“APPLYING KAUTILYA’S ARTHASHASTRA IN HUMAN RESOURCE MANAGEMENT”
A RESEARCH PAPER by
SANTOSH BAGWE
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Index 1. Introduction
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1.1 Historical Background 1.2 Chanakya’s Life 1.3 How Chanakya is different
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2. Research Topic
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2.1 Evolution of HRM 2.2 Sutras on HRM in Chanakya’s Arthashastra 2.3 Uniqueness of Chanakya
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3. Objective
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4. Scope of the Research
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5. Limitations of the Research
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6. Hypothesis
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7. Terminology
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8. Chanakya’s identity
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9. Collection of material
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10 Analyses
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10.1 Today’s HRM 10.2 HR in Chanakya’s Arthashastra
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“Arthashastra is nothing but the Science of Government.” 1. Introduction 1.1 Historical Background
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Management of people and of resources whether for manufacturing products, or for providi providing ng servic services es or for admini administe sterin ring g a state, state, is a rather rather compli complicat cated ed task. task. Not surprisingly, therefore, we find that a plethora of sets of generalizations have been developed on “How to Manage Well to Achieve excellent Results on a Sustainable Basi Basis” s”.. Only Only a few few of thes these e have have been been tota totall syst system ems s cove coveri ring ng all all the the aspe aspect cts s of managing business. Many have been applied to real life situations and used, but not necessarily well documented. The real test of a treatise on management is not just its completeness or just the beauty of its logic, but also the demonstration of its practical application in real life situations, with enduring success. The well educated Indian, like their counterpart in the Western and now also in the East Easter ern n worl world, d, is unde underr the the impl implic icit it impr impres essi sion on that that such such syst system emat atic ic thin thinki king ng on th mana manage geme ment nt star starte ted d only only in the the 20 centur century. y. Howeve However, r, given given the comple complexit xity y of managing a kingdom or a country, it would not be surprising if treatises on management were written in the ancient past also. In fact, a search for such management literature in India and in the world yields fruitful results. Some of the well known works that deserve attention are the following: Author Maharshi Vyas Confucius Aristotle Chanakya Visnusarma Manu ? Machiavelli
Country India China Greece India India India India Italy
Treatise Mahabharata Analects Politics Arthashastra Panchatantra Manusmruti Hitopadesa The Prince
Approx. Period 5000 BC 430 BC 350 BC 330 BC 200 BC 200 BC 200 AD 1532 AD
1.2 Chanakya’s Life 1
Chanakya (350 - 275 BC), also known as Kautilya or Vishnugupta, was a professor (acharya) of political science at the Takshasila University and the Prime Minister of the Emperor Chandragupta Maurya. He is regarded as one of the earliest known political thinkers, economists and king-makers. He was the man to envision the first Indian empire by unification of the then numerous kingdoms in the Indian sub-continent and provide the impetus for fights against the Greek conqueror Alexander. Chanakya is perh perhap aps s less less well well know known n outs outsid ide e Indi India a comp compar ared ed to othe otherr soci social al and and poli politi tica call philosophers of the world like Confucius and Machiavelli, but is definitely considered to be the first genuine political theorist in Indian history. His foresight and wide knowledge coupled with politics of expediency helped found the mighty Mauryan Empire in India. He compiled his political ideas into 'Arthashastra', one of the world's earliest treatises on
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http://www.book-of-thoth.com/th http://www.book-of-thoth.com/thebook/index.php/Chanakya ebook/index.php/Chanakya
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political thought and social order. His ideas remain popular to this day in India. In Jawaharlal Nehru's Discovery of India, Chanakya has been called the Indian Machiavelli. Nehru [1998, p. 123] describes Chanakya as follows: "He sat with the reins of empire in his hands and looked upon the emperor more as a loved pupil than as master. Simple and austere in his life, uninterested in the pomp and pageantry of high position." 2
The centuries to come and the centuries that went by, are recorded in history talking of the great men and legendary characters who shaped time through their vision and exemplary exemplary actions. actions. Chanakya, Chanakya, perhaps perhaps is the only personality personality who has been accepted accepted and and reve revered red as a geni genius us both both by Indi Indian an and and West Wester ern n scho schola lars rs.. He is a hist histori orica call mile milest ston one e in the the maki making ng of Indi India a amid amidst st trem tremen endo dous us uphe upheav aval als s and and myri myriad ad’s ’s of reversals. Celebrated as a shrewd statesman and a ruthless administrator, he comes across as the greatest of diplomats of the world. He had the guts to speak his heart out even in front of the rulers, which shows his strong inclination to democratic values and the audacity to put his views through. Although, he lived around the third century BC, his ideas and principles show concurrence and validity in the present day world. Politics was his forte. Diplomacy in a politically charged environment shows his self-confidence and the ability to stay calm in trying situations. His foresi foresight ght and wide wide knowl knowledg edge e couple coupled d with with politi politics cs of expedi expedienc ency y founde founded d the mighty Mauryan Empire in India. He was a great laureate of economics with a glittering intell intellect ect to percei perceive ve the intric intricate ate dynami dynamics cs of the variou various s econom economic ic activi activitie ties s and principles. The centuries that succeeded him show distinct effects of his thoughts on the way a kingdom is managed and other facets of economic administration. Even today, one of his maxims on taxation is very much alive and calls for adherence by the governments of the world. According to Chanakya, "Taxation should not be a painful process for the people. There should be leniency and caution while deciding the tax structure. Ideally, governments should collect taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive. survive. Taxes should be collected collected in small and not in large proportions". As a pers person on,, Chan Chanak akya ya has has been been desc descri ribe bed d vari variou ousl sly, y, as a sain saint, t, as a ‘rut ‘ruthl hles ess s administrator’, as the ‘king maker’, a devoted nationalist, a selfless ascetic and a person devoid of all morals. He created controversy by saying ‘The ends justify the means’ and the ruler should use any means to attain his goals and his actions required no moral sanctions. sanctions. All his written written works namely, ‘Arthashast ‘Arthashastra’, ra’, ‘Nitishas ‘Nitishastra’ tra’ and ‘Chanakyan ‘Chanakyaniti’ iti’ were unique because of their rational approach and an unabashed advocacy of real politic. His views were dimensionally novel. He recommended even espionage and the liberal use of provocative agents as machineries of the state. In politics, he even attested the the use use of fals false e accu accusa sati tion ons s and and kill killin ings gs by a king king’s ’s secr secret et agen agentt with withou outt any any ambiguities. The observance of morals and ethics was secondary to the interests of the ruler. Some of his stark views made him into an ambivalent personality for the world. This This great great states statesman man and philos philosoph opher er have have been been often often compar compared ed to Machia Machiavel velli, li, Aristotle and Plato, exemplifying his potentiality and influential status. He has been criticized for his ruthlessness and trickery and praised for his profound political wisdom. Chanakya, the timeless man, was in pursuit of truth fearlessly 2000 years ago and was proved right with Vivekanand’s words, "Arise, Awake, Sleep not till the goal is reached". 2
http://www.chanakya.com/chanakya.htm
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1.3 How Chanakya is different 3
The Panchatantra consists essentially of 69 case studies compiled by the Guru to reach “management of people” to three grown up sons of a kind in a six month residential train trainin ing g prog program ramme me.. Hito Hitopa pade desa sa is a simi simila larr trea treati tise se that that borr borrow ows s heav heavilily y from from panchatantra, and has an identical narrative style. But unlike Arthashastra, these two deal deals s only only with with one one aspe aspect ct of mana manage geme ment nt – mana managi ging ng peop people le.. Chan Chanak akya ya’s ’s Arthas Arthashas hastra tra deals deals with with all the differ different ent aspect aspects s of managi managing ng a kingdo kingdom, m, includ including ing management of men. Arthashastra is the earliest known and available treatise of this kind in the history of the world. In Arthashastra, Chanakya deals with all aspects of administering a state – from training and establishing a government hierarchy, selecting people and levying taxes, to laying down laws, to deciding punishment for breaking the law, etc. Incidentally, Chanakya refers to views of several earlier (over 600 years) Indian authorities on management. He then states his own view, giving reason for differing from the earlier views. One presumes that he wrote the Sutras with a view to make it easy for his students of management, in a manner that will prove useful in actual practice The Chanakya Sutras have the unique distinction of being the principles which have been demonstrated to have been used successfully in practice to achieve good results on a sustainable basis. We do need to look for those principles that are likely to make sense in our own social and work culture. These would hopefully deliver better results for all concerned – the customers, the investors, the employees, the vendors and the society. Several of the current attempts at developing an Indian ethos in management turn to our philosophical or religious text. Such efforts, though commendable, suffer from three disadvantage disadvantages. s. Firstly, Firstly, the philosophi philosophical cal religious religious texts were written primarily in the context of doing one’s ordained duties as individual. Secondly, these do not address the many many differ different ent aspect aspects s of managi managing ng an enterpr enterprise ise.. Thirdl Thirdly, y, when when we choose choose the scriptures scriptures of any one religion in India, the managers belonging belonging to other religions religions find it really difficult to accept the concepts which are not to be found in the same form in their own religion. So from amongst these, the one complete system of looking at all aspects of management is Chanakya’s Arthashastra.
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Page 3 of “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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2. Research Topic 2.1 4Evolution of HRM
Workforce management has become increasingly complex. The heritage and growth of the human resource management profession is closely linked to people's attitudes about work, the evolution of employment-related laws and sociological trends. The HR field today recognizes the dynamic relationship between strategy, people, technology and the processes that drive organizations. Although this dynamic relationship appears obvious now, the evolution of the profession has often been slow. One could argue that the HR field dates back to the first working arrangement between master craftspeople and their apprentices. Before the industrial Revolution, working arrangements involved close relationships between mentors and apprentices dedicated to learning a particular trade. Apprentices were often required to live in the shop or home of the master craftsperson. If an apprentice was injured or sick, the master's family was responsible for restoring the young worker's health and welfare. Master and apprentice shared in good times and bad, in profit and in loss. The usefulness of this age-old relationship came to an abrupt end with the advent of the Industrial Age. In one powerful stroke, the notion of work moved from guilds and home shops to steam-driven factories. The introduction of the assembly line brought a need for low-skilled employees capable of performing repetitive tasks. Management philosophy at the turn of the century was epitomized by Henry Ford, who often wondered why workers brought their heads to work when all he really needed was their hands and feet. Assembly line production required that large numbers of people come together for work, but these workers were interchangeable and, to some extent, expendable, because few skills were required for most factory jobs. Employers' attentions focused on consumer demands, the speed at which new machines produced goods and the processes that drove production -- concerns that were sometimes placed well ahead of the needs of employees. The personnel administration movement
By the late 1800s, people people problems problems were a very real concern in the workplace. workplace. For the average blue-collar worker, most jobs were low-paying, monotonous and unsafe. Some industries experienced difficulty recruiting and retaining employees because of the poor working conditions workers were exposed to. As the means of production continued to shift from farmlands and guilds to city factories, concerns grew about wages, safety, child labor and 12-hour workdays. Workers began to band together in unions to protect their interests and improve living standards. Government stepped in to provide basic rights and protections for workers. Forwar Forward-th d-think inking ing employ employers ers recogn recognize ized d that that produc productiv tivity ity was connec connected ted to worker worker satisfaction and involvement and realized they could not meet production schedules with bands of disgruntled employees. In the late 1800s and early 1900s, the personnel profession that grew out of concerns about employee absenteeism and high turnover
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Michael Losey "HR "HR comes of age - history of human resource management". management". HR Magazine. FindArticles.com. FindArticles.com. 07 Jan, 2010.
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attempted to solve worker problems with such basic personnel management functions as employee selection, training and compensation. It's believed that the first personnel management department began at the National Cash Register Co. (NCR). NCR faced a major strike at the turn of the century but eventually defeated the union after a lockout in 1901. After this difficult union battle, company Preside President nt John John H. Patter Patterson son decide decided d to improv improve e worker worker relati relations ons by organi organizin zing g a personnel department to handle grievances, discharges, safety and other employee issues. The department also kept track of pending legislation and court decisions and these these first first personn personnel el manage managers rs provid provided ed traini training ng for superv superviso isors rs on new laws laws and practices. NCR was not alone in its efforts to address employee grievances. Other employers were looking for management solutions that would alleviate employee disenchantment. Many attempted to ease labor unrest by increasing wages. For example, Ford experienced employee turnover ratios of 380 percent in 1913; in 1914, the company doubled the daily salaries for line workers from $2.50 to $5, even though $2.50 was a fair wage at that time. Although industrial giants were beginning to understand that they had to do more than just hire and fire if they were going to meet consumer demands for products, most of the objectives of early personnel professionals were one-sided. Business leaders still viewed the work itself as infinitely more important than the people doing it, and production rates remained the top concern. Because employers believed employees would accept more rigid rigid stand standard ards s if they they receiv received ed extra extra pay and benefi benefits, ts, most most employ employer-s er-spon ponsor sored ed business solutions were aimed at making employees more efficient. From this mind-set grew scientific management approaches based on the work of Frederick W. Taylor and other experts whose goal was to get people to perform as efficiently as machines. Of course, such approaches did little to improve worker morale or improve working environments. To counter the growing strength of the labor movement, some employers hired strikebreakers or kept blacklists of union members. Others made workers sign "yello "yellow-do w-dog" g" contra contracts cts -- agreem agreement ents s that that they they would would not join join unions unions.. Still Still others others attempted to protect their interests by creating company unions to pre-empt the influence of outside union activities. Government stepped up to help those who were less fortunate through reforms of work hours, new laws governing the work of children and workers' compensation laws aimed at protecting employees injured on the job. In Congress created the U.S. Department of Labor "to foster, promote and develop the welfare of working people, to improve their working conditions and to enhance their opportunities for profitable employment." The Labor Department grew rapidly during World War I as the war effort became a national priority. By the war's end, the Labor Department -- through the War Labor Administration (WLA) -- had set numerous policies to ensure that wage, hour or working condition problems did not hinder the war effort and industrial growth. WLA initiatives were model programs but frequently fell short of business needs. They could not meet the challenges that would soon stop the industrial explosion in its tracks. In 1929, the onset of the Great Depression drastically changed the rules of business. With profits dwindling, employers first eliminated voluntary welfare program, then jobs.
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The government led by President Franklin Roosevelt, provided some assistance by creating jobs ranging from road building to painting murals on government buildings through the Civil Works Administration and later the more extensive Works Progress Administrati Administration. on. New social social programs, programs, including including old-age pensions, pensions, labor standards and minimum wages for some industries, were developed. With dreams of the good life fading for most workers, unions established strong roots in many industries and gathered political clout with Congress. The Norris-LaGuardia Act changed the rules of the game in labor-management relations by making "yellow-dog" contracts unenforceable and severely restricting the use of federal court injunctions in labor disputes. disputes. Union organizatio organizations ns grew in power after passage of the National Labor Relations Act (NLRA) in 1935, also known as the Wagner Act. The NLRA signaled a change in the federal government's role in labor-management relations, giving employees the right to organize unions and bargain collectively, while prohibi prohibitin ting g employ employers ers from from engagi engaging ng in certai certain n unfair unfair labor labor practi practices ces.. The act also also create created d the Nation National al Labor Labor Relati Relations ons Board Board (NLRB) (NLRB),, which which contin continues ues to establ establish ish procedures for conducting union organizing and election campaigns and has authority to investigate unfair labor practices. As employers began to understand the need for professionals who could play a middle role between employees and employers, the personnel manager's role emerged. It was during this first movement that employers began to truly understand that employees were more than machines machines with interchangeab interchangeable le faces. The personnel personnel managers of this period did not have all the answers, but the developing practices and concerns of the era set the stage for continuing study and investment in the role of effective human resource management. Human relations movement
The field of human relations -- or industrial and personnel relations -- that emerged in the 1920s provided a new focus for the profession. In an effort to increase productivity, personnel programs expanded to include medical aid and sick benefits, vaccinations, holidays, housing allowances and other new benefits. New personnel roles emerged as unions began challenging the fairness and validity of Taylor's scientific management theories. Although the study began as an effort to quantify the levels of lighting and other physical conditions that would maximize employee productivity, Mayo and his researchers soon found a much greater link between employee productivity and the level of attention mana manage gers rs paid paid to empl employ oyee ees s and and thei theirr beha behavi vior or.. The The stud studie ies s conc conclu lude ded d that that,, in motivating workers, human factors were often more important than physical conditions. For the first first time, time, produc productiv tivity ity resear research ch put forth forth the contro controver versia siall propos propositi ition on that that workers' feelings were important. Mayo's work propelled further developments in HR management. The concept of employee motivation increased in importance in the 1940s. When World War War II ende ended d the the nati nation on's 's econ econom omic ic drou drough ghtt and and brou brough ghtt full full prod produc ucti tion on and and full full employment to the industrial giants, labor was again in short supply. As men were called to serve their country, shortages emerged, and women and teens were called on to keep the engines of industry rolling. For the first time, people of color took jobs previously not
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open open to them. them. Expand Expanded ed job growth growth also also meant meant expand expanded ed roles roles for the personn personnel el manager -- recruiting, testing, training, mediating, and keeping an eye on employee morale and production efficiency. As the 1940s 1940s moved moved forwar forward, d, Mayo's Mayo's work work and real-w real-worl orld d busine business ss experi experienc ences es launched a greater understanding of the dynamics of work groups and the social needs of employees. Business leaders began to appreciate the production that resulted when managers acted less like taskmasters and more like good leaders, counselors and facili facilitat tators ors.. Non-mo Non-monet netary ary reward rewards s became became an import important ant supple supplemen mentt to moneta monetary ry reward rewards s for motiva motivatin ting g employ employees ees.. New theori theories es on the benefi benefits ts of improv improving ing the relationships between management and employees abounded. But many Americans awoke to harsh realities after World War II. Returning war veterans were ill equipped to meet the technological demands of the new workplace. The federal government responded with measures such as the GI Bill of Rights, which granted university-level educational assistance to returning veterans and was instrumental in developing new leaders and a powerful new workforce for the United States. After the war, the country was also rocked by severe inflation and labor unrest. After enduring wage freezes imposed during the war, unions sought to make up for the lost time. Union membership had grown from about 6 percent when the NLRA was passed to about 23 percent in 1947. Strikes became more frequent and union tactics in some cases more militant. strong anti-union sentiment emerged and against this backdrop Congress overrode President Truman's veto of the 1947 Labor-Management Relations Act, better known as the Taft-Hartley Act. The new law banned the use of "closed shops," which required workers to join the union to be hired, and placed government in the role of mediating union and management disagreements. But as the turbulent 1940s came to an end, a new turbulence was brewing in the Far East. Once again, the country mobilized for war production with the outbreak of the Korean War. Human resource movement
After the Korean War, a new class of college-educated managers emerged with a greater sense of social responsibility than their predecessors. Throughout the second half half of the the 20th 20th cent centur ury, y, soci social al well well-be -bein ing g coup couple led d with with soci social al uphe upheav aval al -- best best exemplified by the struggle for desegregation -- changed the thinking of employees in the United States. As the 1960s and 1970s unfolded, a more personable group of managers emerged, and their interests in people and feelings influenced all facets of business, including the growt growth h of mark market et rese resear arch ch,, comm commun unic icat atio ions ns and and publ public ic relat relatio ions ns.. This This grou group p of managers emphasized the relationship between employers and employees, rather than scientific management. Programs to increase wages and fringe benefits continued to be developed. New studies linked greater productivity to management philosophies that encouraged worker ideas and initiatives.
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Rising role of HRM
The role of HRM has gain more important in the year 1980. There was a complete shift from from post post war collec collectiv tivism ism and toward towards s indivi individual dualism ism and change changes s in struct structure ure of economy. Some people thought that HRM was evolved to solve union problem as there is a demand to take care of employees of an organization as a whole it performs different function. Duri During ng 1990 1990,, the the succ succes ess s of large large Japa Japane nese se corp corpor orat atio ion n in expo export rt mark market et like like automobiles and electronic goods took surprise to many western companies but studies say that the success success of these these Japane Japanese se firms firms is due to effect effective ive manageme management nt of workfo workforce rce.. The studie studies s also also show show that that the workfo workforce rces s of Japane Japanese se firms firms are more more productive productive and efficient efficient than western western firm. The key to success success of Japanese Japanese companies like Toyota, Matsushita are the practice adopted for efficient management of workforce. As these companies started its operations in western countries, these practices of are also implemented by western companies. Following are the practices: • • • • • • • • •
Job Design – Job Description, Job Evaluation Competency Mapping Psychometric tests Performance Appraisal Assessment Centers Talent Management Leadership Development Culture Building
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http://www.articlesbase.com/trai http://www.articlesbase.com/training-articles/evoluti ning-articles/evolution-of-human-resource-managem on-of-human-resource-managementent1294285.html
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2.2 Sutras on HRM in Chanakya’s Arthashastra 6
Kautilya provides a systematic treatment of management of human resources as early as 4th century B.C. in his treatise titled "Arthashastra". As it has been described in the book, there prevailed logical procedures and principles in respect of labour organizations such as Shreni or guild system and co-operative sector. The wages were paid strictly in terms of quantity and quality of work turned out and punishment was imposed for unnecessarily delay of work or spoiling it. The Government used to take active interest in the operation of both public and private sector enterprises and provided well-enunciated procedures to regulate employer-employee relationship. Kautilya provides an excellent disc discus ussi sion on on staf staffi fing ng and and pers person onne nell mana manage geme ment nt embr embrac acin ing g job job desc descri ript ptio ions ns,, qualifications for jobs, selection procedure, executive development, incentive systems (Sarasa (Sarasasaa saamama- daanadaana- bhedabheda- dandadanda- catura catura or Carrot Carrot and Stick Stick approac approach) h) and perform performanc ance e evalua evaluatio tion. n. We find find several several indica indicatio tions ns of preval prevalenc ence e of guild guild system system involving performance of work at the residence of the entrepreneurs themselves. In course course of time, time, the guild guild system system was followed followed by cooper cooperati ative ve sector sector consis consistin ting g of craftsmen and traders, and purporting to promote their professional interests. Indeed, numerous numerous professiona professionall societies societies were formed formed on these lines with their own systemati systematic c proce procedu dure res s and and poli polici cies es to nurt nurtur ure e thei theirr own own inte interes rests ts.. Agai Again, n, ther there e are are seve severa rall indications regarding the operation of principles of the division of labour. The concept of "Varnashram" or caste system was originally based on these principles. The individuals who used to earn their livelihood by engaging themselves in activities such as teaching, sacrifice or state management were designated as Brahmins while those specialising in fighting were termed as Kshatriyas. Moreover, individuals engaged in the areas of trade, business and agriculture were called Vaishyas and those devoting themselves in manual work were known as Shudras. Later on, these professions emerged to be hereditary which which facili facilitat tated ed the transf transfer er of skills skills and traini training ng from from one genera generatio tion n to anothe another r Numerous professions based on such specialised transfer of skills became hereditary including goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers, snake snake charme charmers, rs, archit architect ects, s, sculpt sculptors ors,, armour armourers ers which which turned turned out to be separa separate te communities by themselves. 7
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Some of the Sutras on HRM in Arthashastra
Selec lectio tion te test and Prop roper pla plac cemen ments: ts: Srutavantam upadh-suddham mantrinam kurvita (Make him a minister who is learned and who has passed integrity tests)
Chanakya has prescribed very clear tests for selecting ministers and also placing them in proper department based on the results of test in Chapter VIII and Chapter XI of Book 1. 2) Results of demotivation Prakti-kopah sarva-kopebhy gariyan (People’s anger is the greatest of all angers)
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http://recruitmentlink.in/topics/ http://recruitmentlink.in/topics/elaboration-on-the-evolut elaboration-on-the-evolution-of-human-resources-m ion-of-human-resources-management anagement “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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The anger of employees and also of the society in general is the most to be feared, because it is the worst anger that one can invoke or that happens to get generated when actions are taken without a serious thought to their short and long term consequence. 3) Importance of team work na ekam cakram bhramayati (One wheel can’t make a cart roll) sampadya atmanam anvichhet sahayavan (After equipping oneself, seek helpers) 4) Way of communication with employees agni-dahat api visistam vak-parusyam (Too harsh words are even more significant than the burns from fire)
Scolding employee with very harsh word can be more harmful to the ego of the receiver than monetary or corporal punishment. 5) Employee Standing Orders / Rules dande praniyate vrttih (Employment is sustained through enforcement of rule)
6) Appraisal pratyaksa-paroksa-anumanaih karyani parikseta (Work should be examined through self observations, others’ observations and logical inferences)
Chanakya is insisting on appraisal by manager, by other related staff and inferences from experience.
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2.3 Uniqueness of Chanakya •
Based on own experience
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sukhasya moolan dharmah (Basis of happiness is ethics)
Chanakya, whose father had suffered injustice from the Nanda kings, knew the value of ethical behaviour by the rulers for the happiness of their subjects, from his first hand experience. •
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Practical and Pragmatic
dharmasya mulam arthah (Basis of ethics is resources)
Neither following the ethical path nor performing one’s duties to others is a behavioural pattern which is possible until the individual concerned has the money or the means – resources – to fulfill the minimum needs of food, clothing and shelter. 10
prakti-kopah sarva-kopebhy gariyan (People’s anger is the greatest of all angers)
The anger of employees and also of the society in general is the most to be feared, because it is the worst anger that one can invoke or that happens to get generated when actions are taken without a serious thought to their short and long term consequence. 11
a-vinits-svami-labhat a-svami-labhah sreyan (Not having a chief is preferable to having a chief without humility/morality)
People or the employees would prefer not having a chief to having an arrogant one without scruples. 12
gaja-pada-yudhamiv gaja-pada-yudhamiva a balavad-vigrahah (A clash with stronger is like the fight between elephant-mounted and on-foot warriors)
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rajnyah prati-kalam na acaret (Do not act or behave in opposition to the chief)
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na deva-caritam caret (Do not behave like the gods have behaved) •
Practical but still ethical
Chanakya has put a lot of emphasis on ethical behaviour be as a normal human being or king or prince or minister 15
dharmena dharyate lokah (The world is supported / looked after through ethics)
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“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 10 “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 11 “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 12 “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 13 “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 14 “Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 15 Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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dharmena jayati loan (He wins over the people through ethics)
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atma-vin atma-vinasam asam sucayati sucayati a-dharma a-dharma-bud -buddhi dhih h (wanting (wanting to be unethic unethical al indicate indicates s selfselfdestruction) •
Academic and Practitioner
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Kautilya is credited with destroying the Nanda (tyrant) rule and installing Chandragupta Maurya (321-297 (321-297 B.C.E.) on the throne. He wanted that the kingdom should be secure secure and that the administration should go on smoothly, bringing happiness to the people. He thought that there were two ways of ensuring the happiness of the people. Firstly, Amatya Rakshasa had to be made Chandragupta’s minister; Secondly, a book must be written, written, laying down how a king should conduct himself, himself, how he should protect protect himself himself and the kingdom from the enemies, how to ensure law and order, and so on.
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Canakya on Management” authored by Ashok Garde published by Jaico Publishing House Canakya on Management” authored by Ashok Garde published by Jaico Publishing House 18 http://www.accessmylibrary.com/ http://www.accessmylibrary.com/article-1G1-126387162/kaut article-1G1-126387162/kautilya-scope-and-methodology.ht ilya-scope-and-methodology.html ml 17
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3. Objective 19
Indian (Asian) management in particular, are still focusing in applying western models of manage managemen mentt practi practices ces due to the wealth wealth of wester western n manage managemen mentt literat literature ure and concepts available. Besides, many of the new generation of Indian Managers have received their education in management from western countries (Muniapan, 2005a). There is also some fear among the Asian academics that the management philosophy, concepts and ideas from Asia will not be able to get acceptance from the West. According to Arindam Chaudhari, one of the preachers of Theory ‘I’ Management or Indian Management, although India has some of the best management schools in the world, most Indian organizations have not been able to do well internationally. Among the reasons reasons cited cited is the failure failure of Indian Indian manage managemen mentt to develo develop p the indige indigenous nous manage managemen mentt style, style, which which revolv revolves es around around Indian Indian cultur cultural al roots roots and upbrin upbringin ging. g. He further asserted that an Indian grows up in a system, where family ties and sense of belongingnes belongingness s gets top priority and with this background, background, he or she may not be able to adjust or fit into the job environment practicing American philosophies of individualistic, direct, low power distance and contractual style of management (Chaudhari, 2003) This research will be an in-depth analysis of Chanakya’s Arthashastra and will explore the HR element from the literature. In general, the study of Chanakya’s Arthashastra in the context of modern management practices especially HRD is indeed limited. So this research is aimed to explore HR Element from Chanakya’s Arthashastra and to create awareness to readers of management on the existence of many ancient literatures from India like the Arthashastra which provide many valuable lessons in efficient and effective corporate management specifically HRM. Further, the differences and similarities in Modern HRM and Chanakya’s Arthashastra will be also analyzed. 4. Scope of the Research
Research will be comparison and review of literature in Management of Ancient times (before and after Chanakya) such as Vidur Niti in Mahabharat, Bhishmacharya’s advice to Dharmaraj, Dharmaraj, Manusmruti, Manusmruti, Panchatantr Panchatantra, a, Hidopadesh, Hidopadesh, Prince, Politics, Politics, The Art of War etc. with Arthashastra. Literature available on Arthashastra in book form or paper and research presentations will be also reviewed. Management practices specifically HRM in today’s scenario will be reviewed. The relevance of HRM in Arthashastra in today’s HRM will be analyzed.
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Muniapan (2008) explored Kautilya’s Arthashastra and Perspective on Organizational Management
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5. Limitation of the Research
There are disputes about the period in which Chanakya was born and brought up and developed. Many myths prevail on Chanakya’s life. There is no clear data available to check validity of these myths and stories. So this will not be the part of research Since very limited research is done on Management aspect of Chanakya, data will have to be collected and analyzed. This research is limited to HRM aspect of Arthashastra. 6. Hypothesis
How relevant is Arthashastra in today’s competitive business world, where the whole gamut is from managing business to make productive use of the available human resources? In the growing scenario of Indian industry, looking forward to people enhancement, Arthashastra not only has the strategies of talent management but also the application of organizational motivators, from recruitment to development. In the perspective of CEO, it is a Constitution guiding him different aspects of strategic manage managemen mentt and leaders leadership hip develo developme pment; nt; for an HR Head, Head, it will will be HR Manual Manual coveri covering ng select selection ion tests tests,, JDs, JDs, Apprai Appraisal sal,, Standi Standing ng orders orders,, cultur culture e develo developme pment, nt, Assessment centers; For CFO, it is a Standards of Accounting Practices and internal audit manual; for individual, it will teach ethics and values. It’s not just a quick fix solution but provides total value based management guidelines. These These value value based based guidel guidelines ines provide provide a total total framew framework ork of the philos philosoph ophy y of the organiz organizati ation. on. Based Based on this this philos philosoph ophy y of the organi organizat zation ion and the leaders leadership hip a corporate culture is developed which defines the values that are supposed to guide the behavior of the members of the organization and check instances of unethical behavior. Arthashastra is an exhaustive bible, the relevance of which cannot be denied in today’s modern management principles. Arthashastra is the evidence of the intellectual capital India possessed in its glorious past. We have the tradition of the past. We need the attitude for resurrecting and recreating the intellectual capital for the future.
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7. Terminology
AAxapTla AxaSaalaa Aga`
The records and audit office A workshop for the manufacture of gold and silver articles Total number or amount
Aitcaar
Transgression [of martial duties], misconduct in general
AityaacHaa
Making an exorbitant demand
Aitvaad
[1] Excessive praise, [2] Proof, reprimand
A%yaya
[1] Penalty, [2]Tribute
AdoiSak
Without a guide
AiVkrNa
[1] A department, an office [2] Place where the court is
situated
AiVYza%aR
A supervisor
AiVYzana
[1] The basis, [2] A prominent position,
AQyaxa
A departmental head, Director, Superintendent
Anaayau
One not appointed, an unauthorized person Unauthorized, without authority or permission A person in whose charge someone or something is kept,[2]An object given to one for being handed over to another
Apcar
To misbehave
ApcarNa
Fraud
Apdana
Evil conduct, an offence, a crime
Apnaya
Wrong policy
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Avadana
Good conduct, pure conduct
Aanauga`aihk Aayau>
Beneficial An officer
Aayaaoga
Appointment, employment,
AavaoSana
A factory, a workshop
AavaoSainanaU
A workman
AaSaakairk
A workman [not working 0n a daily wage basis, but] expecting [a lump sum] remuneration
]
A supervisor
]pQaa
A secret test of loyalty and integrity
kmaa-n%a
A workshop ,a factory
kariNak
A account officer
kamaa-in%ak
Manufactured by a smith
kaima-k
A works manager
kava-iTk
The headquarters of 200 villages
kuuPyaaopjaIivanaU kulasaMGa
The superintendent of forest produce A ruling council consisting of al members of the royal
family
kR%yakr i Ëyaa I Ëyaaivapnna gaaNaina@ya gaulma
An administrator [of property] Training Incapable of being trained Accounts A police station
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ga`amaBaRtk
A village servant
ga`amasvaaimanaU
The owner of a village
jaanapd %an~
Belonging to the country, native A member of the[royal]family, a claimant or pretender to the throne, The administration[of the state]
%aaDna
Punishment
i%araojanapd
A foreigner
%aIqa-kr
The head of the religious order
Naagairk
The city Superintendent
naIitivad
An expert in the political science
inaYËya
Compensation
Pa
The commissioner of ports Best The city-judge or magistrate A principle officer Employment
Pa`itdoSa
Direction, instructions
Pa`itpi
Understanding, intelligence
Pa`itpat
Compensation for loss
Pa`idYT
Assigned
Pa`%yaadoSa Pa`Vana
Communicating A prominent person, a leader, A chief
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Pa`Baava Pa`Saas%aR
Power, Might The director of labour corps in the army
Pa`oYaNa
Sending a communication
baIjabanV mau#ya
The manufacture of essence A principal officer
ivaiYTbanVk
A contractor or foreman of labour
Saasak
The captain
saMsqaa
An establishment,
saM#yaayak
An account
saMinaVa%aR
The director of stores
samayaanaubaw
Bound by an agreement
samaah%a-R
The revenue commissioner
ihrNya
Money, cash
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8. Chanakya’s identity 20
Chanakya is credited with advising Chandragupta during the conquest of the Nanda and the defeat of the Greeks, and on the formation of a strong efficient government, which allowed the Mauryan Empire to rule almost the entire subcontinent (except the area south south of presen present-da t-day y Karnat Karnataka aka), ), as well well as substa substanti ntial al parts parts of presen present-d t-day ay Afghanistan. He is best known, however, for his work, Arthashastra, an encyclopedic work on political economy and government, which he refers to as “the science of punishment. Each of its fifteen sections deals with some aspect of government, such as fiscal policies, coinage, commerce, welfare, forests, weights and measures, agriculture, law, international relations, and military strategy. The central purpose of Chanakya's doctrine was to achieve the prosperity of king and country, and to secure victory over rival neighboring states. Chanakya identified seven factors which affected a government’s ability to accomplish these ends: the qualities of the king, then of his ministers, his provinces, his city, his treas treasur ure, e, his his army army,, and and his his alli allies es.. In desc descri ribi bing ng an idea ideall gove govern rnme ment nt,, Chan Chanak akya ya articul articulate ated d contem contempor porary ary assump assumptio tions ns of politi political cal and econom economic ic theory theory,, provid providing ing historical information about the political circumstances of the time. Chanakya is admired for his understanding of human nature and his political wisdom, and someti sometimes mes condem condemned ned for condon condoning ing ruthle ruthlessn ssness ess and treach treachery ery.. He openly openly advised the development of an elaborate spy system reaching into all levels of society, providing detailed instruction for spies and agents, and encouraged political and secret assassination. Chanakya was a teacher at Takshasila monastery and was responsible for the creation of Mauryan of Mauryan empire, empire, the first of its kind on the Indian subcontinent. 21
He mixes the harsh pragmatism for which he is famed with compassion for the poor, for slaves, and for women. He reveals the imagination of a romancer in imagining all manner of scenarios which can hardly have been commonplace in real life.
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“Arthashastra is a comprehensive work which deals not only with the political theories and the actual organization of administrative machinery but also matters connected with state state and and societ society, y, which which could could not not form form the subje subject ct matte matterr of law, law, sociol sociolog ogy y and and economics. At first these subjects were treated in a section in the Dharma sutras and later in Acharangesutras. Acharangesutras. The Arthashastra is the earliest extent work of this class, but it contains references to a large number of treatises that were regarded as authoritative in.
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http://www.newworldencyclopedia. http://www.newworldencyclopedia.org/entry/Chanakya org/entry/Chanakya http://en.wikisource.org/wiki/Arthashastra 22 http://www.indianetzone.com/25/kaut http://www.indianetzone.com/25/kautilya_s_arthasastra.htm ilya_s_arthasastra.htm 21
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9. Collection of material
Chan Chanak akya ya has has hims himsel elff stud studie ied d in-de in-dept pth h the the earl earlie ierr work works s by Maha Mahars rshi hi Vyas Vyas’s ’s Mahabh Mahabhara arata, ta, Vedas, Vedas, and Upnish Upnishada adas. s. In Arthas Arthashas hastra tra,, every every where where he has given given reference of work done by Bharadwaja, Visalaksha, Parasar, Pisuna and so on. Based on the earlier work done by others, he had not only stated his own views but also developed certain principles in such a manner that he has become an identity by himself. In the last century, a valuable work has been done on Kautilya by various authors like R.P. Kangale and Shamasastri. The omniscience work done by these two giants has inspired many more scholars who have developed further research on various aspects of Arthashastra.
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10. Analysis 10.1 Today’s HRM 23
approach to the Human resource management management (HRM) is the strategic and coherent approach
management of an organization's most valued assets - the people working there who indivi individua dually lly and collec collectiv tively ely contri contribut bute e to the achiev achieveme ement nt of the object objective ives s of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations.[1] In simple sense, HRM means employing people people,, develo developing ping their their resour resources ces,, utiliz utilizing ing,, mainta maintaini ining ng and compe compensa nsatin ting g their their services in tune with the job and organizational requirement. But these these tradit tradition ional al expres expressio sions ns are becomi becoming ng less less common common for the theore theoretic tical al discipline. discipline. Sometimes even employee employee and industrial relations are confusingly listed as synonyms, synonyms,[4] although these normally refer to the relationship between management and workers and the behavior of workers in companies. The theore theoretic tical al discip disciplin line e is based based primar primarily ily on the assump assumptio tion n that that employ employees ees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process. Human Resource Resource Management (HRM) is seen by practitioners practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resources need needed ed for for them them to succ succes essf sful ully ly acco accomp mplilish sh thei theirr assi assign gnme ment nts. s. As such such,, HRM HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations.[5] Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being: “a seri series es of acti activi viti ties es whic which: h: firs firstt enab enable le work workin ing g peop people le and and thei theirr empl employ oyin ing g organisations organisations to agree about the objectives and nature of their working relationship relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).
While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation implementation of strategies directed towards creating and sustaining competitive advantage" (p. 352).
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http://en.wikipedia.org/wiki/H http://en.wikipedia.org/wiki/Human_resource_management uman_resource_management
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The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989). The basic premise premise of the academic academic theory of HRM is that humans are not machines; machines; therefore therefore we need to have an interdisci interdisciplinar plinary y examination examination of people in the workplace. workplace. Fields such as psychology, psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizatio organizational nal psychology psychology,, industrial industrial relations, relations, sociology, sociology, and critic critical al theori theories: es: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management. One widely used scheme to describe the role of HRM, developed by Dave Ulrich, Ulrich, defines 4 fields for the HRM function: Strategic business partner Change management Employee champion Administration • • • •
Howe Howeve ver, r, many many HR func functi tion ons s thes these e days days stru strugg ggle le to get get beyo beyond nd the the role roles s of administration and employee champion, and are seen rather as reactive as strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value. Note that some people distinguish a difference between HRM (a major management activity) activity) and HRD (Human Resource Development, Development, a profession). profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop develop personnel personnel inside inside organizatio organizations, ns, including, including, eg, career development, development, training, training, organization development, etc. Ther There e is a long long-s -sta tand ndin ing g argum argumen entt abou aboutt wher where e HR-r HR-rel elat ated ed func functi tion ons s shou should ld be organized into large organizations, eg, "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone tremendous change over the past past 20–30 20–30 years. years. Many Many years years ago, ago, large large organiz organizati ations ons looked looked to the "Perso "Personne nnell Department, Department,"" mostly mostly to manage the paperwork around hiring and paying paying people. people. More recently, organizations consider the "HR Department" as playing a major role in staffing, train trainin ing g and and help helpin ing g to mana manage ge peop people le so that that peop people le and and the the orga organi niza zati tion on are performing at maximum capability in a highly fulfilling manner.
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10.2 24HR in Chanakya’s Arthashastra Training (page 119, Chanakya The Arthashstra – Training of future King) Competencies (page 121, Chanakya The Arthashstra – Competencies of King) Time Management (page 123, Chanakya The Arthashstra – Daily Activities of King) Succession Planning (page 143, Chanakya The Arthashstra – Succession, Princes) Selection Selection Test Test (page (page 173, 173, Chan Chanak akya ya The The Arth Arthas ashs hstr tra a – Test Testin ing g the the inte integri grity ty of
Ministers) Probationary Appraisal (page 176, Chanakya The Arthashstra – Behaviour after Appointment) Job Evaluation (page 179 – 183, Chanakya The Arthashstra – Highest Level Official) Organization Structures and Design (page 182, Chanakya The Arthashstra - The highest level of Chanakya Administration); (pag (page e 190, 190, Chana hanak kya The The Arth Arthas ashs hstr tra a – Admin dminiistra strati tion on of Count ountry rys side) ide);; (page (page 333, 333, Chanak Chanakya ya The Arthas Arthashst hstra, ra, Organi Organizat zation ion of Produc Productiv tive e Enterp Enterpris rises) es);; (page (page 464, 464, Chan Chanak akya ya The The Arth Arthas ashs hstr tra a – Orga Organi niza zati tion on of the the Secr Secret et Serv Servic ices es); ); (page 646, Chanakya The Arthashstra – Military Organization) Incentives (page 204, Chanakya The Arthashstra – Incentives for Textile Industry) Wage Rate System (page 212, Chanakya The Arthashstra – Charges of Goldsmiths and Silversmiths); (page 214, Chanakya The Arthashstra – Charges of Metal workers); (page 215, Chanakya The Arthashstra – Charges of Weavers) Compensation Compensation and Benefits (page 257 – 262, Chanakya The Arthashstra, Salaries of Government Servants) Misconducts (page 149, Chanakya The Arthashstra - Abnormality of Kingship); (page (page 263, 263, Chan Chanak akya ya The The Arth Arthas ashs hstr tra a – Fina Financ ncia iall Misb Misbeh ehav avio iour ur of Gove Govern rnme ment nt Servants) Assessment Centers (page 473, Chanakya The Arthashstra – Internal Security) Various Levels of Designation (page 750-752, Chanakya The Arthashstra – Nomenclature of Holders of State Office) Labour System (page 411-417, Chanakya The Arthashstra – Labour, Bonded Labour and Slavery) Demotivation (page 641, Chanakya The Arthashstra – Calamities affecting the efficient functioning of Army) Job Descriptions Descriptions (pa (page 275- 279, Chanakya The Arth rthashstra – Heads of Departments); (page 280-283, Chanakya The Arthashstra – Treasure Officials); (page (page 284-29 284-292, 2, Chanak Chanakya ya The Arthas Arthashst hstra ra – Agricu Agricultu lture, re, forest forestry ry and Livest Livestock ock Offi Offici cial als) s):: (pag (page e 295295-30 304, 4, Chan Chanak akya ya The The Arth Arthas ashs hstr tra a – Indu Indust stry ry Offi Offici cial als) s);; (pag (page e 305305-31 316, 6, Chan Chanak akya ya The The Arth Arthas ashs hstr tra a – Trad Trade e and and Tran Transp spor ortt Offi Offici cial als) s);; (page 317-325, Chanakya Chanakya The Arthashstra Arthashstra – Officials Officials controlling controlling leisure leisure activities activities); ); (pag (page e 326326-33 330, 0, Chan Chanak akya ya The The Arth Arthas ashs hstr tra a – Move Moveme ment nt Cont Contro roll Offi Offici cial als) s);; (page 331, Chanakya The Arthashstra – Miscellaneous Official); (page 332, Chanakya The Arthashstra – Subordinate Officials); (page 335-336, Chanakya The Arthashstra – Village Headman); (page 539, Chanakya The Arthashstra, On Envoys); (page 647-656, Chanakya The Arthashstra – Duties of Defense Officials) 24
L.N. Rangaraja; CHANAKYA CHANAKYA The Arthashastra
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