THE STRUCTURE AND PRINCIPLES OF PUBLIC ORGANIZATION IN KAUTILYA'S

ARTHASHASTRA
Author(s): Ashwani Kumar
Source: The Indian Journal of Political Science , July-Sept., 2005, Vol. 66, No. 3 (July-
Sept., 2005), pp. 463-488
Published by: Indian Political Science Association

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The Indian Journal of Political Science
Vol. LXVI, No. 3, July-Sept., 2005
THE STRUCTURE AND PRINCIPLES OF PUBLIC
ORGANIZATION IN KAUTILYA'S
ARTHASHASTRA
Ashwani Kumar

Based on the famous Indian treatise on administration,

Kaut ily a's Arthashastra, the paper attempts to describe and
explain the concept of public organization in ancient India.
Unlike "The Prince" of Machiavelli, Kautilya 's bureaucratic
welfare state presides over the vast range of public activities
from the duties of kings, ministers, and officials to regulation
of commerce, diplomacy, and even marriage and divorce
activities. Based on the idea of a clear chain of command,
Arthashastra gives a fairly decent account of Weberian elements
of bureaucracy such as hierarchy, formality, professionalization
and record -keeping. Contrary to the popular view of Kautilya
as an apologist for unethical statecraft, this paper portrays
him as a remarkably astute thinker on the theory and practice
of organization. Defining the highest goal of public organization
in terms of social welfare ( yoga - kshema), Kautilya emerges as
one of the earliest precursors of modern concept of value based
organization and leadership.

Introduction :

Life in modern industrial/ post-industrial society has increasingly

been conducted in organizational settings and environments. In the words

of Dwight Waldo" the welfare, happiness and very lives of all of us rest in

significant measure upon the performance of administrative mechanisms

that swTOund and support us".1 Organizations, both public and private,
are oriented to the attainment of specific goals. The spread of organizations

is closely related to the specialized division of labor and achieving

efficiency in work process in modem society. However, organizations are
not a new invention. Social units have been created to pursue specific

goals in many pre-industrial traditional societies. In many pre-industrial

societies, public organizations or bureaucracies performed the business
of administration by controlling, managing, and coordinating a complex
series of societal tasks. Arthashastra of Kautilya, is a classic example of a

detailed description of why and how public organizations were created

and maintained in ancient India. Presaging modern administration theorist

Waldo on the significance of administration, Kautilya states that

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The Indian Journal of Political Science 464

administration endows the subjects with spiritual well-

being and happiness.2 Seen from this perspective, K

remarkably modern in the way it attempts to desc
administrative mechanisms on the daily lives of the cit

the advent of major classical and neo-classical organ

such as Max Weber, Taylor, Fayol, Gulick, and Herb
20th century, Kautilya discovered the science of adm
impact on political stability. Unlike "The Prince" of M

Arthashastra describes a highly organized bureaucrat

vast range of public activities ranging from the duties

and officials to commerce, diplomacy, and even ma

Written as a science of the state and administratio

Arthashastra represents one of the earliest attempts to the

of public organization and the environment in which orga

their functions. It is true that Jethrow, Moses' father-in

mention the uniquely public aspects of organizations, but

of Kautilya to work out a comprehensive treatise o

organizations in the ancient world. In this paper, the auth

to provide a summary of Arthashastra, but gives an his

interpretive account of the structure of Kautilya's argu

principles of modern public organization.

Historicity of the Text and the Author :

Kautilya's Arthashastra remained in historical obscu

when Shamasastry, who was then the Librarian of M

Oriental Library, was given a manuscript of the origi
(priest) of the Tanjore District (southern India). By
Mysore King, Shamasastry eventually published the
publication of Arthashastra is considered a watershed e

as it challenged the widespread colonial/ orientialist s

views of politics and administration in ancient India. Di
from myth, Arthashastra revealed the existence of
tradition of political realism in ancient India. Furthe

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 The Structures and Principles of Public Organisation 465
in monarchical form of government, Arthashastra set forth the basis of

state authority in both force and consent. Dandaniti or politics, according

to Arthashastra deals with the totality of social, political, and economic
relationships and indicates how they are to be properly organized and
integrated with one another.4 Contrary to the "illusory" or mythical
interpretations of the state, Arthashastra established state as a complex
organization shaping the individual and collective conduct in early India.
In this sense, it could be easily described as one of the earliest statist
explanations of the state autonomy in which state power's ability to act
authoritatively and effectively is grounded in its autonomy from societal
pressures.

Little is known of the author of the Arthashastra. He describes himself

as Kautilya at the end of each of the hundred and fifty chapters of the
work.5 Traditions, historical writings, and epigraphical researches portray

Kautilya, also named Vishnugupta or Chankaya, as overthrowing the last

king of the Nanda dynasty and placing the great Mauryan Chandragupta
on the throne in Patiliputra( modem day Patna) in ancient India. The
victory over the Nandas and his subsequent conquests over various small
kingdoms gave Chandragupta control over a large part of the Indian
subcontinent. The centralized character of Maurya rule led to the
establishment of the first large- scale bureaucratic empire in the history of

India. There is a great deal of controversy about the date and the actual
author of Arthashastra. Shamasastry, N.N Law, Smith, and Jayaswal hold
that the work was written by Kautilya, the famous Prime Minister of
Chandragupta Maurya. On the other hand, Winternitz, Jolly, Keith, and
Bhandarkar believe that that work was written probably in the early
centuries of the Christian era.4 However, from modern historical researches,

it has become fairly clear that the author of Arthashastra, Kautilya lived

and wrote his work somewhere between 321 to 296 B.C. during the reign
of Chandragupta Maurya, the founder of the Maurya dynasty in ancient
India.5.

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The Indian Journal of Political Science 466

Methodology of the Text :

As opposed to semi-historical and semi-legendary the

of Mahabharata (an epic on war), Arthashastra rese
"Politics" and Hobbes's "Leviathan" as it disentangled
clutches of religion and morality in early India. Advi
statecraft, like Hobbes, Kautilya expounded an amoral,

realist understanding of the need to preserve and expand

state. The usual meaning of the term Artha is money or

term Arthashastra should connote the science of wealth o

the science of government. While conceding that Art

subsistence of mankind, Kautilya contends that the ter

acquisition and protection ór governance of territory

Kautilya argues forcefully that the temi Arthashastra re

of Polity. The explanation and justification of the term

provided in the last chapter of work. Therefore, the l
"Arthashastra" is a study of politics, wealth and ways
maintaining power.6 Interestingly, a perusal of the op
Arthashastra would show that the Author had originally

his work as Dandaniti (science of government). But lat

seems to have changed his mind and decided to call it A
interesting connection between Artha (wealth) and go
Kautilya as one of the earliest theorists of political econ
the study of politics. The tradition of Arthashastr
established in ancient India. By the time of Kautilya, t
had emerged as a separate branch of knowledge contra
branches of knowledge dealing with religious and mo
Arthashastra leads us to believe that there was a fairly st

politics and administration in India in as early as 500 B

Like "The Prince" of Machiavelli, Arthashastra's set

Religion is mentioned in passing reference only as a mean

the interests of the state. The study of the state and adm

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The Structures and Principles of Public Organisation 467

main topic. No doubt, Mahabharata, the epic on war, is another great source

of information on the science of politics but Kautilya's Arthashastra

represents the finest and fullest exposition of the administrative mechanisms

in ancient India. The Arthashastra contains 15 books, 150 chapters, 180

sections, and 6,000 slokas (verses). 8 Having discussed various problems
connected with the kingship in Book I, it gives an exhaustive picture of
the civil administration in Book II. The next two books deal with the civil,

criminal, and personal law. Book V deals with the duties and
responsibilities of the courtiers and retainers of the king and Book VI
describes the nature and functions of the seven prakritis (elements) of the
State. The last nine Books are devoted to an exhaustive discussion of the

problems connected with foreign policy. Under foreign policy, Kautilya

gives considerable attention to the Mandala theory (balance of power
theory) to address the issues of interstate relations in ancient India.
Significantly, Arthashastra does not address questions of political
obligation and morality. Inspired by the tradition of Dharma (order),
Kautilya does not theoretically explore the deeper political issues connected

with freedom, justice, and equality.

Some commentators hold that Arthashastra is a major source of

information about the administrative system in ancient India but it is not a

theoretical treatise.9 Understandably, Kautilya, unlike Weber is not a

student of comparative historical sociology and does not provide
sophisticated theories regarding law, politics, and bureaucracy. It is
interesting to note that the Arthashastra is more a manual for the
administrator concerned with the practical problems of government. This
assessment, however, should not lead us to believe that Kautilya was devoid

of theoretical insights about the science of administration. He was not

only a famous statesman but also the founder of normative and empirical
foundations of realism in ancient India. His manual of statecraft is a

collection of rules, which a king would be wise to follow if he wants to

consolidate and expand his power. In this sense, Arthashastra comes close
to Sun Tzu' work on "The Art of War "and Machiavelli's "The Prince".

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The Indian Journal of Political Science 468

Arthashastra has often been compared with "The P

substantive and formal respects, Kautilya and Machiavell

goals: how a King can maintain his power and enlarge

territory. Both follow a ruthlessly instrumental game
approach to politics placing high premium on intrigue
Kautilya, in fact, elevates the institution of espionage to t

status of one of the major bulwarks of state power. Where

from Machiavelli is in his style and methodology. Unli

Kautilya's work is marked by a lack of historical sense. A
the administration without any historical references charac

work. But this is not unusual, considering the abstract an

of Hindu theory of history. By making his work remar

terms of historical analysis, Kautilya detaches his work fr

social milieu. In addition to this, Kautilya's work is high

all parts of Arthashastra are relevant to modern ad
developmental state But the analytical and empirical qualit

and generalizations offer valuable insight into the evolut

of public organizations. Expressing his concepts in the f
(equations), Kautilya appears as a master mathematician
exhibiting a high degree of intellectual discipline and rig

The principles of Organization in Arthashastra :

Like Weber, Kautilya looks at the two fundamenta

power in the society; authority and coercion. As an expone

in ancient India, he considers coercive power necessary to p

but he does not rule out the possibility of consensual aut

who is well educated and disciplined in sciences, d
government of his subjects, and bent upon doing good to
the earth unopposed, according to Kautilya.9 The authori
based not on brute power but on the willingness of th
disaffection among the subjects leads to revolt against t
numerous references to absolute power of the king in ancie

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The Structures and Principles of Public Organisation 469

does not advocate dictatorial or authoritarian regime. The powers of the

monarch are circumscribed by both political and ethical norms. Kautilya
believes, not unlike modern contract theorists, that state is an indispensable

institution for orderly existence. A country without government can not

exit. He, however, does not explicitly refer to contract theory but hints at

some form of crude contract theory. If the king's government fails in its

duty, the people dislodge that government. Kautilya warns the king that "

no king should give room to such causes as would bring about

impoverishment, greed or disaffection among his people... An
impoverished people are ever apprehensive of oppression and destruction

(by over-taxation, etc.), and are therefore desirous of getting rid of their
impoverishment, or of waging war or migrating elsewhere."10 Here
Kautilya hints at the internal destruction of the state as a result of oppressive

public policies, especially economic ones. Therefore, state arises from

the society and retains its independence as long as it is not constrained by

predatory political and economic policies.

A clear picture of Kautilya' theory of public organization emerges

from his suggestions about the duties and responsibilities of the king and

discussion of various departments and officers of the state. It is interesting

to note that Kautilya, like Woodrow Wilson believed that administrative

efficiency as well as administrative responsibility would be enhanced
through the establishment of single centers of power. In Kautilya's view,

governmental power needed to take on more integrated and centralized

structure. Since the prevalent form of government in ancient India was
monarchy, the centralized nature of personnel administration suited the
distribution of power in the society. But unlike Wilson, Kautilya does not

believe in the dichotomy of politics and administration. The king is the

core of administrative apparatus and initiator of public policy. The unity
of command provided the king with the necessary means to exercise his
formal authority over the bureaucracy. All ministers and officials were
appointed and sacked by the king. In order to achieve efficiency, Kautilya
argues that the responsibility for public action should be located in a single

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 The Indian Journal of Political Science 470

authority. He says that "the king shall employ his

ministers; for they can be trusted by him as much as
knowledge of their honesty and capacity".1 1 The patri
recruitment policy does not throw merit to the winds
states that "ministerial appointments shall purely depend

This is satisfactory in all respects; for a man's ability is in

capacity shown in work, and in accordance with the d

working capacity."12 Although he does not use the te
recruitment", Kautilya refers to merit based recruitmen

officials. It is worth noting that even the king has to

qualifications and leadership values. In the words of Ka
having undergone the ceremony of tonsure shall learn
arithmetic under the authority of specialist teachers,
celibacy till he becomes sixteen years old. Then he sha
ceremony of tonsure and marry. In view of maintaining ef

he shall ever and invariably keep company with aged prof

in whom alone discipline has its firm roots. He shall spend

receiving lessons in military arts concerning elephants,

and weapons, and the afternoon in hearing the lessons in

the king acquires leadership role through rigorous educati

In addition to this, Kautilya recommends certain psycho

the king.

It is interesting to note that Kautilya places a lot of importance on

active and virtuous leadership values. At some places Kautilya's precepts

echo American political scientist David Barber's presidential typology in
terms of psychological characteristics of leadership. Kautilya would have
agreed with David Barber in that leadership is shaped by the personalities
of the occupant of the office.14 For instance, Kautilya says " a king who
has not his organs of senses under his control will soon perish. Restraint
of the organs of senses can be enforced by abandoning lust, anger, greed,
vanity, haughtiness, and overjoy. With his organs of sense under control,

the king shall keep away from hurting the woman and property of others;

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The Structures and Principles of Public Organisation 471

avoid not only lustfiilness, even in dreams, but also falsehood, haughtiness,

and evil proclivities; and keep away from unrighteous and uneconomical
transactions."15. Kautilya does not advocate a passive leadership. He
advises his king to enjoy his desires. In his words, " the king shall never

be devoid of happiness. He may enjoy in an equal degree the three pursuits

of life, charity, wealth, and desire, which are inter-dependent upon each
other."16 Although deprived of the insights of modern day psychology,
Kautilya clearly assumes that men are instruments of their desires. If
unrestrained by external and internal checks, any individual and group
will tyrannize over others.

Interestingly, modern literature on organizational leadership also

stresses the importance of active-positive leadership values. Emphasizing

values of leadership, Drucker argues that leaders should lead not only
through knowledge, competence and skill but also through vision, courage,

responsibility and integrity.17 The prestige of the leadership is intimately

connected with the ability of the organization to fulfill its goals. Kautilya's

model of leadership strikingly resembles what Bass calls " quality of life
management" . 1 8 According to Bass, "quality of life management calls for

the transformation focus on broader long term societal needs and objectives

transcending the firm's own immediate interests. A sense of contributing

to the greater good is fostered. A consciousness of mission is seen in the

value that what is good for society is good for the company."19
Furthermore, Kautilya's leadership principles do not consider co-workers
as passive creatures. Like modern organizational theorist Douglas
McGregor, Kautilya pursues the argument that successful management
depends on the ability of the leadership to predict and control human
behavior. In the words of Kautilya, "a king endowed with personal qualities
endows with excellence the constitutive elements not so endowed".20

Kautilya does not believe that the average human being has an inherent
dislike of work and responsibility. If inspired by a strong virtuous
leadership, the average worker exercises commitment to the achievement
of organizational objectives. According to Kautilya, " when the king is

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 The Indian Journal of Political Science 472

active the servants become active following his example. If

they too become remiss along with him".21 Thus, Kautily
"Theory X" assumptions, an approach to modern organizat
on rewards and punishments, coercion and control in orde

workers to achieve organizational goals.22 According t

whatever character the king has, that character the constit

have, being dependent on him in the matter of energetic

remissness."23

In essence, Kautilya demonstrates the significance of

and personality in shaping the set of norms that govern t

people in the organization. In other words, Kautilya's kin

resembled Weber's charismatic leader, a man treated by t
endowed with supernatural, superhuman, or at least specifica

powers or qualities.24 Kautilya, however, endorses Weber

of charisma partially not fully. Unlike Weber, he does not be

king's authority is outside the realm of everyday routine and

sphere. In this respect, Kautilya is opposed to divine of ma

leadership. Attempting to establish organizatiòn on th
qualities of the leadership, Kautilya's scheme of the admin
contradicts some of the Weberian generalizations about th
charismatic leader.

According to Weber, the administrative staff of the a charismatic

leader does not consist of "officials; at least its members are not technically

trained. It is not chosen on the basis of social privilege nor from the point
of view of domestic or personal dependency. It is rather chosen in terms

of the charismatic qualities of its members... there is no such thing as

"appointment" or" dismissal" no career, no promotion There is only a call
at the instance of the leader on the basis of the charismatic qualifications
of those he summons."25 Contrary to Weber's repudiation of charismatic
leadership in the formal organization, Kautilya advocates a professional
bureaucracy headed by a charismatic and virtuous leader. In electing

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The Structures and Principles of Public Organisation 473

George Washington as the first president of the Republic, the founding

fathers of American Constitution would have satisfied Kautilya's ideas of

exceptional qualities of leadership. The founding fathers knew that

Washington would guard the office of the presidency from the corrupting

influence of avarice, greed, ambition and lust for power. Noting

Charismatic qualities of Washington, Marcus Cunliffe says that" babies
were being christened after him as early as 1775, and while he was still
President, his countrymen paid to see him in waxwork effigy. To his
admirers he was "godlike Washington", and his detractors complained to
one another that he was looked upon as a " demigod" whom it was
treasonous to criticize".26

Personnel Administration in Arthashastra

Administration is possible with the help of experts. In the words of

Kautilya "sovereignty is possible only with assistance. A single wheel can

never move. Hence, the king shall employ ministers and hear their opinion27

The office of amatya (minister) is justified by the impossibility of one-

man rule and by the number as well as the wide distribution in space and
time of the governmental functions.

Kautilya recognizes that to run the government efficiently, the king

needs a body of personnel to help him. The ministers called amatya

constitute the second most important element of bureaucracy in the
Arthashastra. It seems that Kautilya uses the term amatya and mantrin
(minister) interchangeably.28 Amatya and mantrins refer to all high officers
of the state in the modern sense. Ail kinds of administrative measures

were preceded by deliberations in the council of ministers. The council of

ministers was the highest deliberative body in the days of Kautilya.
However, it would be a mistake to assume that this council of ministers

was structured around notions of collective responsibility or public

accountability. The council, in the absence of any institutional
independence, did not enjoy much power in the face of the absolute powers
of the king. The council, however, provided the institutional space where

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The Indian Journal of Political Science 474

public policy was debated at least in theory. This debat

general public. A strict sense of organizational seçrecy
according to Kautilya. He says that " the subject natter
be entirely secret, and deliberations in it shall so 'carri
can not see them."29 Kautilya advises his king to appoint q

and abide by their advice in the administration of th

Furthermore, he recognizes an important element of p
he says that " no deliberation made by a single person
the nature of the work which a sovereign has to do is to

the consideration of both the visible and invisible cause

despise none, but hear the opinions of all.30 Kautilya w

the council a large body. For the size of the council, h
shall consult three or four ministers. Consultation with

may not lead to any definite conclusion in cases of com

single minister proceeds willfully and without restrain
with two ministers, the king may be overpowered by the

or imperiled by their mutual dissension. But with three o

he will not come to any serious grief, but will arrive at satisf

Interestingly, consistent with modem democratic

Kautilya does not prescribe a fixed number for the cou
He advises his king that "the school of Manu (the first
says that a king should make his assembly of ministers
ministers; the school of Brihispati says that it should
members... but Kautilya holds that it should contain as
the need of the kingdom requires".32 Although the k
ultimate authority, the council of ministers emerges as th

decision-making body in the organizational setup of th

Kautilya does not focus on the behavioral dimensions
ministers; a key variable in the rational model of adminis

looks at the functional aspects of the council of ministers an

from the policy to the operational level. Enforcing obed

the authority is the main responsibility of the council

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The Structures and Principles of Public Organisation 475

idea of securing obedience from the governed runs parallel to Weberian

notion of power. The possession of power depends in large measure on
the ability of the state to enforce its orders in the community. Describing

the functions of the council, Kautilya says " those ministers shall have to

consider all that concerns the parties of both the king and his enemy. They

shall also set themselves to start the work that is not yet begun, to complete

what has been begun, to improve what has been accomplished, and to
enforce strict obedience to orders (niyogasampadam)".33

Organizational Goals :

Kautilya lived in the era of imperial Mauryan bureaucracy and so

he understood the public significance of the organization. The idea of
public domain of the bureaucracy was so pervasive in his days that he
does not accept the so-called dichotomy between public and private
organizations. He considers administration as an integral part of the
government. This view of administration is consistent with the writings of
David Waldo and James Fesler in which they explore the connection
between the administrative and political realms. In Kautilya's work, the
government was the leading form of organization and its basic philosophy

was to create a welfare state. The duty of the ruler in ancient India is
expressed by Kautilya in terms of Yoga-Kshema (welfare). This implies
something more than mere protection of person and property. In fact, Yoga-

Kshema implies the idea of welfare, including the idea of happiness,

prosperity and so on.34 Therefore, it seems that Kautilya attempted to
define organizational philosophy in terms of welfare of the various
stakeholders and the society. In spite of the monarchical form of
government, the king's primary goal as the leader of the organization was

to act in tandem with the welfare goals of the organization. Highlighting

his organizational philosophy, Kautilya says " in the happiness of the

subjects lies the happiness of the king; in their welfare his welfare; whatever

pleases himself he shall not consider as good, but whatever pleases his
subjects he shall consider good."35 The public welfare driven

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The Indian Journal of Political Science 476

organizational philosophy of Kautilya is in tune wit

public administration. The subjectivist tradition in p
enunciated in the writings of Ralph Hummel, Kath
Forester, Howell Baum, and others testifies to the in

public values in the organization in the 1980s and ea

Structures of the Organization : Types of burea

selection, training, and salary structure :

To regulate public activities and to design the mo

for officers of the state to perform complex task
different types of mangers or administrators. The t

Kautilya shows considerable attention to the sta

organization espoused by Luther Gulick and ot
administrative management school in the 20th centu
authority, clear chains of command, narrow spans o
job descriptions govern Kautilya's administrative struc

called Amtayas are divided into three distinct types

meaning one who is employed or appointed. Consistent

of hierarchy, there were superior and inferior officers

For instance, yukta is the head of the department. Si

subordinate officer who regularly reports to the hea
The lowest rung of the officers was called tatpurus
of the lowest category.36 Job classification on the bas

hall mark of modern Weberian bureaucracy. Kautily

recruitment and selection procedures. He believes th
is tested by his fitness for performing some work.
should appoint persons to the post of ministers or amat

their qualifications as well as the conditions of tim

nature of the work. Guidelines on the qualification
ministerial officer included following traits and skills

family, influential, well trained in arts, possess of fore

memory, bold, eloquent, skillful, intelligent, possess of

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The Structures and Principles of Public Organisation 477

and endurance, pure in character, affable, firm in loyal devotion, endowed

with excellent conduct, strength, health, and bravery, free from

procrastination and fickle mindedness, affectionate, and free from such
qualities as excite hatred, and enmity.37

Kautilya not only prescribes abstract qualifications but also lays

out unique mechanism to evaluate the qualifications of aspirants for the
post of ministers. He tests these qualifications in view of the complex
nature of governmental work by a combined process of observation ( both

direct and indirect) and inference. He says that "knowledge about native
birth and influential position shall be ascertained from reliable persons,
educational qualifications from professors of equal learning; theoretical
and practical knowledge from successful application in works, eloquence
from power shown in narrating stories,... and affectionate nature by personal

experience. "(3 8)In addition to this, Kautilya suggests background check

on the candidates for the various posts in the administration. Assisted by
his Prime Minister, priests and spies, the king examines the character of
the ministers. The allocation of departments is based on the verification
of character. According to Kautilya, "those whose character has been tested

under religious allurements shall be employed in civil and criminal courts;

those whose purity has been tested under monetary allurements shall be
employed in the work of revenue collector; those who have been tried
under love allurements shall be appointed to superintend the pleasure
grounds... those whose character has been tested under all kinds of
allurements shall be appointed as prime ministers, and those who are proved

under one or all of these allurements shall be appointed in mines, timber

and elephant forests and manufactories.39 Kautilya also warns the king
not to appoint three categories of persons:

* the maulahars- one who has squandered away his patrimony

* the tadavika- one who spends everything that he earns, and

* the kadarya- the miser who amasses wealth by causing hardship

to himself and his dependents.40

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The Indian Journal of Political Science 478

The training aspect, which is a crucial compone

organization, does not escape Kautilya's attention. It is t

primacy to the training of the king in order to

organizational leadership. However, qualifications pr
candidates seeking state offices outline training asp
personnel administration. Training of personnel in A
one-time affair. Kautilya emphasizes constant upgra
and skills by keeping a tab on the conduct of civil serva

engaged in work, the officers shall be daily examined; f

fickle-minded, and like horses at work, exhibit const

temper. Hence the agency and tools which they make u

time of the work they are engaged in, as well as the

work, the outlay, and the results shall always be
According to Kautilya, it is the responsibility of the c
department to scrutinize the real amount of the
subordinate officers. Therefore, through constant scrut

and work of each employee, training would be impart

manning the administration.

Kautilya devotes chapter III of Book V to the disc

based wage structure for the state employees.42 He sugg

should fix under one-fourth of the total revenue the ch

his servants. Consistent with modern bureaucratic pra

that the king should look to the bodily comforts of his se

such emoluments as can infuse in them the spirit to w

agrees in principle that low salary may lead to low m
the organization. He provides a detailed description of
salary structures suiting the functional and hierarchical

officers in the organization. The highest salary is rese

the priests, the commander of the army, the heir-apparen

of the king and the queen. The lowest salary is paid t

miscellaneous work, attendants upon the royal person
the procurer of free laborers.43

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The Structures and Principles of Public Organisation 479

Kautilya does not refer directly to the rules about promotion and

transfer. But he does mention that "those who increase the king's revenue

instead of eating it up, are loyally devoted to him, shall be made permanent

in service".44 Modern managers struggling to figure out ways to curb

administrative corruption will get tons of suggestions from Kautilya.
Commenting on the nature of administrative corruption, Kautilya says
that "just as fish moving under water can not possibly be found out either

as drinking or not drinking water, so government servants employed in

the government work can not be found out while taking money."45 He
admits that it is impossible for a government servant not to eat up, at least

a bit of the king's revenue. Aware of the problem of embezzlement by

government servants, Kautilya discusses about forty ways of
embezzlement. To check the problem of administrative corruption, he
lays down elaborate mechanism of reward and punishment for government

servants accused of corruption. For instance, if a government servant

supplies information about embezzlement, he gets as reward one- sixth of
the amount in question.46 In addition to monetary reward, transfer of
officials is suggested as one of the ways to curb the practice of corruption 47

Kautilya describes meticulously various officers of the state and

divides the work of the government into distinct departments both state-

owned corporations (mining etc.) and government departments. The

various officers and departments of the state mentioned in the Book II of
Arthashastra are :

* Director of Stores

* Superintendent of Audit and Accounts office

* .Superintendent of Treasury

* Director of Mines

* Superintendent of Gold

* Superintendent of Agriculture

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 The Indian Journal of Political Science 480

* .Director of trade

* Director of Forest Produce

* Superintendent of the Armory

* .Superintendent of Standardization Weights and me

* Collector of Customs and Tolls

* Superintendent of Textiles

* Director of Agriculture

* Controller of Liquor

* The supervisor of Slaughter( preservation of Animal life)

* The Controller of Shipping

* The superintendent of Cattle

* Superintendent for various sections of the Army.

* Superintendent of passports

* City superintendent

* Secret agent

* Superintendent of Prostitutes.

Significantly, Kautilya discusses in detail the practices of each

department. Consistent with the regulatory activities of the modern
administrative state, Kautilya's functional description of the department
begins with a sort of 'mission goals' of the department. For instance, chapter

16 of Book II deals with the department of commerce. This department is

headed by the Superintendent of Commerce. According to Kautilya, the

superintendent of commerce ascertains demand or absence of demand
for, and rise or fall in the process of various kinds of merchandise. He
says "the superintendent of commerce shall also ascertain the time suitable

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The Structures and Principles of Public Organisation 481

for the distribution, centralization, purchase and sale of merchandise".48

Kautilya's administration establishes a strong regulatory regime on the

common people. It controls not only business, commercial, military
activities but also means of entertainment For instance , there is a separate

department regulating prostitutes. In the words of Kautilya, "the

superintendent of prostitutes shall employ a prostitute (ganika), whether
born or not born of a prostitute's family, and noted for her beauty, youth,

and accomplishments... Whenever such as prostitutes goes abroad or dies,

her daughter or sister shall act for her and receive her property and salary.

In the absence of any of these, the king shall take the property. With a
view to add to the splendor of prostitutes holding the royal umbrella, golden

pitcher, and fan, and attending upon the king seated on his royal litter,
throne, or chariot, prostitutes shall be classified as of first, middle and
highest rank, according to their beauty and splendid jewelry."49
Furthermore, "the prostitute shall supply information to the superintendent

as to the amount of her daily fees, her future income, and the paramour
under her influence".50 This elaborate system of bureaucratic control of
public and private aspects of human life predictably reminds us about
modern totalitarian regimes in the erstwhile communist countries in Eastern

Europe.

Trade and Financial Administration :

Interestingly, Kautilya has the fullest grasp of financial

administration, a major branch of modern bureaucracy. He considers
treasury or revenue branch of the state as one of the seven organs of the
state. All undertakings depend upon finance, according to Kautilya. His
fiscal administration seems to be based on Keynesian demand-side
economics rather than supply-side economics. No where does Kautilya
refer to Laissez-faire capitalism. The role of the government in the
economic life of people was substantial. Almost all major areas of economy

were regulated by the Kautilyan administration. For instance agriculture,

especially on the crown lands, was regulated by the superintendent of

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The Indian Journal of Political Science 482

agriculture. In addition to this, the superintendent w

subordinate staff maintained land records with detail
practices.51 The superintendent of cows looked after the

to Kautilya, " the superintendent of cows shall supervise

for wages, herds surrendered for a fixed amount of

abandoned herds... and the amassed quantity of milk and c

In the same vein, the Kautilyan administration exercis

over trade; internal and foreign. The superintendent o
regulated internal and foreign trade. According to Kautil

foreign, and internal shall all be liable to the payment

exported and imported. ".53 Curiously, Kautilya refers

"protectionist trade regime". He says that whatever tra
is useless to the country shall be shut out; and whatev
good shall be let in free of toll.54

Aside from managing agriculture and trade, t

administration handled the issue of budgeting and acco
gives a detailed description of the organizational and p
of fiscal administration in ancient India. The business of collection of

revenue is done by an officer called the Collector- General. Kautilya refers

to a large bureaucratic apparatus with regard to collection of revenue. He

recognizes that a government budget is a statement of revenue and
expenditure. The Collector General, for instance, collects revenue from
forts, country parts, mines, buildings, gardens, forests, herds of cattle, and

roads of traffic.55 The Collector-General is responsible for the collection

and audit of all kinds of revenue. Like an expert economist or financial
management guru, Kautilya mentions three types of receipts; current, last

balance, and accidental. In the words of Kautilya," what is received day

after day is termed current. Whatever has been brought forward from year

before last, whatever is in the hands of others, and whatever has changed
hands is termed last balance. What ever has been lost, fines levied from

government servants, presentations to the king, the property of those who

have fallen victims to epidemics leaving no sons, and treasure troves- all

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The Structures and Principles of Public Organisation 483

these constitute accidental receipts."56 In addition to revenue, Kautilya

mentions two kinds of expenditure. In his words," expenditure is of two
kinds-daily expenditure and profitable expenditure." What is counted
every day is daily. Whatever is earned once in a year, or a month is termed

profit. Whatever is spent on these two heads is termed as daily expenditure

and profitable expenditure respectively.57 Apparently Kautilya does not

support the idea of "deficit budget". He clearly states that "a wise collector

General shall conduct the work of revenue-collection, increasing the

income and decreasing the expenditure".58 The budgeting procedure
indicated in Arthashastra seeks to develop a kind of managerial approach
to public budgeting. Kautilya's budgeting procedures are aimed at
promoting the values of efficiency, economy, and managerial effectiveness.

The main function of the treasury department was to cut out waste, increase

public prosperity, and strengthen control over the operation of revenue.

Decentralization of Organization :

One of the major characteristics of Kautilya's administrative system

is the interaction between top and lower levels of the organization. The
Collector - General divides the entire kingdom into four districts for revenue
and administrative convenience. Each district comes under an officer called

stahnika. Another subordinate layer of officer is represented by junior

officer called gopas. According to Kautilya, "it is the duty of Gopa (village

accountant) to attend to the accounts of five or ten villages, as ordered by

the Collector-General.".59 Thus, Gopa is a crucial link between the lowest

level of administration and the highest level of bureaucracy. As a village

accountant, Gopa maintains a record of all agricultural and other holdings
in the village. The law and order at the village is maintained by three
village commissioners who suppress disturbance to peace.60 Next to Gopa
is the village headman. He is a state official who maintains the village on
behalf of the Collector-General. Thus, although Kautilya justifies
centralized form of public organization, he favors déconcentration and

devolution of public functions. This may not be ideal setting for genuine

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The Indian Journal of Political Science 484

democratic decentralization but at least a recognition o

bureaucracy is advanced in Arthashastra.

Conclusion :

Rooted in the empirical reality of ancient India, Kautilya's

administrative state is not an ideal -type bureaucracy. It represents maturing

of an analytical and prescriptive intellectual tradition in regard to the theory

of organization in India. Giving primacy to public values, Kautilya lays

out a value-based hierarchical but decentralized organizational system.
There are many references in Arthashastra to modern concepts of
ecological, employee, and consumer welfare. He does not advocate
immoral and corrupt corporate culture in which individual citizens can
not realize their true personalities as ethical beings. The growing concerns
about ethics in organizational literature endorse Arthashastra's guidelines
on establishing a framework for moral and ethical administration. His
support for secular means such as espionage, trickery etc. to protect the
state from complete destruction is conditional. The aim of Kautilya's
statecraft was limited, for it consisted in ensuring the security and stability

of the King's rule inside the kingdom. The fact that Kautilya articulates
the goals of public organization in terms of social welfare is cònsistent
with democratic norms of modern organization. In addition to this,
Kautilya's notion of public organization presents a good mix of traditional,

charismatic, and rational authority. Here, we should add a word of caution.

Unlike Weber, Kautilya does not visualize the disadvantages of a large

public organization. Weber clearly foresaw the possibility of men trapped
in the specialized routines with little awareness of the relationship between

their jobs and the organization as whole. No where does Kautilya discuss
the consequences of large scale bureaucratic control on the individual
initiative and creativity. In the fast emerging world characterized by what

philosopher Marc Auge says "hyper modernity" where excess of space,

time and reference is the basic leitmotif of life, the notion of public
organization has paradoxically come under serious attack by all shades of

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The Structures and Principles of Public Organisation 485

post-modernists. Therefore, while routinely evoking the fears of "Oriental

Despotism" Kautilya's Arthashastra continues to remind us about the

significance of public organization in terms of public welfare and value -
based leadership.

References :

1 . Waldo, Dwight, the Study of Public Administration, Doubleday,

Garden City, 1955, p.70.

2. Shamasastry R, Kautilya's Arthashastra. Mysore Printing and

publishing House, Mysore, 1960, p. 10.

3. Ibid. VI.

4. Ibid., pp.8-9.

5. Ibid., VII.

6. Ibid., p.459.

7. Ibid., p.459.

8. Ibid., p.5.

9. Ramesh Arora & Rajni Goel, Indian Public Administration,

Wishwash Prakashan, New Delhi, 1995, p.4.

10. Shamasastry, op.cit., pp.306-307.

11. Ibid., p. 12.

12. Ibid., p.13.

13. Ibid., pp.12-13.

14. Barber James David, The Presidential Character: Predicting

Performance in the White House, NJ: Prentice Hall, Englewood
Cliffs, 1972, p.12.

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The Indian Journal of Political Science 486

15. Shamasastry, op.cit., pp.1 1-12.

16. Ibid., p. 12.

17. Drucker, P.F. The Principles of Management, Harper An

New York, 1955, p.88.

18. Bass, B, Leadership and Performance Beyond Expectatio

Free Press, New York, 1985, p. 1 83.

19. Ibid., p. 183.

20. Shamasastry, op.cit., p. 12

21. Ibid., p. 19.

22. McGregor, D. The Human Side oi enterprise, Mcgraw-Hi

York, 1960, pp.33-34.

23. Shamasastry, op.cit., pp. 8- 17.

24. Weber, Max, The Theory of Social and Economic Organi

The Free Press, Illinois, 1947, p.359.

25. Ibid., p.360.

26. Marcus CunlifFe, George Washington: Man and Monumen

American Library, New York, 1958, p. 15.

27. Shamasastry, op.cit., p. 12.

28. Ramesh Arora and Rajni Goel> op.cit., p.7.

29. Shamasastry, op.cit., p.27.

30. Ibid., p.28.

31. Ibid., p.28.

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The Structures and Principles of Public Organisation 487

32. Ibid., p.28.

33. Ibid., p.28.

34. Ghosal U.N., A History of Indian Political Ideas, Oxford University

Press, Bombay, 1959, p. 150.

35. Shamasastry, op.cit., p.38.

36. Ibid., p.57.

37. Ibid., p. 14.

38. Ibid., p. 14.

39. Ibid., p. 16-1 7.

40. Ibid., p.60.

41. Ibid., p.68.

42. Ibid., p.276.

43. Ibid., pp.276-77.

44. Ibid., p.70.

45. Ibid., p.70.

46. Ibid., p.68.

47. Ibid., p.70.

48. Ibid., p. 104.

49. Ibid., p. 136.

50. Ibid., p. 138.

51. Ibid., p. 127.

52. Ibid., 142.

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The Indian Journal of Political Science 488

53. Ibid., p. 124.

54. Ibid., p. 123.

55. Ibid., p.58.

56. Ibid., p.60

57. Ibid., p.60.

58. Ibid., p.61.

59. Ibid., p. 158.

60. Ibid., p.227.

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