1. MANAGEMENT PRINCIPLES:
(Module 1, Page 4)

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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?)