Agriculture Reference
In-Depth Information
against unexpected large cash outlays. At the same time, it gave the employee the discretion
to use their judgment.
Policies are best adapted to recurring problems in areas that are vital to achieving the
long-range goals of the agribusiness. Although policies are closely tied to goals, they are not
goals. Because they are not goals, policies should never be used to restrict managers as they
make decisions about long-range, complex problem situations.
A
procedure
is a step-by-step guide to implement a policy for a specifi c activity or func-
tion. In many cases, there is a defi nite need to defi ne a precise course of action. A procedure
should not, in most cases, be applied to complex tasks of a long-range nature.
When the aforementioned farm equipment dealer sought to implement its new purchasing
policy, the procedure involved called for an employee to fi ll out a requisition form, submit it
to the general manager for approval, and then send it to the purchasing director. Procedures
work best when they are applied to routine and recurring tasks of a relatively simple nature
that require control. Both policies and procedures are of tremendous value to the new or
newly promoted employee who is learning on the job. They also ensure uniform perform-
ance by all employees and prevent unauthorized actions.
Practices
represent what is actually done in the agribusiness, and they may confl ict with
policies and procedures. Managers have to be sure that policies make sense, are relevant, and
are enforced, in order for them to become widespread practices. If employees of the farm
equipment dealer routinely ignore the policy and procedure regarding the limits on spending,
Plate 2.2
Man pouring crop protection products
Controlling involves careful monitoring and evaluation of a fi rm's business and operating activi-
ties. Photo courtesy of USDA Natural Resources Conservation Service.
