ARE 304 Ch 2 Notes

What is a manager’s task?

Managers must efficiently combine human, financial and physical assets to maximize long run profits by satisfying the firm’s customers’ demands.

Managers must be…. (4 things)

1) technologically knowledgeable about products and services

2) effective communicators

3) able to motivate people

4) proficient in management technical skills such as accounting, finance, and forecasting

What is the definition of management?

The art and science of successfully pursuing desired results with the resources available to the organization

What are the 4 key tasks of agribusiness managers?

1) Planning

2) Organizing

3) Directing

4) Controlling

What are the three types of planning?

1) Strategic planning

• Mission statement

  • Key markets (who we serve)

  • Contribution (what we do)

  • Distinction (how we do it differently)

2) Tactical planning

3) Contingency planning

The strategic level involves what?

Top management

• Very flexible

• Long-term

• Written analyses

• Complex, detailed

• Broad

The tactical level involves what?

Middle management

• Somewhat flexible

• Intermediate-term

• Written reports

• Less detail, outlined

• General

The day-to-day level involves what?

Line employees

• Inflexible

• Immediate

• Unwritten

• Simple

• Very specific

What are the 6 aspects of the planning process?

1) Gather facts and information

2) Analyze

3) Forecast

4) Set performance objectives

5) Develop alternatives

6) Develop means of evaluation

What are the 4 tasks in organizing?

1) Set up the organizational structure

2) Determine the jobs to be done

3) Define lines of authority/responsibility

4) Establish relationships within the organization

What does the organizational chart mean? (3 things)

1) Division of labor

2) Chain of command

3) Bureaucracy

What are the 6 things in directing?

1) Selecting, allocating and training personnel

2) Staffing positions

3) Assigning duties and responsibilities

4) Establishing results to be achieved

5) Creating desire for success

6) Seeing the job is done and done properly

What is the difference between the management and leadership?

• Management involves performing management tasks and functions

• Leadership involves influencing the attitudes and behavior of followers and motivates them to do their best work

What are the 6 things that shape the work climate?

1) set a good example

2) Conscientiously seek participation

3) Be goals and results centered

4) Give credit and blame as needed

5) Be fair, consistent and honest

6) Inspire confidence and lend encouragement

What are policies?

General guidelines for decision-making that guide the thinking process, set boundaries

What are procedures?

Step-by-step guide to implement a policy

What are practices?

What is actually done in the firm

What are the three aspects of controlling?

• Monitoring and evaluation of activities

• Performance is measured and compared with standards set

• Includes an information system monitoring plans and processes

What is management by exception?

• Basic premise:

• Managers should concentrate on areas in which things are not progressing as expected

• Focus on deviations from forecast

To calculate deviations…

Actual sales - Sales forecast = difference

Difference/sales forecast = % deviation

What are the 4 benefits of management by exception?

1) Easier to ignore areas where performance is on target

2) See whole situation at a glance

3) Simple/easy to prepare, easily understood

4) Clearer interpretation than raw data

What are the 4 basic functions of agribusiness?

1) Marketing and selling

2) Financial management and planning

3) Production and operations

4) Personnel or human resources