Mahatma Gandhi as Management Guru

Management is as old as human civilization. However, management as a discipline assumed importance after the second world war and has emerged as one of the front ranking academic subjects in the world. The pursuit of management in prestigious institutions across the globe by bright and promising students testifies to its enormous relevance for our time. Professor Peter Drucker has been acclaimed as the founder of the management discipline and was being looked upon as a pivotal figure for making management one of the most sought after subjects in most of the countries. A perusal of Peter Drucker’s writings reveals his philosophy behind the discipline of management and his postulates to make it a principal instrument to run modern organizations, enhance productivity and achieve success. The domain of management essentially encompasses in its scope the values and vision for efficiently running an enterprise and accomplish its stated goals.

After more than six decades of the introduction of management as a vibrant discipline one is pleasantly surprised to find that Mahatma Gandhi has been acknowledged as a Management Guru. The Harvard School of Business Management has hailed Mahatma Gandhi as Management Guru of the 20th century. Boston Consulting Group’s CEO Arun Maira, prominent Professors of Management Professor C.K. Prahlad and Professor Arindam Chaudhury are now advocating to rediscover Mahatma Gandhi’s ideas and leadership qualities for making managers more successful, humane and compassionate. Why is it that a discipline which emerged as a key discipline in western world is now looking up to Mahatma Gandhi for deriving inspiration to enrich its field, deepen its contributions and make it more worthwhile for addressing the contemporary challenges?

Mahatma Gandhi was a Manager par excellence. His management was not based on any strategy or calculation but on deep conviction on certain fundamental principles and values which govern the whole universe. It is wrong to say that he was a strategist and therefore could succeed by following the well-crafted plans and formulations devised by applying the modern principles. His approach was as much based on spontaneity of action as on careful consideration of diverse issues confronting the nation, humanity and nature as a whole. His approach was far above the commonplace approach which stressed on outlays and outcomes and believed in a specific calculus to reach the goal. His management was born out of non-violence, care, compassion and modern values of liberty, equality and fraternity. Any attempt to manage the affairs of society and nation on the ideals of ancient civilization and contemporary human values will be of abiding significance for the modern managers.

It is indeed fascinating to note that the founder of the management discipline, Peter Drucker defined management in a manner which corresponded to the ideals of Mahatma Gandhi. It is a coincidence that Professor Drucker was born in 1909 when Mahatma Gandhi was in the midst of his first Satyagraha and wrote his first book ‘Hind Swaraj’ which criticized modern civilization based on multiplication of wants. When we refer to management the questions concerning spirituality or such other subtle aspects of life do not normally come to mind. However, the following observation of Peter Drucker is of immense importance to understand its deeper implications for human society and civilization. He wrote “Because management deals with the motivation and direction of people in a common venture, it is deeply embedded in culture. A basic challenge Managers therefore face is to identify those elements of the traditions and culture of their workers that can be used as management building blocks. Besides, as everyone like myself, who have worked with Managers of all kinds of institutions for long years, have become aware, management is deeply involved with spiritual concerns – the nature of men, good and evil.”

The spiritual concerns which form part of the above quotation is to my mind the most striking aspect of Peter Drucker’s observation. In Mahatma Gandhi’s remarkable life and work we find spiritualism as the most determining force. Spiritualism here, of course, does not mean the conventional sense of going to a place of worship. It has a much more fundamental meaning of going beyond one’s self and linking oneself with the larger society, the world and the universe. If we closely read Mahatma Gandhi’s autobiography, we find that he was an extremely ordinary person with the frailties of a lesser mortal. Yet he was not overshadowed by the weaknesses of his personality and remained immersed in the negative attributes of his life. What he did was essentially the kind of a self-management to subordinate the negative impulses to positive qualities. As a young lawyer he went to South Africa and was subjected to racial discrimination and injustice. The negative treatment he received did not generate in him the same negative feeling to take revenge on the perpetrators of injustice. Rather in the Peters martizburg Station, where he was thrown out of the first class compartment in spite of possessing of a valid ticket to travel, his active non-violence took birth. In other words, the positive learned traits prevailed over negative impulses to make him one of the shining examples of a Manager. And throughout his life he strove to ensure that the positive qualities reigned supreme over the negative attributes. A true manager is expected to cultivate such habits to “motivate and direct people for a common venture”, to use the words of Peter Drucker. Gandhiji could do so by self-assessment and self-control. He was constantly evaluating his own actions and taking steps to control his anger and passion. This he started doing right from South Africa where he commenced his first Satyagraha which was launched not only to fight for the democratic rights of Indians but also to restructure the world on the basis of non-violence. He did so without the strength of money or political power. He had all the disadvantages in a foreign land. Yet by harnessing the sole force or the spiritual force he launched a mighty movement which succeeded to a large measure in getting back the rights to the Indians and above all heralding a new era of non-violent mass action for the larger goal of achieving justice and starting the process of reconciliation and understanding among different races of mankind.

In the above mentioned observation of Peter Drucker we noted his reference to spiritual concerns which a manager should relate itself while dealing with nature of human beings. 100 years back in South Africa Mahatma Gandhi studied the nature of human beings and adopted a spiritual path to address the problems arising out of suffering of his compatriots. If we read his book ‘Satyagraha in South Africa’ we learn that he was in quest of truth. He wrote that he saw truth in the suffering of the Indians. He then aimed to redress the sufferings to attain self-realisation and achieve truth. It is this larger goal of reaching out to truth by redressing the sufferings of the people made him one of the finest Managers in human history. The advent of such a Manager is a byproduct of a deeper spiritual conviction which took him beyond the material sphere and made him an outstanding Manager engaged in experiments with truth. He exercised self-control and subjected himself to self-assessment unremittingly and thereby took steps towards the final goal of truth which he said is the God. In his book ‘Management – Tasks, responsibilities and practices’ Peter Drucker devotes one small chapter on management and self-control. Much after Mahatma Gandhi subjected himself to self-control and spearheaded one of the epoch making movements for independence the founder of the modern management devoted his attention to self-control to prescribe methods for realizing the objectives.

It is well known that Mahatma Gandhi accorded primacy to the means for achieving the ends. He stated that by employing noble means one could get equally noble results. This high minded ideal which he put into practice in his life is being now stressed by modern day managers. Peter Drucker whose name has been referred to earlier once wrote “Efficiency is doing things right and effectiveness is doing the right things.” In other words, he suggested that just doing things right would not take us to a desired goal. Doing right things opens up possibilities for making our action more effective and more enduring. In the above statement of Peter Drucker one could realize the stress on right means for reaching the desired goal. We can apply appropriate means if we exercise restraint and cultivate values. It is being suggested by important managers in the modern organizations that the role of leadership must stress on making efficiency effective. And to make efficiency effective we need to do right things. One perspective admirer of Mahatma Gandhi and India from Austria, Mr. John Brussen wrote an interesting para for making our action more effective to run modern organizations. He used the famous equation of Einstein ‘E = MC2. It is well known that one of the best comments on Mahatma Gandhi came from Einstein. He also described Gandhiji as the greatest political genius of the 20th century. Slightly altering the equation ‘E = MC2’ Mr. Brussen stated that if ‘E’ stood for excellence then ‘M’ stood for men and human beings and out of ‘C2’ one ‘C’ stood for commitment and the other for character. Thus, explaining the equation he stated that excellence could be achieved through commitment and character. This is exactly what Mahatma Gandhi did and this is exactly what the modern day managers are trying to emphasise.

Some of the distinguishing features of the modern day management practices revolve around total quality, customer relations, corporate social responsibility, human resource development, etc. If we closely examine the life and work of Mahatma Gandhi we find that he had taken up all these aspects while fighting for our independence. Let us take into account the total quality management which has become a defining feature of managerial practices since 1990s. Mahatma Gandhi stressed on quality in all his endeavours for mobilizing people for getting Swaraj. Quality here does not mean the quality of the product alone. Quality has to be reflected in every aspect of an organisation beginning from the process of production to the management of human relationship which are determining factors behind the production. Let us take the example of Gandhiji’s conception of Swaraj. He was not merely concerned with the attainment of independence which, of course, remained one of the major goals of his non-violent struggle. He wanted to achieve quality Swaraj. But the quality Swaraj could not be achieved if Hindu-Muslim unity was compromised or untouchability persisted. He also linked the attainment of quality Swaraj to the quality of sanitation of our surroundings. He made a statement that if our backyards remained unclean then our Swaraj would have a foul stench. It is instructive also to note that he linked the quality Swaraj to the quality of our human resources. In other words, to reach the goal of quality Swaraj we have to achieve the quality Hindu-Muslim unity, the quality human relationships in terms of fraternity of all sections of society, empowerment of women, and above all the quality of our human resources. In today’s management theory and practice, total quality means persistence of quality consciousness in every aspect of the organisation. That was what exactly Gandhiji did when he was in the forefront of the non-violent struggle for independence. To give an example of the total quality management of Mahatma Gandhi let us refer to this quotation relating to spinning. He wrote “Students must all do spinning in an scientific manner. Their tools will always be neat, clean and in good order and condition, then their yarn will naturally be of the highest quality.” It is evident from the above observation of Gandhiji that to reach the final goal one has to ensure quality at every step. I pay my tribute to Mahatma for stressing on quality in every facet of life and spreading quality consciousness among people while engaging himself in the struggle for freedom.

We all know that customer care has remained at the centre of management practices. Peter Drucker once defined quality of a product from the point of view of customer. I think all of us are familiar with the remarkable observation of Mahatma Gandhi on customer. He wrote “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. …We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.” The above observation on customer makes Mahatma Gandhi one of the foremost modern day managers whose thinking goes beyond the conventional understanding of management and covers the interests of customers and stakeholders who are the main purpose of business and commerce.

Again if we look at the idea of the stakeholder which is the governing principle of modern day business and management we find that Mahatma Gandhi had articulated such ideas much before the management authorities and experts had highlighted them. In one of the interesting books on Management written by Wayne Visser and Clem Sunter on the theme “Beyond Reasonable Greed : Why sustainable business is a much better idea?”, it is stated that most of the modern day managers are driven by unreasonable greed and neglect the interests of the customers and shareholders. If we examine writings of Mahatma Gandhi from his collected works, we find that he gave importance to the workers and labourers in a factory as major stakeholders. His theory of Trusteeship essentially stressed on the responsibility of the owners of factories and wealth to treat their possessions as not entirely their own but as that of the society. On 31st March, 1936, he visited the Kollar Gold Mines and found that the small dwelling units of labourers lacked adequate space. He expressed deep regret that the mill owners were not giving adequate attention to the needs of the labourers. He then wrote “If the workers only knew what they could do for themselves by combining the training and intelligence they would realize that they were no less proprietors of the mines than the managers and the shareholders.” By juxtaposing labourers with managers and shareholders, Gandhiji was emphasizing on a management method which if followed would ensure efficiency and effectiveness of an organisation. This is what exactly the modern day managers are doing while talking about maximizing the productivity of an organisation.

Earlier I had referred to the book “Beyond Reasonable Greed”. In that book the authors have suggested that decline of ethics in many corporate organizations have resulted in financial irregularities and self-indulgence. He, therefore, suggested steps for reforming business. While doing do he also referred to Martin Luther of 1570 who attacked the then prevailing Church for self-indulgence and setting a wrong example before the people for leading a healthy life. His critical assessment of the mercenary practice of the Church and the opposition of the Church leaders for grandeur and wealth proved positive for the promotion of business. Mahatma Gandhi also exactly did the same thing by suggesting a restrained approach and self-control for better business practices. This approach of Gandhiji assumes relevance in the context of collapse of many corporations in the world on account of unethical practices. Now management students in many prominent management institutions are demanding introduction of courses on ethics.

In this context, let me refer to the kind of leadership which Gandhiji provided for the rest of the nation to follow. He identified himself with the common people and adopted voluntary poverty to tune himself with the ordinary masses. In fact in one of his letters to Hitler, before the beginning of the second world war, he wrote “I can hear the dumb cry for peace from among the Europeans because I am tuned to the dumb millions of India.” Mahatma Gandhi’s exemplary leadership is a byproduct of his communion with the dumb millions of his country. Therefore, what the dumb millions did not have, he denied those things to himself. It was this exemplary leadership which need to be followed by the modern day managers for making their business practices more ethical and effective. On 24th February, 1942, Mahatma Gandhi wrote an interesting piece called “The duty of a Manager”. He did so in response to a question which I am reproducing below:

“Is it correct for the Head of an Institution, while demanding the utmost from his subordinates in the way of simple life, to live in comparative luxury himself even though the money he spends on himself be his own earnings.”

The reply of Mahatma Gandhi to this question is not only fascinating but also educative. He wrote “The Manager who expects more from his co-workers than what he does is bound to fail.” No wonder, therefore, that it is for his remarkable synchronization of words and action that Gandhiji became a model leader in the world. His example is now being followed by modern management institutes. Founder Director of Manford Alliance, Anand David wrote a special article on Mahatma Gandhi called the “Leader Mahatma” in the Training and Management journal in 2005. There he referred to Level-5 leaders who were humble and at the same time bold, modest and yet determined. They went beyond their personal gains and identified themselves with the larger cause of society, nation and humanity. Then Mr. Anand David wrote “This is Gandhi to many of us.” Such leadership qualities are used to motivate the personnel and optimize the competencies of the organisation. In the context of our struggle for our independence Mahatma Gandhi displayed that leadership quality which is now being emulated in rest of the world to fight for justice and equality and establish a more sustainable world order.

The use of Mahatma Gandhi’s picture in 1998 by the Apparel Computers in an advertisement testifies to the enduring relevance of Gandhiji for the modern day managers. In that advertisement there was just one picture of Gandhiji and below it, it was written “Think different”. So beyond the realm of politics Gandhiji assumes enormous significance in the corporate world. Mahatma Gandhi stood for decentralization to devolve power and involve people in the process of governance. He did so when centralization was the governing norm. Through decentralization alone people can be given opportunities to play a meaningful role in running the affairs of the nation. It is very striking to note that in the field of management the idea of decentralization was accepted by managers in the 1960s. It was assumed that decentralization would lead to “top management abdication”. Later it was realized that decentralization strengthens top management more effective. Acceptance of decentralization idea and practice in the management domain is yet another example of accepting Gandhiji as a Management Guru.

Earlier a reference was made to the stakeholders. According to Mahatma Gandhi, stakeholders are not only the people who possess the shares of a company but also all those who are linked to the activities of the organisation which has larger goal of serving society. Today when the emphasis is given on corporate social responsibility the idea of Mahatma Gandhi’s theory of Trusteeship is of immense relevance for our time. In fact many business organizations are now stressing on a sustainable business practice which expand the scope of stakeholders to include the larger sphere of plants, animals and the whole environment. In the book “Beyond Reasonable Greed” which I had referred to earlier the authors have stressed on reforming business to go beyond the predatory commercial instinct and cultivate positive vision involving sustainable business in both a social and environmental sense. They have outlined the danger of following a lifestyle and using a product or business process which are unsustainable. It is very instructive to note that the authors used Mahatma Gandhi’s famous words “The Earth has enough for everyone’s need but not for everyone’s greed”, and emphasized on a business practice which would look after the interests of not only human beings but also the nature. It is this larger understanding of the concept of stakeholder which remained central to such an approach. This is in consonance with what Mahatma Gandhi wrote in 1930s. He spoke about a doctrine of equality for all creatures. No revolution and movement which aimed at unchaining human beings from bondage had stressed on equality of all creatures. But now the modern day business people are talking about sustainable business practices so that they can continue their business activities in harmony with nature. This is what exactly Gandhiji meant when he wanted a doctrine of equality for all creatures and described commerce without principle as sin. This idea must be incorporated in the larger scheme of management. It is heartening that these issues are being taken up by concerned people to include them in the syllabus on Management (See the editorial of the Hindu dated 26th December 2008). It was evident from the decision taken by the first Global Forum on the Principles of Responsible Management Education. The Forum in its meeting organized in New York adopted the Principles of Responsible Management Education(PRME) to mainstream environmental, social and governance issues in the business school curricula. This line of thinking to expand the scope of management discipline to incorporate the environmental issues bears significance in the context of the looming planetary crisis of global warming and climate change. It is interesting to recall that this initiative concerning Principles of Responsible Management Education came from 5000 multinational corporations from 100 countries under the aegis of the United Nations to achieve the objective of sustainable development. The New York meet categorically affirmed that  “the long term viability and success of business will depend on its capacity to manage environmental, social and governance concerns and to create sustainable value through innovation and new business models adapted to a changing global environment”. In other words the statement wants   refashioning  of business and business studies by going beyond commerce and profit and taking into account the larger issues  such as ecology. This is a refreshing change which is in consonance with the vision of Mahatma Gandhi who had analysed the problems  created by modern civilization based on multiplication of wants and desires and which are responsible for endangering the whole planet. No wonder, therefore, that Mahatma Gandhi was described as the Management Guru of 20th century and he remains a source of inspiration for anchoring management on values of equity and justice.

The author served as Officer on Special Duty and Press Secretary to President of India late Shri K R Narayanan and had a tenure as Director in Prime Minister's Office and Joint Secretary in Rajya Sabha Secretariat.