Ecofar wp5 module 3.7 english

1. Development of managerial andentrepreneurial skills of young eco-farmersviajoint VET curricula, enhanced
qualificationprofile, assessmentstandardandsustainable cooperationsynergies (ecoFAR)
597256-EPP-1-2018-1-BG-EPPKA3-VET-JQ
Level: Entrepreneurial and managerial challenges in
eco-farming
Module: 3
Unit 7 Managing eco-farm businesses according to
long-term plan

2. Table of content
• 3.7.1. Definition
• 3.7.2. Types of management functions
– 3.7.2.1. Planning
– 3.7.2.2. Processing
– 3.7.2.3. Leadership
– 3.7.2.4. Control
– 3.7.2.5. Regulation

3. 3.7.1. Definition
• Eco farms or individuals set goals that they must achieve through their
activities. The driving force behind this activity is management.
• Management is understood to mean the management of the socio-
economic system (organization, firm, farm, eco farm).
• Management refers to the accomplishment of the necessary actions in an
organization by the people through the resources: equipments, raw
materials, and capital in order to achieve the set goals.
• The management activity determines the direction of actions of the eco
farm / farm, by coordinating the individual activities in it through the
managed activity of the managers.

4. 3.7.2. Types of management functions
The management process consists of four basic functions:
•planning
•organizing
•leading
•controlling
All of them are logically related.

5. 3.7.2.1. Planning
Planning or planning process is the purposeful activity to achieve
the goals, including goal setting. The planning process includes
three interrelated and differently oriented processes - strategic
planning process (for a period of 3-5 years), tactical planning
process - for a period of 1-2 years, resulting from the strategic
and operational planning process for a period of less than 3
months, resulting from the tactical.

6. 3.7.2.1. Planning
The plan - it is a framework for achieving the goals set, including the
necessary resources, deadlines and line managers. Plans are classified into
strategic, tactical and operational plans.
INPUT FORM:
 Leadership
 Workforce
 Stakeholders

7. 3.7.2.1. Planning
Goals can be distinguished by different features:
• According to the time distance: strategic, tactical and operational.
• According to the content of the activity: economic, technical and social.
The goals should be realistic ones, resourced, measurable, bound.
The planning of the activities aims to choose the most economically efficient
one, which is in accordance with the market and the own capabilities of the
eco-farm, resources, staff, etc. Most eco-farms in the EU are small family
businesses. Usually the owner is also a manager who has to set the goals of
the business. For example, with the limited capital available to the eco-farm,
maximum profit cannot be achieved. In this case, it is more important for the
farmer to increase the size of the farm, even at the expense of profit. One of
the goals is to provide employment for family members and their cohesion.

8. 3.7.2.2. Processing
Organizing is the second major management function. Once the
relevant plans (equipment, materials, personnel) have been
drawn up, they must be appropriately combined. Organisational
process involves designing the structure of the relationship
within the enterprise, the tasks and the authority to fulfil the
plans that have been developed. Organization is the set of all
management actions necessary for the rational allocation of
available production factors. There is a difference between
"organizing" as a management function and "organizing" as a
structure.

9. 3.7.2.2. Processing
"Organization" is a function that relates to the dynamics, modification
and ordering of the elements of the farm system. Within the farm:
these are spatial boundaries, orderliness and relationships between
the production, economic, legal and social subsystems. Based on the
interconnection of the four subsystems, equilibrium or homeostasis
of the system is achieved. Without this, the farm cannot fulfil its
main objectives. Therefore, through the "organizing" function, an
entity fulfils its intended goals. This function is also associated with
continuous modification of both the elements and the system to
meet the requirements of the external environment. "Organization"
is an expression of a well-formed structure and relatively constant
order and relationships of the elements of the system.

10. 3.7.2.2. Processing
In order to exists in a market economy, the farm must improve its
production technology, change the type of equipment, varieties
and breeds, improve the skills of the workforce, etc. All this is
related to many changes in the production and economic
subsystems as well as in the social ones. Investments can be used
to upgrade the farm's logistical facilities through which it can
produced more efficiently, responding to the needs of
consumer’s requirements.

11. 3.7.2.3. Leadership
• The role and behaviour of the leader are very important as this function is
related to the effects on the people within the organization.
• Managers perform relevant tasks, based on the rights and responsibilities
they have and which are recorded in their job profiles. Leadership is an
activity and behaviour that takes into account the interests and needs of
the people, motivating them to perform their assigned tasks in the best
way and to develop their potential and creativity for their own benefit and
the benefit of the whole organization. The important attributes of leaders
are: understanding the people, their needs and potential; to take
responsibilities at the right time; be reachable and sociable; to present
clearly and accurately the tasks; to motivate their employees.

12. 3.7.2.4. Control
Control is a basic management function that provides feedback between the
planned and achieved results (goals) in a company. There are several types of
controls that can be summarized in three main areas:
a) Market control - it is applied in the conditions of developed market
competition, in which the main lever is the price. This principle is most
suitable for some modern business organizations - independent units,
subsidiaries, etc., with their products being evaluated by the market.
b) Administrative control - this type of control is used in organizations.
c) Clan control - it allows an organization to base its culture on values and
beliefs, and to operate like a family.

13. 3.7.2.5. Regulation
• One of the most important goals of management is to maintain
and improve the state of orderliness, organization of the
management and control subsystem. This is done through the
adjustment function.
• Company regulations list the rules on all kind of protection,
including accident prevention. Company regulations
supplement the management systems.

14. Disclaimer
For further information, relatedto the ECOFAR project, please visit the project’s website at www.ecofarm-
manager.eu or visit us at https://www.facebook.com/Ecofar2018/.
Downloadour mobile app at https://play.google.com/store/apps/details?id=com.ecofar.mobile.
The EuropeanCommission's support for the production of this publicationdoes not constitutean endorsement of
the contents, which reflect the views only of the authors, and the Commission cannot be held responsible for any
use which may be made of the information containedtherein.