Indian Management Ideas – Part-1: General Management

Abstract

The primary goal of any economy is to maximize the material wealth of nations (Adam Smith), production and distribution of wealth (John Stuart Mill), to maximize material wealth and material welfare (Alfred Marshall), satisfaction of the human needs with the scarce means (Lionel Robbins). Whereas to Kautilya it is the subsistence of mankind and the sustenance of the Earth containing the mankind (Kautilya). In a nutshell the primary goal of an economy is to ensure the survival of the people. Thus an economy is a system of production, distribution and consumption of wealth based on division-of-labor. The main purpose of division-of-labor is to do more work or produce more in lesser time. In simple terms, an economy is a time constrained production and welfare optimizing system. A firm, whether small or big or national or multinational, is only an element in the economy set functioning towards achieving the macro or economy’s objective. Thus the efficiency and effectiveness of the economy depends on the efficiency and effectiveness of the firms. The efficiency and effectiveness of firms determined by the efficient management. Various scholars have attempted traced the evolution of management ideas over a long period of time. This paper attempts to trace and present a miniscule as a sample from the Indian management ideas on ‘general management’ from only a few Indian scholars or works that most of them date back to more than 5000 years and 2000 years and yet consistent, relevant and valid even today! This paper attempts to cover the following management areas under ‘general management and their aspects namely: Science and art specializations known to Indians during Vedic times, management – definition, management functions, management process, firm’s objectives, corporate social responsibility and firm’s objectives, case method of teaching management, management by objectives, unit of command, motivation, origin of modern corporations, board size corporate governance, selection of top management for corporate governance, business ethics, decision-methods, rules for decision-making, decision errors, time dimensions, and a collection of Indian etiquettes for managers.