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International Journal of Business and Management Tomorrow

Vol. 2 No. 3

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

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conceptualized as per the requirements. Thats what justifies Chanakya as the Modern Management Guru. Attempts have been made to synthesize Chanakyas works in management terminologies for this research paper. Contextual use of Chanakyas 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 Chanakyas 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 Indias logical learning system, very well felt and recognized in the contributions of Ancient Indias 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 2

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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 Indias 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 Indias 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 Chanakyas 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. Chanakyas 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 Chanakyas 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. Thats 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 thats 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.

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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 doesnt 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 Indias 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 Chanakyas 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. Chanakyas 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 Greats 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 Chanakyas 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 4

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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 Chanakyas 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 Chanakyas 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. Chanakyas 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 kings 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 5

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scholar of Taxila, was able to receive universitys 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 protostate. 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) Chanakyas 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 Chanakyas 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. Chanakyas 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 Chanakyas choice for powers center rather his strategic selection. Contemporary state Kalinga though uses to qualify such strategic location with the ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 6

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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. Chanakyas 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 emperors decisions. Qualifications and professional excellence were well defined in the Chanakyas 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 worlds 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. Chanakyas 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. Chankyas 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 Chanakyas 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. Chanakyas 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 7

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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. Chanakyas 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 Asokas 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. Chanakyas 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 Chanakyas 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 its 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 8

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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 Chanakyas 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 Arthasatras 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 Chnakayass 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

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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. Chanakyas 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. Kingdoms financial status fluctuates as per the business environment. Cash flow of any corporation is unpredictable, cash reserves and budgetary control provisions ensure organizations 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

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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

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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 thats 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 21 st 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

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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 Empires 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, thats 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

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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 Indias 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 14

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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, thats 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 Chanakyas 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, thats 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 Chanakyas 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 15

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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. Asokas 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 someones 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 Chnakyas 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 Buddhas 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. 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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 worlds 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 allembracing 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 Platos 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 worlds 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 Platos 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 Platos 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 kings son the future Alexander the great. On Alexanders 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 Aristotles logic. His poetics is still a classic of literary criticism and his dicta on tragedy are widely accepted even today. Criticism of Aristotles 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 17

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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. Aristotles 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. Aristotles management philosophy never delivered a changed system or changed the system in Greek society. May be his pragmatism application was missing in Alexanders 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 (Kung 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 thats 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 Confuciuss 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. Confuciuss teachings also touched on what might now a days 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 someones 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.

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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., Kautilyas 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 Alexanders 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. Chanakyas 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 Chanakyas 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 todays 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 Harshavardhans 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 ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 19

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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 technocentric and value propositions were missing. Thats 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 Chanakyas 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. Thats 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 2 nd 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. ISSN: 2249-9962 March|2012 www.ijbmt.com Page | 20

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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, thats 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 Chanakyas 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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