Janapadas. Amatya Rakshayas being a senior



scholar of Taxila, was able to receive university’s knowledge bank support and community support for the

political movement of the Nand.

3.1. Consortium Doctrine of Chanakya for Federalism From 6th century B.C. India witnessed a transition to a new historical scene in North India with the

establishments of kingdoms, oligarchies and chiefdoms, and the emergence of towns. Changes in polity had

begun somewhat earlier, but where they were accompanied by urbanization they were to become foundational to

the flow of history in the Indian subcontinent. The preceding period had been one of the accommodation or

confrontation between polities based on clan organization and others experiencing the beginnings of kinship.

Permanent settlement in a particular area gave a geographical identity to a clan, or a confederacy of clans, and

subsequently this identity was given concrete shape by its claiming possession of the territory, then naming it after the ruling clan. Maintaining this possession required political organization, either as a Gana-Sangha,

chiefdom or as a kingdom. The emergence of Gana-Sangha might be better seen as a form of a proto–state. It

was unlike a kingdom, since power was diffused, the stratification of its society was limited, and the

ramifications of administration and coercive authority were not extensive. The persistence of the Gana-Sangha

in Indian history was quite remarkable, especially in the northern and western regions. Despite being conquered

periodically, their resilience was demonstrated by their reappearance and continued presence until the mid-first

millennium A.D. The emergence of a state system frequently coincides with unequal power relations and access

to resources and some social disparity. Such changes would also have sought support from various ideological

justifications. Reference is made to the Mahajanapadas, or great Janapadas, larger and more powerful than the

earlier multiple Janapadas, and some of these conformed to the definition of the state. Sixteen of them are

listedin Buddhist texts as those of Anga, Magadh, the Vrijji confederacy, and the Mallas in the middle Ganges

valley; Kashi, Kosala and Vatsa to its west; Kuru, Panchala, Matsya and Surasenafurther west; Kamboja and Gandhara in the north west; Avanti and Chedi in western and central India; and Assaka in the deccan. This was

geography known to earlier Buddhist Pali canon. (Thapar, 2002) Chanakya’s theory of “Akhand Bharat” was a

progressive thinking of bringing all sixteen Janapadas in to a united good governance system with contractual

and obligatory agreements to unite the entire military strengths to defend Bharat against any foreign invasion,

unified tax structure on trade, industry and agriculture, effective policing system for the safeguard of the human

settlements – cities, towns and villages from plunderers and implementing a codified legal system to maintain

law and order. To establish the “Akhand Bharat” Chanakya propagated the doctrine as ethical in diplomacy

science “End justifies the means”. Chanakya in his doctrine of Akhand Bharat (Unitary India) had left the

democratic territory (alike democracy) Kalinga by understanding the fragile change character provisions of

democratic philosophy. Chanakya had masterly measured the democracy drawbacks in the strategic leadership.

In his texts he has well argued the failures of majority choices in achieving strategic goals. Short lived solutions were not the doctrine of this scholar.

3.2. Center and Power Point Doctrine of Chanakya for Magadh As historians argue on Chanakya’s choice of creating Magadh as the national power center was because of his

affiliation to Magadh. Chanakya is not the character for study by historians alone. Power center proposition by

Chanakya was strategically supreme out of the available choices of that period. Magadh was the only Janapada

(inhabited domain) competent enough with large and dense population with uniform culturel binding to stand

against any invasion as one community. Cultural uniformity was of the core prime strategy. Geographical

location with agrarian economy support makes Magadh the center of Indian subcontinent. Vast stretch of

Gangetic plain land with irrigation facilities had provided the kingdom with more than one crop agriculture

system. Rich alluvial fertile land was providing bumper crop in agricultural production. Magadh had the

advantage of a sustainable system of food and grains with surplus production to support other kingdoms for

survival during natural disasters like drought and fire. With the topographical advantage of water drainage and

irrigation engineering Magadh was able to achieve agro-economy excellence. Foreign invasions were highly unpredictable from North West frontiers of the land mass. Wide spread acceptance of Buddhism in the Eastern

and the North Eastern kingdoms were a cultural and religious barrier to attack and invade the holy land of Lord

Buddha located inside Magadh Empire. Kingdoms in this frontier were small in size and hill locked by

mountain ranges. Exclusive routes for invaders were mountain passes. Magadh had control over these ancient

trade routes through the mountain ranges. Greek, Persians or any other forces had the chance of invading India

through North Western fronts. Chanakya’s Mandala theory well argues in support of the least damage by foreign

invasion to Magadh Empire. Center stage advantage of Magadh can support forefront kingdoms at the time of

war. From the logistics and supply chain management perspectives, Magadh had the advantage of network

strengths and supply channel strengths through river system transportation and roadways transportation. In the

area of metallurgy engineering Magadh had the advantage of Kausambi iron ore open cast mines for

manufacturing of war ammunitions, war gears and other equipment. Arms and ammunitions trade in the form of the exports were the biggest advantages of Magadh. Magadh was not Chanakya’s choice for powers center

rather his strategic selection. Contemporary state Kalinga though uses to qualify such strategic location with the



disadvantage of coastal belt and prone to frequent cyclonic storms. Kalinga was a democratic system kingdom.

National powers centre strategy of Chanakya for Magadh was a perfect selection.

Chanakya as a champion strategist looked for a system to deliver goals for “Akhand Bharat” so he opted for a

tested governing system with provisions of good governance – the emperor. Chanakya’s nation management system very well defined the king or the emperor as the servant of the masses of the empire. Social system

management devised by Chanakya was meant to arrest the monarchy movement for any vested interests. Basic

minimum qualification for a king was the higest qualification of the university that was master degree

specializing in military science, politics and diplomacy, economics & geography. King needs to be declared by

the university as qualified. Universities were independent and autonomous, governed by regulations of the

academic council comprising of only veteran professors. Chanakya founded the Nalanda University in Magadh

with some changes in the operation structure in comparison to the Taxila University. Historical evidences justify

the learning standards and qualifications of the Mauryan Emperors like Chandragupta, Asoka, Mahendra etc.

Autonomy to Acharayas were provided in the social system to counter emperor’s decisions. Qualifications and

professional excellence were well defined in the Chanakya’s social system management for ministers,

departmental heads, army generals and army officials of any rank, police officials, tax and administration officials etc. Every official were compelled by the regulatory system to test and satisfy the required

improvements in knowledge and skills levels publicly before impartial professional examination boards and to

receive the certification for continuing in the allotted ranks and to get promotions. Appointment of officials in

any departments were conducted and governed by independent professional bodies of experts. King or the

emperor, the queen, the prince, the princes, all the ranks were the salaried employees of the state with defined

minimum and maximum annual salary. Salary system was meticulously defined for the emperor to the slave in

the empire by Chanakya. Slavery system was salaried, defined by state regulations. King or the emperor was the

official head till he performs his duties in the defined parameters and guidelines. Chanakya was the pragmatic

thinker and maintained the system in the Maurya Empire. His works delivered the world’s best emperors from

Magadh. Asoka undoubtedly the greatest of all the great emperors of the world and levels reached by King

Mahendra is the example of benevolence management system.

4. Doctrines and Theories of Corporate Management Management theories propounded by Chanakya through his texts in Nitisastra and Chanakya Sutras till date for a span of 2300 years are proved valid by the time. Utopianism was an off track for Chanakya as a philosopher

and a thinker of management. Till 20th century Chanakya was regarded as a champion philosopher of

diplomacy, economics and politics. Inadequate research in his works and practices propagates him and his

works as the concerns of the streams of Sanskrit, History and Philosophy for research and study. Twenty first

century management researches have started investigating his works from the Indian management perspectives.

Indian management system has a little in research to contribute to the world of management as a system to

follow like any other – America, Europe, British, Germany or Japan. Indian management system is much older

than these developed systems. Chanakya’s Nitisastra is the treatise of Chanakya Niti and Sutras. Under implicit

impression that systematic thinking on management started only in the 20th century, historical evidences

justified the scientific management applications in the Mauryan period. Chanakya was contemporary to two

great philosophers of the world, whose contributions are enormous to the scientific management; Aristotle and Confucius of Greece and China. In general arguments three were tutors of three great rulers or king makers.

Prince of Lu of China and Alexander the great of Greece had the kinghood by heritance and dynasty, these two

great philosophers added efficiency. Chanakya vice versa created the emperor from the common mass and

changed the time of ancient India.

Nitisastra, Chanakya Niti or Chanakya Sutras have the unique distinctions of being the principles which have

been demonstrated and have been used successfully in practice to achieve good results on a sustainable basis.

Evidences of Nitisastra success rates were experienced for 136 years of the rule of Mauryas which championed

as one of the finest management history of the world. Asoka is known as the best out of the world “The Great

rulers”. Application of Nitisastra made King Mahendra “the God” and Asoka the “demi-God” by the public.

Chankya’s Nitisatra or Chanakya Sutras from BCE 330 till date not proved wrong at a single stance. Such authority and superb science research outcomes were produced flawlessly by Chanakya in his Sutras. Many

critics view Chanakya’s Sutras or Niti Sastra as the “Law of physics applied to measure syndromes and diseases

of psychology” which no other great scholar or philosopher was aware of. Similar, the critics view Panini who

composed Sanskrit grammar in order, absolutely made “Sanskrit” – the mathematical language. Panini belongs

to Mauryan Empire and period. Nitisastra or Chanakya Sutras are “Mathematical scales for management and

social sciences”.

Chanakya’s “Nitisastra / Chanakya Sutra” are the gospels of social regulation, a code of conduct guidelines for

individuals in the society and in the state. Framed regulations in the form of a text with logical reasoning were

meant to regulate the behavioural aspects of the individuals in discharging their duties at every responsibility



level officially and non-officially as well as in life. Chanakya defined and organized excellent corporate

governance of the Magadh kingdom with regulatory frameworks through his Sutras. Chanakya Sutras are based

on realities study in depth of different social sciences with utmost pragmatism. Nitisastra is a master piece work

with zero defect tolerance of behavioural and social sciences. Every argument is sequenced and followed with

logical synthesis for easy understanding of the common reader with lucidity of language for memorizing logicl arguments in Sanskrit language. Application of Chanakya Niti is followed in Modern India today with citations

in many daily life discussions. That reflects the scientific language use and justifications defined in Sutras of

Chanakya. Chanakya’s dream of highly advanced India under the governance of Mauryas was well measured by

his works. National character governance, public behaviour governance can provide the fuel for a scientific and

advanced state with excellent governance provisions. Chanakya redefined the public character governance by

getting his Nitisastra adopted as a core text of university curriculum to be memorized and practiced by the

graduate students. Graduates of the time use to memorize the texts with logical arguments. Argument use to be a

method of establishing the truth in the learning process in the universities. Chanakya Sutras had the legal

validity for practice in the society, violations use to lead to punishments. Multiples of theories, doctrines and

philosophies are the bases of Chanakya Niti. Chanakya Sutras has absolute validity in the contemporary modern

era too. Out of many pillars and foundations defined for excellent corporate management of any organization – company, state, kingdom or any government scientific behavioural management is the prime lifeline of

achieving the mission and vision. Nitisastra was adopted as the guidelines of the Magadh state to achieve long

term objectives scientifically and was duly achieved during the Asoka’s reign and went beyond the expectations.

Evidences are King Mahendra of Sri Lanka, achieved and established benevolence management, that

outstanding dignified verdict is the King Mahendra temple of Colombo. The only king of history is accepted by

the public till date as God. Matchless theories and doctrines of Nitisastra with flawless applications are

undoubtedly the best theories for principles of management of the modern time. Chanakya Sutras are doctrines

are excellent organizational behaviour management. An argument in this context continues between Indian

management scholars and Western management Gurus. More than 600 Sutras of Chanakya in the Nitisastra are

available to discover the facts (Truth) logically for winning strategies of management to deliver justice to any

argument of management thoughts. Application of logic in Chanakya Sutras are arranged scientifically to

discover truth through research, ‘Research’ as the process of search, re-search and search in continuity to achieve the right process and result of research which will ultimately lead to the discovery of truth in the reality

of life. Logic as the strand of research has pragmatic and scientific validation in Chanakya Niti. The process

used by Chanakya in his Sutras for search of excellence to attain absolute in social science applications.

Chanakya’s Nitisastra has depictions of established theories and doctrines of holistic nature of excellent

corporate management with inputs of values for controlling and injecting purification methods for elimination of

vices and unethical tact practices. Business ethics of management is not infused to corporate life with one

attempt. Continuous attempts and processes of ethical values need continuous purification method to eliminate

unethical trends and vices from the system. Tact is the biggest skill of any management system of any

organization as justified with valid arguments in Chanakya Niti. Any tact at any end for the welfare of the larger

part of the system is justified as ethical. In other words CEO (Chief Executive Officer) can be sacrificed or eliminated from the role play for the greater interest of the organization. Logical and greater ethical norms are

justified as the champion doctrine of Chanakya Niti. Corporate management is purposefully for the benefit of

the organization and its manpower, not for profit always. Profit of the corporation is meant for the greater

welfare of the employees. That justifies employee comes first and customer the second. Chanakya Niti justifies

the CSR (Corporate Social Responsibility) – charity should begin at home. The theories that can control and

govern the management system ethically and efficiently is the ethical appreciation of truth which is possible

only through the transparency methods of governance and decision making justified through pragmatic logical

arguments with freedom of speech and respect to knowledge. Chanakya Niti provides the best doctrines and

theories for finest corporate management of its contemporary period and for modern age management too.

5. Macro and Micro Theories of Excellent Corporate Governance and

Management Arthasastra the master craftsmanship of pragmatic philosophy with time tested validity identifies Chanakya’s

scholastic and scientific research in diplomacy, social science, economics, politics, management etc. The text

that is known to the world, the best book of pragmatic theories has in fact nothing the simple doctrine established as eternally true. The book is the outcome of scientific research made and applied on social and

behavioural sciences to establish timeless validity of social science theories. Arthasastra is not about diplomacy,

politics and economics – it’s the core text of scientific and pragmatic management. Arthasastra was composed

for the purpose of bringing excellent corporate governance flawlessly with excellent validation in practice for a

CEO – the king of Magadh with examined theories of intelligence and to deliver excellent management.

Many scholars of management are of the opinion that the finest management text ever composed on the earth is

Arthasastra. The precision of the approaches, meticulous examinations of regulatory frameworks and strategic



designs and compilation of the facts to deliver the best output for any corporation are the souls of the gospel of

management. In the modern context, the conceptual framework of Chanakya’s works and contributions in the

text – Arthasastra covers the following management disciplines as given below;

Doctrine of Good Governance through Social Institutions Social institutions regulation and discipline code to deliver scientific social order and social ethics.

Arthasastra has segregated all the institutions of the society for the purpose of a unified code. The text

covers the welfare of the weaker sections of the society, land as a means of social welfare, institution of

prostitution and sex trade, marriage as an institution, post marriage separations validation through legal

provisions etc. are the evidences of Arthasatra’s discipline code of scientific management.

Doctrine of Knowledge Management Knowledge institutions management and autonomy for managing the awareness and power of resistance for the interest of the society and the masses are highly emphasized in Arthasastra. Gurukuls and Universities

are state sponsored with freedom in many forms that also includes the right to criticize and resist decisions

of the kings in and out in any form and platform. The highest power bestowed were the freedom of speech,

right to warn and caution the society and the nation of any man made political or non political disasters. In

other form it empowers the right to revolt against the governance in the interest of the society and

community. Professors and teachers of the training and educational institutions were the respected

community with enormous power to access the king or any top level officials to warn them of any of the

administrative decisions. Educational institutions were deciding the academic rules and were beyond

administrative control of the state.

Doctrine of Human Resource Management Institutions Chanakya had defined human resource management as an institution for the purpose of maintaining right

people at the right place and contributing to organizational development through awarding, rewarding and

retaining valued human resources. Arthasastra has specific description and design of selection and recruitment of officials for different state administrative hierarchies with defined roles and responsibilities.

Special provisions and selection and recruitment processes are provided for the appointment of spies and

secret services agents with qualifying skills and training along with the qualifications as recommended.

Minutely defined and structured wage and salary systems are provided in the Arthasastra for the all levels

of employment and services with annual benefits as entitlements to be assured and guaranteed by the state

legal provisions. Non adherence of the regulations was attracting severe penalties including imprisonments

and capital punishments for the immoral trafficking. Even slaves were provided a structured salary and

rights and benefits of employment. State assures the appropriate implementation of the legal provisions

with allotted departmental officials and experts of the wings. Service contracts were very well defined with

provisions of eliminating manipulations. Manipulations were severe offences and penalties were delivered

through fast track courts under the qualified judges and judiciary system. Arthasastra strongly argues for the judiciary concept “Justice delayed is Justice denied” and in such cases higher appeal provisions were

available and judges can be tried for the negligence and biased decisions. Manipulations in the judiciary

were severe offences. Vigilance departments were allocated for internal affairs checks and balances.

Concept of Institution of C.E.O. – The King Institution and institutionalization of CEO (Chief Executive Officer) or the King by qualifications and

continuous improvements through regular examinations by the competent schools and teams of experts are

recommended by Chanakya in his doctrines in the Arthasastra. Kingship denounced as a birth right.

Kingship is to be earned by the qualifications, knowledge competencies and expertise. A long list of moral

values the CEO or the king has to follow in delivering the duties and responsibilities are elaborately

provided in the Arthasastra. Deviations can dethrone the king form the job, very distinctly codified and

defined by Chanakya. Down below the CEO or the king and every office are equally codified defined with

roles and duties. Widespread definition and defined roles, duties and moral responsibilities of executives are

found in Arthasastra, which covers even the officials of superintendent of agriculture, superintendent of

prostitution and lady sex workers, administrative officials, superintendent of shipping, role of the priests in the society, ministers and also officials of calamities management etc. are controlled and regulated by

Chnakayas’s code of conduct as depicted in this great management text. All these were not simple theories;

Mauryan empire witnessed the practice of Kautilya doctrines with application in the empire management.

Doctrine of Federalism Freedom of profession, freedom of expression, speech, logic & arguments, freedom of life in the form of

liberty for the greater benefits of the organization as Arthasastra define for all the corporate citizens of the

Magadh corporate empire. Concept of freedom to every member of the organization virtually aimed at

getting ownership and ownership is a right. Concept of freedom designed to achieve excellence by

eradication of errors and mistakes in life skills and professionalism for continuous improvisation of the

system. Magadh practiced and applied the freedom as the finest theory checks and balancing of the

autonomy of the administration. The concept of Gyan Sabhas was to create awareness in the masses and to



caution the ruling elements at regular intervals in every year. Scholars were at liberty to deliver and propose

modified good governance system for the council approval through logic and to get it adopted before the

finishing of the session. Which was in fact resembles to the scientific parliament practices in those days.

The character of federalism was dominating the governance. Every stake holder of the Magadh Empire had

a say for the betterment and continuous improvement of the system.

Doctrine of Judiciary and Justice Justice and judiciary propounded not as a system rather an institution by Chanakya in Arthasastra. Justice is not for delivery rather benchmarking of ethical practices and division of unethical provisions to refrain

repetitions. Judiciary is the management body of justice practice at all levels. Judiciary as a system of

management ensures quality operations and interaction with other branches of knowledge to define and

redefine penalties and punishments with objectives to de-route the crime and unethical practices. Judiciary

management had the absolute freedom and non interference by any walks of life to its operation. Cross use

of knowledge, philosophy and arguments were strategic choices of judiciary in performing unbiased justice

tasks. The king or CEO can be tried and penalized by the court of law. Mauryan Empire tried Prince Kunal

and penalized with severe punishment of blinding.

Doctrine of Treasury and Wealth Ownership Treasury was the custodian of public contributions in the form of taxes. Treasury logically is the wealth of

the organization / state. Ownership of the wealth is collective. Wealth management to be guided by the

expenditure notes, cash reserves, contingency reserves, expenditure management, to be guided by

development schemes of priority and strategic order. Funds audit, cash storage, guarding and protection mechanism of wealth, vigilance on expenses through experts and specialized professions, cash flow

management and disbursement management with timely delivery system are well explained and codified in

the Arthasastra. King or the CEO is the remunerated employee not the owner of the wealth of the treasury.

Expenditure notes are collective efforts with majority of the committee approvals. Concept of finance and

control mechanism of Chanakya had provisions of state budget control and audit of accounts mechanism to

eliminate manipulation and corruption practices. Provisions of financial control were so scientific that every

norm of his recommendations is not prevalent in the modern financial management system of the

corporations.

Concept of Records & Referencing Referencing and recording are the finest methods of management to avoid ambiguity and irregularity if any

in the organization. Recording and documenting were the pillars of Mauryan management system for

efficient delivery of decisions. Research of any kind goes by strong referencing. Record keeping for

decision making by individual or the team enhances the corporate efficiency in department for performance.

Structured referencing from record sources and other sources are the keys of efficiency delivery in organizations. Chanakya’s concept of efficient delivery of task and duties through referencing and referring

records a modern management system. Performance and duties delivery without referencing leads to

ambiguity and creates confusion which at the bottom line leads to resentment and dissatisfaction with

awards. Dissatisfaction of the workforce kills a corporation.

Concept of Finance & Control Mechanism Money or finance is meant for expenditure in organizational operations. Budgeting, budget control, finance

control and expenses within limitations avoid debts and assure cash reserves for contingencies and

emergencies. Corporate finance is always volatile to the needs o f expenditure and comforts similar are the

state finance system of a kingdom. Kingdom’s financial status fluctuates as per the business environment.

Cash flow of any corporation is unpredictable, cash reserves and budgetary control provisions ensure

organization’s long term strategies. The keys of sustainability of any organization depend on its budget

control through the concept of finance and control mechanism. Chanakya was very specific about the

budget and all the key aspects of advanced finance control mechanism which includes provisions of reserves like natural and manmade disasters, calamities, war and war time situations, civil war if any,

economic inflation, funds out flow due to open economy trade that may create artificial recession of

economic slowdown, monetary hoarding to increase precious metal market trading prices, invasion of

advanced technology to the industrial system of Magadh etc. That clearly justifies his foresight and

financial management excellence in applied economics and finance. His other theories argue the money

power as the core strength of any power. He had gone to the extent of evaluating the role of money in social

and family relations. He not only conceptualized the macro finance but also propagated equally valuable

micro finance theories in his other theories of social regulations and social psychology.

Concept of Moral Responsibility and Officials Role and Duty Concept of Role, Duty and Moral Responsibility of executives and officials were meant for the corporate

good governance of the organization. Good Governance concept is one of the difficult practices to achieve

without stringent measures to follow. Strong ethical practices ensure good governance. Good Governance is

a continuous process to maintain in an organizational structure. Maintaining continuity requires defined



role, duty and moral responsibilities of officials in delivering the objectives. Framework with minute details

and explanations of the concept assures the enhanced corporate good governance. Arthasastra not only

logically argues in favour but also defines the penalties, fines and punishments in violation of the order as

prescribed for the officials and executives. Concept of moral duties is well explained and defined by

Chanakya with pros and cons. Moral responsibility is a greater responsibility which is much larger than the accountability with loyalty to the organization. Decision making is highly involved with the moral

responsibility. Top officials efficiency was judged by the moral responsibility they keep and maintain.

Duties to executives are defined in the role of the designation. Role play had a minimum performance level

and an expected level, any one continuously exceeding the expectations level were the deserving candidates

of quicker promotions and rewards with recognized awards.

Concept of Disaster Management Preparedness Disaster management and preparedness is not a concept but a top priority strategic need. Disasters that of

nature, accident and made by man are unpredictable and unwarned by nature. Business houses and

organizations aspiring prosperity are highly susceptible to unwarned sabotages, which can be termed as

disaster. Progress not only gets interrupted by disasters rather gets uprooted. Impact of damage is

irrevocable in the context progressive organizations. Disasters can be tackled and handled if adequate

preparedness is maintained. Disaster management preparedness is an alternative strategic measure of

advanced preparedness for reduction of impacts and options of alternative strategies for recovery. Manmade disasters have the highest possibility of damages. Competitors, rivals and enemies are always to be treated

as stronger and the best damages can be created by them. Preparedness for the worst consequences is the

best strategy as argued in the Arthasastra in support of disaster management. Ministers and top officials

were allotted with the expertise and training to manage and supervise the team of disaster management

members with allocated funds and resources with improvised and modified techniques and technology in

high alert.

Theory of Winning Strategic Alliance Theory of strategic alliance is a military science contribution for winning positioning in the rules of

warfare. Arthasastra has scientifically defined in the “Mandala Theory” with step by step pros and cons

with alternative options. A calculated strategic alliance reduces the risk factors of investment and

expansion. At the same time it safeguards survival against competition. Strategic alliance creates rivalry

with others who are not part of the alliance. Non-alliance parties do not necessarily turn enemies always,

some remains neutral. Neutral forces are a strong wave influence in occasions of conflict and wars.

Strategic alliance creates rival different camps with tensed situations. When external forces are highly influential in the environment, strategic alliances are inevitable to dominate the rising forces. Strategic

alliance is a method of survival against perishable forces and to eliminate external dangers. Diplomacy is a

process of maintaining gainful strategic alliance. Arthasastra has redefined the theories of strategic alliance

scientifically to gain and eliminate losses. Strategic alliance is not unethical and rules of ethics regulate the

objectives of alliances. Every strategic alliance is a costly affaire of monetary and non-monetary aspects.

Violation of ethical norms and values produces disastrous results in the strategic alliances. Chanakya had

advocated several scientific theories to maintain fruitful strategic alliance in beneficial ways. His theories

are followed in modern corporate management as basics of gain in strategic management of consortiums,

associations and trade chambers.

Concept of Cooperative Enterprise Management Concept of cooperative enterprise management is a champion management practice of successful operation

and large rate expansion programmes of industrial houses. Limited stockholding in the industry creates two

divisions of income groups – industrialists & workers in the organizational structure. In its further process the society also gets divided as the haves (industrialists) and have-nots (workers) that delivers capitalism to

the state. Chanakya had well recognized the drawbacks of capitalism and communism in its greater context.

Arthasastra recommends cooperative enterprise management as the right method of state industrialization

and large stake holdings in the companies. Strategic advantage of cooperative enterprise is the nation

building and per-capita enhancement of the common masses. Applied economic relationship of cooperative

enterprise of cooperative enterprise performance and stake holder income generation delivers very high

level organizational ownership ownerships. Cooperative companies have least risk of poor financial

performance if managed with appropriate guidelines. Arthasastra concepts of cooperative management were

to deliver high productivity, industrialization, rich social economy to the state and sustainable strategy with

lowest damaging factors to the company or the organization.

Doctrine of Superstition Management for Benefits Doctrines of superstitions management in Arthasastra is targeting to crisis management, corporate image

management, conflict management and public opinion management or public management of all the complicated and difficult branches of strategic management. Every community, society and nation does

practice some superstitions and dogmatic beliefs as a part of life and human psychology. Diplomacy or

management of politics as defined in Arthasastra, for the first time technically justifies the management of



superstitions for mass opinion and beliefs. National crisis by foreign philosophy influence can jeopardize

the state good governance and system. Ideological and philosophical contagion can be tactfully kept aside

by managing superstitions influence. This sort of management is a transitory a method to gain time for

repairing the damages in the corporate or the nation building philosophy. Chanakya was well aware of the

ideological influence of republican democracy of Kalinga on Magadh, to manage the contagion of change movements he proposed technical superstition management concepts. Modern political system management

by the leading political parties in democracies of the world is highly indebted to the superstitions and

dogmatic beliefs of technical management for achieving political mileage and goals.

Theories of Quality Control Management Theories of quality control management of Arthasastra are one of the highest standards of the management

system. Quality is not confined to the production processes and outputs of the industry; it spreads its wings

to social practices, learning system, governance mechanism, justice delivery, social life, family life, royal

life, morals and duties of public and private, knowledge management and intellectual capitals management

in the Maurya period of Ancient India. Arthasastra quality management argues for improvisation in a

continuous process that’s why quality is an unending process. Quality circles are also presented in

Arthasastra. Very emphatically it presents quality standards for life of the citizens. Every aspect of

operations in the organization is touched by quality regulations, quality monitoring and quality

improvisation processes. Every aspect is defined with minimum quality and expected quality. Achieving minimum quality is okay and achieving expected quality is excellent, achieving beyond expected quality

are subject to rewards and will be set as a bench marking for the next circle of improvisation process. It will

not be wrong to argue, Arthasatra propagates beyond Six Sigma in military management. In the rating scale

of Six Sigma Arthasastra as a text can be rated as Nine Sigma and more. (Rath, 2008) Quality norms

prescribed by and recommended by Chanakya are of the highest standards even in the modern management

practices. Quality control management concept of Arthasastra is beyond Total Quality Management (TQM).

(Rath, 2011)

Theory of Intoxicants Consumption and Trade Concept of intoxicants consumption and trade as recommended in Arthasastra is perhaps the most scientific

excise rules and regulations with penalties if compared with 21st century modern management practices.

Intoxicants have destroyed civilizations and nations were very much well known to Chanakya as his

provisions to check all possible mal practices and manipulations in intoxicants trade. Chanakya has argued

opium as the biggest enemy of the mankind. Unlawful use of opium attracts severe punishments including

the capital punishments. State control over opium production and trade justifies the adequate regulations. Alcohol consumption and trade was permitted through controlled regulations. Sale and consumption of

alcohol by minors were prohibited. Public outlets were licensed for alcohol trading. Alcohol was taxed

depending on the sale volume with a prescribed tax list. More sale of alcohol was subject to higher taxes by

the state. Societies and communities were having alcohol consumption practices. Alcohol consumption use

to increase in the festive occasions and seasons. Royal army use to consume alcohol under licensing

schemes. Consumption of alcohol by individuals were limited by legal restrictions on post consumption

behaviour. Production of alcohol was governed by stringent quality control regulatory methods. Quality

alcohol use to be the delight of the citizens. Regulated intoxicant consumption and trade used to assure a

peaceful social order in the Mauryan towns and villages. State earnings from taxes on alcohol consumption

and trade used to be a good revenue source. Arthasastra argues, control over consumption and trade of

intoxicants ensures a peaceful social order in the settlements.

Doctrine of Standardization of Industrial Policies Mauryan phase industrial policies were standardized to maintain the exports and industrial productions. Every skilled work force was paid by the state prescribed remuneration package. Salaries were defined by

state as per the expertise and professional skill. Work safety, work hours, work place facilities and workers

benefits are all recommended in the Arthasastra to be followed by the production houses. Industry products

were taxed in the local markets and import duties were also imposed, only exports were encouraged to

generate national wealth. Metallurgy, textiles, war gears were the prime industrial products of exports along

with live stocks for war, like Horses, elephants, donkeys etc. Industrial activities flourished in the Mauryan

phase. Arthasastra in its industrial policies recommends uniform practices of tax structure, formation of

trade towns, infrastructure support for trade activities like river ports, sea ports, trading hubs on trade

routes, law and order maintenance on the trade routes for safety and security of traders’ goods and lives. All

those recommendations which turned the standard industrial policies of Maurya Empire had several

industrial townships of specialized trade are; Pataliputra, Saravasti, Varanasi, Champa, Rajagriha, Ujjain, Kosambi, Kushinagar, Saket etc.

Doctrine of Specialized Professionalism The doctrine of specialized professionalism recommended in Arthasastra grants equal recognition for all

kinds of professionals in the state. Based on the knowledge, skills and competencies of the professionals,

the salaries were defined as the minimum pay package per year. Slave population was a sizable part of the



agricultural work force. State recognizes the slaves and maintains their rights with defined minimum annual

salary. Slaves do enjoy state benefits and were protected by laws. Commercial sex workers (prostitutes)

were recognized by the state as a profession and were a defined profession under legal system. Every

segment of professions was recognized by the state. Skills use to dominate every profession under the

guidance and certification process by the trainers. Trainers’ status use to be controlled state statutory provisions. For upper level professionals minimum qualification was prescribed and educational institutions

adherence to the norms were compulsory. Every professional segment was listed in the state defined status

of minimum wages / salaries. State monitoring provisions were implemented through expert committees

assigned with the tasks. Such provisions were regulated through national census of population. Every

citizen was provided with identity cards for free movement within the kingdoms. Specialized

professionalism of Mauryan phase was ensuring high quality specialized professional services. Concepts

prescribed by Arthasastra were the life line of Magadh Empire’s statutory provisions for excellent corporate

governance.

Doctrine of Public Participation in State Administration Public participation in state administration was encouraged to increase transparency in management, reduce

corruption, enhance efficiency and finally to increase the ownership. Defense or national security matters

were confidential and was limited to experts of the national Security Council. Arthasastra has the provision

of continuous improvisation of system for which unlimited advisory capacity and power were provided to knowledge bodies like university professors, syndicates, state listed expert committees and retired

professionals. Public audits were conducted in Gyan Sabhas on provisions, new policies requirements and

modifications of any administrative provisions. Gyan Sabhas were used as a platform to invite foreign

scholars to infuse new thoughts and developments after scientific examination and recommendations by the

expert committees to the existing norms and provisions of administration of Magadh. Public had the right to

put grievances to the national body, grievances were addressed and redressals were provided with publicly

to maintain justice and transparency. This concept was framed and practiced to provide the citizens’ rights

to every citizen for healthy and advanced nation building.

Concept of Infrastructure Management Mauryan Management System had a unique infrastructure management practice. Infrastructures were made

by the national plan with beneficiaries’ contributions and maintenance by cooperative efforts, which were

ensuring public accountability. Public infrastructures were universities, educational institutions,

transportation roads, market places, irrigation canals, river dams, water reservoirs, city protection walls,

bridges, river and sea ports, trading hubs, granaries, public wells, public libraries, public recreation grounds and festival halls etc. which were planned, initiated and completed by the state and the beneficiaries were

paying taxes as per use. Part of the tax was allocated for maintenance by cooperative management.

Cooperative management was accountable for the maintenance because it was profitable as the concept and

the practice. Knowledge infrastructure like universities and educational institutions were free from taxes,

maintenance and expansion of infrastructure were their cooperative management. Every public

infrastructure expenses were audited and manipulations were checked. State vigilance department use to

check the corruption by raids and investigations. Punishment for the corruptions was severe to discourage

repetitions.

Concept of Forest and Agriculture Management Arthasastra has very lucidly defined sustainable forest and agriculture management. Forest was used as big

resources for the cities, villages and population settlement areas for fire wood, housing and building

constructions, furniture and different forest products etc. Forest was the resource of many raw materials of

the cities. Cities, forts and palaces were made out of logs of timber. Medicinal plants and herbs were exploited from the forests for Ayurvedic and oriental treatments. Forests were used as the store house of the

resources of the society, that’s why it was subject to depletion. Forest officials were engaged in forestation

to prevent depletion. Industries depending on forests were paying taxes and duties. Agriculture was a

private land owner matter but agriculture development was the state concern. State was earning good

revenue by exporting agricultural commodities and edible oils to other kingdoms. Bumper cropping was

provisioned by the state by three crop patterns per year of yielding. State was controlling and managing the

agricultural land irrigation system, guarding the agricultural fields during cropping and harvesting against

forest animals, wild tribes and thieves. National economy was governed by agriculture productivity. Core

competency of the empire was heavily guarded. Water tax, crop protection tax, forest tax etc. were rightly

imposed to protect the assets proportionately on users. Management of ecosystem was a priority in the

concept of forest and agriculture management of Arthasastra.

Doctrine of Environmental Management No wonder Arthasastra was a pragmatic text of management for caring for the environment and ecology. Recommendations were made for not polluting the drinking water, river and lakes water and water tables in

the ground. Forest fire and crop fires as contentions of war were banned. Deforestation was replaced with

aforestation. Maintaining ecological balance was a state duty. Maintaining the fertility of the land was a



farmers’ moral duty. Land fertility was measured through agricultural experts and changed cropping pattern

was followed to maintain land fertility. Polluting the river water by putting animal and human beings dead

bodies or by discharging garbage sewage materials was strictly banned. Hunting in the forests were marry

making events, but it was restricted to deep forests only. Different regulations were available for pollution

control. Pollution control was on disposing bio organic matters of animals to prevent contagious diseases. All dead bodies of human beings were burnt to ashes to disallow contagious afflictions through viruses and

germs. Diseased dead bodies were handled through utmost care to prevent contagion.

Arthasastra was a gospel of effective management for the Mauryan phase administration. Chanakya treated

the kingdom or Mauryan Empire as the public property and every citizen is an equity holder and has every

rights of ownership. The king by role is a CEO of the corporation. Laws, regulations, concepts,

philosophies, practices, theories etc., propagated by Arthasastra were leading to improvements of the

organization for the achievement of excellence. As a text of corporate governance, strategic management,

application of ethical management, corporate HRD and corporate HRM, strategic finance and financial

control management, Arthasastra is a master piece with flawless applications and results of consequences.

As a book of management practice for any organization it explains the extremes of consequences of

mismanagement. Theoretically or practically none of the concepts of Arthasastra has been proved wrong within a span of 2400 years in the history. Further to this, the principles and practices that governed Kusan

period, Gupta period were blindingly following the Arthasastra. Even to a great extent Mughal

administration of Akbar period followed the principles of Chanakya for achieving excellence. In simple,

Arthasastra, is a matchless gospel of management for all the time of the world. Theories of Arthasastra are

imbibed with intelligence and tact for practical delivery of management in its applications.

6. Applied Doctrines of Chanakya in Macro and Micro Level of Corporate

Management Modern management scholars, who studied Chanakya, treated him as a philosopher and connected his works as

political thought and action, diplomacy, political economy and as a political strategist. Even some went to the

extent of interpreting his works as somewhat that of Machiavelli. Modern management scholars had little

attempt to evaluate his doctrines and theories through management validation scales. Chanakya provided five

major doctrines for application during Maurya phase of governance. A governance phase discovered and

established by Chanakya in ultimate outcome produced one of the greatest rulers of the world and established

the pragmatic school of philosophy. His philosophy “End justifies the means” can be explained through his five major doctrines applied in the Mauryan phase and excelled as pragmatic management system. Doctrines like

“Akhand Bhart” (Unitary India), Center of Power – Magadh, Corporate Good Governance, Continuous

Improvement is Development, & Action of Change to Win over Conflict or Revolutionary Change Management of Chanakya not only delivered results but also delivered excellence beyond.

6.1. Doctrine of “Akhand Bharat” (Unitary India) As a professor of diplomacy and political economy at Taxila University, Chanakya had experienced the need of

strategizing a doctrine of “Akhand Bharat” from the available alternative strategies of the time. Foreign invasion

of India by Greeks raised the concern of alternatives to resist the Greeks in the intellectual capital of Taxila

University. Political economy, rich fertile land, conducive human sustainable settlement and available public

wealth were the attractions to foreign invaders. Greeks were not the first, many other options of invasion

Chnakya foresee. Janapadas and independent princely states were vulnerable to invasion. Foreign elements

occupation will ruin the existing rich culture and rich economy. He looked for a confederacy to resist the foreign invasion and win. He launched a movement called “Akhand Bharat” as the alternative solution to resist and

defeat foreign forces on the frontiers of India. This movement got established with popular support from many

quarters as a doctrine. Like every doctrine he established it by his occupation on Magadh through his disciple

Chandragupta and made it a confederacy of Bharat leaded by Chandragupta and won wars against Greeks. His

doctrine advocated unitary system at the time of external conflicts or wars and federalism at the time of peace

and tranquility. His doctrine was devised to protect national interest, culture, civilization and social order. He

established the need of “Akhand Bharat” as a greater entity for safeguarding humanity and prosperity. In

modern world philosophy this can be termed as “unity in diversity”. This doctrine controls governs India’s

philosophy of National Integration.

6.2. Doctrine of Center Of Powers – Magadh In building a united India Chanakya propagated the role of Magadh as the key player and can be treated as the

capital and the “Center of Powers”. Many historians claim such interest of Chanakya for Magadh was due to his

affiliation and inheritance. Chanakya as a strategist always opted for best strategy. Magadh as a Janapad of India

was located strategically in the centre and landlocked. Invasion through sea routes were impossible. Vast stretch

of fertile Doab Land, bumper cropping and harvesting, rich public economy provides monetary power to support



other confederacy states in the time of disasters and natural calamities. From the military strategic point of view

invasions from the east and the north east were lowest due to its strategic alliances, control over the silk trade

routes and trade and commerce relations with Himalayan kingdoms and Tibet. As a community the largest

population by demography was living in Magadh kingdom with single cultural identity, that’s the biggest

strength as a military power to suppress any revolution in the greater Indian confederacy “Akhand Bharat”. Vulnerable North West frontiers of India can be supported by Magadh military system for wining positioning

against invaders. Kingdom wealth and public wealth of Magadh justifies its supremacy to play the lead role in

Akhand Bharat. Chanakyas doctrine of “Center of Power – Magadh” was a strategic management movement

and establishment.

6.3. Doctrine of Corporate Good Governance Chanakya as a pragmatic philosopher designed and implemented his doctrine “Corporate Good Governance” in

Magadh Empire. In the management context a stable system and a stable leader can deliver long term strategic

and goals effectively. He conceived the doctrine of corporate good governance by benevolent monarchy for

Magadh. System of salaried king, qualified king and regulated king through council of ministers and other

regulating councils comprising wisdom can deliver corporate good governance. Stringent regulatory measures

for the king assure delivery of good governance. Good governance as delivered by Mauryan kings like

Chandragupta, Bindusara & Asoka are examples of the finest governance system of Indian history. Asoka went

few steps forward in implementing good governance and delivered beyond Chanakya’s doctrine and

expectations. This kind of achievement of Asoka made him a demi-God in the history. Furthermore king

Mahendra delivered the excellent corporate governance and and achieved the status of a God in Singhal (Sri

Lanka). Controlled and regulated unitary system with federalism character and public private partnership with

transparent provisions of administration delivered corporate good governance in Magadh historic facts are evident and the doctrine was proved and applied.

6.4. Doctrine of “Continuous Improvement Is Development” Chanakya very well believed the process of development is continuous improvement. Continuity is to continue

endlessly to achieve development. Development is a continuous process and has no end to it. Improvement

continuity in knowledge, learning, production, administration, life, society and everywhere in quality and

quantity justifies development. Development is change, change is not a revolution, change is a continuous process to achieve and justify development. Doctrine of development is well evident in the Mauryan history and

followed with a pace for a stretch of 137 years of supreme rule in India. Mauryan phase was the architect of

Chanakya to deliver the best systems and practices. Practice makes a man perfect, perfect is not absolute,

nearest to absolute may be called perfect, to be perfect continuous improvements needs to continue, that’s

development, the doctrine of Chanakya. In other aspects, some examinations reveal the influence of this

doctrine was high on the qualified Buddhist Monks who studied in the Taxila, Nalanda and Puspagiri

universities. They were instrumental in providing dynamism to Buddhism practices and spread it beyond the

Indian Territory especially in the Asia pacific countries and societies. Continuous improvement doctrine has

great deals of impact and influence on the Modern Japanese Management System. (Rath, 2011) in reality it

governs Japanese quality revolution through industrial production and quality delivery.

6.5. Doctrine of Action of “Change to Win Over Conflict” Or “Revolutionary Change

Management” Change is a continuous process, Chanakya argues in his theories and doctrines. Progressive change or

Revolutionary change will lead to disasters as Chanakya warns in his arguments and Sutras. If a revolutionary

reverses it will deliver the destruction or uprooting of the system. Superfine wisdom can manage the reversing

impact of any revolutionary change. Such management is called the Doctrine of “Change to win over conflict”

or “Revolutionary change management”. This doctrine of Chanakya was applied by Asoka the Great in the

aftermath of of Kalinga War. Chandasoka converted to Dharmasoka as Buddhist literature represents. Chanakya

had argued not to clash with opposite beneficial interests in either context monarchy will be the looser against

the republican democracy. Demonic contagious philosophy can uproot any monarchical system in either context

of the war, either you win or you lose, republican democracy wins. Asoka managed revolutionary change by

excellent wisdom that compelled him to act as a true democratic ruler and to call Kaliga war as the last war of

his career. This hardcore doctrine of Chanakya was tested by Asoka the Great. No other Indian ruler in the history attempted to examine the consequences of this doctrine. Effects of this doctrine are evident in the pages

of history of India and Sri Lanka. To overcome the hard facts of the consequences of this doctrine, Chanakya

has attempted to provide the democratic king in the provisions of Arthasastra with benevolent ruler to Magadh.

High quality social science researches justify Chanakya’s doctrines as scientific in applications and practices.

Every doctrine of Chanakya defines the worst consequences of it with validations through logical arguments.

Chanakya explains the worst consequences for high alerts and preparedness to manage the reversible situations.

Methodically his doctrines are aimed at with suitable alternative strategies at different stages. Achieving the



objective for the greater interests and mass benefits needs to sacrifice the smaller gains or individualistic vested

interests. His strategic vision and mission are for the organization benefits & development. In a short

philosophical line can be said “End justifies the means”. Social benefit doctrines need to be established through

achievements.

7. Management of Knowledge and Culture - Buddhism Buddhism was a dominating philosophy and religion in the Indian society at the time of Chanakya. In his writings Chanakya had never criticized nor condemned Buddhism. Buddhist monks were some of the major

sources for discourses in the Gyansabhas of the Janapads. Buddhism had experienced two Buddhist councils for

the compilation of Pitakas to deliver logical and theosophical arguments in favour of the acceptance of the

philosophy. Buddhism dominance is clearly visible on Mauryan Emperors with the conversion of Asoka from

Hinduism to Buddhism. Asoka’s interest and patronage of Buddhist council at Pataliputra and royal patronage

of Buddhist schools and universities at different locations on logic, philosophy, scientific knowledge, scientific

arguments and different arts and sciences are some of the examples of Buddhism influence. Chanakya had

sound argument of clinical psychology that “attitude” of the individual is unchangeable in life and the only

change possible is in the public behaviour. Chanakya has explained the highest irritation behavioural reactions

are generated by third party interference in someone’s religion, faith and belief. These are the core of individual

psychological existence and survival. This scientific research and acceptance of the fact makes Chanakya a great secular scholar in practice. It was not Buddhism alone; Chanakya never encountered the philosophical and

theosophical theme of Hinduism and Jainism.

In twisted dynamics if this has to be examined, many management scholars can rightly admit Chnakya’s

management philosophy had taken out some cream from two prime religions – Jainism and Buddhism to

support his doctrines with filtrations. By maintaining a secular outlook and being aloof from the religious

statements Chanakya had built up soundness and validity of his doctrines. Management is always above

religious themes and conflicts. Buddhism had logical philosophy and sustainable intellectual capitals through its

trained minks to impart the teachings and preaching in the Indian societies where enriched and philosophical

religions like Hinduism and Jainism were dominating. Frequent Gyansabhas and discourses at different

kingdoms were encountered by Buddhist monks where defeat and absenteeism was equally to Buddhism

acceptance in the society. No wonder, society at that time was largely literate and educated in the mainland India. Intellectual competitions were the biggest hindrances for Buddhism acceptance so cross border preaching

turned a lucrative avenue of the monks. International trade through silk routes on the land and the maritime trade

links favoured the monks to spread Buddhism outside India. Chanakya on the other hand was least interested on

any religious philosophy, his doctrines and theories had only management orientations. He had no objection to

Buddhist monks links in mainland China, Sri Lanka, Java, Bali, Burma, Thailand etc. for preaching the religion.

Chanakya rather favoured such movements to enhance international relations, trade and commerce and Indian

influence in the neighbouring countries for economic and political benefits of India. Chanakya had allowed a

regulated free hand to Buddhism and Jainism in Magadh Empire. Maurya emperors’ patronage Buddhism for its

spread in and outside India, Asoka the great championed this cause. Though many historians argue in favour of

the Buddhism role in the decline of the Maurya dynasty, Chanakya had warned Mauryan monarchs not to clash

in any manner with republics and democratic interest states i.e., Kalinga to safeguard Magadh Empire and the Maurya dynasty. In reality Kalinga influence turned as the biggest factor of the decline of Mauryas. Chanakya

had well explained the religion issues as volcano. Secular system of management is good for any corporate

health. Buddhism had flexibility in principles of preaching. Historical evidences show that trade routes that ran

from North-Western India to Northern China took Buddhism to central Asia and nourished the faith and its

culture for many centuries. In every new land it reached, Buddhist ideas were modified to fit the local culture

without compromising the essential philosophical points of wisdom and compassion. The way Indian

philosophy spread across the continent of Asia in ancient times is amazing. There was a time when there was no

country in South and South East Asia and Central Asia where Indic deities, the Buddha, Siva, Vishnu, and

others, were not revered. Buddhist sites are available in Siberia, Mongolia, China, Tibet, Japan, Vietnam, Lao

PDR, Indonesia, Myanmar, Thailand, Sri Lanka, Nepal, Bhutan, and India. Kalmykia is the only part of Europe

which has a Buddhist tradition: it dates back to 400 years. Afghanistan is situated around the midpoint of Asia. It is at a crossroad on the silk route. Owing to geographical position, Afghanistan was the meeting point of

different people and civilizations, including Aryan, Achemenian, Greeks, Kushan and Buddhists. During the

reign of emperor Asoka of India, region was not deeply versed in this philosophy and would have found it

simpler to relate to the life of Gautam Buddha. Here the emphasis became more on the drama of life in the

ephemeral world. Human life, personified in the Buddha before and after his enlightment, became the vehicle of

the message. Depiction in the Gandharan region significantly dramatized the Buddha’s life and presented them

with charged emotions. In the second century A.D., during the time of Kusana King Kaniska, Afghanistan

became a seat of Buddhist learning. It was from this pivotal centre that Buddhism reached Xinjiang, other parts

of China and Mongolia. The Chinese pilgrim monk Xuanzang visited Afghanistan in the 7th century A.D. He



writes that there were many monasteries and Buddhist images in Bamiyan. Bamiyan was on the route linking

India and Balkh through which spices, pearls, ivory and raw cotton were traded. Bamiyan valley is cradeled

between the mountain ranges of the Hindukush and Koh-i-Baba. On a cliff face next to Bamiyan town, three

colossal statues were carved 1,200 meters apart. One of them, 52.5 meters high, was the world’s tallest statue of

Buddha. It was carved in the 6th century. Once upon a time nearly 2000 monks and 12, 000 students were involved in academic learning in this Buddhist academy. Indic faiths never had a missionary movement, nor

were spread by the sword. Buddhism spread throughout Asia. The Buddhist faith in this manner and was

accepted with open arms.

8. Chanakya and World Pragmatism – Greece and China: A Comparative

Perspective The trend of that period was to establish great empires and emperors by the management Gurus of that time. The

Greek philosophers had tremendous idealism idealism, utopianism and philosophical strategies to establish

Greek Empire in the world. Aristotle as the tutor of Alexander trained him with the diplomacy skills to make his

expedition successful to rule over the world. Chinese world had different dimensions of philosophical needs;

Wanli Emperor had succession crisis and corruption crisis of bureaucracy. Structural reforms, ethical legislation

of code of conduct, regulatory framework were the priority compulsions. Restructuring a social order in favour

of the national interest was the concern for Confucius. He acted as the advisor for the Wanli emperor. Chanakya

of India refined a revolution for establishing an unitary India, revolutions as reforms were in has philosophical

arguments and acted upon. Strategic management he coined changed the system with lowest sabotage impacts on the society through pragmatic approach. His compositions as philosophical texts were less or no philosophy

rather the ground realities shaped in to theories and doctrines. Chanakya delivered doctrines and applied the

concepts, which were proved as absolute theories in time to come.

8.1. Greek World and Aristotle Something unusual happened in Greece and Greek colonies of the Aegean Sea some 2500 years ago. Whereas

the previous great cultures of the Mediterranean had used mythological stories of the Gods to explain the operations of the world and of the self, some of the Greeks began to discover new ways of explaining things.

Instead of reading their ideas into, or out of, ancient scriptures or poems, they began to use reason,

contemplation, and sensory observation to make sense of reality. Other thinkers such as Pythogoras, turned to

the nature of form itself rather than the basic stuff that takes on a particular form. With Socrates the purist of

knowledge turned inward as he sought not to understand the world, but himself. His call to “know thyself”,

together with his uncompromising search for the truth, inspired generations of thinkers. With the writings of

Plato and Aristotle ancient Greek thought reached its zenith. These giants of human thought developed all-

embracing systems that explained both the nature of the universe and the humans who inhabit it. As the great

Greek statesman, Pericles, sagely practiced, “Future ages will wonder at us, as the present age wonders at us

now”. Socrates (470 – 399 B.C.) has fascinated and inspired men and women for over two thousand years. All

five of the major “schools” of Ancient Greece (Academecs, Peripateties, Epicureans, Stoics & Cynics) were influenced by his thought. Plato (428/7 – 348/7 B.C.) had two older brothers, Adeimantus and Glaucon, who

appear in Plato’s Republic, and a sister, Potone. The death of Socrates made an enormous impression on Plato

and contributed to his call to bear witness to posterity of “the beat,……….the wisest and most just” person that

he knew (Phaedo,118). Following Socrates execution, the 28 year old Plato left Athens and travelled for a time.

He is reported to have visited Egypt and Cyrene – though some scholars doubt this. On returning from Athens

from Sicily, Plato founded a school, which came to be called the Academy. One might say it was the world’s

first university, and it endured as a center of higher learning for nearly one thousand years, until the Roman

emperor Justinian closed it in A.D. 529.

Aristotle (384 – 322 B.C.) was born in Stagira, on the border of Macedonia. At seventeen, Aristotle was sent to

Athens. There he studied in Plato’s Academy for two decades, but, as he later wrote, he loved the truth more

than he loved Plato, and so he had no mind to remain a mere disciple. In 347 B.C. after Plato’s death he left Athens and spent the next four years in conducting zoological investigations on the islands of Assos and Lesbos.

About 343 B.C., he was called to Macedonia by King Philip to tutor the king’s son – the future Alexander the

great. On Alexander’s death in 323 B.C., Athenians went on a rampage against any and all associated with him.

Indicated on charges of impiety, Aristotle fled Athens, “lest”, as he put it, “the Athenians sin twice against

philosophy” (referring of course, to unjust trial and death of Socrates). His management philosophy

contributions ruled the western world for a long time. There is no doubt that after Plato; Aristotle is the most

influential philosopher of all time. Logic, as taught until about the time of World War II, was essentially

Aristotle’s logic. His poetics is still a classic of literary criticism and his dicta on tragedy are widely accepted

even today. Criticism of Aristotle’s metaphysical and epistemological views has spread even since Bacon and

Descartes inaugurated modern philosophy; but for all that, the problems Aristotle saw, the distinctions he

introduced and the terms he defined are still central in many, if not most, philosophical discussions. In observing



the world, Aristotle saw four “causes” responsible for making an object what it is: the material, formal, efficient

and final. It is the last of these, the final cause, which Aristotle held to be most important, for it determined the

other three. The “goal” or “end” (telos in Greek), the final cause, of any given substance is the key to its

understanding. That means that all nature is to be understood in terms of final causes or purposes. This is known

as “teleological” explanation of reality. Aristotle’s understanding of “happiness” is rather different from ours. Eudaimonia happiness is not a feeling of euphoria – in fact; it is not a feeling at all. It is rather “activity in

accordance with virtue”. Much of the material from the Nicomachean Ethics presented here is devoted both to

clarifying the word and to discovering how this kind of “happiness” is to be achieved. After defining the term

“nature”, Aristotle discusses change and necessity. Aristotle displays his teleological understanding of nature –

that is, that natural processes operate for an end or purpose. Aristotle as a pragmatic philosopher contributed to

the nation and empire building of the Greeks but his involvement in application of management philosophy was

under great question mark. Either of the two side had large deficiencies of management applications which was

the execution of Socrates and repetition as expected by Aristotle. Aristotle’s management philosophy never

delivered a changed system or changed the system in Greek society. May be his pragmatism application was

missing in Alexander’s coquets for the world, some firmly believe, if Alexander would have been alive,

Aristotle would have been recognized more. Undoubtedly, Aristotle was a master of management philosophy of the world.

8.2. Chinese World and Confucius Contemporary to Chanakya of India, Confucius (K’ung Fu – tzu) lived from (551 – 479 B.C.), during a time

when imperial rule was breaking down in China. He was born in the state of Lu that’s the modern state

Shantung of China. He opened a school and flirted with political arena, attempting to convince his contemporary

political leaders by virtue of leaving noble life. Historical evidences of his works have question marks, as it was compiled by an unreliable historian after 400 years of his time. Accurate account of Confucius can be found by

analyzing his analects, a collection of Confucius sayings compiled and drafted by his students after his death.

Confucius very much parallels what Plato would have called a philosopher. He had certain understanding of the

way things should be (truth) and taught the acts according to his doctrines. Others appreciate Confucius’s

wisdom and seek it in times of distress and uncertainty. He would not speak things he knew he had no

knowledge (i.e., Gods, military formations, etc.) and portrayed humility and a love of learning in all his actions.

He was comfortably pessimistic about the quality of people in his contemporary world including himself. As a

management Guru who was knowing the futility of his actions yet insists upon doing whatever he can, both for

personal morality and morality. There were four things Confucius refused to have anything to do with: he

refused to entertain conjectures or insist on certainty: he refused to be inflexible or to be egotistical. As a

management philosopher Confucius seems very human and conscious if his limitations, wise and fond of learning, humble yet adamant about benevolence and the way, moral and gentlemanly, realistic yet idealistic,

practical yet willing to try, reverent and respectful. Confucius missed out, tact, intelligent strategy, diplomacy,

strategic positioning, game plans, winning rules and many other management skills of controlling and

influencing in his doctrines. Pure benevolence makes Confucius utopian & plutonic Plato not pragmatic and

practical philosophers like Chanakya and Aristotle. Many of his ideas were taken from the ancient books of

songs. One of the themes running across the Analects is the importance of compassion and practicing concern

for others. Confucius’s teachings also touched on what might now a day’s be referred to as the philosophy of

management of Corporate Good Governance (CGG). He believed in the importance of consulting the right

experts and on judging someone by their actions. He also felt that you should be careful never to disregard

someone’s words simply because of their behaviour. He championed rule by virtue; the theory being that if

people are led by virtue then they will come to follow virtue themselves. Confucius teachings were not always

rigorously applied but he has still had an enormous influence on Chinese history and administration – perhaps more than any other single person. He influenced the royal policies, decision making and administrative

procedures to remove corruption from the society of his time. A dramatic demonstration of his influence and his

theories about conservatism and ritual meant that Chinese language, dress and basic culture of remained

virtually unchanged from 1st century B.C. right up to 19th century. A man who lived in China 2,500 years ago is

famous enough to have his style of speaking parodied today. Confucius devised management philosophy to

safeguard the Chinese society from moral degradation as he felt. In managing the system and rectifying the

order Confucius propagated an ideal order for the change as something to be treated as utopian by some

scholars. Confucius delivered an ideal and benevolent order for reforms not for tactful management and

pragmatic approach of changing the social system. Confucius was concerned about the rampant immorality of

much of the government of his time, and he spent much of his life trying to find a ruler who would accept his

teaching that ethical considerations should be the guiding principle of government. Confucius was basically a humanist and one of the greatest teachers in Chinese history.



8.3. Indian World and Chanakya Chanakya was the advisor, Guru and philosopher to the Indian King Chandragupta Maurya (317- 293 B.C.),

who first united the Indian subcontinent in to an empire. Composed about 300 B.C., Kautilya’s Arthasastra was

the science of politics intended to teach a wise king how to govern and achieve corporate good governance. His

doctrines of “high effect and low cost war” or “silent war” or a war of assassination against an unsuspecting

king, use of women as war weapon, use of religion and superstitions to demoralize enemy soldiers and army

officials are championed management philosophy of reality and pragmatism. He was a philosopher beyond

philosophy. His philosophy was meant for application with assured and proved results which he had composed

through high quality social research. His book Arthasastra was one of the greatest political books of the ancient

world. Just after Alexander’s death in 322 B.C. Chandragupta and Kautilya began their conquest of India by

stopping the Greek invaders. In this effort they assassinated two Greek governors, Nicanor and Philip a strategy with the approval of Kautilya. After concluding a treaty with Seleucus the Greek governor of Punjab and Sind

Chanakya succeeded in bringing together almost the entire Indian subcontinent. This reflects his active

participation in unifying India. In another words his management was flawless and to delivered results as history

is evident. Kautilya believed the goal of science was power, power is possession of strength and strength

changes the mind.

Comparative analysis of management philosophies of the world establishes the fact that Chanakya not only

propagated management philosophy but applied the same successfully. Chanakya designed strategies, selected

and trained the king, made the king the first emperor of India by unifying the Indian subcontinent. Confucius

and Aristotle attempted to implement their management philosophy through the emperor but were unable to

control over the situation. Both of them proposed good governance without alternative management strategies to

control the situation. Their concepts of good governance were un-adopted in totality by the governors of Greece and China. Chanakya’s concepts, doctrines and theories were adopted and applied in toto by Chandragupta

Maurya in India. Even future ruler Asoka the great exceeded the limits from good governance to benevolent

governance that clearly indicates the validity and application of Chanakya’s management philosophy.

9. Twenty First Century Management vs. Chanakya Oriental Indian Management has its examples of excellence from the time of Harappa and Mohenjo-Daro dating

back to 2000 B.C. in the form of urban city management, realty and real estate management and management of

community life. Urbanization and city planning of these two locations as discovered by archeology astonishes

the modern township and city planners. International trade links and evidences of river ports and sea ports for

connecting maritime links with other places in the North Africa, Middle East Asia and Eastern Europe are some

of the milestones of international trade and commerce management. Sound per-capita income, good and wealthy

economic conditions of public, coinage circulation, economic and financial exchange rate, exports and imports

with other civilizations are facts of excellent modern financial management. Industrial production of arms and ammunitions through casting and metallurgy, production of fabric through handlooms and its wide spread

trading supports structural industrial management. Schools and colleges in the city depicts organized public

education system and disciplinary division of learning cites fine tuned education management system.

Technological advancement and systematic urban settlements were the prime achievements of management and

can be compared with modern management.

Vedic period is a phase of glory in oriental management system of India, which produced scientific documents

like four Vedas compiled by specialized schools of learning with large numbers of researches in science, social

sciences, psychology, medical science and surgery, astro-physics, astronomy, mathematics, engineering etc. are

some of the examples to contest with the modern management system. Validation of Vedas in today’s time is

well admired. Numeric Vedic mathematics needs further research for adequate and scientific coding and

decoding for the use of modern world. Value dominance in learning was the greatest quality of Vedic management system. Achievements in medical science and surgery were some of the best management practices

of world. These practices are still followed in Ayurveda in modern days. Ayurveda is the pioneer document of

medical science. Use of iron and steel in that time provides large industrialization in manufacturing for external

and internal market requirements. Vedic period was a scientific era of oriental management history.

Maurya phase, Kusan period, Gupta period and the stretch up to Harshavardhan in the ancient Indian history

redefined the art, philosophy, technology, logic, management, science and different disciplines of science, above

all set the modern trend of development. There are countless management achievements during Maurya period

to Harshavardhan’s time; some are far superior to modern management practices. Practices of knowledge

management, intellectual capital management, advanced HRM system management, strategic and strategic

positioning management, corporate good governance, advanced supply chain management, disaster preparedness management, absolute quality management, management by federalism, single code of conduct,

regulatory framework of laws, revolutionary change management, benevolent corporate governance are some of



the biggest contributions of Maurya phase to modern management system. This phase conceptualized and

practiced the management system which are far superior to modern scientific management. Indology has a lot in

its treasure to contribute to modern management system.

In the context of management history America, Europe and Japan are greatly admired in the 19th to 21st century. European management system dominated the 19th to 20th century with large contributions in scientific

production system through industrial inventions of technology. American did share much with the European

system in technological advancement and scientific modern management. The entire concepts were techno-

centric and value propositions were missing. That’s a result produced many colonies for economic exploitations.

For the sake of enriching national economy created a world of haves and have-nots, developed world and third

world, which the world is paying for even today. There are lots of similarities between American management

system and European management system. Migration from a dominated colonial economy started in 1940s and

continued up to 1970s at the same time neo-colonialism was offered to the world through European

management system. At large European management system stressed on production proliferation, maximizing

profit, controlling market trends through militarization, exploitation of natural resources of the colonies, low

cost labour or lower payments for profit improvements, mechanization processes of production, monitoring system for higher labour inputs were some of the championed management concepts called scientific

management in the 19th & 20th century. In favour of industrialization the management concepts and theories

originated in Europe and America in the 20th century those fairly missed out human aspects, values, ethics and

corporate governance. Techniques were brought forward in management for and only profitability till the end of

the Second World War. The outcome of Second World War had a revolutionary impact on the European

industry and management thought. Liberation of dependencies from colonial controls was highly active in Asia,

Africa and Latin America. Companies with heavy dependency of supply of raw materials from colonies had to

shift over or to liquidate the company to native stake holders. Manpower use as machine and profit through

higher manpower utilization concepts were fairly challenged. Pricing policies in closed economy trade for

desired profitability entered in to competitive pricing. European companies instead of colonies as market place

shifted to Europe as target markets. Europe entered in to a phase of competition by European companies.

Human resource management started gaining prominence as profits were secured by market intelligence and professional vision. America with the experience of Second World War devised a market system by hegemony

in Europe. Power and force of USA was the prime Unique Selling Proposition to dominate the European market

and access comfortably. East Europe with the leadership of Russia (USSR) ideology movement of Bolshevik

revolution moved towards a closed market economy. This barrier of ideology dominated the world market till

1990. A new phrase was adopted in the management ideologies as “Cold War”. The strategic alliance of

America, USSR moves in the market place were as effective and exactly following the guided parhs of

Chanakya’s “Mandala Theory” as defined in Arthasastra. The new concepts of management theory of USA and

Europe were adopted for the open market of the first world and its allies during 1950s to 1980s were based on

many of the Mauryan systems and practices. Allies were the favoured nations and priority markets for business.

USA followed the golden rules of mighty military system to capture the markets of the world. Asokan period in

Maurayan phase had applied many such diamond rules of mighty military system. In this process the enemy country of the Second World War Japan adopted the oriental management policy of being an ally of the power

drivers – USA and Europe. This devastated economy tactfully used the ally market as the target and grabbed as

much as economic power by trade investments and industrial expansions. Japanese management think tank

looked at economic power as the core competency of establishing hegemony in the consortium in this regard it

moved two steps forward for community economic development through public-private-community

involvement. The nation as one community revived the system of oriental Samurai practices of delivering

highest quality by reducing the time, time reduction by systematizing the process, systematizing from beginning

to end reduces the cost of production. These are the champion doctrines to dominate the market by highest mass

requirement quality through economy pricing. Highest quality is highly expensive. Mass quality can operate

with the economy scale. Mass quality can expand the industry volume production. That’s the secret of the

economic dominance in the competitive market. Japanese methods of revival of management theories from

Samurai culture and Buddhism practices delivered quality management and quality engineering magic to the industrial world America and Europe. In 1980s and onward Japan started gaining prominence in management

theories and practices development throughout the world. Either its Six Sigma, Right in Time (RIT), Kaizen,

Toyota Quality Norms, Beyond Six Sigma, Quality as per Consumer Needs etc. some of the Japanese

contributions to the world of management. Japanese oriental management practices have its root in the Buddhist

philosophy and practices, both of these are supplied from India. Indian Buddhist monks from 2nd century B.C.

till 9th century A.D. kept on redefining many of the Buddhism practices outside India with influence of oriental

management system of India. Oriental Indian management system especially, Mauryan management which was

defined as a flawless system by Chanakya was followed widely by the monks. Japnese management system

revived and practiced oriental methods, doctrines, and theories to deliver its finest management practice to the

world of industry. Mauryan forms are by theme is a part or whole of the concepts Japanese delivered to the

world in management order.



10. Chanakya and His Works – “The Modern Management ‘Guru’’ Chanakya the Indian philosopher who visualized the future as a statesman, planned the courses of action and

strategies as a “Management Guru’, prescribed the guidelines of governance with a regulatory frameworks for

the country as a strategist, his dreams were planned and delivered as the Mauryan phase of the Indian history.

History of knows him as an emperor maker. Knowledge India testified his versions, books, Sutras as the only

practical guidelines of life and society without any change or flaws. His arguments, logic and theories of

rejecting enemies in life were such that scholars treat him as the pragmatic philosopher. His doctrines, theories, dilemmas, golden rules of life and profession treated by researchers as the scientific social science research

which coined theories through empirical research only. Practical experts and economists treat him as the best

diplomacy veteran and political economist for his prime book “Arthasastra” and his practices. Historians world

over regard him as the history maker who was competent to change the course of history as per his vision and

plan. As a scholar, author, strategist, thinker, planner, teacher, statesman – Chanakya delivered – the theories of

reality for good governance of a state, nation, empire, society, industry, institution and life without any

drawbacks or loopholes for eternal validity, that’s what was examined for the last two thousand and three

hundred years and is proved as absolute. This simply justifies his excellence in management. He is undoubtedly

the “Modern Management Guru” beyond any comparison and analysis. His works are enough as a single hand

achievement to establish the school of a system to be called “Indian Management System” as any of these

existing and accepted by management scholars “American Management Sysstem” (AMS), “European Management System” (EMS) & “Japanese Management System” (JMS). The need lies in further research and

coinage of management jargons from Chanakya’s works and life for the world to practice in corporate houses

and other Govermental and Non-Government organizations.

Dr. S. P. Rath Professor, Management Studies, Institute of Hotel Management,

(University of Huddersfield, U. K.), Taj Hotels Resorts & Palaces (IHCL), A TATA Enterprise, Aurangabad, India

Dr. Biswajit Das Professor, Marketing & Communication Area, School of Management,

KIIT University, Bhubaneswar, 751024, India

Dr. Shivshankar Mishra Director Academics, Institute of Hotel Management, (University of Huddersfield, U. K.),

Taj Hotels Resorts & Palaces (IHCL), A TATA Enterprise, Aurangabad ,India

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