University of Guyana

Faculty Of Agriculture And Forestry

AGR 3205 - Agribusiness Management

 Lecture 1
Introduction to Management
 Management – Key principles, concepts…
 Management not confined to business/business organizations
Management is:
 essential for multiple organizations/institutions
 significant for the coordination of efforts of several personnel - to achieve the
objectives of organizations/institutions
 considered as an organized group activity, comprising systematic thought and
technological innovations
 essential for regulating productive activities through organized use of
resources. Management provides the leadership required for the
transformation of resources of production for an optimal results
 the integrating authority/power/force in all organized activity
 Management – national significance
 Management is important for the development of economies
 Development is a not function of only resources, but also of their optimum
utilization.
 Resources, when managed efficiently and effectively can lead to a higher rate
of economic growth
 Especially important - underdeveloped economies where resources may be
scarce – in this context appropriate management is increasingly significant
 Efficient and Effective management of economic and social institutions can
improve the quality of life of citizens.
 Effective business management in underdeveloped countries is key in poverty
alleviation and improved standards of living.
 Management Theory

Foundation Principle, Philosophy

Management Theory - Management or managing has four main elements.
A Process that :
 comprises of interrelated social and technical functions and activities
 accomplishes organizational objectives
 achieves these objectives through use of people and other resources
 utilizes a formal organizational setting
 provides an organizational context in which direct and support work can be
performed effectively.
 Management - defining the Process
 Noted - Although the discipline of management is more than 80 years old - no
common agreement among experts concerning a precise definition.

Several Reasons
 Changes in management styles - changes in beliefs concerning management.
 The interdisciplinary nature of management - changes due to developments in
various disciplines
 Changes in the environments which govern the production and distribution of
goods and services - social, cultural and religious values, consumers' preferences,
education…

In spite of lack of definitive agreement - a definition of management is necessary

for the purposes of teaching, research, and improvement of management.
 Management - leading definitions
 Dalton E. Mc Farland, "Management is defined for conceptual, theoretical and analytical
purposes as that process by which managers create, direct, maintain and operate
purposive organization through systematic, co-ordinated co-operative human effort.“

 William Spriegal, "Management is that function of an enterprise which concerns itself

with direction and control of the various activities to attain business objectives.
Management is essentially an executive function; it deals with the active direction of
the human effort.“

 Kimball and Kimball, "Management embraces all duties and functions that pertain to
the initiation of an enterprise, its financing, the establishment of all major policies, the
provision of all necessary equipment, the outlining of the general form of organization
under which the enterprise is to operate and the selection of the principal officers."
 Management - leading definitions

 Sir Charles Reynold, "Management is the process of getting things done through the
agency of a community. The functions of management are the handling of community
with a view of fulfilling the purposes for which it exists.“

 Harold Koontz, "Management is the art of getting things done through and within
formally organized group."

 Mary Parker Follett, "art of getting things done through people". This definition calls
attention to the fundamental difference between a manager and other personnel of
an organization. A manager is one who contributes to the organization’s goals
indirectly by directing the efforts of others – not by performing the task himself. On
the other hand, a person who is not a manager makes his contribution to the
organization’s goals directly by performing the task himself.
 Management - key elements of leading definitions

 Formally organized groups

 Control of the various activities
 Organized/co-ordinated, co-operative human efforts
 An executive function
 establishment policies, the provision necessary equipment, outlining the general
form of organization for operation and selection of principal officers
 agency of a community
 handling of community to fulfil the purposes for which it exists
 getting things done through people - fundamental difference between a manager
and other personnel of an organization
- manager directing the efforts of others, non-manager – contributing to the
organization’s goals by performing tasks
 Management - coordinating the key elements

 gettingthings done through people - fundamental difference between a

manager and other personnel of an organization
 manager directing the efforts of others, non-manager – contributing to the
organization’s goals by performing tasks

However,
 managers may perform both roles simultaneously.

Example(s)?
 Management - synchronizing definitions
 Various definitions of management are not conflicting.
Management is the sum-total of all activities that:
 determine objectives, plans, policies and programmes
 secure resources - personnel, materials - machinery etc.
 put all resources into operation through sound organization
 direct and motivate personnel
 supervises and control personnel performance and
 provide maximum prosperity and happiness for employers, employees and the
public.
 Management - Skills, Roles, Competencies
Skills – Expertise

 Technical Skills - the abilities of managers to use the methods, processes, and
techniques of managing (e.g. preparing a budget, planning a new process). Technical
skills tend to decrease in importance as managers become more senior.

 Conceptual skills - mental ability to see how various factors in a given situation connect
and interact (e.g. conceptualizing consequences of decisions and no-decision. The need
to use conceptual skills increases significantly as managers become more senior.

 Human/interpersonal skills - cooperating with others, understanding others, motivating

and leading personnel in the workplace. Human relations skills tend to become less
important as managers become more senior.
 Management - Skills, Roles, Competencies
Roles – Responsibilities/Functions

 Interpersonal roles - leader, and liaison - formal authority of the manager.

 Informational roles - monitor, disseminator, and spokesperson – important in

complex organization which effective communication. Access to information is a
measure of power. Less secure and capable managers tend to hoard information
or provide it only reluctantly - reinforcing their importance.

 Decision-making roles - integral to management. There are various types of

decisional roles - resource allocation, and negotiation... Negotiation is very
important - almost daily activity of managers.
 Management - Skills, Roles, Competencies
Roles – Responsibilities/Functions

 Designer roles - similar to organizing – managers at different levels must be

capable of designing various components of the organization

 Strategist roles - similar to planning. It suggests - focus on how to adapt various

areas of the organization to external challenges and opportunities

 Leader roles - affected by the performance of the designer and strategist roles.
- spearheading - considered more difficult in dynamic services
 Management - Skills, Roles, Competencies
Competencies – Capabilities, Experiences
 Conceptual competence - important for middle and entry-level managers - (i)
recognition of their duties as part of the entire organization and (ii) consideration
of interrelationships – prediction of consequences of decisions and no-decisions
important.

 Technical managerial/ clinical competency - performance managerial tasks, as

well as understanding work in the various units(s) of responsibility. Knowledge of
specialized activities are important as those in the general organization.

 Interpersonal/collaborative competency - good interpersonal and collaborative

capabilities to effectively lead or direct. Essential to to instill a common vision,
stimulate pursuit and meet the objectives.
 Management - Skills, Roles, Competencies
Competencies – Capabilities, Experiences

 Political competency - important for senior-level managers - work with the

political processes - various levels. Technical knowledge important to influence
the legislative processes

 Commercial competency - important for economic success - offer value to

stakeholders. Managers - establish and maintain an environment that facilitates
economic success. Need - businesslike orientation for basic operation - with
humanitarian connection.
 Characteristics of Management
Management - diverse activity with several key features:
Regarded as:
 An Economic Resource:
- one of the factors of production (including land, labour and capital…). Efficient
management - needed to integrate the other factors of production - generate
goods and services.
 Goal Oriented:
– purposeful/focused – coordinates the efforts of workers to achieve organizations’
goals. Successful management measured by extent to which the organizational
goals are achieved.
 A Distinct Process:
- comprises various functions: planning, organizing, staffing, directing and
controlling. Functions - integrated and have no exact sequence of or significance.
 Characteristics of Management
Management is a diverse activity having several key features:
Regarded as:
 An Integrative Force:
- integration of human and other resources to achieve the desired objectives.
Resources - made available; managers apply knowledge, experience and management
principles to achieve results.

 A System of Authority:
- hierarchy of command and control. Managers at various levels - varying
degrees/extent of authority.
Generally - moving down this managerial hierarchy - the degree/extent of authority is
gradually reduced.
Authority - important to enable managers to perform effectively.
 Characteristics of Management
Management is a diverse activity having several key features:
Regarded as:

 A Multi-disciplinary Subject:
- field of study (i.e. discipline)
- integrated with many other disciplines (e.g. Business, education, military,
agriculture, education…)

 Having Universal Application:

- management principles and techniques - equally relevant in disciplines.
Henri Fayol suggested that principles of management - applicable in every situation.
Principles are guidelines - adapted to every organization where management is
required (the efforts of human beings are to be coordinated).