KAUTILYA’S LEADERSHIP AND MANAGEMENT SKILLS

 KAUTILYA’S LEADERSHIP AND MANAGEMENT SKILLS

Arthashstra, was written by Kautilya / Chanakya in the 4th century, even before Christ, is a work

whose importance has not faded even now, after 24 centuries. It deserves a continuing importance

as Acharya Chanakya or Kautilya was not only a statesman of one of a kind diplomat and the best of

its kind ever to walk this earth.

We shall primarily focus on Kautilya’s thoughts on political management and diplomacy which are

indeed the logical approach for an effective, efficient leadership.

Organizational Skills

Kautilya is of the opinion that for efficiently running an organization or the State, an elaborate

machinery has to be established. He emphasis on the organizational aspects with respect to the

human dimensions of an organization, and the leadership required to make the organization

functional.

On the organizational aspects, Kautilya evolves an elaborate hierarchy under the king.

The Amatya, the Prime Minister is appointed by the king. Amatya is responsible for running the

day-to-day machinery of the State through a council of Mantris, the Ministers, Senapati, , the

Defence Minister, Purohit, the Chief Justice and Yuvaraj, the Heir Apparent or identified successor

to the throne.

Kautilya has pieced together, a design of a complex, yet simple hierarchy for governance going down

to the level of villages through the concept of Mandalas.

 Gram Panchayats and Panchayati Raj set up by the Government of India can be considered as a

logical derivative of Kautilya’s attempt to bring administration to the lowest appropriate level in

the State machinery.

Arthashashtra has detailed policies for the society, individual industries, labour and employment,

calamities and control of transgressions. Kautilya shows the depth of his knowledge of the major

element of effective and efficient implementation of business processes, namely, the human aspect

of management.

Chanakya observes that the State, as an organization, is a social organization with a successful

economic aim.

The Arthashashtra has a good deal of thoughts on the qualities the top appointee of government

machinery must possess.

He writes about these qualities as qualifying standards for appointment as a Mantri (Minister).

These qualities are:

 Drudhachitta – Power of concentration

 Shilavan -Character

 Pragna – Capability to think logically

 Vangmi – Communication skills

 Daksha -Observation/ Vigilance

In addition, he highlights the competencies that a Mantri must possess. These competencies are the

same as the competencies advocated by the management gurus of the present times, namely,

Knowledge, Skills and Attitude.

A person possessing these qualities must get the keys to assist the king in running statecraft.

According to Kautilya, the fundamental duties of the State should be taken care of through

‘Elements of the State‘ identified by him. This is the part of the ‘Saptang Theory‘ put forward by

Kautilya

Kautilya cite ‘Seven Prakritis’ or Vital Organs of the state. They are as follows:

 Swami -The Ruler

 Amatya -The Minister

 Janapada -The Population

 Durga– The Fortified Capital

 Kosha -The Treasury

 Danda -The Army

 Mitra -Ally and Friend

Skills of Management

Arthashasthra means, ‘The science of gaining wealth by lawful means’ or simply put  ‘The Science of

Economics’. Many modern practices of economics are taken from Arthashasthra. Kautilya

recommends his king (Swami), to rule through Prabhu with, Shakti (vision), Mantra Shakti

(mission) and Utsah Sahkti (motivation).

According to Kautilya, the objectives of a ruler should be to:

 Acquire power

 Consolidate what has been acquired

 Expand what has been acquired

 Enjoy what has been acquired

Kautilya advises the king to manage his Kingdom in the following ways. These policies are adapted

into the modern corporate management practices.

 The King, should run a diversified economy actively, skillfully, profitably and practically.

 Diversified economy should consist of all the resources available in the kingdom, cultural

and language, skill exchanges, productive forests, water reservoirs, mines, productive

activities, trade, markets, roads, ports and warehouses.

 Efficient management is explained by Kautilya as setting up of achievable targets and

meeting those targets without using over zealous methods.

 Wealth is brought by the economic activities of the kingdom. Proper direction and guidance

from the king, will ensure current prosperity and future gains. If the king is aloof to the

economic sphere of his kingdom, will bring the kingdom close to destruction.

 King must bear in his mind that a king with depleted treasury is a weak king and the easiest

target for enemies to take over.

 The king should ensure implementation of economical policies. These policies should be

based on Dharma and Nyay that will ensure equal opportunity for all to earn a decent living.

 Profitability should not only mean surplus over costs. It should also mean provision of

investment for future growth.

 Kautilya says that management of water resources is vital for the state. Kautilya states that,

for sustained economic activity of the kingdom, the king should do everything to ensure a

consistent supply of water.

 A king should have the highest qualities of leadership, intellect, energy and personal

attributes.

 A king can reign only with the help of others. He should assign not more than four advisors

and sufficient number of Mantris to look after the governance of the State machinery.

Kautilya warns about centralization of power within the hands of the king by saying that one

wheel alone does not move the chariot. Kautilya is of the opinion that, a king should exercise

his control tactfully and rule through his advisors and mantris.

 The king should have clarity in terms of qualities an advisor should possess before

appointing an advisor. Most important qualities of an advisor are, practical experience,

thinking capacity, sound judgement and very importantly, ability to differ while keeping total

devotion to the king with a sound and logical explanation for such.

Knowledge

Kautilya makes some really impressive observations that is a must for the leaders. Kautilya says that

the king should have a sound knowledge about the complex human nature which is essential to

effectively, efficiently run the State machinery.

He warns of two undesirable attitudes of human nature, Pramada, meaning excess and Alasya,

meaning inactivity, to be watched for and avoided.

Kautilya’s Wisdom on Knowledge:

 Small difference in ability can lead to enormous differences in results.

 Main aim throughout one’s career is to identify, acquire and develop these differences, to

yield superior results in the future.

 Knowledge is important. Knowledge is cumulative. Once it exists, it grows. Every new

piece of knowledge gained, reveals connections with other areas of knowledge. Each

breakthrough in knowledge creates new opportunities to expand and multiply.

 Thinking is creative. You create your world with your thoughts. Situation and people have

the meaning you give them. When you change your thinking patterns, you change your

life. To take control of your life, you must take control of your mind.

Justice

The state must be devoid of internal conflict and the King should be in control of the state for the

state to maintain prosperity and growth, says Kautilya . To maintain internal peace in the sate, he

believed in a just and realistic rule of law. His definition of a state was one which had power and

wealth and hence he put property rights and protection of wealth as one of the important themes in

justice. In fact Chanakya advocated that one could get rid of punishment by paying off fines.

Chanakya also attaches great importance to human rights on how the conquered ruler and his

ministers should be treated. He shows a deep understanding of criminal justice and war justice.

Surprisingly, for a harsh and realist man like Kautilya he shows mercy towards the people defeated

in a war and recommends humanity and justice towards them. He advocates that defeated king

shall be treated with respect and he should be made an ally and advises that the key people

advising the defeated king should be eliminated through a silent war.

Kautilya believes that law should be in the hands of the King and punishments need to be awarded

to those who are guilty so that King can protect himself from the social unrest and

unhappiness. He believes that punishment is a means to an end and it needs to prevent the

commission of the crime. Kautilya also was a reformer where he though punishments could reform a

person and hence a society.

Kautilya brought out the Dandaniti especially for tactically enforcing law and will of the state. It

talks about protecting property, acquiring property, augmenting them and distributing them for

economic growth. He thinks that justice is an important constituent of sovereignty and it needs to be

preserved by the State and the ultimate responsibility of such is with the King