Livestock Economics, Marketing and Business Management

ORGANIZATIONAL ASPECTS OF LIVESTOCK FARMS

Organizational aspects of livestock farms

• Promotion of the welfare of the people is one of the major objectives of the modern livestock farming. For the attainment of this objective the state attach high priority on their economic development.
• The economic development in turn depends on human, natural and financial resources. Since in most of the developing countries these resources are not available in abundance, every care should be taken to make proper use of these resources to obtain best possible results.
• Hence the management of various types of resources assumes special importance in the developing countries.

Management of human resources

• Management of human resources is of vital importance for every country and organization, A pertinent question which deserves our consideration is as to what is the process of management of human resources.
• This process comprises of four things, acquisition (getting the people), development (preparing the people), motivation (activating the people) and maintenance (keeping them).

Management of natural or material resources

• Material or the natural resources also play an important role in the economic development of a country.
• Effective management of natural or material resources is of prime importance.

Management of financial resources

• Financial resources are as important for the economic development of the country as natural and human resources.
• It is of vital importance that the limited financial resources should be utilized with utmost care and all wasteful expenditure be avoided.
• Financial management, according to Hiwad and Uptron "involves the application of general management principles to a particular financial operation."

Sources and procurement of materials

• Purchasing procedures of materials include various stages: First, the need is to be ascertained and recognised.
• Accurate statement of quality and quantity of material needed with full descript is to be prepared.
• Purchase requisitions and negotiations with possible sources of supplies are made.
• This is important in the business, as it is more concerned with the economy of the company or the firm.

Requirement of materials

• Type of the material to be used in the production process is generally determined by the production department (engineering dept.) of the company, since it has necessary knowledge and equipment to check the real physical characteristics.
• 
  

Making/Buying

• Usually the top management does this. It depends how highly integrated and the diversified the company is.

Advantages of Making

• Delivery on time in right quantity and quality
• Cost consideration, less inventory
• Emergency

Advantges of Buying

• Less investment in machines and equipment
• Simpler to manage in smaller and less diversified companies

Source selection

• Procedure involved in the source selection is the preparation of and exhaustive list of supplies and then sorting them out the one or ones with when to do the business.
• To prepare the list, a buyer can use the following type of supplier information
  • Past experiment with the supplier
  • Interview with the sales man
  • Technical and descriptive catalogues
  • Trade fairs and conventions
  • Trade directories and journals
  • Trade representatives and agencies
  • Periodical advertisement in the press