Analysis of Power, Competition and Strategies: Case of Machiavelli, the Prince
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Analysis of Power, Competition and Strategies: Case of Machiavelli, the Prince Analysis of Power, Competition and Strategies: Case of Machiavelli, the Prince Document Transcript

  • TALLINN UNIVERSITY OF TECHNOLOGY Tallinn School of Economics and Business Administration Department of Business Administration Chair of Organization and Management Triin IgnašovANALYSIS OF POWER, COMPETITION AND STRATEGIES: CASE OF MACHIAVELLI, THE PRINCE Research in Strategic Management Supervisor: Lecturer Alar Kolk Tallinn 2011 ...Is it better to be feared than loved?
  • TABLE OF CONTENTSIntroduction.......................................................................................................................31.Machiavelli’s principles and strategies in the prince......................................................4 1.1. General introduction to Niccoló Machiavelli and his work................................................4 1.1.1. Life of Niccoló Machiavelli..............................................................................................4 1.1.2. Machiavelli’s works........................................................................................................5 1.1.3. The influence of Machiavelli...........................................................................................6 1.2. Main principles and ideas of Machiavelli, The Prince........................................................8 1.2.1. Monarchy as a state power............................................................................................8 1.2.2. How to obtain a state.....................................................................................................9 1.2.3. Governance of a state, different approaches...............................................................10 1.2.4. Maintaining a state, defence........................................................................................11 1.2.5. Qualities of a good prince.............................................................................................12 1.2.6. Conducting the subjects...............................................................................................13Machiavelli’s Ideas used in politics.................................................................................15 1.3. Machiavelli’s political ideas through history...................................................................15 1.4. Machiavelli’s principles that can be used in politics in nowadays..................................17Strategies for business management................................................................................19 1.5. Principles of leadership...................................................................................................19 1.6. Sharing the power..........................................................................................................21Discussion........................................................................................................................22Conclusion.......................................................................................................................23References.......................................................................................................................24 2
  • INTRODUCTIONPresent research is an analysis of power, competition and strategies. It is based onItalian philosopher and writer Niccoló Machiavelli treatise The Prince, strategies andprinciples discussed in this book. To understand Machiavelli’s ideas it is essential to understand the society wherehe lived and worked. Therefore the first part of this paper gives an overview ofMachiavelli’s life, work and artwork. After that conclusion and overview ofMachiavelli’s main principles is provided. Second part of this research is dedicated to political power. Main objective is toseek how Machiavelli’s strategies have become alive in politics over the years and evennowadays, how they can be advanteous to politicians and how they have been abused. Third section dicusses business management. This part concentrates on differentideas of Machiavelli that can be used in management of companies, leadershipquestions and power sharing. Many practical advice is give in this part for leaders inbusiness environment. Writing this research I have used different sources, starting from Machiavelli’streatise The Prince itself to different interpretations of this book by other writers. Importance of this research is analysis of power, how it must be handled andused to maximize the benefit for majority of parties involved. Machiavelli’s principlescan be used in politics as well as in business management. Although treatise The Princewas written about 500 years ago, it still contains many useful and practical examples ofmaintaining the power. I believe that these ideas are useful for everybody, especially forthose who deal with leadership in all walks of life. 3
  • 1. MACHIAVELLI’S PRINCIPLES AND STRATEGIES IN THE PRINCE1.1.General introduction to Niccoló Machiavelli and his workNiccolò Machiavelli was an Italian philosopher and writer based in Florence, Italyduring the Renaissance. He is one of the main founders of modern political science. Hewas a diplomat, political philosopher, playwright, and a civil servant of the FlorentineRepublic. He also wrote comedies, carnival songs, poetry, and some of the most well-known personal correspondence in the Italian language. (Wikipedia 2010)1.1.1.Life of Niccoló MachiavelliNiccolò di Bernardo dei Machiavelli was born on 3rd of May 1469 in Florence, Italy,the third son of attorney Bernardo di Niccolò Machiavelli, and his wife, Bartolomea diStefano Nelli. The Machiavelli family are believed to be descended from theold marquesses of Tuscany. Machiavelli was born in a tumultuous era – Popes waged acquisitive warsagainst Italian city-states, and people and cities might fall from power at any time.Along with the Pope and the major cities like Venice and Florence, foreign powers suchas France, Spain, the Holy Roman Empire, and even Switzerland battled for regionalinfluence and control. Political-military alliances continually changed,featuring condottiere who changed sides without warning, and short lived governmentsrising and falling. His position in the regime of Florence as Secretary to the Second Chancery ofthe Republic of Florence lasted from 1498 to 1512. He was in a diplomatic councilresponsible for negotiation and military affairs, carrying out, between 1499 and 1512, 4
  • several diplomatic missions, to the court of Louis XII in France; to that of FerdinandII of Aragón, in Spain; in Germany; and to the Papacy in Rome, in the Italian states.Moreover, from 1502 to 1503, he witnessed the effective state-building methodsof Cesare Borgia, son of Pope Alexander VI, who was then enlarging his centralItalian territories. Between 1503 and 1506, Machiavelli was responsible for theFlorentine militia, including the City’s defense. He distrusted mercenaries (a distrust heexplained in his official reports, and then later in his theoretical works), preferring apolitically invested citizen-militia – a philosophy that bore fruit. Machiavelli was deprived of office in 1512 by the Medici, and, in 1513, wasaccused of conspiracy, and arrested and imprisoned for a time. Despite torture, hedenied involvement and was released; then, retiring to his estate, at SantAndrea inPercussina, near Florence, he wrote the political treatises that earned his intellectualplace in the development of political philosophy and political conduct. After a timeMachiavelli began to participate in intellectual groups in Florence and wrote severalplays that were both popular and widely known in his lifetime. Still politics remainedhis main passion. Machiavelli died on 21st of June 1527. He was buried at the Church of SantaCroce in Florence, Italy. (Wikipedia 2010)1.1.2.Machiavelli’s worksThe period when most of Machiavelli’s well-known writing was done was afterMachiavelli was removed from all functions of the Republic of Florence. Machiavelli’s main and best-known work is a political treatise The Prince. Fromcorrespondence a version appears to have been distributed in 1513, using a Latintitle De Principatibus (About Principalities). The printed version was not publisheduntil 1532, five years after Machiavellis death. It is generally agreed that The Prince was especially innovative, and not onlybecause it was written in Italian rather than Latin. The Prince is sometimes claimed tobe one of the first works of modern philosophy, in which the effective truth is taken tobe more important than any abstract ideal. It was also in direct conflict with the 5
  • dominant Catholic and scholastic doctrines of the time concerning how to considerpolitics and ethics. The book concentrates on the possibility of a "new prince", rather than the moretraditional subject of an hereditary prince. To retain power, the hereditary prince mustcarefully maintain the socio-political institutions to which the people are accustomed;whereas a new prince has the more difficult task in ruling, since he must first stabilizehis new-found power in order to build an enduring political structure. That requires theprince being concerned with reputation but also being willing to act immorally. As apolitical scientist, Machiavelli emphasises the occasional need for the methodicalexercise of brute force, deceit, and so on. Although it is relatively short, the treatise is the most remembered of his worksand the one most responsible for bringing word Machiavellian into wide usage asa pejorative term describing someone who aims to deceive and manipulate others forpersonal advantage. It even contributed to the modern negative connotations of thewords "politics" and "politician" in western countries. In terms of subject matter itoverlaps with the much longer book Discourses on Livy, which was written a few yearslater. In its use of examples who were politically active Italians who perpetratedcriminal deeds for politics, another lesser-known work by Machiavelli which ThePrince has been compared to is the Life of Castruccio Castracani. (Wikipedia 2010)1.1.3.The influence of MachiavelliMachiavellis ideas had a profound impact on political leaders throughout the modernwest, helped by the new technology of the printing press. English cardinal ReginaldPole reported that The Prince was spoken of highly by Thomas Cromwell in Englandand had influenced Henry VIII in his turn towards Protestantism, and in his tactics, forexample during the Pilgrimage of Grace. A copy was also possessed by the Catholicking and emperor Charles V. In France, after an initially mixed reaction, Machiavellicame to be associated with Catherine de Medici (the queen of France) and the StBartholomews Day Massacre. As Bireley (1990:17) reports, in the 16th century,Catholic writers "associated Machiavelli with the Protestants, whereas Protestant 6
  • authors saw him as Italian and Catholic". In fact, he was apparently influencing bothCatholic and Protestant kings. During the first generations after Machiavelli, his main influence was uponprinces. One of the most important early works dedicated to criticism of Machiavelli,especially The Prince, was that of the Huguenot, Innocent Gentillet, whose workcommonly referred to as Discourse against Machiavelli or Anti Machiavel waspublished in Geneva in 1576. He accused Machiavelli of being an atheist and accusedpoliticians of his time by saying that his works were the "Koran of the courtiers", that"he is of no reputation in the court of France which hath not Machiavels writings at thefingers ends". Another theme of Gentillet was more in the spirit of Machiavelli himself:he questioned the effectiveness of immoral strategies, just as Machiavelli had himselfdone, despite also explaining how they could sometimes work. This became the themeof much future political discourse in Europe during the 17th century. Modern materialist philosophy developed in the 16th, 17th and 18th centuries,starting in the generations after Machiavelli. This philosophy tended to be republican,more in the original spirit of Machiavellian, but as with the Catholic authorsMachiavellis realism and encouragement of using innovation to try to control ones ownfortune were more accepted than his emphasis upon war and politics. Not only wasinnovative economics and politics a result, but also modern science, leading somecommentators to say that the 18th century Enlightenment involved a "humanitarian"moderating of Machiavellianism. Scholars have argued that Machiavelli was a major indirect and direct influenceupon the political thinking of the founding fathers of the United States. BenjaminFranklin, James Madison and Thomas Jefferson followed Machiavellis republicanismwhen they opposed what they saw as the emerging aristocracy that theyfeared Alexander Hamilton (the first United States Secretary of the Treasury,a Founding Father, economist, and political philosopher) was creating with theFederalist Party. Hamilton learned from Machiavelli about the importance of foreignpolicy for domestic policy, but may have broken from him regarding how rapacious arepublic needed to be in order to survive. The 20th century Italian Communist Antonio Gramsci drew great inspirationfrom Machiavellis writings on ethics, morals, and how they relate to the State and 7
  • revolution in his writings on Passive Revolution, and how a society can be manipulatedby controlling popular notions of morality. (Wikipedia 2010) Nowadays commentators have taken very different approaches to Machiavelli,and not always agreed. Major discussion has tended to be especially about two issues,first how unified and philosophical his work is, and secondly concerning howinnovative or traditional it is. Machiavelli’s ideas are used in universities to analyse thepower, competition and strategies in politics and management of enterprises. There arenumber of books published which analyse today’s management strategies throughperspective of Machiavelli’s ideas.1.2.Main principles and ideas of Machiavelli, The PrinceIn his piece The Prince Machiavelli discusses about several topics how to rule andpreserv states that are ruled as principalities. The main objective of this book was toimprove the situation in Italian states on 16th century. Main six topics that Machiavelli discusses in The Prince are: • monarchy as a state power, • how to obtain a state, • governance of a state, different approaches, • maintaining a state, defence, • qualities of a good prince, • conducting the subjects. Following chapters will discuss these topics further on.1.2.1.Monarchy as a state powerFirst part on The Prince is devoted to describing different forms of ruling a state.Machiavelli concentrates the discussion only on monarchies and how such principalitiesare to be ruled and preserved. Machiavelli has divided state powers by different criteria. To help to understandhis partition I have composed following figure. 8
  • Figure 1. Division of state powers by MachiavelliSource: Author By Machiavelli all power and all states that have held rule over men have beeneither republics or principalities. Principalities are either hereditary, in which the familyhas been long established or they are new. The new are either entirely new or they areannexed to the hereditary state of the prince who has acquired them. Those dominionswhich, when acquired, are added to an ancient state, are either of the same country andlanguage, or they are not. (Machiavelli 1908)1.2.2.How to obtain a stateThere are two main ways to obtain a state – inheriting and conquering. Machiavelli saysthat there are fewer difficulties in holding hereditary states than conquered ones for it issufficient only not to transgress the customs of his ancestors, and to deal prudently withcircumstances as they arise, for a prince of average powers to maintain himself in hisstate, unless he be deprived of it by some extraordinary and excessive force. And if heshould be so deprived of it, whenever anything sinister happens to the usurper, he willregain it. (Machiavelli 1908) If conquered state has similar culture and language to princes state it is mucheasier to obey the nation. Only things that prince must not do are changing taxes and 9
  • laws. If conquered nation is different in culture and language it is very difficult tomaintain the state and keep it united and it demands much energy and good fortune. It is easier to conquer an area that used to belong to one ruler as these peoplealready have same traditions and culture and fellow feeling therefore together they willobey easier to their new occupier. In order to succeed prince must acquire symphaty bypeople even if he has strong army. Good way to gain people support is living amongthem for a while. This way prince can immediately take an action when unrests mayoccur. Also his new subjects adjust to new ruler and will start to love him or, if that isnot an option, fear him. Machiavelli has many times emphasized that it is better to befeared than loved. Another oppourtunity to obey people is to send a colony to live among newnation. This is alternative to sending an army to ivigilate people. As colony demandsless spending, causes less anxiety, is more faithful, it is best way to obey people to newprince. If conquered state was previously ruled as a republic it is necessary that newruler will live a while among the people or if this is not an option he must destroy therepublics government so they do not know how to govern themselves any more. Machiavelli also emphasizes that one who gains power by betrayal, brutality andcheating cannot be called genious nor respectful man.1.2.3.Governance of a state, different approachesMachiavelli states that a state can be governed by a monarch in two ways – by ministerswho obey to monarch or by subdivisions, where every division has own leader whoobeys to monarch. A state that is divided into subdivisions will shatter and when theoppourtunity arises one of leaders will seize power to disjoint from the state. When ruler enters new state and conquered people are not satisfied with the newprince it is easy to displace the prince. But if that prince will gain the power it is not soeasy to displace the prince second time as prince has studied his weaknesses andstrenghtens them. Also he can punish the rebels publicly to warn people. Therefore good prince must follow the principle that everybody who may berebellious against prince must be defused. Those who represent lower power must be 10
  • treated friendly and with symphaty but strong power must be debilitated. People of thestate must be treated good or defeated as well treated people are friendly and they willnot endanger the prince, defeated people are not capable to endanger the prince.Another way to ensure the power is to buy off adherents by offering good salary orother benefits to gain their loyalty. It must be kept in mind that everything that may harm the people must be doneat once so they can be forgotten faster but favors must be done slowly and not at onceso their impact would last longer. Good leader knows that innovation is a basis for making the state stronger. Buthe must consider that there is always someone who is against the innovation.Machiavelli says that opposed are those who did well during old times. Some supportcan be expected from those who have a chanche for success in new times. As a rulethose who are againt the innovation put up a much stonger fight than you can expectsupport from those who may gain success after innovation. Considering some examplesfrom the history it is proved that innovations have failed when no force is used forinstance in case of Moses, Romulus etc. But when innovation has been put into practiceand people get used to new situation the leader will gain peoples trust, loyalty, respectand satisfaction – he has the power.1.2.4.Maintaining a state, defenceIn the society where violence, havoc and quarrels have set in the force must be used torestore the discipline, order and well-being. Ruler must not oppress the nation,otherwise his position is not confident. Ruler must be needed by people, only then hecan maintain them loyal. To keep subjects loyal leader must also fortify them againstenemy, defend and support them every opportunity. Basis of the well-assured state are good laws and strong defence. If militaryvirtue were exhausted, this has happened because the old order of things was not goodand none of us have known how to find a new one. And nothing honours a man morethan to establish new laws and new ordinances when he himself was newly risen. Statesthat have power enough to keep an army in the field cannot be lost. Using foreign forces 11
  • is not recommended as state will always stay under the influence of those who havehelped it. Wise prince is never neutral to events which affect his neighbour states.Declaring himself in favour of one party against the other will always be moreadvantageous than standing neutral because if two of your powerful neighbours come toblows, they are of such a character that, if one of them conquers, you have either to fearhim or not. As Machiavelli says good prince can never rest on the laurels but must alwaysact in a way that insures his future in case the fortune will change and turn against him.1.2.5.Qualities of a good princeMachiavelli has stressed several times that every quality of a leader that may seem as avice is always not bad quality as can bring him confidence and prosperity. Leader cannever fear a reputation of an evil man if this brings profit to the state as a whole. Toomuch liberty can eventually cause poverty that will make people to hate their prince.Prince must always avoid being hated by his people. If leader can hold state strong and united thanks to his cruelty he must not fearreputation of cruel man. Being too merciful may cause disorder and therefore sufferingto whole state. There are few persons who own all virtues that good prince must have (mercy,faith, humanity, justice, loyalty etc) but he must own them in the eyes of his subjects. Ifprince is honoured and respected by his people it is very difficult to attack and dethronehim. But if people do not favor their prince, then he must be afraid of anyone becausehe has no one to support him from conspiracies. It is said that leader must be strong as a lion and clever as a fox. He ought, aboveall things, always to endeavour in every action to gain for himself the reputation ofbeing a great and remarkable man. Wise leader must use every opportunity to dashhostility towards him and therefore gain reknown among people. Machiavelli believes that fortune is the arbiter of one-half of our actions, but thatshe still leaves us to direct the other half, or perhaps a little less. Therefore prince whorelies entirely upon fortune is lost when it changes. He also states that he will be 12
  • successful who directs his actions according to the spirit of the times, and that he whoseactions do not accord with the times will not be successful. Those who are capable are not obedient and each one seems to himself to know.Machiavelli sais that there has never been anyone so distinguished above the rest, eitherby valour or fortune, that others would yield to him.1.2.6.Conducting the subjectsIt is essential to conduct the subjects in a way that makes them true and loyal to theirleader. If leader do not have reliable subjects it is his own fault because he has chosenhis own employees. Good employee will always act in the interest of his master,otherwise he is not a good employee. Loyal subject must be rewarded but at the sametime he must realize that he would not attain same position on his own, without hisemployer. Otherwise he can start to desire more power. A prince is always recommended to take counsel, but only when he wishes andnot when others wish. He ought rather to discourage every one from offering adviceunless he asks it but, however, he ought to be a constant inquirer, and afterwards apatient listener concerning the things of which he inquired. On learning that any one, onany consideration, has not told him the truth, he should let his anger be felt. If princehas yielded his affairs entirely to one person who happens to be a very prudent man, hemay be well governed, but it would not be for long, because such a governor would in ashort time take away his state from him. Men will always prove untrue to their leaderunless they are kept honest by constraint. Therefore it must be inferred that goodcounsels are born of the wisdom of the prince, and not the wisdom of the prince fromgood counsels. Machiavelli has come to very interesting conclusion about conducting thesubjects – two men working differently bring about the same effect, and of two workingsimilarly one attains his object and the other does not. 13
  • 14
  • MACHIAVELLI’S IDEAS USED IN POLITICSThe book which gained a bad reputation when it was written now serves as a guidebook for most politicians and heads of state (prince) around the world. The Prince is abook which contains practical examples and factual information on how a princeensures that he maintains his seat as head of state and achieves great things whiles inpower. As a result the Prince is a book worth reviewing because it contains useful ideaswhich can help leaders to rule effectively. Many have misinterpreted Machiavelli’s ideas branding him as one who is infirm support of a corrupt and totalitarian government. However, a close look at his ideasportrays the need for society to employ a patriotic and an intellectual person to lead astate or country. The main aim of a prince as often emphasized in the book is that heshould first seek what is best for the state after which he should try maintain his seat ashead of state. However following these ideas to the latter is harmful as it does notencourage democracy. Democratic countries as often shown, experience rapideconomic growth therefore any system that restricts democracy stifles economicgrowth. (Machiavelli’s Ideas 2011)1.3. Machiavelli’s political ideas through historyMany great leaders have followed Machiavelli’s ideas and strategies interpreted in ThePrince and used it as a political guidebook. Though it has not been always used onequitable purposes. Many totalitarian rulers have justified their acts with this book andMachiavelli’s recommendations. This is why many philosophers have referedMachiavelli as someone who aims to deceive and manipulate others for personaladvantage. (Machiavelli on the Net 2011) 15
  • Some examples of known politicians and leaders who have found Machiavelli’sprinciples useful are Abraham Lincoln, Louis XIV, cardinal Richelieu, NapoleonBonaparte, Benito Mussolini, Dick Morris, an adviser to Bill Clinton etc. It is of courseanother question how well all these people understood Machiavelli in the end. It is quitesimple to ignore Machiavellis normative teaching and only adopt the parts suitable foropportunist politicians. For instance some devotees of absolute power like Stalin and Hitler have actedin many parts exactly as Machiavelli has advised in his treatise. Machiavelli hasrecommended to punish everybody who may be rebellious against leader. He has statedthat if leader can hold state strong and united thanks to his cruelty he must not fearreputation of cruel man. Also by Machiavelli it is better to be feared by people thanloved, but at the same time leader must avoid of being hated by his people. Countrymust be defended and have a strong army. Stalin and Hitler have done all these things.In light of these principles it can be told that Stalin and Hitler were followers ofMachiavelli’s ideas and used them to make their countries strong and good place to livefor their people. But there are always two sides of every case. On the other hand Machiavelli has stated that everything that may harm thepeople must be done at once so they can be forgotten faster. Machiavelli prohibitedrulers to oppress the nation. These two totalitarians never gave rest for their people, theyfollowed their own ambitions and not common welfare of people. Machiavelli alsoemphasizes that one who gains power by betrayal, brutality and cheating cannot becalled genious nor respectful man. Another point is innovation – Machiavelli said thatinnovation is a basis for making the state stronger. Neither Stalin not Hitler wereinnovative leaders. On the contrary – they forbid everything that was different or new. Therefore many good but also many bad can be done when taking Machiavelli’sideas as strict rules for leaders. It must be understood and taken into account thatMachiavelli lived in totally different society and era than we do, so all his principlesmust be adobted very precautiously considering differences of our times and needs. 16
  • 1.4. Machiavelli’s principles that can be used in politics in nowadaysEven though Machiavelli was writing in a world totally different to that of our own, histhoughts and theories are still alive in our society today. (Machiavellian Politics 2011)Politics has changed over the years and it is definately not the same as it was on 1513when Machiavelli wrote his treatise The Prince, but main groundsills of the politicshave remained the same. Therefore many Machiavelli’s ideas can be well used in oursociety. Machiavelli’s arguments have been echoed and endorsed by writers andstatesmen from his own time to the present day. Machiavelli’s enduring contribution topolitical thought, policy and practice is the remarkably resilient idea that politicsinvolves ir even requires the transcendence or the violation of ordinary moral principles;that fraud, force, lies and violence are justified because they are necessary for politicalsuccess. (Harris, Lock, Rees 2000) Maureen Ramsay says in Machiavelli, Marketing and Management (Harris,Lock, Rees 2000) that all subsequent justifications for immoral means in politics areconcerned to show that Machiavellian tactics are a responce to the realities of politicallife and a recognition of the element of necessity in political conduct even nowadays. In some senses it is puzzling why Machiavellian tactics and means-endcalculationare thought to be appropriate to and licence immoral actions in the politicalsphere. Machiavellian tactics are especially difficult to justify in politics becauseconsequentialist calculation, the justification for immoral means must in the firstinstance depend on judgements about the worth or value of the ends they achieve. Inpractice it is difficult to establish a generally accepted political end which wouldlegitimize or excuse acts of power politics. Fraud, force, lies and violence are rarely theonly alternatives in politics, the overall harm caused by them frequently outweighs yhegood intended and their use often has counterproductive effects. The habitual use ofthese means can corrupt and spread with long-term consequences contrary to the publicinterests as was shown by case of Hitler and Stalin for example. (Harris, Lock, Rees2000) If modern Machiavellianism in politics is to be questioned, then the questionmust begin not with the efficacy or even the morality of Machiavellian tactics, but with 17
  • the mutability and morality of the backround circumstances which generate the need forMachiavelli’s advice. Italian prime minister Silvio Berlusconi is one who has used Machiavelli’s ideasin nowadays politics. He has even published an edition of The Prince with his owncomments. Quoting Berlusconi: „The political tradition of ancient thought, filtered inItaly by Machiavelli, says one thing clearly: every prince needs allies, and the bigger theresponsibility, the more allies he needs.“ (BrainyQuote 2011) 18
  • STRATEGIES FOR BUSINESS MANAGEMENTAlistair McAlpine has said in his book (McAlpine 2001) that business is aboutorganizing people so that they behave in a motivated and orderly fashion. Running abusiness is about leadership and Machiavelli’s strategies for political leaders can easilybe adopted and used in business management.1.5. Principles of leadershipSeveral principles of leadership that Machiavelli has emphasized can be adopted fromThe Prince and can be used in modern business management. These principles thatbusiness leaders must follow are loyalty, trust, fairness, ability and behaviour.Following explanations of these principles are based on Alistair McAlpine text inMachiavelli, Marketing and Management (Harris, Lock, Rees 2000). Loyalty is of utmost priority when you are assessing those you employ,particularly those that are closest to you. Loyalty, however, commands loyalty – it notonly must be given, it must be seen to be given. It means concern for others in sicknessand health, in good and bad times. Loyalty must spring up from shared certitude andcommon interests. It is essential to recognize those who are disloyal only whencircumstances force them to be disloyal or whether disloyalty is a part of their character.Such people are the most destructive that can be encountered. Trust is based on integrity in all our actions. Leader cannot expect those who areemployed to put their trust in him/her if leader is not trusting his/her employees. If trustbetween employer and employee is growing, then loyalty is also increasing. Leadermust trust the subject so he can implement all his potential and if he fails, leader mustnever humiliate him publicly. 19
  • After trust comes fairness. An employer needs to be scrupulously fair. Criticismsshould be objective, based on facts – not on hearsay and rumour and other people’sopinions, people who have their own agenda. Critique must always be given privately. Then, ability: if leader appoints or promotes employees to a level above theirability, he must not expect them to inform him if they cannot make the grade. Above all,leader cannot blame employees for his mistakes. Leader must publicly admit his ownfailure and afterwards discuss the problem with employee privately. Behaviour is very important aspect, there must be respect at all times. If yourespect others they will respect you. Abusive language, aggressive behaviour,drunkenness, disloyality, refusal to carry out company policy or to co-operate withothers is totally unacceptable and employees who have not behaved respectfully mustbe fired as soon as possible. Sacking can cause problems but not such problems as cancause such employee when he is not dismissed. Leader must never fear liability and taking an action. Leader must shows hisemployees his gratitude and approval. Manager must not fear to make unpopulardecisions if they are needed. Nothing will make company more unstable that decisionsthat are continuously changed. However these are not the only principles of leadership, leadership is muchdeeper and more profound art. At best these principles are reassurance for those leaderswho already practise them. Leader must never fear failure, indeed failure can often lead to the greatest oftriumphs. Machiavelli and his work The Prince is a fine example of this. Rejected in hislifetime, published 15 years after his death, it is now regarded as one of the world’struly great books. Failure can be for the individual quite as sweet as success. Such afailure, however, must be honest failure, failure that comes despite the fact that youhave tried with honesty and energy to succeed. When people talk about success andfailure, tales of failure are always so much more interesting than those of success. Noperson is responsible to another for failure or success. Aspiring business person shouldalways take advice from a failure. (McAlpine 2001) 20
  • 1.6. Sharing the powerIt is essential to understand essence of two different types of power – limited power akaauthorisation, which some of employees have, and unlimited power, which businessmanagers have. In first case the liability and right to perform an assignment, the second– liability when the assignment is already done. The second type of liability is heavier,so those who have limited power are more free in their actions and decisions. When manager has to fill an important position in company, he has to set newemployee to the lowest level of trust, power and liability. So in case new employee isdeceitful and traitorly, he cannot abuse employers trust and abuse power given to him. Nevertheless, if mistake has been done and deceitful person has gained power inthe company, quick remedy must be found. One way to get rid of deceitful but powerfulemployee is to find him new position that would not hurt his dignity. Therefore, if it isnecessary to abandon someone, you must improve his position. Leaders must be very careful when using the consultants in their companybecause aim of most consultants is to take their compensation and provide companywith short-term advice, but they will not take steps for company to gain benefit in long-term perspective. Consultants can be effectively used to get proof about how companyhas been led. This stimulates company heads and employees to notice mistakes thathave been done and make necessary changes. It is a matter of fact that destiny of biggest companies lies in hands of employeesin lowest levels. Therefore it is very important that all employees stand for company’sprinciples and understand company’s strategies. The power of employees is so strongthat they can destroy even the biggest company. Machiavelli believed that it is better to dissipate the power rather than centralize.Leader has then more power over employees energy, enthusiasm and intelligence. Butat the same time it can debilitate company’s management. To avoid this it is adviced toconsult with many but make decisions alone. General directions of the company mustbe determined only by company’s highest leader and in this matter at least managementmust be done from one center. (McAlpine 2001) 21
  • DISCUSSIONOver the years there have been many discussions about Niccoló Machiavelli, hisartwork and objectives of the treatise The Prince. Critics have described Machiavelli asdevil’s student or fiend from hell. His works are sometimes said to have contributed tothe modern negative connotations of the words "politics" and "politician", and it issometimes thought that it is because of him that "Old Nick" became an English termfor the devil. Adjective Machiavellian became a pejorative term describing someonewho aims to deceive and manipulate others for personal advantage. (Wikipedia 2010)Others have argued that his works have a moral foundation – belief that evil anddishonesty can be justified with patriotic interests. (McAlpine 2001) After reading Machiavelli’s book The Prince I have found many usefulprinciples that politics and company leaders can use to achieve their objectives.Although Machiavelli has written this book with cold calculation, without any delicacy,it is still passionate book trying to help Machiavelli’s homeland Italy to regain it’spower. Main principles that Machiavelli has set for leaders, both politicians andcompany managers, concern managing the subjects and using the power. Mostoutstanding principle in my opinion was Machiavelli’s recommendation for leader to beloved or feared by his subjects, but definately avoid to be hated. In my opinion Machiavelli’s ideas must be used with cautiousness because ifthey are used by malicious leaders, it may cause many evil to whole society as someexamples throughout history have shown. 22
  • CONCLUSIONMachiavelli definately was one of the founders of modern political science. ThePrince is sometimes claimed to be one of the first works of modern philosophy, inwhich the effective truth is taken to be more important than any abstract ideal.Machiavellis ideas had a profound impact on political leaders throughout the modernwest. His ideas are nowadays used in universities to analyse the power, competition andstrategies in politics and management of enterprises. Main topics discussed in The Prince are monarchy as a state power, how toobtain a state, governance of a state, maintaining a state and defence, qualities of a goodprince, conducting the subjects. All these topics can easily be adopted to political life ormanagement of companies. Many great leaders have followed Machiavelli’s ideas and strategies interpretedin The Prince and used it as a political guidebook. Though it has not been always usedon equitable purposes. Therefore many good but also many bad can be done whentaking Machiavelli’s ideas as strict rules for leaders. It must be understood and takeninto account that Machiavelli lived in totally different society and era than we do, so allhis principles must be adobted very precautiously considering differences of our timesand needs. Running a business is about leadership and Machiavelli’s strategies for politicalleaders can easily be adopted and used in business management. In conclusion, it can be very advanteous for leaders to know Machiavelli’sprinciples. But they must know how to use them in order not to make more evil than isneeded to fulfil the needs of majority. 23
  • REFERENCESBireley, R. (1990). The Counter Reformation Prince. Chapel Hill: The University of North Carolina Press.BrainyQuote [WWW] http://www.brainyquote.com/quotes/authors/s/silvio_berlusconi.html (03.01.2011)Harris, P., Lock, A., Rees, P. (2000). Machiavelli, Marketing and Management. London: Routledge.Machiavellian Politics. OPPapers.com. [WWW] http://www.oppapers.com/essays/Machiavellian-Politics/245592 (02.01.2011)Machiavelli, N. (1908). The Prince. [WWW] http://www.constitution.org/mac/prince00.htmMachiavelli on the Net. The personal website of Timo Laine. [WWW] http://www.timoroso.com/philosophy/machiavelli (02.01.2011)Machiavelli’s Ideas. OPPapers.com. [WWW] http://www.oppapers.com/essays/Machiavellis-Ideas/136916 (02.01.2011)McAlpine, A. (2001). Uus Machiavelli. Poliitikakunst äris. Tartu: OÜ Fontese Kirjastus.Wikipedia [WWW] http://en.wikipedia.org/wiki/Niccolo_Machiavelli (27.12.2010)Wikipedia [WWW] http://en.wikipedia.org/wiki/The_Prince (27.12.2010) 24