Indian Model of

Management

Ch.2 IEBE
Model of ● Indian socio-political environment is complex in nature. India is a large
nation of diverse cultures, religions, castes and rituals.
Management in ● India is famous for its unity in diversity.
Indian Socio - ● Two most important tenets of Indian model of a management are
Political Human Values and Holism.
Environment ● Human values refer to spiritual, ethical and moral values while Holism
means oneness or unity. Indian model of management is a spiritualistic
model.
Salient Features of Indian
Socio-Political Environment
1. Focus on lifestyle
2. Focus towards business policy
3. Existence of human orientation and values
4. Simple living, high thinking
Focus on Lifestyle
Management in the Indian social environment defines a standard of living
and maximising quality of life. Here quality of life not only means quality of
consumer goods and services but also enrichment in quality of life in the
society and the environment. Complete quality of life is a function of the
way one thinks, speaks and behaves.
Focus towards business policy

Every political party makes policies and businesses have to follow these policies.
Policies are made in accordance with current business situations. However,
sometimes these policies are not favourable for the business environment. Since
every political party has its own ideology. They make the policies according to their
own benefits and interests.
 Existence of human orientation
and values

There are many components of National Development activities that

require human orientation and values. Human values like hard work,
truthfulness, obedience, good manners, peace and harmony are a
part of Indian social and political environment.
Simple living, high thinking
The essence of Indian way of living is simple living and exalted thinking.
Indians prefer to live a simple life so that they can give more energy and
thought to the development of spiritualism. Here, intelligence is more
important than materialistic acquisitions, ethics is more important than
economics.
Indian Model of Management
Human Values
Human values comprise of spiritual, ethical and moral values. These values form a foundation for thoughts,
actions, skills and behaviour and eventually lead to formation of a good character. These values will create
a good man, a good manager, a good organisation and ultimately remove disarray from the minds of the
people.

Holism
Holism refers to the concept of oneness or unity. Holism is much broader than the systems approach to
Western model of management. A human being has a soul, body, mind and intellect. It is essential that all
the above components of our personality are proper and mature. Holism is unity, i.e., the absence of duality;
hence the absence of conflict and disharmony.
Indian Management Practices
● Planning: Planning means developing predetermined ideas or strategies for the
future and make policies and guidelines to achieve the organisational (short and
long-term) goals.
● Recruitment and selection: It includes criteria and policies related to recruitment
and selection of employees, for instance education, experiences, talent,
competences. However, some other factors like favouritism and prejudice play a
significant role in the selection process in any organisation.
● Training: It is a systematic procedure for a specific task to be provided to
employees. In the Indian socio-political environment, developments are presently
underway and importance is being given to adoption of good training programmes
to enhance efficiency and productivity of the employees.
Delegation of authority
It is the base of superior-subordinate relationship and involves following steps:-•

● Assignment of duties: The superior attempts at defining the task and duties of the
subordinate. He also ‚‚defines the result expected from the subordinates. In this step,
the superior takes care of the clarity of duty as well as result expected.
● Granting of authority: As the superior divides and shares his authority with his
subordinates, division of ‚‚duties take place. The subordinate should get enough
independence to perform the task assigned by the superior. This division of power is
important to get effective results.
● Defining responsibility and accountability: The subordinates should be obligatory
towards the duties assigned ‚‚to them. Responsibility is an obligation of subordinate to
carry out his duties in best of his ability as per the directions of superior. Responsibility
gives effectiveness to authority. Accountability, on the other hand, is the obligation of the
individual to carry out his duties as per the standards of performance.
Indian Management Practices
● Commitment and accountability: Work ethics is also concerned with commitment and
accountability. This entails determining how the employee owns up for the tasks assigned
to him. He needs to make all possible efforts to accomplish the work within the given time
limit and also in an agreeable fashion.
● Loyalty: Work ethics is also concerned with loyalty towards the organisation. This entails
not talking negatively about the organisation and protecting the interest of the organisation
at all times and in all situations.
● Responsibility: People in the organisation have different attitudes towards their work.
This can be noticed through job delivery, performance, evaluation, career development,
formal training, etc.
● Work culture: India is renowned for its solid work culture, which includes: punctuality,
proper dress code, proper demeanour and respect towards superiors, peers and
subordinates and strict compliance with the rules and regulations of the organisation. A
good work culture can also be introduced through an effective induction program.
 Laws of Karma and its
Relevance in Business Settings
Law of Karma
Karma = action

One can think of Karma as the spiritual equivalent of Newton’s Law of

Motion. “For every action there is an equal but opposite reaction.”
When we exhibit a negative force in thought, word, or action, that
negative energy will come back to us.
12 Laws of Karma

1. The Great Law or The Law of Cause & Effect

2. The law of creation
3. The law of humility
4. The law of growth
5. The law of responsibility
6. The law of connection
7. The law of force
8. The law of giving and hospitality
9. The law of here and now
10. The law of change
11. The law of patience and reward
12. The law of significance and inspiration
1. The Great Law
Also known as the law of cause and effect, the great law is what comes to
mind for many people when considering what karma means. It states that
whatever thoughts or energy we put out, we get back—good or bad. It’s
like sowing and reaping. If you truly are an ethical proprietor, the kindness,
knowledge and extraordinary help you bestow on your customers will net
you greater returns in terms of revenue and profits.
 2. The law of creation
The law of creation is all about creating. You don’t just wait for good things to magically happen in your
business; you have to actively go out there and make things happen. Highly successful businesses are
prime examples of people who embody this karmic law. They are constantly searching for creative ways
to identify customer needs and offer products and services to meet those customer needs.
 3. The law of humility

In order to change something in your life, you first have to accept what
currently exists. That is the premise of the law of humility. This is also a
trait shared by many highly successful business owners. Highly successful
business owners are constantly assessing their current knowledge and
seeking out education, training and/or new employees that will help them
to better serve their clients.
 4. The law of growth
As its name suggests, the universal law of growth is about expansion, namely
within ourselves. As we grow, change, and evolve internally, our external reality
will change and grow as a result. This, again, is where personal development,
education and training can come into play. And growth potential never
ends—there are always new things to learn, and better ways to be that trusted
business owner.
 5. The law of responsibility

The law of responsibility is about taking ownership for everything that happens in
our lives, including the not-so-good stuff. We are responsible for how we show up
in the world, how we allow others to treat us, and how we treat other people. In
order to put this law into action, take responsibility for the part you play in every
customer interaction.
 6. The law of connection
The law of connection states that everything and every person is
connected in some way. For example, although the past you, the present
you, and the future you may seem entirely different, they are all still you.
Everything you’ve experienced has led to the next thing and the next thing
and the next thing. It’s all linked. The same applies to your business.
Recommendations come from past customers. Your reputation is the sum
of your past actions.
 7. The law of force
Although some of us may claim to be a pro at multitasking, the inclination to do
everything at once often just slows us down. The law of force states that you
cannot apply your energy toward two things simultaneously. Our days are full of
distractions. Realize there are times you will need to give full attention and
devotion to a customer to serve their needs.
 8. The law of giving and
hospitality

This law of karma is all about selflessness, giving to others, and practicing what
you preach. It’s about ensuring that you’re not simply saying and thinking good
thoughts, but that you also walk-the-walk and follow those beliefs with action.
Some of our best referrals come from helping a customer solve a problem – even
when extra time or expense was necessary.
 9. The law of here and now
The law of here and now is all about being present. Many of us dwell too
much on the past – to the point of distraction. If, instead, we live in the
here and now and are attuned to what we are doing, seeing, and really
listening, we won’t be disconnected when we are interacting with
customers. You will notice that the energy is different, and the experience
is more engaging and rewarding, and your mind will be more keenly
focused.
 10. The law of change
If you’ve found yourself experiencing the same undesirable situation over
and over again, this may be due to the law of change in action. It’s the
universe’s way of nudging you to learn a lesson. The pattern will continue
to repeat itself until you connect your feelings and learn from the
experience; and take action in order to change the pattern.
 11. The law of patience and reward

This karmic law essentially translates to “hard work pays off.” It’s about showing up and doing the
work and not giving up on your big goals, even when you don’t see any progress made toward
them quite yet. Live in accordance with this karmic law by knowing that achieving great things
requires time and persistence, not giving up, celebrating yourself, and savoring every little
milestone you achieve along your journey.
12. The law of significance and inspiration

The law of significance and inspiration tells us that we all There is nothing more rewarding than positive feedback,
have value to give. By extension, your training, and in this modern age – positive reviews. The resulting
experience and commitment are gifts meant to be karma you have created nets immediate financial
shared with your customers and you will make a positive reward, as well as likely referrals in the future. And, it is
impact. Many of our customers have less than full one more experience which you can catalog for the
knowledge of your product/service. So, your expertise is benefit of future customers.
critical to them. Tap into this karmic law whenever you
need a boost of motivation.
Indian Heritage in Business-Management
 ● Some common principles can be deduced from
Main Features of Indian Indian heritage for production, consumption and
Heritage ●
other economic activities.
These will prove beneficial to organisations to
successfully face the challenges of new economy.
● According to Indian heritage, man’s attitude towards
his social existence needs to shift towards duties,
obligations and sacrifice.
● He must believe in ‘Simple living and high thinking’.
Indian heritage emphasises that the essence of
civilisation lies not in multiplication of wants but in
the purification of human character.
● Common economic activities take on a new form
when viewed from the angle of Indian heritage.
 ● It can be defined as conversion of inputs into output
Production & Indian through a transformation process.
Heritage ● Men, money, machines, material and management
are different elements of input.
● The resultant output may be obtained in various
forms like finished products, goods and services.
● Goods produced means manufacturing products and
services like hospitals, communication and rental
transport services, etc.
● From the point of view of economists, production
from local resources for local needs is the most
rational way of economic life.
● Humans have an innate tendency to produce goods
and products according to their basic requirements
or needs.
Production ● Needs, wants and desires are a part of one’s life and
production is required for fulfilling these needs, wants
& Indian and desires of human beings.

Heritage ● With the development of human beings, ways of

production have also transformed in the modern world.
● Now a days, many natural resources or non- renewable
resources are consumed in excess to produce goods
and services.
● Productive resources should be diverted to production of
most essential goods i.e., resources used in the
production of alcohol, harmful chemicals and arms
should instead be used for the production of food,
clothing and house building.
Consumption & ● It can be defined as consuming or utilising the produced goods
and services, e.g., customers buy a car and enjoy or consume it.
Indian Heritage However, there is a difference between the two terms customer
and consumer.
● Customers are those who buy products and consumers are those
who finally consume the products. In case of parents buying toys
for their children, parents are customers but children are the
consumers.
● Production and consumption are directly proportional to each
other. If there is no demand of products and services, then there is
no need of production. If consumption of products and goods
increases, then production will escalate automatically.
● Consumption increases production in terms of advanced methods
and more finished products. From time to time, man has
developed new methods and techniques of production to keep
pace with increasing consumption. According to modern
economists, one’s standard of living is judged by the amount of
annual consumption.
● Since consumption is directly related to welfare of human beings,
Indian angle to consumption stresses that the aim should be to
obtain the maximum well being with minimum of consumption.
Production, Consumption & Heritage
Some production and consumption-related lessons from Indian Heritage

● Impact of spiritual consideration: Ancient days witnessed coordination between Artha

(money) and Karma (duty). • During that time, wealth creation was important but was not
the focus. The central point of human existence was striking a proper balance between the
amount of efforts and the amount of remuneration attached to it. Thus, when such spiritual
considerations are connected to one’s job or work, it takes on a totally different meaning- a
meaning devoid of the premises of utilitarianism.
● The role of great economists: In the Indian context, the role played by great economists
in term of their thoughts • on production and consumption cannot be ignored. Great
intellectual gurus like Mahatma Gandhi, Vivekananda and Buddha constantly preached and
advocated the one principle of ‘more of giving and less of grabbing’. Despite being a
scientific subject, Indian economy has its foundation in such the ideas of such economists.
Production, ● Increase in per capita income: Any economic action
plan is assessed on various criteria, one of them being
Consumption an • increase in a country’s per capita income. Since this
concept is comparatively modern, Indian heritage
& Heritage system does not elucidate much on the ways and
reasons to increase the per capita income. The prime
focus was on spiritual growth in the earlier times. Even
today, Indian economy focuses on a combination of
physical and spiritual progress.
● Use of resources: Indian heritage advocates the
prudent and economic use of resources in the
development of • man but does not advocate
irresponsible and indiscriminate use of resources. It
prefers optimum use of resources and conservation of
natural resources because they are available in limited
quantity.
Management Lessons from
Ramayana
https://youtu.be/gC8Y0Flx3Oc
Management Lessons from
Mahabharata
https://youtu.be/A7vJ31N_aT0
Leadership Lessons From Chanakya’s Arthashastra
Attributes of a Kautilya has stated that, an ideal king is one who has the
highest qualities of leadership, is intellectual and possesses
leader good personal attributes

Kautilya also describes that these attributes are not only

possessed by the individual through inherited traits but also
the desire of oneself to learn and also great emphasis is laid
on appropriate training

The Arthashastra believes that discipline can only be

embedded in oneself in two kinds – inborn and acquired.
Leadership Transformational leadership raises the pioneer more elevated
amounts of inspiration and profound quality whereas transactional
Values leadership is portrayed by a trade procedure or bargaining thought
process

Initiative should be grounded in good establishments to be

genuinely transformational. Moral leadership rests three pillars
which are the leaders’ ethical character, moral authenticity of the
implanted values in the leaders’ explained vision and moral
procedures in their actions

Kautiliya had a holistic approach when it came to the values of a

leader. He believed that the characteristics that moulded a leader
should be based on values.

This is where the importance of self purification and inner

cleansing. Both Kautilya and Nitishastra stresses on the
identification of synergy between the outside world and the inner
self.
Duties of a leader
Kautilya greatly stresses on the functions of a king and on
his effective, efficient and truthful governance of his State.
It presents two pillars of the craft of a king’s governance
which are justice and ethics.
The Human element of leadership

● Character is defined as doing the right things though there is lots of pressure from outside.
● Leadership is balancing between emotion and reason. A person is as good leader when he understands people are mixed of
both the positive and negative emotions.
● Kautilya gives a good demonstration that a person becomes a leader only when he looks at both good and bad at the same
time and is able to come to a conclusion on his own .It is also expected that Kautilya should always have control over his
senses. The different aspects of administrations explained in Arthashastra.
● It deals with all the tactics of governing a state starting from setting up a goal which is very important followed by a good
foreign policy through which other lands can be occupied. The whole teaching is about these two principles and it gives an
answer to all the problems faced by the ruler.
● Kautilya is not only about administration but also business and organisation, it deals with various aspects of organisation like
human aspects and various leadership requirements. He says that “state is a social organisation with economic aim starting
from teaching the prince to be caring as well giving enough of educational insights.
● Arthshashtra talks about responsibilities of king which also includes his policy for society growth, labour and preventive
measures for calamities. The king should make sure that the ministers are also working for the betterment of the people. He
should test their capacity before appointing them.
● All the officials should be appointed based on their potential. Kautilya says that one should take care of those who defeated
in the war with great care and not humiliate them at any cause because it would increase the loyalty and decrease the
enmity. That is in all ways it is important to have humility even to those who are defeated.
Networking and Alliances
● Kautilya stresses the king on the importance of building allies and network strategically.
● He focuses on the significance of the ally; another ruler who might go to the support of the
ruler ought to his kingdom be assaulted by an outsider.
● It will likewise be the obligation of the ruler to amplify all help if the ally is assaulted. Each
ally is to be dealt with as per his unique attributes.
● Corporates proactively produce organizations together to constrain aggressive association
emerging out of ecological vulnerability.
● Despite the fact that control imbalance by method for size, assets, reputation or market get
to can't be totally controlled, organizations together are a method for managing escalated
outside rivalry, abbreviated product cycles, taking off capital speculation costs, and the
perpetually developing interest for new advancements.
● Unrivalled assets can likewise rise up out of a collaboration coming about because of
coordination of free firms in a progression of significant worth including organization
Communication

● Strategic communication is getting the correct message, through the correct media, to the
right group of onlookers at the perfect time and with the correct impact.
● It infers viably coming to also, conveying obviously to a focused on gathering of people with
particular limitations. Moulding the message is fundamental for accomplishing vital
objectives.
● Key vision is characterized by leaders through individual case in view of qualities, differing
qualities, development and honesty.
● The Arthashastra uncovers that the idea of political communication was not outsider to old
political logicians and approach producers and it was thought to be a fundamental piece of
organization.
● Kautilya specifies various routes by which adversaries can be outsmarted by stratagem, or
overcome by drive, and at last sets a perfect of a world winner before the king. Powerful
communication has an imperative mental impact and assumes an essential part in wartime
similarly as in peacetime
Delegation of Powers

● Pioneers need to delegate with the goal that they can concentrate on bigger issues.
Fruitful designation urges workers to think freely and have a feeling of
proprietorship. The pioneer is loaded with fewer responsibilities on his back and
individuals feel enabled to have an independent mind and draw on their experience
and insight.
● Present day hypotheses interface delegation with empowerment. Kautilya speaks in
insight about delegation, making decisions and regarding the guidance of
subordinates.
● He writes in such extraordinary insight about designation drives us to accept that he
has at the top of the priority list the advantages of strengthening which makes
individuals work proactively and stay concentrated on objectives. Kautilya compares
strengthening with delegation and concentrates on passing force from higher
hierarchical levels to lower ones.
VEDA Model of Leadership
VEDA stands for

V:- Vision

E:- Enlightenment

D:- Devotion

A:- Action
Four Margas
1. Raj Yoga
2. Gyan Yoga
3. Bhakti Yoga
4. Karma Yoga
Bhakti Vedanta
● Bhakti Vedanta is a strong movement which emerged as a way to
utilise Vedanta concept in Bhakti.
● American Hinduism - A modern religion
● Bhakti Vedanta brings down Vedanta to modern era
● Bhakti concept brought the idea ‘Work is worship’
● Managerial effectiveness is linked to VEDA concept
● If today’s Managers practice VEDA model they can achieve
soundness of mind and firm decision making ability
Corporate Rishi Model & K Theory
● This model is rooted in the interpretation of Rishi concept as Re-see concept. A rishi is one,
who can re-see the things, events, and actions around him or her in a new perspective in
addition to providing a touch of humanness.
● He is also Self Responsible Individual (SRI) and he is Matured - Self Responsible Individual
(MS).
● This model considers knowledge creation in terms of rationality, intuition and revelation in a
hierarchical order.
● Rationality is at the lowest step, intuition is the next step and revelation is the third step.
Through re-see approach, leaders use their intuition effectively and thus arrive at new
interpretations and revelations that lead to radical changes in the organization and society.
● Re-see leaders use the radial approach for being always in touch with happenings around
them and also for envisioning the future. We can also refer to them as 'full circle leaders', as
they see and re-see the environment through full circle radial visioning approach.
Leadership ● Drawing upon the metaphor of organization as a family
(Kutumbh), Theory K is suggested as a leadership style.
Through This theory integrates the ideas of Theory X, Theory Y
Theory K and Theory Z and suggests a combination approach.
Formula for Theory K is as follows:
● K=X+Y+Z
● It can be further refined in the following formula,
● K = Xa Yb Zc
● Wherein, a, b and c indicate the intensity of a particular
style. Theory K suggests the following relationship
between the three indices, viz.
● a<b<c
K Theory The concept of Theory K can be further extended where K
refers to the following Indian concepts:

1. Karta : Action Performer / Decision Maker

2. Karma : Action

3. Kutumbh : Organization as Family

4. Karuna : Compassion or the Human Touch

5. Kesari : Sacrifice & Self Discipline

The decision-maker (Karta) performs Karma (Positive action)

with a human touch (Karuna) rooted in sacrifice and
self-discipline (Kesri), for the welfare of the organization
(Kutumbh).
5K Corporate Rishi Model
A Corporate Rishi (male or female) takes care of all the 5Ks. Hence, we can also refer to
the Corporate Rishi Model (CRM) of leadership as 5K model of leadership. This model is
simultaneously
● Vijigishu model,
● Nurturant - Task Model,
● Yin - Trinity model,
● an Enlightened leadership model,
● Workshop model,
● Mother leadership model,
● Wisdom leadership model,
● 24-hour leadership model and
● Contribution model as it integrates essential elements of these models.
West- East Theory
(WE Theory)
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