An Indian Model of Management, Economics and Governance : Introduction

Narendra Joshi Management is an art and science of using all the available resources like men, machines, methods, money and material with highest possible efficiency and thereby to get desired products and services at minimum cost, maximum quality and minimum waste in best possible time. This is supposed to help in maximum wellbeing of maximum number of people in any society. Thus, Economic thought and Administration /Governance is closely linked to Management practices. Corporate governance is all about rules, processes, or laws by which businesses are operated, regulated, and controlled. Though in modern age it is largely believed that this area of human knowledge is predominantly developed and spread by western civilization, especially after industrial revolution in last 200-300 years, it is not true. Sadly, inputs from Indian ethos are still quite ornamental if not minimum and most of the management literature and syllabi are dominated by western thought, experiments and role models. Indeed, these western methods and models have been very useful and have immensely helped businesses all over till recently. We have nothing against the western model and in the true Indian spirit welcome every good thought from anywhere and by anyone. However, there are two issues here. Each race has some peculiarities and a culture, a soul and that gives external forms to things in tune with the innate design. This organically generates theories and methodologies suiting the nature and the mission of the race. Thus, individuality of a person and the race is not against the ideal of the Human unity but suits it in true way as uniformity is not the real unity. Steamrolling all differences and diversities and advocating wholesale singular methods across globe have destroyed several natural, organic springs of lives and their expressions in all fields including management, economics, and governance. Hence, we need unity with diversity. Secondly, at present even western methods and paradigm is seriously challenged. Globalization has brought us physically closer. However, when the minds and hearts are not ready, external mechanical unity does not help. Today we see that employees in a business establishment at all ranks are struggling for peace and happiness, searching for reason to work and contribute selflessly, to face critical ethical dilemmas, make decisions in an unpredictable and complex scenarios, to balance in fulfilling their duties for work, home, society, nation and humanity. To serve customers in true way and satisfy them or to woo them for wants artificially created and survive in acute cutthroat competition is also a dilemma. To know what we really want and how to balance between need and greed, want and luxuries and how much to be a party of the profit seeking endeavors of corporates which are at times eco disastrous, ethically dubious is another dilemma. While Science has shifted now from linearity to nonlinearity, from mechanical model to quantum model, how management theories and practices can remain adhered to the old linear, Cartesian, reductionist paradigm? How effectively to imbibe and express these new horizons of truth revealed by new science and channelize it for larger good of as many as possible through our business and economics is another dilemma. Many more can be cited like this. But the point is the foundations of western management or for that matter any other branch of knowledge has been severely shaken by the challenges and revelations of the new age. While the more advanced minds there are sincerely searching for a new, radical, holistic paradigm in everything including management and economics or governance, we Indians have been still aping the same old model of western management. And because it is alien to our soul and unsuitable for our environment, such blind following is bound to be incomplete in plans, halfhearted in execution, ineffective in results and insufficient in providing the answers. ‘It will be a lunatic absurdity to build something on those sinking foundations.’ (Sri Aurobindo) Is there something which is really an Indian model of management, economics and governance? Surely there is. It is unlikely that a civilization like ours has not just survived but thrived for millenniums and is devoid of some unique original ideas and principles in the field of management, governance and economics. Surely, she has many things to contribute and to pioneer in this field. The fact is Indian trade and business spread in most of the parts of the world, and traders’ practices were praised even by the competitors. That the technological prowess, manufacturing and service quality, logistics and supply chain perfection was immaculate. This was praised and feared by the far-off kingdoms including Greeks, Romans, Europeans and Arabs and is a testimony of Indian genius in the field of management and allied fields. The world market and GDP were dominated by India for a long period of history and it was the riches of India which attracted so many invasions. We must study these things and then adapt them judiciously to the need of today. We also need to see the underlying evolution of consciousness supporting this unique management thought in the history of India and then trace this evolutionary curve forward in future. For that we need to first know what Indian approach to the field of management is. It is noteworthy that like all Her expressions, even Indian Management (administration & Economics) is rooted in Her profound spiritual vision which assumed different forms as per Time Cycle and passed through an evolution of consciousness over the Human Cycle of history. It is rooted in the ancient scriptures of India namely the Vedas and the Upanishads. Thus, the sources for this particular study are the Veda, the Upanishads, Niti Literature, Subhashita, Ramayana and Mahabharata, Puranas, Dharmashastra, Kautilya’s Arthashastra, Manu smriti, Yajnyavalkya Smriti, Tirukkural, literature by saints like Ramadas, Jnaneshwar, and several others. The ancient, medieval and modern history and literature of India is profuse with examples which can be reinterpreted for getting inputs to the field of modern management. Therefore, in conclusion, Indian history needs to be rewritten first from the point of view of Her rich contribution to the fields like management, economics, and governance. The parts and pointers of modern management which will be taken up for this study are Leadership, Motivation, Recruitment and training, goal setting and appraisal, Quality Management, Human Factor, Spirituality at workplace, Kaizen, JIT and Lean thinking, Process management, Logistics and Supply chain management, Cost management, Strategy and planning, Marketing management, Globalization, Whole brain thinking, holistic training for employees, Product Life Cycle Management, Innovation management, Knowledge management, etc. The references or support will be from The Vedas, The Upanishads, The Dharma Shastras, Smriti and Niti, Panchtantra, Subhashita, Wise man’s sayings and both sacred and mundane literature. Some specific cases like Sri Rama, Sri Krishna, Janaka, Yajnyavalkya, Chandragupt, Chanakya, Ashoka, Vikramaditya, Harsha, Rajaraja Chola, Chalukya, Vakatak, Rashtrakuta, Ahom, Pal kings, Samarth Ramadas and Chatrapati Shivaji, Bajirao Peshave, Vijayanagara kingdom, Khalsa and Sikh gurus, etc. may be useful for further making this point clear. Model used as major support for this paper is five ages model comprising of the age of Spirit, the age of Dharma, the age of Classical achievements, the age of Conventions, the age of New Dawns which is elaborated by Sisir Kumar Mitra in his book ‘India’s evolution, its meaning.’ He has taken reference from the works of Sri Aurobindo, The Mother and Nolini Kanta Gupta. The works by Dr Madhusudan Reddy, Dr Fritjof Capra, Dr. S.K. Chakraborty, gave more insights for this endeavor. The Parallels with other models like The Four aspects or powers of the Mother, the model of The Human cycle and The Chaturvyaha can be seen in detail papers which will follow. Indian management must be based on Indian ideas and rooted in Indian soul. This should be the case with all other pursuits as well. The Cultural study of India can provide immense help for the discovery if this new model of Management which is immensely useful for the new age. It will be helped by this broader understanding of the term Culture: ‘The culture of a people may be roughly described as a consciousness of life which formulates itself in three aspects. There is a side of thought, of ideal, of upward will and the soul’s aspiration; there is a side of creative self-expression and appreciative aesthesis, intelligence and imagination; and there is a side of practical and outward formulation.’ (Sri Aurobindo, Foundations P51) We can see that sequence in the Cycle of Ages. Age of Spirit and Dharma gave the ideal, upward will and soul’s aspiration. Age of Classical creation gave creative self-expression and appreciative aesthesis, intelligence and imagination. Age of Conventions gave a side of practical and outward formulation. In another place Sri Aurobindo said : “There are three powers that we must grasp in order to judge the life value of a culture. There is first, the power of its original concept of life; there is, next, the power of the forms, types and rhythms it has given to life, there is last the inspiration, the vigor, the force of vital execution of its motives manifested in the actual lives of men and of the community that flourished under its influence.’ (Foundations , P95) Following table gives glimpse of this work wherein some samples of such links from ancient wisdom for the modern issues and questions are seen and summarized. Following table summarises some of the key issues for individual in an organization and corresponding inspiring vision and verses from The Gita and the Vedanta. ( shown a sample of the complete table ) Issues faced by Individuals and ideas needing crystallization in a modern enterprise: inputs to management Corresponding Inspiring Verses from the Gita and the Upanishads Who am I… identity crisis So Aham, Aham Brahmasi, Tatwamasi Values, Ethics, morality……..How an Individual should behave and live Do’s and Don’t’s for Arjuna in the Gita, Aptavakya, Vidhivat, Ritasya Pantha, mahajano yen gatah Yama Niyam in Patanjali Yogasutra, Upanishadic dictum; Satyam vad, dharmam Char… What are my duties? what is my role and duty as per role Dharma. Swadharme nidhanam Shreya… Swadharma, Kuldharma…Yugadharma Why should I work? What is motivation for working for an individual . Nimittamatram bhav Savyasachin, Lokasamgrahamevapi, Karmanye va dhikarste ma phaleshu kadachan Purpose of life for an individual… Prerana.. Vision and goal setting Etad deshe prasrutasya… Krunvanto Vishwam Aryam How can I stop distraction and dissipation of my mental energies Ath ken Prayuktoyam…Abhyas and Vairagya formula by Srikrishna How should I spend my time Kalo gacchti dhimatam Stress management Shanai Shanai To let go and surrender Sarva dharman Parityajya mamekam sharanam To start on mission, not to stop but persist Uttishthat jagrat Prapy Vran Nibodhat Charaiveti Charaiveti How a group is to be formed.. Aggregate or Human Unity Sangacchdhwam Sarve bhavantu sukhinaha Vasudhaiv Kutumbkam Leader models, Situational leadership, manager versus leader Ye yatha ma Prapdyante Paritranayam Sadhunam Sutre maniganaeva Vibhutiyoga Indian mind has a peculiarity of finding a Dharma and Shastra of everything. That is to find a law, a process and regulation so that the natural springs of average men are neither strangulated nor let loose. Scientific Management was all about finding Scientific basis for management. Thus Indian model of Vedanta, The Gita, and the Dharma and Shastra is bound to have a great possibility for new management. In India by careful training and penance, the Reason was clarified to be at once robust and delicate, minute and gigantic, ruthless and compassionate. This Reason ensured that there is rule, limit and method of everything to ensure minimum resources, minimum wastage, maximum output and avoidance of any crass or gross expression. These four pillars, Spirituality, Vitality , Creativity and Intelligence are harmonized for a common aim of Spiritual progress of self and each one, was the very essence of Indian Religion and Spirituality. Sri Aurobindo has explained it in The Renaissance in India: ‘But this supreme spirituality and this prolific abundance of the energy and joy of life and creation do not make all that the spirit of India has been in its past. It is not a confused splendour of tropical vegetation under heavens of a pure sapphire infinity. It is only to eyes unaccustomed to such wealth that there seems to be a confusion in this crowding of space with rich forms of life, a luxurious disorder of excess or a wanton lack of measure, clear balance and design. For the third power of the ancient Indian spirit was a strong intellectuality, at once austere and rich, robust and minute, powerful and delicate, massive in principle and curious in detail. Its chief impulse was that of order and arrangement, but an order founded upon a seeking for the inner law and truth of things and having in view always the possibility of conscientious practice. India has been preeminently the land of the Dharma and the Shastra. She searched for the inner truth and law of each human or cosmic activity, its dharma; that found, she laboured to cast into elaborate form and detailed law of arrangement its application in fact and rule of life. Her first period was luminous with the discovery of the Spirit; her second completed the discovery of the Dharma; her third elaborated into detail the first simpler formulation of the Shastra; but none was exclusive, the three elements are always present.’ Few examples of such applications can be cited here as follows: Manu Dharma Shastra 1. A king's responsibilities include overseeing the loans and mortgages, general sales, genuine ownership of the goods sold (checking the fake ownership), regular payments of salaries to the employees, disputes between employers and employees (a kind of principal-agent analysis). (A2-M1) 2. A king should never collect anything from the public that is not due to him even if he is in a poor state. But he should collect everything, however small that is genuinely due to him, even though he is already rich (Fairness principle). (A2-M2) Mitaaksharaa by Vijnaanesvara in 12th century AD is most notable among commentaries on Yajnavalkya Smrutee and the British judges used to rely on it to interpret and determine the Indian issues in courts.Even recently while interpreting 'animal-driven vehicle' for claiming/granting the state subsidy in Uttar Pradesh, a bench of the Supreme Court took help of the ages-old Mimansa Rules. The Hindu newspaper report (December 18, 2007); "Mimansa Rules of Interpretation (MRI) were still relevant and could be effectively used in courts whenever there was a difficulty or ambiguity in interpreting a principle or to understand the meaning of a word, the Supreme Court has held. 'It may be mentioned that the MRI were our traditional principles of interpretation laid down by Jaimini whose Sutras were explained by Shabar, Kumarila Bhata, Prabhakar, etc. These Mimansa Principles were regularly used by our great jurists such as Vijnaneshwar (author of Mitakshara), Jimutavahana (author of Dayabhaga), Nanda Pandit (author of Dattak Mimansa) etc. whenever they found any conflict between the various Smritis or any ambiguity or incongruity therein. There is no reason why we cannot use these principles on appropriate occasions,' (a Bench consisting of Justices A K Mathur and Markandey Katju) Kautilya advocated a model of mixed economy wherein individual merchants were free to do vyapar following some rules and regulations set by the state. He said that “Physicians undertaking medical treatment without intimating (to the government) the dangerous nature of the disease shall, if the patient dies, be punished with the first amercement.” According to Kautilya, "Taxation should not be a painful process for the people. There should be leniency and caution while deciding the tax structure. Ideally, governments should collect taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive. Taxes should be collected in small and not in large proportions. “ The elaboration and complete discussion of this subject is done in our management volume for IOM. References: ( for complete section of the said volume whose excerpts are given here) 1. Sri Aurobindo, SABCL Volume 2. (≈ 8 vol. of CWSA).–Karmayogin : Political Writings and Speeches (1909-1910).– Pondicherry: Sri Aurobindo Asram, 1972.– 441 p. 2. Sri Aurobindo, SABCL Volume 3. (≈ 1 vol. of CWSA).– The Harmony of Virtue: Early cultural writings.– 1890-1910.– Pondicherry: Sri Aurobindo Asram, 1972.– 489 p. 3. Sri Aurobindo, SABCL Volume 14. (≈ 20 vol. of CWSA).– The Foundations of Indian Culture: Popular Edition.– Pondicherry: Sri Aurobindo Ashram, 1972.– 434 p. 4. Sri Aurobindo, SABCL Volume 15. (≈ 25 vol. of CWSA).– Social and Political Thought: The Human Cycle. The Ideal of Human Unity. War and Self-Determination.– Popular edition.– Pondicherry: Sri Aurobindo Ashram, 1971.– 656 p. 5. Sri Aurobindo, SABCL Volume 17. (≈ 12 vol. of CWSA).– The Hour of God and other writings.– Pondicherry: Sri Aurobindo Asram, 1972.– 406 p. 6. Sri Aurobindo, SABCL Volumes 18-19. (≈ 21-22 vol. of CWSA).– The Life Divine Volume 18. Book 1, part 1 - book 2, part 1: Popular Edition.– Pondicherry: Sri Aurobindo Ashram, 1970.– 632 p. Sri Aurobindo, SABCL Volume 19. Book book 2, part 2: Popular Edition.– Pondicherry: Sri Aurobindo Ashram, 1970.– 633-1071 pp. 7. 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