MANAGEMENT PRINCIPLES: (Module 1, Page 4)

Farm & Hort. Management: Defined as : “organising available resources to achieve the goals & objectives of the business” • in an ‘owner/operator’ business, the business goals & objectives will invariably incorporate the manager’s personal goals & objectives Resources: Land, labour (incl. management), capital etc - all of which will probably be limited Goals & objectives are often differentiated Goals: aims in a general sense (eg. to improve prodn. etc) Objectives: Specific aims (quantified & with a time frame) eg. to increase average velvet prodn. from 120 stags to 3.6kg within 3 years Most NZ farmers & horticulturists are owners &/or managers of family businesses, so there are a lot of people involved in management

Management: is a practical process is a continual process that also involves alternatives & decisions organising & objectives are both important facets of management Practical (applied), and not just a theoretical subject Continual process analysing choices (options) & making decisions on the use of the resources Organisational skills (for resources, labour etc) are fundamental to good management & efficiency Objectives are what drives the business, so the role of management is to assist in the achievement of these goals & objectives

Good management is crucial to success in business: needs to be productive, profitable & sustainable good managers need technical skills and management skills Farm & Hort. management is concerned with the ‘whole business’ Productive: To produce something to sell or trade Profitable: To generate revenue greater than the costs of prodn. Sustainable: To operate in a manner which will maintain (at least) the business’s resources & assets, & allow it to continue to operate into the future Technical skills are specific to different aspects of the business - the ability to perform certain tasks, & require a sound knowledge of the processes involved eg, cultivation, pruning etc Technical skills are important where training of staff is involved, or where it is necessary to lead by example ‘Whole farm’/’whole business’ approach to management incorporates various components: - Biological processes (animal & pastoral systems etc) - Economic issues (costs of prodn., budgets & cashflows, marketing etc) - People issues (labour, delegation, training, lifestyle requirements etc) All the components interact, & no two systems will be exactly the same, hence the need for versatility to be included in management skills

Functions of Management: Planning Execution (or Implementation) Control (PIC) or (PEC)

Planning: the starting point & ‘organising’ part of management physical or financial short, medium or long term involves choice, & the need to make decisions Physical - organising labour, materials etc Financial - budgets, finance, cashflows etc Short term (tactical planning) is for the immediate future - today, tomorrow, next week etc Medium term - may be considered on a seasonal basis eg. feed budgets & stock nos. for winter Long term (strategic planning) is for the next year, 5 years(?), succession etc Alternative options nearly always exist, so planning involves choices & the need to make decisions - consider what is available & realistic - assess the risks & the impact of a possible negative outcome - define alternatives & priorities, then make the decision

Execution/Implementation: puts the ‘plan’ into action involves day to day decisions needs knowledge & organisational skills More decisions (management is a continual process) & manager must accept responsibility for the decisions taken Knowledge - of the husbandries involved, & an understanding of the financial implications of the plan & associated decisions

Control: involves monitoring results of the plan & its implementation - good managers learn from mistakes physical control financial control Physical - stock nos., drilling & harvesting times, storage facilities etc Financial - budgets & cashflows, short & long term expenditure, debt management etc

Conclusions: Farm & Hort. management is about goals, resources, alternatives & decisions It is a continual, on-going process, using various resources to achieve business goals It requires the manager to consider the ‘whole business’ Everyone is involved in management, be it in business or just everyday life As students, you plan your courses, implement those overall plans by attending lectures etc & passing exams, while managing your time & hopefully, your finances (control?)