Dairy farm management

• 1- the scope of farm management.• 2- the manager.• 3- strategic management.• 4- marketing plan.• 5- production and operation management.• 6- quality management.• 7- risk management.• 8- staffing and organization.• 9- the future farm manager.

Farm management

Managers do many things they are responsible for making sure the business or organization accomplishes what it is supposed to accomplish.

A business manager’s job can be defined as the art and science that combines ideas methods and resources to produce and market a product profitably. A managers job can also be described as the allocation direction and control of limited resources to achieve the goals of the firm efficiently.

The farming environment

•1- resources.•2- markets.•3- institutions.•4- technology.

The functions of management

1- PlanningIt is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources.

2- OrganizingIt is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.

3-StaffingIt is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose of staffing is to put right man on right job. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”.

4- DirectingIt is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

Supervision Motivation Leadership Communication

5- ControllingIt implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. Therefore controlling has following steps:

Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.

Most businesses change as the age of the people and the business changes, goals, activities, and involvement change. These can be understood by considering the three stages if the life cycle:

1- entry or establishment.

2- growth and survival.

3- exit or decline.

1- entry or establishment.the entry stage has been characterized by a career progression ladder known traditionally as the agricultural career ladder. It consists of the following steps: begin as a hired worker or as family labor, gradually acquire a basic set of machinery or livestock, rent land, establish part ownership of farmed land, and become the principle operator of the farm.

Do you know other entry methods?

1- become a partner of an already established farm.2- obtain finance to purchase capital and land.3- become a laborer / manager in an existing business and gradually invest in the business.4- marry into a farming family.(the key to entry are management skills, land tenure, and capital)

2- growth & survival stage

this stage involves strategies to improve efficiency and expand the resource base of the business.

3- exit

here the farmer plans and reaches retirement, resources and managerial responsibilities are transferred to the next generation or other parties. A cooperation may or may not go through this stage.

Business plan

• It is essential to have a realistic, working business plan when you're starting up a business.

• A business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts. It has many functions, from securing external funding to measuring success within your business.

There are many benefits to creating and managing a realistic business plan.

• help you spot potential pitfalls before they happen

• structure the financial side of your business• efficiently focus your efforts on developing

your business• work as a measure of your success

1- executive summary. 2- general description of the farm ( type of business, products & services, markets, location, history of the farm, owners) 3- strategic plan ( vision, mission, goals, objectives, external and internal analysis, business strategy, strategy evaluation and control). 3- marketing plan( target market, pricing strategy, product quality, market risk)4- production & operation management( production process, raw material, production and operation management).5- financial management6- organization and staffing plan

The manager• What are the characteristics of a

good manager?

• What are the functions of a manger?