Tuesday, 5 March 2013

Corporate Lessons from Mythology - 8



Kautilya’s Principles – Corporate lessons
Kautilya’s Arthasasthra give the basic tenets that could be applied to management of business organizations. Let us examine some of them…
Kautilya’s prescription
Management of organizations
Philosophy keeps the mind steady in adversity & prosperity.
Courage in a crisis and calmness during success
Without control, the king perishes even if the kingdom extends its territories.
‘Controlling’ is an essential management process
The king has to cultivate his intellect by associating with elders.
Board of Directors add collective wisdom
 The king has to pursue the welfare of the subjects.
Work for fairness to all stakeholders.
Use teachers and ministers to restrain the king from tress passing.
Delegation controls
The king has to spend one fourth of his time studies and discussions with priests and self deliberation.
Vision workshops to shape the vision before action.
The king has to act on principles than on hunches. For this, he should have the qualities of listening and desire to learn
Management decisions should be based on principles. Consultations with advisors/board are necessary.
The king has to acquire what he does not have, to preserve what he has and to bestow on the same on worthy persons.
Wealth generation and wealth distribution are the twin dimensions of corporate governance.
The king has to check the antecedents of the employee before engaging them
Competence and character testing in a recruitment process.
Keep the rod lifted up, ready to strike.
Soft law is not cared, Hard law is hated, Right law with effective enforcement.
 Ancient Sastras says it all. Arthasastras goes on to define the stipulations of proper behavior at meetings and the right qualities of a king. These serve as a foundation for corporate governance selection of a CEO. 

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