RM3-20.0
9-99
Farm and Ranch Business Management Functions
Curriculum Guide
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I. Goals and Objectives
A. Learn the basic concepts of the following three functions of management: organizing,
staffing and directing, and controlling.
B. Learn the interrelationship between these functions.
C. Learn how to utilize these concepts in the management of your business.
II. Description/Highlights
A. Management functions include organizing, staffing and directing, controlling, and
planning. The planning function, while not discussed in this set of materials, is discussed
in RM3-19.0, “Managing Your Farm and Ranch Operation.” The organizing function is the
management process of identifying or establishing jobs, positions and chain of command.
Organization should facilitate the communication needed to make good decisions at all
levels of the operation. Organizing is also inventorying physical and financial resources,
identifying skills and talents among employees, and physically arraying these resources for
efficient use.
B. How the business is organized is fundamental to communication within the business,
the delegation of authority, the risk management plan of the overall business, and the
process of supporting good decisions. The whole point of organization and organizational
charts is to make the operation run smoothly and efficiently.
C. Every decision made by any manager is based on information. The business
organization provides for information flow. Figures 1, 2 and 3 illustrate various
communication and information flows (who answers to whom). Note that in each example
there is a two way flow. Review Figures 1, 2, and 3.
D. Lead the group in developing an organizational chart for their businesses. Starting at the
top of a page, draw in each position; list the person or position to whom the position
