Management principles and methods as applied in the field of Dairy sciences

1. Dairy Business Management
Dr. Asif Mohammad
Scientist
ICAR-National Dairy Research Institute

2. Dairy Business Management
Definition of Management
• Koontz and Weihrich-Management is the act of creating and controlling a
place where individuals, who effectively combine their efforts and skills,
achieve objectively chosen goals
• F. W. Taylor-Management is the art of knowing what you want to do and
then seeing that they do it in the best and the cheapest way
• Mary Parker Follett-Art of getting things done through people

3. Functions of Management
Luther Gulick
defines
POSDCORB in the
year 1937
Management
Planning
Organizing
Staffing
DirectingCoordination
Reporting
Budgeting

4. Planning
• Considered as basic or fundamental function of management.
• Planning is making decision in advance on what to do, when to do & how
to do to achieve organization's objective.
• Types of planning:
– Operational Planning: Day to day running of organization
– Strategic Planning: Exhaustive outline of organisation in long run
– Tactical Planning : Precise, fixed and short term plan
– Contingency Planning: Planning for unexpected situations

5. Organizing
• Organizing involves providing the organization everything useful which
are required for its smooth functioning
• Steps in organizing
• Activity
identification
First step
• Grouping
activities in
departments
Second step
• Classiffying
authority
Third step
• Coordinating
authority and
responsibility
Fourth Step

6. Staffing
• Appropriate and efficient selection, assessment and development of
personnel to perform the duties assigned as per the organizational
structure is known as staffing
• Staffing process
Requirement
Invitation to
desireable
candidates
Selection
Placement Training
Remuneration
Performance
evaluation
Promotion/
Transfer

7. Directing
• In this function of management; managers instruct, steer and evaluate
the performance of the subordinates
Directing
principles
Maximizing
contribution
Harmony
with
objectives
Unity of
command
Proper
directing
Communication
Informal
relationship
Good
leadership
Evaluation

8. Coordination
• Coordination is the act of amalgamation, assimilation, synchronization of
the endeavor of group members to attain the organizational objectives.
• Coordination is of 4 types:
Vertical coordination- Among different levels
Horizontal Coordination- Among department at same levels
Internal coordination- Within the same organization
External coordination- Outside the organization

9. Reporting
• Reports in an organization are prepared to give information about the
business situation to the managers and stakeholders so that they can
take suitable decisions.
Business
reports
Status
reports
Process
reports
Project
portfolio
reports
Analysis
reports

10. Budgeting
• The plan for spending scarce resources in different activities of an
organization is known as budgeting.
Types of budget
Master Budget
•Aggregate of
individual
budget of all
department
Operating
Budget
•Analysis and
forecast of
income and
expenses
Cash Flow
Budget
•Projection of
cash in and
cash flow
Financial
Budget
•Projection of
organization's
financial
health
Static Budget
•Remains
unchanged if
all other
scenario
change

11. Principles of Management
• The principle of management was proposed by Henri Fayol.
• Fayol has given 14 major principles of management in the book
‘Industrial and General Administration’ which was published in the year
1916. They are as follows:
• 1. Division of work 2. Balancing Authority and responsibility 3. Discipline
4. Unity of Command 5. Unity of Direction 6. Subordination of Individual
Interests to the General Interest 7. Remuneration 8. Centralization
9.Scalar Chain 10. Order 11. Equity 12. Stability of Tenure of Personnel
13. Initiative 14. Esprit De Corps

12. Record Keeping
• For dairy processing unit keeping record/book keeping of each and every
activity are very important.
• Why record keeping is essential for dairy entrepreneur:
 It can guide about the profit making and loss making dairy products
 Identify the product which is giving the highest return to investment
 Act as guide for future expansion of the farm
 Indicate requirement of specialization or diversification
 Lead towards making correct decision
 Guides in formulating suitable policy

13. Systems of Record Keeping
• A. Double entry system: Two entries are made for each transaction
For example, if one entrepreneur sell 50 kg paneer to Mr. A for Rs. 15000
i. Cash account (receipt account)- the amount received for sell of paneer i.e. Rs.
15000
ii. Paneer account (disposal account)- the quantity of paneer sold i.e. 50 kg will
be written in the credit side.
• B. Single entry system: The double outcome of each transaction i.e.
debits and credit is ignored in this type of record keeping.

14. Examples of records

15. References
S. No. Authors Title Publisher
1. Koontz H and Weihrich
H
Management McGraw-Hill Book
company
2. Singh AK, Singh L &
Burman RR
Dimensions of
Agricultural Extension
Aman Publishing
House
3. Raju VT & Rao DVS Economics of farm and
Management
Oxford & IBH
Publishing Co Pvt. Ltd

16. Contact Details
Dr. Asif Mohammad
Scientist (Dairy Extension)
Eastern Regional Station
ICAR-National Dairy Research Institute
A-12,Kalyani, Nadia-741235,
West Bengal, India
Email id: mail.asif.m@gmail.com

17. Thank you