Wednesday, April 16, 2008

Kautilya's 7 pillars of organzation .

The ancient wisdom which Chankaya had passed to us is amazing , It penetrates two main areas of any orgaization 1) Finance ( Arthshashtra) and 2) Organizational structure and Roles and Responsibilities.
Here is an example of what chanakya's opinion was about organizational structure. In one of the verses of Arthshastra he quotes
Swami , Amatya , Janapada , Durg , Kosha , Danda , Mitra , Iti Prakariyet.
These are the seven main componenets of any organizations
AS par kautilaya shastra it is very important for any kingdom to keep all of these 7 factors intact for smooth functioning of the nation . Following are the 7 pillars mentioned by Chankaya.
Internal constituents :
following 5 internal constituents are important for an organization
(a) Swami: The master or king of the nation who rules the nation and has complete control , he is not involved in day to day activities of the nation . Swami is responsible for building long term strategic plans for growth of the nation
(b) amatya : bureaucracy, often loosely described as ministry, They work directly under Swami and control all functioning on his behalf .
(c) durga: fort, often identified as city (pura),
(d) artha or Kosha : treasury or finance of the nation . Kosha is accumulated earning from the janapada which is used for several purposes.
(e) danda : army of the nation. Danda is the workforce of the kingdom which is instrumental in any key implementation and execution of the task

External constituents :
As per chanakya there are two external constituents which affect any organization
(a) Janpada : Rrural hinterland, Can be translated as the end users or stakeholders who are directly affected by what is done by Kingdom.
(b) Mitra : friends of the nation who can help them in the crisis situation .

In todays organizations , these can be compared as given below
1) Swami is represented by the CEO of the organization
2) Amatyas are represented by different managers of the oranization
3) Durg is the headquarter of organization
4) Kosha is the reserves with organization
5) Danda is the workforce of the organization
6) Janapada is the market which organization serves
7) Mitra are partners and other allies of organization

Any activiy or problem of organization can surely be fit into one of these seven pillars and then can be solved accordingly !!

Based on a discussion with Mr Radhakrishnan Pillai , Management evangelist and strategic consultant

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