Prater, Tom E.

Short, Elsie P.

English

Texas A&M University

L-406
MARKET
DEMAND
PEST
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a age....en roc 5
TEXAS AGRICULTURAL EXTENSION SERVICE
J. E. HUT CHI 5 0 N, 0 IRE C TOR, COL LEG EST A T ION, T E X A 5
THE MANAGEMENT PROCESS
TOM E. PRATER
EXTENSiON SPECIALIST IN FARM MANAGEMENT
ELSIE P. SHORT
EXTENSiON SPECIALIST IN HOME MANAGEMENT
The Texas A. & M. College System
~anagement is using the resources you
have to obtain certain goals and it
involves choices and decision-making.
Good managers develop through training.
No pattern guarantees managerial success
under all conditions. The immediate and
short-time goals which individuals or
families seek are many.
One example of a family goal is
the change in dairy farming from can
handling to the bulk-tank system. Some
factors to consider are:
Risks of future returns based on
present investment
Future prices of dairy products
and production costs
Land
Labor
Extra dairy cows to justify the
extra equipment
Available markets
Feed supply
Sources of credit
Health of family members
All the pieces must fit together and
records kept on family living and the
farm business will aid in making de-
cisions.
Another example of a family goal
is remodeling a kitchen to save the
homemaker time and energy. Factors to
consider in making such a decision are:
Amount of money needed
Available money or credit
Available labor
Original construction of the house
and possible structural changes
Possible arrangement of equipment
and ease in its use in various
arrangements
The following eight-step process
can aid you in making better plans. Bas-
ing your plans on factual information
will increase your managerial ability.
~ Repeat proce••
/ ~ Establl.h goals
..., ". T TG ..
................"', -\ 'til •••" .
~ ~
Put Plan Into action ~.~ Establl.h rout..
Make choIce
1. Management begins with a
goal, situation or problem. The goal
may relate to the farm, ranch or family
Iiving.
2. Gather all facts and infor-
mation pertaining to the particular
goal.
3. Analyze all resources, both
human and material. Some of the human
resources might be labor, time, energy,
skills or interest. The material re-
sources might include equipment, land,
money or credit.
4. Establish possible routes.
Usually there are many ways of doing
a job.
5. Make a decision or choice of
possible routes.
6. Put your selected plan into
action or follow through with your
decision. If you fail to try to complete
the plan, the effort of planning will
be fruitless.
7. Once the decision is made,
you must assume the responsibility for
it.
8. Evaluate the results. Are
they what you expected? Could you have
done better by following another route?
Many small goals may be within a
large goal. Each is developed through
the steps just listed.
How the Smith Family Used
the Management Process
The following family situation
is an example of how the management
process was used by the Smith family.
The following are basic facts considered
by the family in solving their problem.
The family consists of:
Father
·
. aie 36
Mother.
·
aie 35
Johnny aie 16
Mary
·
aie 12
Sue aie 10
They want to:
Do the family laundry in the eas-
iest and most economical way.
Have a usable tractor.
Their resources:
150 acres of land.
A second-hand tractor.
A iood supply of soft wate r and a
30-iallon hot water heater that
is 5 years 0 ld.
Washateria located in the county
seat.
The problem:
They cannot afford to buy both
the tractor and the automatic
washer.
What should they do?
1 • Est ablis h Go a l s.
The situation which the Smi th fam-
ily faces is that they need a new
tractor and a new washing machine, but
they cannot afford both.
2. Gather facts.
a. The tractor can be repaired by
using home labor for about $150.
It should last another season.
b. A new automatic washer will
cost approximately $230.
c. Mrs. Smith is in poor health.
d. The Smiths could take their
washing to the help-yourself laun-
dry, but (1) They have only one
car which the children use to go
to school. (2) The children could
take the laundry and pick it up.
They have from five to six washer
loads each week. Each washer load
would cost 20 cents for washing
and 10 cents for drying.
e. If the Smiths had an automatic
washer, one tub of clothes could
be done each morning before the
children go to school. The child-
ren could hang out the wash.
3. Analyze resources.
a. The cost of having the laundry
done would pay for the machine in
less than 3 years.
b. The tractor could be repaired
for $150 which would be less than
1 year's depreciation on the new
tractor.
c. The Smiths have a well-equip-
ped workshop and are experienced
mechanics. Mr. Smith and Johnny
could repair the tractor. The only
cost involved would be the purchase
of new parts.
d. The laundry taken to the wash-
ateria would cost $1.50 to $1.80
per week or a total of $78 to $93
per year. Some extra gasoline and
time would be required to take the
laundry by and pick it up each
week. During the summer, by care-
ful planning, the washing could
be done while the weekly shopping
is done.
e. The Smiths have a good supply
of soft ~ater and a 3D-gallon hot
water heater that is 5 years old.
4 • Est ablis h r 0 ute 's •
a. Repair tractor and buy auto-
matic washing machine.
b. BuY the tractor and let child-
ren take laundry as they go to
school and pick it up as they re-
turn in the afternoon during school
term.
5. Make a choice.
Select the route which will best
sui t the needs and desires of the family.
The Smiths decided to repair the tract-
or and bUY the washing machine.
6. Put plan into action.
a. The Smiths bought the washing
machine. The purchase plan selected
l' : """~
was the gO-day pay wi thout carrying
charges.
b. The necessary parts for the
tractor were purchased and the
tractor was repaired.
7. Assume responsibility.
The family assumed the responsibi-
lity for their decision which involved
the risk and uncertainty of making a
crop with an old tractor and sharing
the duties of the laundry.
8. Evaluate results.
a. At the end of the year the
washing machine was paid for.
b. The tractor was still in good
repair.
c. Each family member assumed
his share of responsibility for
doing the laundry at home.
d. Fewer articles of clothing
were necessary since they could
wash more often.
e. The family received great sat-
isfaction from owning the washing
machine and keeping all clothing
and household linens clean.
Cooperative Extension Work in Agriculture and Home Economics, The Texas A. & M. College System and United States
Department of Agriculture cooperating. Distributed in furtherance of the Acts of Congress of -May 8, 1914, as amended.
and June 30, 1914.


The Management Process.

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The Management Process.

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