Chapter II

VALUES BASED MANAGEMENT

– AN OVERVIEW FROM INDIAN ETHOS

Contents
2.1 Introduction
2.2 Kautilya’s Arthashastra
2.3 Management lessons from Bhagavad Gita
2.4 Management lessons from Jainism
2.5 Management lessons from Buddhism
2.6 Management by values – Mahatma Gandhi
2.7 Indian Ethos in Management

2.1 Introduction

Management is a concept that is centuries old and has developed with the
civilizations of the world. India is treasured as a civilization that has been
shaping the world for thousands of years. The concept ‘management’ is not new
to India. Contrary to the popular belief that the topic ‘management’, the way it
is being known and practiced today, originated in the west and progressed to the
east; the subject management has always been preached and practiced in India
since the time of the puranas. Indian Management reflects the ethos, beliefs and
intellect of ancient Indian culture. The tradition of Indian ethos goes back to
more than 3500 years, way before the days when modern management took root.
Management had its stronghold since ancient Harrapan period, and has been a
continuous process and is still in its development stage. The fundamentals of
management were observed in the ancient period, Mauryan rule, Gupta rule,
Delhi Sultanate, the Mughal period, under British empire etc.

Organisations, communities and countries across the globe are now trying to
discover and explore their own style and system of management. According to

Values based management practices in central public sector enterprises in Kerala 15

Values Based Management – An Overview From Indian Ethos

Sharma (2001) for a management system to be effective, it has to be rooted in

the cultural soil of the country where it is practiced.

Compared to western management concepts and philosophy, which is more in an

evolutionary phase, Indian management wisdom is static based on its literature.
Ancient Indian management philosophy is based on human approach compared
to western. Western management is believed to be production and profit oriented,
whereas Indian thought says about material gain with belief in achieving human
and social welfare with mutual co-operation, harmony, spiritualism and karma
yoga (Himadri Barman, 2013). Management has been described and displayed
long back in our epics - Ramayana, Mahabharata, Bhagavad Gita and literary
works like Thirukural. These are considered as the greatest contributions to the
Indian management.

Table: 2.1.1 Comparative analysis: Western management vs. Indian and

Eastern values

Western Management
Approach Indian and Eastern Management
Items
(Oriented by Science and Approach (Oriented by values)
Technology)
Material gain with belief in
Production, Productivity,
Belief achieving human and social
Profit at any cost
welfare in unison
Management guided by
Management by consciousness,
mind only, led away by
Guidance power beyond mind i.e., soul.
ego and desire. Soulless
Interiorised management
management
Worker development,
management of others, Development of man, integrated
Emphasis profit maximization, growth harmony, happiness and
human being only given health, management of self
lip sympathy
Decision
Brain storming Brain stilling
making
External behaviour. Noble attitudes, inner guidance,
Approach Mental, material, selfish team spirit, total harmony, global
only. Soulless good

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 Values Based Management – An Overview From Indian Ethos

Men, machines, materials and

5 M’s as Resources -
methods as conscious partners
men, money, materials,
- all having consciousness
machines and markets.
Tools whether manifested or dormant.
Science and Technology,
Information and intuition for
information for decision
decisions. Ethics and combined
making
with skills
Conflict resolution by Conflicts resolution through
negotiation, compromise, integration and synthesis on
arbitration. Liquidation stressing super ordinate common
Problem
of differences only for goals so that enduring harmony
solving
a temporary period. and unity is assured. Self-
No reference to higher introspection, stepping back aids
consciousness for solution
Physical, vital and
mental only. Soul or Integrated development. Whole
Development spirit ignored. Material man approach, breath-control and
process development only even meditation emphasised. Human
at the cost of man and enrichment and total quality
nature
Source: Adapted from Indian Ethos and Values in Modern Management, Himadri
Barman (2013)

One of the oldest but relevant definitions of management is ‘getting things done
through people’. According to the functions managers perform, the activities of
management are classified as: planning, organising, leading and controlling.

The doctrines of Indian Ethos in Management (IEM) are principally derived

from the Upanishads, Bhagavad Gita and Puranas. Management principles based
on our ancient wisdom are of immense help for the smooth and efficient conduct
of business. Himadri Barman (2013) has compared the modern management
concepts with that of ancient, Indian ethos in management, which can be
summarized as follows:

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Values Based Management – An Overview From Indian Ethos

Table 2.1.2: Management concepts redefined

Term Modern Management Indian Ethos in Management

Helping other people to
Management Getting things done
produce extraordinary results
Productivity Output centric People centric
Planning Management by results Management by strategy
Produce performers. Help
Effective Concern for task and not for
the subordinates to develop
Supervision people
leadership quality
Emphasis on self-motivation,
Motivation of Maslow’s Theory of Needs
subordinates encouraged to be
people with some modifications
creative and given autonomy
Reliance almost on eternal Reliance almost on internal
Resource
resources resources
Balance sheet, Profit and People oriented performance,
Health of the
Loss Account, money environment friendly Private
company
oriented – Public benefit
In terms of good public
In terms of money, social
image, social costs
Profitability costs not included in
internalized. Trust of the
Balance Sheet
customers and society.
Hygiene Attention only on job Primary emphasis on mind
factor enrichment enrichment
Emphasis on taking not Emphasis on giving not on
Rights and on giving. Rights become taking. Duties given great
duties primary. Duties become importance and Rights
subsidiary assume secondary value
Keen competition to capture Through cooperation by
Marketing and retain demand, market playing complementary role.
driven economy Social awareness in marketing
Pattern of particular
Set of inter-related elements response expressed through
working as a whole. More organisational functioning.
System
emphasis on quantity and Equal emphasis on quality/
objective aspect quantity with emphasis on
subjective aspect
Organic evolution,
Structure Hierarchical
autonomous

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 Values Based Management – An Overview From Indian Ethos

Ultimately dependent onCoordinating private and

Growth
turnover of goods public benefit
Through innovation,
Job Hygiene factor. Creativity
uniqueness, extraordinary
satisfaction ignored
result, trouble shooting
Value oriented, holistic
Functional skills, not value approach and equal emphasis
Training
oriented and holistic
on both (skills / values)
Man behind the machine
Man - Machine dominates man as
given due regard. Healthy
machine human being receives lip
philosophy of life. Emotional
equation sympathy
stability
Man As per qualifications and More stress on natural
Placement experiences inclination and character
Product quality by ISO, Human quality, values,
Quality TQM, QC. Human value, character, mind enrichment,
quality plays minor role whole man approach.
Source: Adapted from Himadri Barman (2008), Indian Ethos and Values in
Modern Management

The economic downturn in mid-2008, witnessed failure of giants in the West

like Lehman Bros, AIG, Bank of America, General Motors, Circuit City, raising
doubts about the sustainability of the management practices being preached and
followed by them. We have also seen corporates in the west adhering to corrupt
business practices, profiling bankruptcy, laying-off people, lockout, rising debt
etc. On the contrary, it was observed that Indian economy continues to grow
and could survive the global financial crisis. During the periods of tough and
challenging times, there has not been any major Indian company going to the stage
of bankruptcy. However companies like TATA, pharmaceutical major Ranbaxy
could expand their business in Europe, US, UK and Africa through mergers and
acquisitions. Moreover, today India is seen as a dream destination for investors
and businessmen. Management practitioners, thinkers, academicians, students
and executives have started learning and researching into India’s ancient wisdom
and Indian Ethos. Moreover, business organisations across the world are looking
at the East, with more emphasis on values based management models from India.

Values based management practices in central public sector enterprises in Kerala 19

Values Based Management – An Overview From Indian Ethos

India is a nation having its fundamental base as truth and non-violence. Being
a land of great history, diverse culture, wealth and wisdom, the seers, saints
and leaders preached and practiced the essence of love for all – living and non-
living beings and to follow the patch of dharma – ethics and values. India’s
ancient wisdom always give prime importance to certain values and qualities
like humility, pride less, non-violence, tolerance, simplicity, service to teacher,
cleanliness, steadfastness, self-control, renunciation, absence of ego, non-
attachment etc. (Murali, 2009). During the Vedic era there was a strict code of
conduct laid down by the Vedas where the duties of the kings, the heads and
subjects were stipulated and any deviation was considered sin (Viramani, 2000).
The corporate houses are equivalent to kingdoms, thus the principles applied in
organising the kingdoms can be applied in corporate governance (Govindarajan,
2008).

Indian wisdom is not just confined to a few sources but there are numerous such
great works that can be followed, which are interrelated, great leaders and saints
Swami Vivekananda cannot be ignored if one needs to get an insight into the
Indian Wisdom, his works namely ‘Work and its Secret’, ‘Karma Yoga’, speaks
about the importance of work and the purification of mind and soul that can be
achieved by selfless work and devotion; Gurus like, Aurobindo Ghosh, Mahatma
Gandhi and Rabindranath Tagore can be studied for exemplary values and ethical
behaviour (Bijlert, 2004). Hence it is important to discuss and study on Indian
ethos in modern management while discussing on the concept of values based
management in organisations.

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 Values Based Management – An Overview From Indian Ethos

Fig 2.1 Sources of Ancient Indian Wisdom

Source: (Bhattacharjee, 2011). (Gosvami,1977), (Suresh and Janaki, 2012),

(Mahadevan, 2008), (Muniapan, 2007)

This chapter is devoted on understanding value based management practices

from an Indian perspective covering:

1. Kautilya’s Arthashastra
2. Management lessons from Bhagavad Gita
3. Management lessons from Jainism
4. Management lessons from Buddhism
5. Management by values – Mahatma Gandhi
6. Indian Ethos in Management

2.2 Kautilya’s Arthashastra

Chanakya, traditionally known as Kautilya or Vishnu Gupta was an Indian

teacher, philosopher, and royal advisor. He was a professor of economics and

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Values Based Management – An Overview From Indian Ethos

political science at the ancient Takshashila University. Chanakya is considered

as the pioneer of the field of economics and political science in India. Chanakya
authored the ancient Indian political treatise called Arthashastra – which is
considered as an important landmark in classical economics. Chanakya is often
called the ‘Indian Machiavelli, although his works predate Machiavelli’s by
about 1,800 years.

Arthashastra literally means ‘the science of wealth’ or ‘economics’ as we

know about it in modern parlance. However, as one studies Arthashastra, one
gets a feeling that it is not meant to throw light just on the topic of dealing
with materialistic riches, but also on the wealth that is intangible and cannot
be measured. The meaning of ‘wealth’ takes a completely new paradigm in
Arthashastra.

Arthashastrais believed to have been written during the 4th century B.C.
(Bandopadya 1980). After a lapse of some 2300 years, Arthashastra still
remains relevant today and is useful for present day leadership, management
and organisations. Many of modern management principles prevalent today can
be derived from the Arthashastra.

In Kautilya’s treatise, the government was the organisation and its basic
philosophy was to create a welfare state where the king was the leader. The
successful achievement of the organisational purpose largely depended on the
king. The leader’s primary goal according to Arthashastra is to fulfill the basic
purpose of the existence of the organisation – the philosophy.

In Kautilya’s value based management model, the philosophy of the organisation

is clearly defined. Leadership of the organisation should be in consonance
with and based on the organisational philosophy. Based on the organisational
philosophy and leadership a corporate culture is developed which defines the
values that are purported to guide behaviour of the members of the organisation.
All the three components, organisational philosophy, leadership and corporate
culture are supplemented with general value guidelines. Organisations need to
achieve its purpose based on the organisational philosophy and the leader of the

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 Values Based Management – An Overview From Indian Ethos

organisation tries to get response on the performance from various stakeholders

of the organisation. Thus, Kautilya’s Arthashastra provides a total framework
for the practice of values based management.

Table: 2.2.1 Values based management practices from Arthashastra

Management
As defined in Arthashastra
Practice
Organisation philosophy defines the purpose of exist-
ence of the organisation. The organisational philosophy in
broad terms covers the welfare of the various stakeholders
and the society. In Kautilya’s treatise, the government was
Organisation
the organisation and its basic philosophy was to create a
philosophy
welfare state. By any definition the Kautilyan state was a
welfare state par excellence in which the king was a model
of personal purity and sobriety and is called upon to work
for the happiness of the people.
The leader’s primary goal according to Arthashastra is
to fulfill the basic purpose of the existence of the organ-
isation – its philosophy. List of values, the leader has to
Value based possess which among others include: (i) Piety, (ii) Truth-
leadership fulness, (iii) Reliability, (iv) Gratefulness (v)Liberality
(vi)Promptness (vii) Freedom from vices (viii) Long term
vision and (ix) Conduct in conformity with the advice of
elders.
In order to fulfill the Organisational Philosophy, Kautilya
understood the necessity of promoting values among other
members of the organisation. Apart from their own field of
work they must have among others the following values.
(i) Integrity, (ii) Capability, (iii) Loyalty, (iv) Character,
Organisation
(v) Intelligence, (vi) Perseverance, (vii) Dexterity (viii)
culture
Friendliness (ix) Devotion (x) Amicability and (xi) Trust-
worthiness. One of the major factors that has to be taken
into consideration while appointing officials to various
posts is their character and conduct. According to Kau-
tilya’s scheme, Righteous behaviour has to be rewarded.

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Values Based Management – An Overview From Indian Ethos

The final aim of Government is achievement of a welfare

Accomplishment state by implementing policies on community develop-
of organisational ment, crisis management, insurance against loss, employ-
purpose ee welfare, consumer welfare, environmental and ecologi-
cal welfare and customs for righteous behaviour.

According to Arthashastra, the king should find out

whether the policies of the government have been imple-
mented. The King should allow unrestricted entrance to
Feedback on
those wishing to see him and should personally inspect
performance
the works of the heads of the departments and their sub-
ordinates to ascertain whether all the policies have been
implemented properly.

YOGA-KSHEMA (social welfare) forms the basis of the

organisation philosophy and the other components of the
value based management framework. The goal of social
welfare is to promote values in the organisation in terms
care, love and concern for others, paving way for a leader-
YOGA-KSHE-
ship and corporate culture which promotes service, caring
MA (social
for stake holders, honesty, integrity and ethical behaviour
welfare)
in the organisation. The philosophy based on social wel-
fare also induces an organisation to strive for promoting
social progress, development and welfare, which, in turn
also help the members of the organisation in achieving a
sense of self-fulfillment.

Source: Siva Kumar and Rao (1996)

The integrated framework developed from Kautilya’s Arthashastra can provide

organisations a total approach towards the practice of values based management.
Kautilya thus gives a comprehensive model for value-based management for
an organisation. Starting from an organisation’s philosophy, he gives guidelines
for leadership, corporate culture, welfare policies and finally getting feedback
on performance. Thus Kautilya’s Arthashastra proves its relevance even today.
(Siva Kumar and Rao, 1996). Practicing the concepts in Arthashastra help
modern business enterprises to understand the dynamics of business and develop
long term strategies and business plans.

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 Values Based Management – An Overview From Indian Ethos

2.3 Management lessons from Bhagavad Gita

The Bhagavad Gita is an ancient Indian spiritual and philosophical text and is
more than 5000 years old. One of the greatest contributions of India to the world
is the Holy Bhagavad Gita. Bhagavad Gita means song of the spirit, song of the
Lord.

While a casual reading of Bhagavad Gita would leave one feeling that the book
is about the personal struggles involved in engaging in warfare, the Bhagavad
Gita represents much more the story of warefare. The Bhagavad Gita represents
the struggles encountered by all humans in everyday activities including the
struggles of leadership. The Bhagavad Gita provides advice to modern day
leaders and suggests important leadership qualities.

Hee (2007) proposes that the Bhagavad Gita’s advice can be useful in five areas
of modern business. He suggests that the Bhagavad Gita provides advice on
mission and core values, the development of new capabilities, the importance of
developing business connections and communication, and the duty of managers
to maintain a purpose-centric perspective.

The epic book of Bhagavad Gita has not only guided our personal lives but also
has shaped the context of managerial decision-making and building an ethical
decision-making ecosystem among Indian professionals.

The principles of Bhagavad Gita reveal that managing men, money and materials
in the best possible way is the most important factor for successful management.
Lack of management causes disorder, chaos, confusion, wastage and destruction.
Bhagavad Gita repeatedly proclaims that one must try to manage oneself. The
modern management thinking of vision, leadership, motivation, excellence in
work, achieving goals, giving work meaning are all well versed in the Bhagavad
Gita.

The Bhagavad Gita is the summary of all Vedic philosophies and its teachings
can be effectively applied to address any problem related to individual or
organisation and is a strong source of illumination (Tripathi, 2009).

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Values Based Management – An Overview From Indian Ethos

The Bhagavad Gita offers advice on humanistic and inclusive leadership and
tells managers to seek higher level of consciousness when seeking to influence
others, some very important qualities that a modern manager should follow-
maintaining proper role, being proactive with wisdom, self-sacrifice (Rarick and
Nickerson, 2009).

Chandrani Chattopadhyay (2012) has done extensive research on Indian Ethos

and Management. In her research article, ‘Indian Philosophy and Business Ethics:
A Review’, the management philosophies from Bhagavad Gita are discussed at
length. A summary of her findings is encapsulated below:

Table: 2.3.1 Values based management practices from Bhagavad Gita

One should always do one’s appointed duties.

Perform duties with perfect detachment. Only
these actions can reach highest ethical standards.
Karma Yoga Perform his specific duties for the sake of duty,
which fit in with his native abilities. He can attain
his highest personal good thereby, and contribute
to the social good.
Duty should be done with maximum
Bhakti yoga
concentration and pure mind
Knowledge is very important and it guides us in
Jnana yoga
every sphere of life
To be merciful, obedient, truthful, equitable,
saintly, magnanimous, mild-mannered, clean,
simple, charitable and peaceful He should
Twenty six qualities of a have surrendered to God and not be greedy or
gentleman possessive but remain steady and determined,
free of the six bad qualities, not gluttonous,
sober, respectful, humble, grave, compassionate,
friendly, eloquent, expert and concise
Greed, dishonesty and corruption are all
byproducts of lust. To be happy, successful and
well situated, one must control lust Bhagavad
Control of senses
Gita solution to the ethical failure and downfall
of corporations and society and family is
controlling the senses with spiritual strength.

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 Values Based Management – An Overview From Indian Ethos

Do work without ego and without calculations of

Duty gain or loss. One should pour one’s heart and soul
in the performance of one’s assigned duty
Service to the customer must be done with a
detached mind, without craving for the fruits
Customer service or results of the work done. Work offers double
benefit both personal and social. Thus work
should be worshipped.
Work should be done in a perfect way with
Focus maximum concentration only then it can reap
maximum result.
Every person cannot do everything, but every
Right job for right man.
person is capable of doing something.
Only a calm and serene mind without attachment,
can take clear decisions; and creativity, vision,
Detached mind
innovation and new ideas can come only for a
clear, focused and detached mind.
The Vedantic concept of Brahman, generates a
feeling of unity and a feeling of oneness and love
Concept of cooperation
for all; this provides a very strong foundation to
Indian values and ethics.
Sthipragya means unperturbed, even minded
Concept of sthipragya
attitude while working in organisations.
Yoga, chittshudhi (self-purification), ahimsa
(non-violence), dhyan (concentration), daan
Practices (charity) and indriyanigraha (control over
senses). Employees should be guided by the
upanisadic philosophy of acharyadevobhavo.
Human life is a gift of God and should be used
Service
for the service of others only.
Sattwa represents purity, poise, transparency,
clarity etc.; Rajas is characterized by craze for
Concept of Gunas:
fame, passion, pride, display of power, etc.
Sattwa, Rajas and Tamas
and Tamas is characterized by anger, greed,
ignorance, discrimination, etc
A man should be able to control himself first,
before he can control anybody else. Every
Self-control
manager must manage himself first, before he can
even try to manage anybody else.

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Values Based Management – An Overview From Indian Ethos

Only when one has self-knowledge, can one

undertake to manage himself. Introspection
involves self-examination of one’s own thoughts,
Knowledge of self
feelings, emotions, sensations and passions,
as well as one’s dreams and desires, goal and
ambitions, strengths and weaknesses.
Self-analysis through introspection is essential
to know and discover oneself. Self- analysis and
Self-analysis
self-criticism help to locate areas of friction and
disharmony
Constant practice or Sadhana helps to discard
Practice of Sadhana unwanted traits and cultivate good values to
purify mind and heart.
Means ‘duty’ and is almost synonymous with
integrity and righteousness. Dharma stands for all
Dharma those ideals, philosophies, purposes, influences,
teachings and experiences that shape our
character.
Source: Chandrani Chattopadhyay (2012)

‘Dharma’ in the context of Indian philosophy may be broadly taken as equivalent

to ‘ethical behaviour ’ and ‘adharma’ as ‘unethical behaviour ’. ‘Dharma’ is the
parth of righteousness and living one’s life according to the codes of conduct as
described by various scriptures. Each organisation in Indian ethos is considered
to be a living entity, having its own dharma and character. However, dharma, in
the sense of one’s duty, is different and specific for everyone in the organisation.
Every organisation is required to follow its own dharma, or pay the price for its
loss of integrity. Only when an organisation keeps whining its own dharma, and
does not violate it, does the organisation flourishes and grows.

To conclude, the ultimate message of Bhagavad Gita for business leaders and
management practitioners is Nishkama Karma, meaning action performed
without any expectations of fruits or results and treats action as worship. The
action and the fruit and not two separate entities – the fruit is the action itself.

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2.4 Management lessons from Jainism

The Jainese texts advised their community men ‘to follow truthful and peaceful
means of earning wealth’. Jain (2001) noted that a large number of traders in
western India during the eleventh – thirteenth centuries were Jainas. They were
exhorted by their teachers and preachers to follow truthful and peaceful means of
earning wealth. Jinesvara Suri (eleventh century), in his Satsthanakaprakarana,
dilates upon the code of conduct, which a merchant was expected to follow. He
advises that a merchant should neither weigh less nor charge more. He should
deliver the goods of the same quality as seen and approved by the customer, and
should never indulge in adulteration. Quoting sources, Jain (2001) shows us as
to how the foreign merchants preferred to do business with Indians mainly due
to their character, helpful tendencies and value-based business practices.

‘Panchsheela’ is a leadership model propounded by Jainism. ‘Panchsheela’ is

expounds the fundamental principle of Jainism. The word ‘Pancha’ denotes
‘five’ and ‘sheela’ means ‘rules or moral precepts’.‘Panchsheela’ are vows or
principles which form a practical code of conduct for a leader in an organisation.
These five principles also known as Panchmahavrata are as follows:

Table: 2.4.1 Values based management practices (Panchsheela) from Jainism

Non-injury in thought, word and deed, including

negative abstention from inflicting positive
Ahimsa
injury to any being, as well as positive help to
any suffering being.
Satya Truth in thought, word and deed.
Not to steal, i.e., not to take by thought, word
Asteya
or action, anything to which one is not entitled.
Abstention from self-indulgence by thought,
Brahmacharya
speech or action
Aparigraha Renunciation by thought, word and deed
Source: Neetu Jain (2011)

According to Jainism, once a leader practices the above five principles, it will
him help to lead the organisation in a righteous manner which in turn will lead

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Values Based Management – An Overview From Indian Ethos

to organisation growth and prosperity. Therefore, these principles need to be

imbibed in organisational culture by formulating policies and procedures.

2.5 Management lessons from Buddhism

Buddhism offers an interesting perspective on the practice of management

principles. Buddhism talks in detail about the noble eight fold path one should
follow to maintain an ethical life. Concerning leadership, the Buddha emphasised
the importance of maintaining one’s values, promoting self-management,
developing one’s abilities and the abilities of others.

In order to achieve nirvana one must have the right or proper morality, wisdom,
and mental discipline (Sachs 2006). The noble eight fold paths propounded by
Buddhism are the following:

Table: 2.5.1 Values based management practices from Buddhism

Sl No Values Organisational Relevance

The vision, mission and strategy of the
1 Right view organisation determine the path which it
takes.
Focus on profits while fulfilling societal
2 Right thought
obligations
Transparent and positive communication
3 Right speech among both internal and external stake
holders
Strict adherence to corporate governance
4 Right action
practices
Fulfill duties diligently and conscien-
5 Right livelihood
tiously
Refrain from indulging in illegal activi-
6 Right effort
ties
7 Right mindfulness Mitigate risks with alertness
Concentrate on building a right work cul-
8 Right concentration.
ture and focus on long term goals
Source: Bhikkhu Bodhi (1999)

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 Values Based Management – An Overview From Indian Ethos

According to Chandrani Chattopadhyay (2012), in Buddhism, ethical behaviour

in social reference means such acts and dispositions as love, compassion,
charity, etc. and in individual reference all kinds of actions and dispositions
related to self-control, self-purification, self-discipline and self-elevation. The
idea of institutional ethics has great relevance in Buddhist philosophy, which can
be directly linked to modern day organisational ethics. According to Buddhist
philosophy the founder of an institution (corporate organisation) is responsible
not only for the consequences intentional or unintentional to flow from the
activities of the organisation but also from all the intended or unintended later
consequences to flow from the activities of the institution.

To conclude, the philosophy of Buddhism and the teachings of Lord Buddha

can be an effective guide to the implementation of values based management
practices across organisations.

2.6 Management by values – Mahatma Gandhi

Gandhian values are time tested and universal. These values form the strong
foundations on which our society can be built. In today’s organisational context,
Gandhian values can facilitate both organisational development and growth and
stakeholder’s welfare.

Sharma (2007) has pointed out ‘five management principles’ which could be
derived from the writings of Gandhi and constitute the core ideas from Gandhian
thought that have eternal relevance. They are as follows:

1. Customer is the most important visitor

2. Manager as a trustee
3. Harmony is the basis for relationship between employer and employees
4. Leadership of the self
5. Means-ends relationship

Bansal and Srivastava (2007) in ‘Gandhian Leadership Style: Relevance for

Contemporary Managers’ have explored leadership style of Mahatma Gandhi

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Values Based Management – An Overview From Indian Ethos

keeping in view the relevance for contemporary managers. He has been

discussed as a ‘creative leader’, ‘service centered’ and ‘spirit-centered’. Unique
components of his leadership style have been highlighted:

1. Empathy
2. Humility
3. Non-possession
4. Adherence to values
5. Importance of Khadi

Bansal and Srivastava (2007) in ‘creating socially responsible systems for holistic
development’ have attempted to highlight the role and importance of Gandhi’s
philosophy for creating a socially responsible system for holistic development.
They have attempted to talk about holistic management and the role that the
organisation and the social system can play in its achievement. Today there is a
need to go back to Gandhian values which may facilitate holistic development of
organisations. Some of the core Gandhian values are discussed below:

Table: 2.6.1 Values based management practices based on teaching of

Mahatma Gandhi

Adoption of truth as a value by the organisation and its people is

Truth important because it lends credibility to it and inculcates trust in
all the stakeholders of the organisation.
The spirit of non-violence does not only mean non-killing or
non-injury but also liberation from jealousy, hatred, animosity,
pride and ego as they also lead to violence towards others.
Non-violence
Management should consciously make concrete efforts to make
the workplace humanistic and harmonic through nurturing the
value of non-violence in thought, speech and action.
The ability to manage time and stress is absolutely critical to the
success of the roles of manager and leader. Organisations should
Punctuality
value punctuality by recognizing employees who display such
an attitude and behaviour.

32 Values based management practices in central public sector enterprises in Kerala

 Values Based Management – An Overview From Indian Ethos

‘Service’ is a value, which needs to be adopted at every level of

the organisation. Organisations should initiate welfare projects
and activities with the objective of serving the society resulting
Service in greater satisfaction of all the stakeholders including customers
and the community at large. Better customer service should be
one of the criteria for evaluating employees’ performance so that
they may value service orientation.
A true leader should transcend egoism and encourage
Nurturance his subordinates to lead. An organisation should adopt
decentralization instead of hoarding power at few places on top.
Conflicts can be avoided to some extent if each one practices
Tolerance
restraint in words, that is, always responding and never reacting.
Organisations should have an open-minded work culture ready
to adopt good and efficient practices without any inhibitions.
Continuous
There should be opportunity for employees to undergo training
Learning
and development from time to time to upgrade their knowledge
with changing environment.
Work itself is reward. Being truly concentrated in work only
and being detached from the result leads to better performance,
Renunciation
peaceful discharge of duties and maintaining equanimity in
every situation whether good or bad.
One must be willing to take up any task that is necessary for
breaking up the master–servant relationship. An organisation
Humility should build and promote an environment where employees are
ever ready to take up any task assigned to them without thinking
about its nature.
A public servant is not flattered by praise or frightened by
censure. He who swells with applause and droops with criticism
Equanimity
cannot render service. The reward of the worker lies in the work
he does’
Having faith and confidence in a process of taking responsibility
for assets and social values, and administering their rightful
and creative usage for the benefit of others-now, and in coming
Trusteeship generations’. Trusteeship is a fraternal partnership between all
factors of production, with the aim of achieving larger social
benefit rather than working toward a narrow economic objective
such as profit.
Source: Ipshita Bansal and Niharika Bajpai (2011)

Values based management practices in central public sector enterprises in Kerala 33

Values Based Management – An Overview From Indian Ethos

Business organisations across the globe are facing value crisis. India is not an
exception. There has been a continuous erosion of values since India’s freedom
struggle. Mahatma Gandhi’s principles of truth and non-violence helped India to
regain its strength. Almost after 68 years of freedom, there is a need to go back
to values expounded by great leaders like Mahatma Gandhi. Gandhian values are
more relevant today and his values more urgently needed than ever before for
organisations to develop holistically.

2.7 Indian Ethos in Management

Work is Worship; Duty is God – this is the crux of Indian philosophy. It advocates
that serving the needy (customer) is serving God. According to Chandrani
Chattopadhyay (2012), 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).

According to Himadri Barman (2008), the salient ideas and thoughts of Indian
ethos in management revealed by our ancient scriptures are:

Table: 2.7.1 Indian ethos in management from ancient scriptures

All work is an opportunity for

doing good to the world and thus
AtmanoMokshartham, Jagathitaya cha
gaining materially and spiritually in
our lives

Worship people not only with

material things but also by showing
Archetdanamanabhyam:
respect to their enterprising divinity
within

Strength and inspiration for

excelling in work comes from the
AtmanaVindyateViryam: Divine, God within, through prayer,
spiritual readings and unselfish
work

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 Values Based Management – An Overview From Indian Ethos

YogahkarmashuKaushalam, Samatvam He who works with calm and even

yoga uchyate: mind achieves the most
As we think, so we succeed, so
Yadishibhavanayasya siddhi
we become. Attention to means
bhavatitadrishi:
ensures the end
By mutual cooperation, respect
Parasparambhavayantahshreyahpar- and fellow feeling, all of us enjoy
ambhavapsyathah: the highest good both material and
spiritual

Infinite happiness and infinite

Teshamsukhmtesham shanti shaswati peace come to them who see the
Divine in all beings

Regard the other person as a divine

being. All of us have the same
ParasparDevoBhav
consciousness though our packages
and containers are different.
Source: Adapted from Himadri Barman (2008), ‘Indian ethos and values in
modern management’

To conclude, India’s ancient management gives the right guidance, framework

and inputs to business leaders to facilitate values based decision making not just
economically, socially, legally or ethically but also spiritually and responsibly.

Schaefer and Darling (1997) mentioned while discussing about fundamental

shift taking place in the western world: ‘there are encouraging signs that a
fundamental shift is taking place in business in the Western world. In the US,
there is an undeniable widespread recognition of the spiritual side of life. A
recent survey in the US revealed that there is a trend toward spirituality in
the workplace, that contemplative and spiritual practices in organisations are
becoming widespread, and that the spirituality in the workplace movement is
part of a more fundamental shift in awareness in which people are seeking to
integrate their inner values into their work environments’.

Indian ethos in management is a body of knowledge, which derives its solutions

from the rich and huge Indian heritage of values. The base of Indian Ethos in

Values based management practices in central public sector enterprises in Kerala 35

Values Based Management – An Overview From Indian Ethos

Management is the culture of India, which has its roots from the religions of the
land – be it Hinduism, Buddhism, Jainism or any other religion. The doctrine
of Indian ethos in management is universally applicable; it is holistic and can
help organisations to achieve all round growth in productivity, profitability and
efficiency.

36 Values based management practices in central public sector enterprises in Kerala