MANAGEMENT CONCEPTS AND INDIAN ETHOS

KMB101 : UNIT 1

“Certainly we should take care not to make intellect our God. Intellect has, of course, powerful muscles but no
personality. It cannot lead. It can only serve. It is not fastidious about its choice of leaders (Mind or Soul). The intellect
has a sharp eye for tools and methods but is blind to Ends and Values”.
– Albert Einstein
Ethics
• The word “ethics” is - Greek word ethos (character),
• Which means
– “way of living and from the Latin word ‘mores’ (customs).
ETHICS Definition
• Ethics is a set of standards,
– by which free human actions are determined as ultimately right or wrong, good or evil
– Mackenzie defines ethics as
 “the study of what is right or good in human conduct”. or
 “the science of the ideal involved in human life”.
• If an action agrees with these standards, it is ethical; if not , it unethical

• Business Ethics
It is the application of ethical principles to business relationship
and activities. It governs the way a business runs and carries its
operations . It determines the standard of behaviour that guides
managers in their work.

Guidelines for Ethical Behaviour

• Obey the law

• Tell the truth
• Respect for people
• The golden Rule ( The golden business principle is “ Treat others as you would want to be treated”.)
• Do not harm
• Practice participation: Not paternalism
• Act when you have responsibility

ETHOS

Ethos are the moral ideas and attitude that belong to a particular group or society.”
Ethos is a discipline that examines one’s morality or the moral standard of the society. Ethics means expected standards
in terms of your personal and social welfare. It includes honesty, morality, responsibility etc

1. “the set of beliefs, ideas, etc. about social behaviour and relationship of a person or group”
2. Ethos is the discipline that examines one’s morality or the moral standards of society.
3. Ethos is the body of knowledge which is derived from universalized Ethics.
4. the moral ideas and attitudes that belong to a particular group or society”.

Difference between Ethics & Ethos

Basic of Ethics Ethos

Difference

Origin Ethics are derived from shastra Ethos is derived from culture.

Nature Universal Culture- specific region or

country
Function It determine paap, punya, swarg, narak, It determines culture or
conduct or misconduct. cultured behavior.

Example Truth, non-violence, devotion, kindness etc. Welcome, pranam, respect to

elders, love to youngsters etc.
Indian Ethos- Definition
Indian Ethos is all about what can be termed as “national ethos”. Formally, the body of knowledge which derives its
solutions from the rich and huge Indian system of ethics (moral philosophy) is known as Indian Ethos in Management
(IEM).
• Indian ethos refers
• To the principles of self-management
• Governance of society,
• Entity or a system by wisdom as revealed
• Brought-forth by great scriptures like
– Veda, upanishads, gita, mahabharata, bible and quran.

Features of Indian Ethos

1. Divinity of Human Being
 Indian ethos focuses on the existence of human being as truth.
 There is nothing more perfect than the supreme soul.
2. Balance or Equilibrium
 Balance or equilibrium is a stable state of Indian thought,
 i.e., balance between desire and desirelessness spiritual and secular values, subjective and materialistic world.
3. Balance of Personal and Work Life
 Indian ethos focuses on the concept that if you are good then the world is also good for you.
 Every individual should have an effective management
 Balance of personal and work life in the organization.
4. Cosmic or Pure Consciousness
 The Divine Element,
 An Inner Part Of An Individual,
 A Part Of Cosmic Or Pure Consciousness.
 It Gives A Base For Mutual Trust, Cooperative, Teamwork And Common Good.
4. Importance to Character
 The Indian ethos gives much importance to character not to the knowledge.
 It is the character, which is the real power and wealth.
5. Whole-Man Approach
 Indian ethos is based on Indian scripture like-Shruties of Gita and Upanishad and Smruties of Puranas.
 Indian thought provides the whole-man approach
 Through Knowledge Of Creation, cosmos and internal relation between spiritual and materialistic life.
6. Work is Worship
 Indian ethos works with the fact that all work is worthy and honorable.
 ‘Work is worship’ is the guiding principle for all effort as advocated in the Indian ethos.
7. Duty and Responsibility
 Indian ethos rarely talks of rights and prevailages.
 It always emphasises only on the duties and responsibilities of human beings.
 Knowledge
8. Indian ethos deals with two types of knowledge:
 Knowledge of creation
 Knowledge of creator
9. Excellence at Work
According to Indian ethos, total quality management can be assured through excellence at work, through self-motivation and self-
development.

Needs Of The Indian Ethos

• Management attitude
• Humanizing organization
• Interiorizing (self) management
• Self introspection
• Brain stilling
• Stepping back
• Self dynamising meditation
• Role of intuition (feeling)
 The Mindset Of A Manager:
S. According Of Current Management Practices According to Indian ethos in management
NO.

1 Produce results Produce performers

2 Organize men, materials, machines and money Mobilize men and sound out other readiness

3 Plan, set goals, prepare schedules, Obtain agreement and

Checklists
4 Motivate,praise,reprimand, punish, push people
5 Check,control,report a command post
6 Coordinate, requisition, convene
Meetings
7 Instruct, issue notices, order, demand compliance
commitment on means and ends
Inspire, empower, celebrate success, mourn failure,
draw people
Set personal example, visible, accessible, on the move
facilitate, show ways to overcome
Make queries, sound out ideas, encourage suggestions

Role Of Indian Ethos In Managerial Practice

1. The Basic Principles:
a) Tat Tvam Asi: You are That (Supreme)
- Everybody can make himself a Genius.
b) Aham Brahmasmi: I have immense potential.
-I can make the impossible possible.
2. Why Work?
Atmano Mokshaya Jagat Hitaaya Ca: -
For my personal growth - For the Welfare of the World.
3. What is work?
a. Yagnayacharatah karma:
- Work is to be done with the spirit of Yagna (Teamwork, Selflessness).
b. Parasparam Bhavayantah:
- Nurture each other (Win-win approach).
4. How to work?
Seva + Tyag:
Serve others. Give your best for the good of others CSR).
5. Spirit of Work:
Yogah Karmasu Kaushalam:
Dexterity & Excellence in action is Yoga.
The Resources:
a) Sukshma or the subtle subjective,
Intangible factors are equally important than sthula or gross, concrete, objective, tangible factors.
b) Karma-Kshetra is Dharma-Kshetra-
Implies that one should treat the workplace as sacred and keep it clean and bring in orderliness and cleanliness.

Management lessons from Vedas

The Vedas
There are four Vedas viz.
• Rig-Veda,
• Yajur-Veda,
• Sama-Veda,
• Atharva-Veda.
The Vedas
1. The primary thought in the Vedas is a mystic conception of the universe.
2. The whole effort of the Veda is directed towards one goal
3. To achieve union of the individual Self (Atman) with the world Self (Brahma).
Management lessons from Vedas
• Modern management
- Is increasingly adopting vedic concepts to stay in market.
• The Vedas are a systematic and formulated study of the science of life.
• Vedantanta Literally means the end (anta) of knowledge (Ved).
 The integration of
• prosperity,
• wealth,
• mental,
• communicative and spiritual enlightenment
- is expected in Vedas and also in modern days.
Six Management Lessons From Vedas Are:
1. Vasudha-Eva-Kutumbakam (Accepting the whole world as one and one’s family),
2. Samarpan Bhaav (Dedication),
3. Lokasangraha (Welfare of all beings),
4. Shubh Laabh (Ethical Profits),
5. Nishkaama Karma (Deeds without greed)
6. Ati-Hyaastha-Varjayet (Shunning extremes).

Bhagavada Gita
• It is a poem which depicts lessons on spirituality and ethics through a dialogue between Lord Krishna and the warrior
Arjuna who is at a great crisis of his life.
• The Karma Yoga, Samkhya Yoga, Bhakti Yoga and the notion of three Gunas (Sattwa, Rajas, Tamas) have very
important implications in the context of ethical leadership, decision making and management which we will discuss
subsequently.
 Nishkaama Karma (Deeds without greed) one has to be selfless in doing all his work, - “karm kar fal ki apek sha
na kar”

 Karma Yoga
• Karma Yoga is a good pathway for
– self purification
– self-development.
• Individual as well as collective growth and welfare,
– minimum play of passion,
– jealousy,
– hatred,
– greed,
– anger and arrogance,
– team spirit,
– team work,
– autonomous management,
– minimum control and supervision, etc.
The result is all round happiness and prosperity.
Management Guidelines from The Bhagavad Gita
1. Forming a vision and planning the strategy to realize such vision.
2. Cultivating the art of leadership
3. Establishing the institutional excellence and building an innovative organization.
4. Developing human resources.
5. Team building and teamwork
6. Delegation, motivation, and communication
7. Reviewing performance and taking corrective steps whenever called for.
8. Nishkaama Karma
9. Karma yoga
Kautilya ‘s Arthashastra
1. The Arthashastra is an ancient Indian treatise on statecraft, economic policy and military strategy, written in Sanskrit.
2. Kautilya, also identified as Vishnugupta and Chanakya, is traditionally credited as the author of the text.
3. The latter was a scholar at Takshashila , the teacher and guardian of Emperor Chandragupta Maurya.
4. Composed, expanded and redacted between the 2nd century BCE and 3rd century CE, the Arthashastra was influential
until the 12th century, when it disappeared. It was rediscovered in 1905 by R. Shamasastry, who published it in
1909. The first English translation was published in 1915.
5. The root of happiness is Dharma (ethics, righteousness) , the root of Dharma is Artha (economy, polity) , the root
of Artha is right governance, the root of right governance is victorious inner-restraint, the root of victorious inner-
restraint is humility, the root of humility is serving the aged.
— Kautilya, Chanakya Sutra 1-6
 Management Guidelines from Arthashastra

Management Arthashstra Scripts.

Concept

Vision and Mission Efficient management means setting up of realistic targets and meeting targets without
using over zealous methods

Policies and Swamy should ensure enactment of prudent policies. Prudence should be based on
Procedure & Dharma and Nyay that will ensure equal opportunity for all to earn a decent living.
Business Ethics

Profibility Wealth lies in economic activities.

Leadership Swamy must bear in his mind that a king with depleted treasury is a weak king and the
easiest target for a take over
An ideal Swamy is the one who has the highest qualities of leadership, intellect, energy
and personal attributes.

Growth with long Profitability should not only mean surplus over costs. It should also mean provision of
term orientation investment for future growth.

Centralization , Span Swamy can reign only with the help of others. He should appoint not more than four
of control , advisors and sufficient number of Mantris to look after the governance of the State
Decentralization machinery. While limiting the span of control for the Swamy, Kautilya warns against
centralization of power in the hands of the Swamy by stating “one wheel alone does not
move a chariot”

Knowledge:
Small difference in ability can lead to enormous differences in results.

Planning:
By failing to plan, you are planning to fail. Every effective performance is based on
thorough preparation.

Success and
Innovation Most important basis of success in any venture is pragmatism. Do not ask where the
new idea came from or who thought of it first. Ask only one question: does it work?

MANAGEMENT LESSONS FROM KAUTALIYA’S ARTHASHASTRA

The 7 Pillars for Business Success:
• SWAMI – The King (The Leader)
• AMATYA - The Minister (The Manager)
• JANAPADA - The Country (Your Market)
• DURGA - The Fortified City (Infrastructure)
• KOSHA - The Treasury (Finance)
• DANDA – The Army (Your Team)
• MITRA - The Ally (Mentor)
MANAGEMENT LESSONS FROM KAUTALIYA’S ARTHASHASTRA
 Removing the disparity – the rich and the poor.
 Women’s employment
 Labour and employment
 The art of punishment
 Staying at the top
 Ethics in business
 Public governance
 Control of the state
 Employees’ welfare
 Consumer protection
 Human resource management
 Indian Vs Western Management Contemporary Issues In Management
S.NO Item Western management Management Based on Indian ethos

1 Belief Production, productivity, profit at any cost Material gain, with belief in achieving human and
social welfare also

2 Guidance Management guided by mind only, led away by Management by consciousness power beyond
ego and desire, soulless management mind, i.e., soul.
Interiorized management
3 Emphasis Worker development, management of others, Development of man, integrated growth, harmony,
profit maximization. Human being given only lip happiness and health.
sympathy Management of self
4 Tools 5Ms as resources- men, money, materials, Men, machines, materials and methods as
machines, markets. Science and technology conscious partners- all having
information for decision marking consciousness whether manifested or dormant.
Information and intuition for decision.
Ethics and values combined with skills
5 Problem Conflict resolution by negotiation, compromise, Conflict resolution through integration and
solving arbitration, liquidation of differences only for a synthesis on stressing super ordinate common
temporary period. No reference to higher goals so that enduring harmony and unity is
consciousness assured. Self introspection, stepping back aids the
search for solution
6 Decision Brain storming (round table approach Brain stilling(entering the room of timeless
making silence)
7 Development Physical, vital and mental only. Soul or spirit Integrated development, whole man approach,
ignored. Material development only, even at the breath control and meditation emphasized. Human
cost of man and nature enrichment and total quality
8 Approach External behavior. Mental, material, selfish Noble attitudes. Inner guidance, team spirit, total
only- soulless harmony, global good

Ramayana
• It depicts the duties of relationships,
• Portraying ideal characters like the
– ideal father,
– ideal servant,
– the ideal brother,
– the ideal wife and
– the ideal king.
Apart from this, the Ramayana also teaches
– how the temptation for lust can bring a powerful
– and well established man’s doomsday.
• It deals with loyalty.
• Trust worth ship
• Commitment
•
Buddhism
 The founder of this school was Gautam Sidhhartha
 Who later became Lord Gautam Buddha.
 The Buddhism is based on the four noble truths:
(i) Suffering exists;
(ii) There is a cause of the suffering;
(iii) Suffering can be eradicated;
(iv) There is a means for eradication of that suffering.
• Management Lessons
1. Buddha establishes that everything on the earth is non- permanent.
2. Nothing on earth is self.
3. Hence everything on this earth is “anatta” or not-self.
4. Buddha taught the eight fold path to liberation from all suffering.