TALLINN UNIVERSITY OF TECHNOLOGY

Tallinn School of Economics and Business Administration

Department of Business Administration
Chair of Organization and Management

Triin Ignaov
ANALYSIS 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 CONTENTS
Introduction.......................................................................................................................3
1.

Machiavellis principles and strategies in the prince.................................................4

1.1.
1.1.1.

Life of Niccol Machiavelli............................................................................4

1.1.2.

Machiavellis works........................................................................................5

1.1.3.

The influence of Machiavelli..........................................................................6

1.2.

2.

3.

4.

General introduction to Niccol Machiavelli and his work................................4

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................................................................................13

Machiavellis Ideas used in politics.........................................................................14

2.1.

Machiavellis political ideas through history....................................................14

2.2.

Machiavellis principles that can be used in politics in nowadays...................16

Strategies for business management........................................................................18

3.1.

Principles of leadership.....................................................................................18

3.2.

Sharing the power.............................................................................................20

Discussion................................................................................................................21

Conclusion.......................................................................................................................22
References.......................................................................................................................23

INTRODUCTION
Present research is an analysis of power, competition and strategies. It is based on
Italian philosopher and writer Niccol Machiavelli treatise The Prince, strategies and
principles discussed in this book.
To understand Machiavellis ideas it is essential to understand the society where
he lived and worked. Therefore the first part of this paper gives an overview of
Machiavellis life, work and artwork. After that conclusion and overview of
Machiavellis main principles is provided.
Second part of this research is dedicated to political power. Main objective is to
seek how Machiavellis strategies have become alive in politics over the years and even
nowadays, how they can be advanteous to politicians and how they have been abused.
Third section dicusses business management. This part concentrates on different
ideas of Machiavelli that can be used in management of companies, leadership
questions and power sharing. Many practical advice is give in this part for leaders in
business environment.
Writing this research I have used different sources, starting from Machiavellis
treatise 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 and
used to maximize the benefit for majority of parties involved. Machiavellis principles
can be used in politics as well as in business management. Although treatise The Prince
was written about 500 years ago, it still contains many useful and practical examples of
maintaining the power. I believe that these ideas are useful for everybody, especially for
those who deal with leadership in all walks of life.

1. MACHIAVELLIS PRINCIPLES AND STRATEGIES IN

THE PRINCE

1.1.

General introduction to Niccol Machiavelli and his work

Niccol Machiavelli was an Italian philosopher and writer based in Florence, Italy
during the Renaissance. He is one of the main founders of modern political science. He
was a diplomat, political philosopher, playwright, and a civil servant of the Florentine
Republic. He also wrote comedies, carnival songs, poetry, and some of the most wellknown personal correspondence in the Italian language. (Wikipedia 2010)

1.1.1. Life of Niccol Machiavelli

Niccol di Bernardo dei Machiavelli was born on 3rd of May 1469 in Florence, Italy,
the third son of attorney Bernardo di Niccol Machiavelli, and his wife, Bartolomea di
Stefano Nelli. The Machiavelli family are believed to be descended from the
old marquesses of Tuscany.
Machiavelli was born in a tumultuous era Popes waged acquisitive wars
against 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 such
as France, Spain, the Holy Roman Empire, and even Switzerland battled for regional
influence

and

control.

Political-military

alliances

continually

changed,

featuring condottiere who changed sides without warning, and short lived governments
rising and falling.
His position in the regime of Florence as Secretary to the Second Chancery of
the Republic of Florence lasted from 1498 to 1512. He was in a diplomatic council
responsible for negotiation and military affairs, carrying out, between 1499 and 1512,

several diplomatic missions, to the court of Louis XII in France; to that of Ferdinand
II of Aragn, 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 methods
of Cesare Borgia, son of Pope Alexander VI, who was then enlarging his central
Italian territories. Between 1503 and 1506, Machiavelli was responsible for the
Florentine militia, including the Citys defense. He distrusted mercenaries (a distrust he
explained in his official reports, and then later in his theoretical works), preferring a
politically invested citizen-militia a philosophy that bore fruit.
Machiavelli was deprived of office in 1512 by the Medici, and, in 1513, was
accused of conspiracy, and arrested and imprisoned for a time. Despite torture, he
denied involvement and was released; then, retiring to his estate, at Sant'Andrea in
Percussina, near Florence, he wrote the political treatises that earned his intellectual
place in the development of political philosophy and political conduct. After a time
Machiavelli began to participate in intellectual groups in Florence and wrote several
plays that were both popular and widely known in his lifetime. Still politics remained
his main passion.
Machiavelli died on 21st of June 1527. He was buried at the Church of Santa
Croce in Florence, Italy. (Wikipedia 2010)

1.1.2. Machiavellis works

The period when most of Machiavellis well-known writing was done was after
Machiavelli was removed from all functions of the Republic of Florence.
Machiavellis main and best-known work is a political treatise The Prince. From
correspondence a version appears to have been distributed in 1513, using a Latin
title De Principatibus (About Principalities). The printed version was not published
until 1532, five years after Machiavelli's death.
It is generally agreed that The Prince was especially innovative, and not only
because it was written in Italian rather than Latin. The Prince is sometimes claimed to
be one of the first works of modern philosophy, in which the effective truth is taken to
be more important than any abstract ideal. It was also in direct conflict with the

dominant Catholic and scholastic doctrines of the time concerning how to consider
politics and ethics.
The book concentrates on the possibility of a "new prince", rather than the more
traditional subject of an hereditary prince. To retain power, the hereditary prince must
carefully 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 stabilize
his new-found power in order to build an enduring political structure. That requires the
prince being concerned with reputation but also being willing to act immorally. As a
political scientist, Machiavelli emphasises the occasional need for the methodical
exercise of brute force, deceit, and so on.
Although it is relatively short, the treatise is the most remembered of his works
and the one most responsible for bringing word Machiavellian into wide usage as
a pejorative term describing someone who aims to deceive and manipulate others for
personal advantage. It even contributed to the modern negative connotations of the
words "politics" and "politician" in western countries. In terms of subject matter it
overlaps with the much longer book Discourses on Livy, which was written a few years
later. In its use of examples who were politically active Italians who perpetrated
criminal deeds for politics, another lesser-known work by Machiavelli which The
Prince has been compared to is the Life of Castruccio Castracani. (Wikipedia 2010)

1.1.3. The influence of Machiavelli

Machiavelli's ideas had a profound impact on political leaders throughout the modern
west, helped by the new technology of the printing press. English cardinal Reginald
Pole reported that The Prince was spoken of highly by Thomas Cromwell in England
and had influenced Henry VIII in his turn towards Protestantism, and in his tactics, for
example during the Pilgrimage of Grace. A copy was also possessed by the Catholic
king and emperor Charles V. In France, after an initially mixed reaction, Machiavelli
came to be associated with Catherine de Medici (the queen of France) and the St
Bartholomew's Day Massacre. As Bireley (1990:17) reports, in the 16th century,
Catholic writers "associated Machiavelli with the Protestants, whereas Protestant

authors saw him as Italian and Catholic". In fact, he was apparently influencing both
Catholic and Protestant kings.
During the first generations after Machiavelli, his main influence was upon
princes. One of the most important early works dedicated to criticism of Machiavelli,
especially The Prince, was that of the Huguenot, Innocent Gentillet, whose work
commonly referred to as Discourse against Machiavelli or Anti Machiavel was
published in Geneva in 1576. He accused Machiavelli of being an atheist and accused
politicians 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 Machiavel's writings at the
fingers ends". Another theme of Gentillet was more in the spirit of Machiavelli himself:
he questioned the effectiveness of immoral strategies, just as Machiavelli had himself
done, despite also explaining how they could sometimes work. This became the theme
of 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 authors
Machiavelli's realism and encouragement of using innovation to try to control one's own
fortune were more accepted than his emphasis upon war and politics. Not only was
innovative economics and politics a result, but also modern science, leading some
commentators to say that the 18th century Enlightenment involved a "humanitarian"
moderating of Machiavellianism.
Scholars have argued that Machiavelli was a major indirect and direct influence
upon the political thinking of the founding fathers of the United States. Benjamin
Franklin, James Madison and Thomas Jefferson followed Machiavelli's republicanism
when they opposed what they saw as the emerging aristocracy that they
feared Alexander Hamilton (the first United States Secretary of the Treasury,
a Founding Father, economist, and political philosopher) was creating with the
Federalist Party. Hamilton learned from Machiavelli about the importance of foreign
policy for domestic policy, but may have broken from him regarding how rapacious a
republic needed to be in order to survive.
The 20th century Italian Communist Antonio Gramsci drew great inspiration
from Machiavelli's writings on ethics, morals, and how they relate to the State and

revolution in his writings on Passive Revolution, and how a society can be manipulated
by 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 how
innovative or traditional it is. Machiavellis ideas are used in universities to analyse the
power, competition and strategies in politics and management of enterprises. There are
number of books published which analyse todays management strategies through
perspective of Machiavellis ideas.

1.2.

Main principles and ideas of Machiavelli, The Prince

In his piece The Prince Machiavelli discusses about several topics how to rule and
preserv states that are ruled as principalities. The main objective of this book was to
improve 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 power

First part on The Prince is devoted to describing different forms of ruling a state.
Machiavelli concentrates the discussion only on monarchies and how such principalities
are to be ruled and preserved.
Machiavelli has divided state powers by different criteria. To help to understand
his partition I have composed following figure.

Figure 1. Division of state powers by Machiavelli

Source: Author
By Machiavelli all power and all states that have held rule over men have been
either republics or principalities. Principalities are either hereditary, in which the family
has been long established or they are new. The new are either entirely new or they are
annexed to the hereditary state of the prince who has acquired them. Those dominions
which, when acquired, are added to an ancient state, are either of the same country and
language, or they are not. (Machiavelli 1908)

1.2.2. How to obtain a state

There are two main ways to obtain a state inheriting and conquering. Machiavelli says
that there are fewer difficulties in holding hereditary states than conquered ones for it is
sufficient only not to transgress the customs of his ancestors, and to deal prudently with
circumstances as they arise, for a prince of average powers to maintain himself in his
state, unless he be deprived of it by some extraordinary and excessive force. And if he
should be so deprived of it, whenever anything sinister happens to the usurper, he will
regain it. (Machiavelli 1908)
If conquered state has similar culture and language to princes state it is much
easier to obey the nation. Only things that prince must not do are changing taxes and

laws. If conquered nation is different in culture and language it is very difficult to

maintain 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 people
already have same traditions and culture and fellow feeling therefore together they will
obey easier to their new occupier. In order to succeed prince must acquire symphaty by
people even if he has strong army. Good way to gain people support is living among
them for a while. This way prince can immediately take an action when unrests may
occur. Also his new subjects adjust to new ruler and will start to love him or, if that is
not an option, fear him. Machiavelli has many times emphasized that it is better to be
feared than loved.
Another oppourtunity to obey people is to send a colony to live among new
nation. This is alternative to sending an army to ivigilate people. As colony demands
less spending, causes less anxiety, is more faithful, it is best way to obey people to new
prince.
If conquered state was previously ruled as a republic it is necessary that new
ruler will live a while among the people or if this is not an option he must destroy the
republics government so they do not know how to govern themselves any more.
Machiavelli also emphasizes that one who gains power by betrayal, brutality and
cheating cannot be called genious nor respectful man.

1.2.3. Governance of a state, different approaches

Machiavelli states that a state can be governed by a monarch in two ways by ministers
who obey to monarch or by subdivisions, where every division has own leader who
obeys to monarch. A state that is divided into subdivisions will shatter and when the
oppourtunity 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 new
prince it is easy to displace the prince. But if that prince will gain the power it is not so
easy to displace the prince second time as prince has studied his weaknesses and
strenghtens them. Also he can punish the rebels publicly to warn people.
Therefore good prince must follow the principle that everybody who may be
rebellious 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 the
state must be treated good or defeated as well treated people are friendly and they will
not 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 or other benefits
to gain their loyalty.
It must be kept in mind that everything that may harm the people must be done
at once so they can be forgotten faster but favors must be done slowly and not at once so
their impact would last longer.
Good leader knows that innovation is a basis for making the state stronger. But
he 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 support
can be expected from those who have a chanche for success in new times. As a rule
those who are againt the innovation put up a much stonger fight than you can expect
support from those who may gain success after innovation. Considering some examples
from the history it is proved that innovations have failed when no force is used for
instance in case of Moses, Romulus etc. But when innovation has been put into practice
and people get used to new situation the leader will gain peoples trust, loyalty, respect
and satisfaction he has the power.

1.2.4. Maintaining a state, defence

In the society where violence, havoc and quarrels have set in the force must be used to
restore 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 he
can maintain them loyal. To keep subjects loyal leader must also fortify them against
enemy, defend and support them every opportunity.
Basis of the well-assured state are good laws and strong defence. If military
virtue were exhausted, this has happened because the old order of things was not good
and none of us have known how to find a new one. And nothing honours a man more
than to establish new laws and new ordinances when he himself was newly risen. States
that 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 have
helped 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 more
advantageous than standing neutral because if two of your powerful neighbours come to
blows, they are of such a character that, if one of them conquers, you have either to fear
him or not.
As Machiavelli says good prince can never rest on the laurels but must always
act in a way that insures his future in case the fortune will change and turn against him.

1.2.5. Qualities of a good prince

Machiavelli has stressed several times that every quality of a leader that may seem as a
vice is always not bad quality as can bring him confidence and prosperity. Leader can
never fear a reputation of an evil man if this brings profit to the state as a whole. Too
much 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 fear
reputation of cruel man. Being too merciful may cause disorder and therefore suffering
to 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. If
prince is honoured and respected by his people it is very difficult to attack and dethrone
him. But if people do not favor their prince, then he must be afraid of anyone because
he 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, above
all things, always to endeavour in every action to gain for himself the reputation of
being a great and remarkable man. Wise leader must use every opportunity to dash
hostility towards him and therefore gain reknown among people.
Machiavelli believes that fortune is the arbiter of one-half of our actions, but that
she still leaves us to direct the other half, or perhaps a little less. Therefore prince who
relies 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 whose
actions 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, either
by valour or fortune, that others would yield to him.

1.2.6. Conducting the subjects

It is essential to conduct the subjects in a way that makes them true and loyal to their
leader. If leader do not have reliable subjects it is his own fault because he has chosen
his 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 same
time he must realize that he would not attain same position on his own, without his
employer. Otherwise he can start to desire more power.
A prince is always recommended to take counsel, but only when he wishes and
not when others wish. He ought rather to discourage every one from offering advice
unless he asks it but, however, he ought to be a constant inquirer, and afterwards a
patient listener concerning the things of which he inquired. On learning that any one, on
any consideration, has not told him the truth, he should let his anger be felt. If prince
has yielded his affairs entirely to one person who happens to be a very prudent man, he
may be well governed, but it would not be for long, because such a governor would in a
short time take away his state from him. Men will always prove untrue to their leader
unless they are kept honest by constraint. Therefore it must be inferred that good
counsels are born of the wisdom of the prince, and not the wisdom of the prince from
good counsels.
Machiavelli has come to very interesting conclusion about conducting the
subjects two men working differently bring about the same effect, and of two working
similarly one attains his object and the other does not.

13

14

2. MACHIAVELLIS IDEAS USED IN POLITICS

The book which gained a bad reputation when it was written now serves as a guide book
for most politicians and heads of state (prince) around the world. The Prince is a book
which contains practical examples and factual information on how a prince ensures that
he maintains his seat as head of state and achieves great things whiles in power. As a
result the Prince is a book worth reviewing because it contains useful ideas which can
help leaders to rule effectively.
Many have misinterpreted Machiavellis ideas branding him as one who is in
firm support of a corrupt and totalitarian government. However, a close look at his ideas
portrays the need for society to employ a patriotic and an intellectual person to lead a
state or country. The main aim of a prince as often emphasized in the book is that he
should first seek what is best for the state after which he should try maintain his seat as
head of state. However following these ideas to the latter is harmful as it does not
encourage democracy.

Democratic countries as often shown, experience rapid

economic growth therefore any system that restricts democracy stifles economic
growth. (Machiavellis Ideas 2011)

2.1. Machiavellis political ideas through history

Many great leaders have followed Machiavellis ideas and strategies interpreted in The
Prince and used it as a political guidebook. Though it has not been always used on
equitable purposes. Many totalitarian rulers have justified their acts with this book and
Machiavellis recommendations. This is why many philosophers have refered
Machiavelli as someone who aims to deceive and manipulate others for personal
advantage. (Machiavelli on the Net 2011)

15

Some examples of known politicians and leaders who have found Machiavellis
principles useful are Abraham Lincoln, Louis XIV, cardinal Richelieu, Napoleon
Bonaparte, Benito Mussolini, Dick Morris, an adviser to Bill Clinton etc. It is of course
another question how well all these people understood Machiavelli in the end. It is quite
simple to ignore Machiavelli's normative teaching and only adopt the parts suitable for
opportunist politicians.
For instance some devotees of absolute power like Stalin and Hitler have acted
in many parts exactly as Machiavelli has advised in his treatise. Machiavelli has
recommended to punish everybody who may be rebellious against leader. He has stated
that if leader can hold state strong and united thanks to his cruelty he must not fear
reputation of cruel man. Also by Machiavelli it is better to be feared by people than
loved, but at the same time leader must avoid of being hated by his people. Country
must 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 of
Machiavellis ideas and used them to make their countries strong and good place to live
for their people. But there are always two sides of every case.
On the other hand Machiavelli has stated that everything that may harm the
people must be done at once so they can be forgotten faster. Machiavelli prohibited
rulers to oppress the nation. These two totalitarians never gave rest for their people, they
followed their own ambitions and not common welfare of people. Machiavelli also
emphasizes that one who gains power by betrayal, brutality and cheating cannot be
called genious nor respectful man. Another point is innovation Machiavelli said that
innovation is a basis for making the state stronger. Neither Stalin not Hitler were
innovative leaders. On the contrary they forbid everything that was different or new.
Therefore many good but also many bad can be done when taking Machiavellis
ideas as strict rules for leaders. It must be understood and taken into account that
Machiavelli lived in totally different society and era than we do, so all his principles
must be adobted very precautiously considering differences of our times and needs.

16

2.2. Machiavellis principles that can be used in politics in nowadays

Even though Machiavelli was writing in a world totally different to that of our own, his
thoughts 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 1513
when Machiavelli wrote his treatise The Prince, but main groundsills of the politics
have remained the same. Therefore many Machiavellis ideas can be well used in our
society.
Machiavellis arguments have been echoed and endorsed by writers and
statesmen from his own time to the present day. Machiavellis enduring contribution to
political thought, policy and practice is the remarkably resilient idea that politics
involves 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 political
success. (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 are
concerned to show that Machiavellian tactics are a responce to the realities of political
life and a recognition of the element of necessity in political conduct even nowadays.
In some senses it is puzzling why Machiavellian tactics and means-end
calculationare thought to be appropriate to and licence immoral actions in the political
sphere. Machiavellian tactics are especially difficult to justify in politics because
consequentialist calculation, the justification for immoral means must in the first
instance depend on judgements about the worth or value of the ends they achieve. In
practice it is difficult to establish a generally accepted political end which would
legitimize or excuse acts of power politics. Fraud, force, lies and violence are rarely the
only alternatives in politics, the overall harm caused by them frequently outweighs yhe
good intended and their use often has counterproductive effects. The habitual use of
these means can corrupt and spread with long-term consequences contrary to the public
interests as was shown by case of Hitler and Stalin for example. (Harris, Lock, Rees
2000)
If modern Machiavellianism in politics is to be questioned, then the question
must 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 for
Machiavellis advice.
Italian prime minister Silvio Berlusconi is one who has used Machiavellis ideas
in nowadays politics. He has even published an edition of The Prince with his own
comments. Quoting Berlusconi: The political tradition of ancient thought, filtered in
Italy by Machiavelli, says one thing clearly: every prince needs allies, and the bigger the
responsibility, the more allies he needs. (BrainyQuote 2011)

18

3. STRATEGIES FOR BUSINESS MANAGEMENT

Alistair McAlpine has said in his book (McAlpine 2001) that business is about
organizing people so that they behave in a motivated and orderly fashion. Running a
business is about leadership and Machiavellis strategies for political leaders can easily
be adopted and used in business management.

3.1. Principles of leadership

Several principles of leadership that Machiavelli has emphasized can be adopted from
The Prince and can be used in modern business management. These principles that
business leaders must follow are loyalty, trust, fairness, ability and behaviour. Following
explanations of these principles are based on Alistair McAlpine text in Machiavelli,
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 not
only must be given, it must be seen to be given. It means concern for others in sickness
and health, in good and bad times. Loyalty must spring up from shared certitude and
common interests. It is essential to recognize those who are disloyal only when
circumstances 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 are
employed to put their trust in him/her if leader is not trusting his/her employees. If trust
between employer and employee is growing, then loyalty is also increasing. Leader
must trust the subject so he can implement all his potential and if he fails, leader must
never humiliate him publicly.

19

After trust comes fairness. An employer needs to be scrupulously fair. Criticisms

should be objective, based on facts not on hearsay and rumour and other peoples
opinions, people who have their own agenda. Critique must always be given privately.
Then, ability: if leader appoints or promotes employees to a level above their
ability, 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 own
failure and afterwards discuss the problem with employee privately.
Behaviour is very important aspect, there must be respect at all times. If you
respect others they will respect you. Abusive language, aggressive behaviour,
drunkenness, disloyality, refusal to carry out company policy or to co-operate with
others is totally unacceptable and employees who have not behaved respectfully must be
fired as soon as possible. Sacking can cause problems but not such problems as can
cause such employee when he is not dismissed.
Leader must never fear liability and taking an action. Leader must shows his
employees his gratitude and approval. Manager must not fear to make unpopular
decisions if they are needed. Nothing will make company more unstable that decisions
that are continuously changed.
However these are not the only principles of leadership, leadership is much
deeper and more profound art. At best these principles are reassurance for those leaders
who already practise them.
Leader must never fear failure, indeed failure can often lead to the greatest of
triumphs. Machiavelli and his work The Prince is a fine example of this. Rejected in his
lifetime, published 15 years after his death, it is now regarded as one of the worlds truly
great books. Failure can be for the individual quite as sweet as success. Such a failure,
however, must be honest failure, failure that comes despite the fact that you have tried
with honesty and energy to succeed. When people talk about success and failure, tales
of failure are always so much more interesting than those of success. No person is
responsible to another for failure or success. Aspiring business person should always
take advice from a failure. (McAlpine 2001)

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3.2. Sharing the power

It is essential to understand essence of two different types of power limited power aka
authorisation, which some of employees have, and unlimited power, which business
managers 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 new
employee to the lowest level of trust, power and liability. So in case new employee is
deceitful 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 in
the company, quick remedy must be found. One way to get rid of deceitful but powerful
employee is to find him new position that would not hurt his dignity. Therefore, if it is
necessary to abandon someone, you must improve his position.
Leaders must be very careful when using the consultants in their company
because aim of most consultants is to take their compensation and provide company
with short-term advice, but they will not take steps for company to gain benefit in longterm perspective. Consultants can be effectively used to get proof about how company
has been led. This stimulates company heads and employees to notice mistakes that
have been done and make necessary changes.
It is a matter of fact that destiny of biggest companies lies in hands of employees
in lowest levels. Therefore it is very important that all employees stand for companys
principles and understand companys strategies. The power of employees is so strong
that 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. But at
the same time it can debilitate companys management. To avoid this it is adviced to
consult with many but make decisions alone. General directions of the company must be
determined only by companys highest leader and in this matter at least management
must be done from one center. (McAlpine 2001)

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4. DISCUSSION
Over the years there have been many discussions about Niccol Machiavelli, his
artwork and objectives of the treatise The Prince. Critics have described Machiavelli as
devils student or fiend from hell. His works are sometimes said to have contributed to
the modern negative connotations of the words "politics" and "politician", and it is
sometimes thought that it is because of him that "Old Nick" became an English term
for the devil. Adjective Machiavellian became a pejorative term describing someone
who aims to deceive and manipulate others for personal advantage. (Wikipedia 2010)
Others have argued that his works have a moral foundation belief that evil and
dishonesty can be justified with patriotic interests. (McAlpine 2001)
After reading Machiavellis book The Prince I have found many useful
principles 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 Machiavellis homeland Italy to regain its
power.
Main principles that Machiavelli has set for leaders, both politicians and
company managers, concern managing the subjects and using the power. Most
outstanding principle in my opinion was Machiavellis recommendation for leader to be
loved or feared by his subjects, but definately avoid to be hated.
In my opinion Machiavellis ideas must be used with cautiousness because if
they are used by malicious leaders, it may cause many evil to whole society as some
examples throughout history have shown.

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CONCLUSION
Machiavelli definately was one of the founders of modern political science. The
Prince is sometimes claimed to be one of the first works of modern philosophy, in
which the effective truth is taken to be more important than any abstract ideal.
Machiavelli's ideas had a profound impact on political leaders throughout the modern
west. His ideas are nowadays used in universities to analyse the power, competition and
strategies in politics and management of enterprises.
Main topics discussed in The Prince are monarchy as a state power, how to
obtain a state, governance of a state, maintaining a state and defence, qualities of a good
prince, conducting the subjects. All these topics can easily be adopted to political life or
management of companies.
Many great leaders have followed Machiavellis ideas and strategies interpreted
in The Prince and used it as a political guidebook. Though it has not been always used
on equitable purposes. Therefore many good but also many bad can be done when
taking Machiavellis ideas as strict rules for leaders. It must be understood and taken
into account that Machiavelli lived in totally different society and era than we do, so all
his principles must be adobted very precautiously considering differences of our times
and needs.
Running a business is about leadership and Machiavellis strategies for political
leaders can easily be adopted and used in business management.
In conclusion, it can be very advanteous for leaders to know Machiavellis
principles. But they must know how to use them in order not to make more evil than is
needed to fulfil the needs of majority.

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REFERENCES
Bireley, 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.htm
Machiavelli on the Net. The personal website of Timo Laine. [WWW]
http://www.timoroso.com/philosophy/machiavelli (02.01.2011)
Machiavellis Ideas. OPPapers.com. [WWW]
http://www.oppapers.com/essays/Machiavellis-Ideas/136916 (02.01.2011)
McAlpine, A. (2001). Uus Machiavelli. Poliitikakunst ris. Tartu: O 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)

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