Art of getting things done through other people.

Process of optimizing human, material and financial

contributions for the achievement of the stated
organizational goals.

Process of planning, organizing, staffing and directing

as well as controlling the efforts of all organizational
members and the use of all available organizational
resources in order to achieve the stated organizational
goals.
 - People responsible for helping the
MANAGERS
organizations achieve their goals.

MANAGERIAL
ROLES
1. Liaison
2. Monitor
3. Negotiator

MANAGERS
 CHARACTERISTICS OF A MANAGER
1. Assume responsibility 6. Politician
2. Must balance competing 7. Diplomat
goals
8. Makes difficult decisions
3. Conceptual thinker
4. Works with & through people
5. Mediator

MANAGERS
MANAGERS’ PERFORMANCE MEASUREMENT
EFFICIENCY & EFFECTIVENESS
EFFICIENCY – doing things right
- minimize resources; maximize results
- measurable
- OUTPUT
INPUT

Ways of promoting Efficiency:

1) = I, O
2) I, =O
3) I, O
EFFECTIVENESS – appropriate means for achieving a
given objective
- selection of the method
- doing the right things

MGT = E & E + E
7 M’s of MANAGEMENT:
1. Manpower 5. Method
2. Money 6. Minute
3. Machine 7. Message
4. Material

EFFICIENCY & EFFECTIVENESS

MANAGEMENT PROCESS
establish goals & a suitable course of action for
achieving them
detail the work set-up a coordinating
divide the work mechanism

putting the right person in the right place

provide the path towards attainment of objectives

establish standards of performance

measure performance
corrective action on deviating performance
SYSTEM 1 (Exploitive Authoritative)
Mgrs. make all work-related decisions
Threat/punishment

SYSTEM 2 (Benevolent Authoritative)

Managers still issue orders but employees are free to
comment
Rewards for those who meet or exceed the manager’s goals

SYSTEM 3 (Consultative)
Goals are discussed with subordinates
Rewards rather than threat/punishment

SYSTEM 4 (Participative)
Goals and decisions are set by the whole team
Economic rewards & worth & importance
Piece of land on which a farm household undertakes
agricultural activities as part of its livelihood.
A farm includes: crops, livestock and other enterprises
(production activities associated with the farm).
A farm may include the following:
- wells
- irrigation channels
- fences
- buildings for livestock and storage
- house for the family
Study of the ways and means of organizing land, labor
and capital and the application of technical
knowledge and skill in order that the farm may be
made to yield the maximum net returns.

Art of applying business and scientific principles to the

organization and management of farm business
enterprise for the purpose of securing the greatest
continuous profit.
Deals with the organization and operation of a farm
with the objective of maximizing profits from the farm
business on a continuing basis.

Science of decision-making in evaluating & choosing

between alternative strategies for making adjustments
in resource-use & enterprise mix to secure higher
levels of farm income.

FARM MANAGEMENT
FUNCTIONS OF FARM MANAGEMENT
1. Management of Labor
a. Sources – Family
Hired
b. Rules for Labor Management
1. Labor calendar
2. No slack-season work during rush seasons
3. Advanced rainy-day work
4. Exchange labor with neighbors
5. Minimize chores
6. Simplify/combine jobs
7. Self-feeding
1. Management of Labor
b. Rules for Labor Management

8. Extra care in directing inexperienced labor

9. Select laborers carefully
10. Clearly assign tasks, train & supervise labor
11. Develop initiative, good will, cooperation & respect
12. Plan day-to-day utilization of labor, make day-
to-day adjustments
13. Provide social life
14. Keep a high-grade labor (bonus/profit share)

FUNCTIONS OF FARM MANAGEMENT

1. Management of Labor
c. Classification of farm jobs
- Fieldwork (plowing, planting, harvesting)
- Outside work that can be delayed (build
fences, haul wood, external building repairs)
- Rainy day work (machine repair & maintenance)

2. Making more or less short time minor adjustments

(factors of production + farming program)
- adjustments in plans which should not be postponed
(due to weather conditions & price/cost changes;
i.e., inc in electric bills)

FUNCTIONS OF FARM MANAGEMENT

3. Controlling and directing various resources
- control & direction of labor
- selection of best methods & practices
- involves expert & optimized handling of resources
- goodwill and cooperation of laborers (esprit de corps)
- maximum production efficiency

FUNCTIONS OF FARM MANAGEMENT

4. a. Management of Capital (Working capital)
CAPITAL - any goods employed in production other
than land, labor, buildings and fences.

- Plans (avoid costly delay & conflict in the use of

stocks & equipment)
- Adjustments (anticipate problems & choose the best
solution which will yield the greater positive
effect on total profits )
- Supervision (efficiency in optimizing resources to
prevent waste; allied with labor management)

FUNCTIONS OF FARM MANAGEMENT

4. b. Management of Land
Farmers are prone to exploit not only their land but also
their water resources leading to partial/complete
destruction of the productive power of the land and water.
Thus, it is of great importance to thoroughly understand the
principles involved in the conservation of such resources.

Soil management will lead to increased productivity,

whether one is raising livestock or raising crops. Proper
management will decrease costs & labor while increasing
profit. Proper soil management will maximize forage/crop
production while containing costs associated with irrigation,
fertilization and seeding.

FUNCTIONS OF FARM MANAGEMENT

5. Inventory Farm Records and
Farm Accounting System

IMPORTANCE – provide information to:

Increase profit
Adjust practices
Select enterprises
Determine best use of available resources
Obtain credit
Formulate production plans

FUNCTIONS OF FARM MANAGEMENT

5. Inventory Farm Records and
Farm Accounting System

DETAILED PROCEDURE IN DEVELOPING A FARM PLAN

1. Formulate goals & objectives
2. Prepare farm inventory
3. Identify opportunities, action plan
4. Prepare budget
5. Implement plan

FUNCTIONS OF FARM MANAGEMENT

5. Inventory Farm Records and
Farm Accounting System

USES OF FARM PLANS

Yardstick for performance & evaluation
Guide/reminder for activities
Basis for evaluation & improvement
Central facilitating aid

STEPS IN PLANNING
1. Take stacks of resources
2. Review/analyze alternatives
3. Choose among alternatives & develop a plan
4. Summarize (i.e. resources, outputs)
FUNCTIONS OF FARM MANAGEMENT
5. Inventory Farm Records and
Farm Accounting System

ELEMENTS of a COMPLETE PLAN & BUDGET

Personnel organization
Calendar of operation
Schedule
- labor requirements
- required supplies
- expected production & income
Summary budget & test of success

FUNCTIONS OF FARM MANAGEMENT

5. Inventory Farm Records and
Farm Accounting System
USES OF FARM RECORDS
Provide data
- farm plan & budget
- local & national programs
- property valuation
Aid to credit, insurance, taxes & reports
FARM INVENTORY
Complete list of all physical assets at a
specific point in time
Indicates the value of each item of property and
the amount of farm liabilities
FUNCTIONS OF FARM MANAGEMENT
5. Inventory Farm Records and
Farm Accounting System

STEPS in TAKING FARM INVENTORY

1. List all farm property
2. Put value on each item
3. List all farm debts & receivables
4. Summarize gathered information

FUNCTIONS OF FARM MANAGEMENT

5. Inventory Farm Records and
Farm Accounting System
METHODS OF VALUATION
Original cost – purchase price
Normal market value
Present market value – current market price
Original cost less depreciation – assets that
provide services and lose value over time

FUNCTIONS OF FARM MANAGEMENT

6. Oversee smooth productive process throughout the
year
Careful planning to avoid delays
Forecasting the utilization of materials
Scheduled utilization of implements, machinery &
labor
7. Note tentative adjustments in the factors of production
due to the change in price, methodology & other
elements
Necessary adjustments (i.e. resources) to achieve
greatest returns
Change in decisions, policies & proportion of the
enterprise
FUNCTIONS OF FARM MANAGEMENT
 FUNDAMENTAL FACTORS FOR A
FARMERS’ SUCCESS
1. Selection of the right farm for the right type/system
2. Proper sizes of farm business
3. Diversified enterprises
4. Adequate capital & utilization of credit
5. Best layout of the farm
6. Proper provisions (i.e. bldg., eqpmt., irrigation)
7. Conservation
8. Adequate record
9. Marketing of produce & purchase of supplies
10. Daily decision-making
FUNCTIONS OF FARM MANAGEMENT
CLASSES OF RISKS IN AGRICULTURE
1. Natural factors
2. Human factors
3. Unpredictability of market conditions

METHODS OF REDUCING RISKS

1. Insurance 2. Flexibility
3. Diversification 4. Liquidity
5. Future contract