Page 26 - NITI - Navigating Indian Traditions in Industry

The Vedic concepts of Jnana (knowledge) and Viveka (discrimination) support
modern principles of fostering an environment conducive to creativity and innovation,
encouraging organizations to continuously seek new ways of solving problems and
creating value.

1.3.7. Decision-Making and Wisdom

Modern Management Principle: In modern business, decision-making is one of
the most critical functions of leadership. The Rational Decision-Making Model and
Bounded Rationality Theory (Herbert Simon, 1957) emphasize making decisions
based on logical analysis, facts, and comprehensive data. This approach relies on
rationality, efficiency, and minimizing risks to optimize outcomes for the organization.
Linkage to Vedic Wisdom: Vedic wisdom places a strong emphasis on Jnana
(knowledge) and Buddhi (wisdom), teaching leaders to make decisions not only
based on intellect but also with deeper insight and intuition. In the Bhagavad Gita,
Lord Krishna advises Arjuna to make decisions based on inner wisdom, in alignment
with Dharma (righteous duty). The clarity of mind and emotional detachment, which
Krishna encourages, aids in making unbiased decisions that serve the larger good,
much like the principles of ethical decision-making in modern business practices.
The teachings of Patanjali’s Yoga Sutras also support the development of mental
clarity and intuitive judgment, urging leaders to cultivate equanimity and self-control,
which enhances decision-making abilities. Leaders who adopt such practices can
approach decision-making with a calm and objective mindset, focusing on long-term
goals and the collective welfare.

1.3.8. Organizational Culture and Employee Well-being
Modern Management Principle: The importance of organizational culture has
been widely recognized in modern management theory. Edgar Schein’s Model of
Organizational Culture (1985) explains that an organization’s culture is shaped by its
core values, assumptions, and norms, which influence employee behavior, attitudes,
and overall organizational performance. The focus today is on creating a supportive,
inclusive culture that promotes well-being, trust, and collaboration among employees.

Linkage to Vedic Wisdom: The Vedic texts provide valuable guidance on cultivating
a positive, harmonious community within an organization. In the Rigveda, the
importance of community and the collective welfare is emphasized. The Atharvaveda
teaches about the unity of mind and spirit, advocating for practices that foster personal
growth while ensuring that individuals contribute to the common good.
In Vedic society, well-being was considered essential for a harmonious life, and
this is mirrored in modern HRM’s focus on employee well-being. Vedic principles
like Ahimsa (non-violence) and Satya (truthfulness) encourage fostering a culture of

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