Fact Sheet

FS 02/04

Managing people in the farm business PDF (134kb)

The greatest asset of all - your family and employees

Working together for success

Are you stressed through having troubles with others who are involved in your farming business? Effort and energy expended unnecessarily due to these problems will result in both the business and the lives of those who depend on it being limited and unfulfilled.

The more variable the environment, the more critical it is that those involved in the business are working well together to survive the tough times that often put stress on relationships. While there is time, effort and energy expended unnecessarily due to these problems, it will be difficult to fully achieve the goals of the business or recognise opportunities available.

The degree of success of a business, and the difference between similar businesses, is often due to the way the people involved in the business are managed. From them the business gets the ideas, attitude, innovativeness, entrepreneurialism and flexibility that is necessary for a business to move forward and properly counter risks. Yet the major focus on many properties is on close management of the technical and financial aspects of the business, while little thought is given to making the best use of the people available to the business.

The resilience of a farm business can be remarkable when the people within the business, family and employees are united, open and closely connected with its conduct and direction. A weakness in the ability of those working on the farm to interrelate and work as a team towards common goals will severely undermine the ability to strategically plan for the business.

Account needs to be made of what all those in the business see as their future. Their goals may well not be those, or complimentary to those, of the business. Family members or employees have a stake in the business too. Their goals may be different to yours.

Investing in people

One of the more difficult things many businesses have to get their minds around is the need to invest in people. This can take time, considerable patience and plenty of energy.

People management is not just about having the people with the right skills, training and opportunity. If not properly managed, people in the business can use these attributes to actually inhibit or sabotage the achievement of business goals.

Investment in people is often limited to upgrading skills and knowledge in technical areas of the business. However, spending more time is rarely undertaken in developing the right approach and relationship with employees, as well as providing training in business strategy, technical business analysis, staff communication and motivation.

When people do get together and it works, the energy level and commitment to common goals can be extraordinary in both personal and in economic terms. Two-way communication and understanding is crucial to establishing common goals.

Communication

The cornerstone to managing people in the business and maximising their morale and contribution is to make sure there is good communication between everyone in, and connected with the business. Those who regularly take time to listen to and consult with family farm members stand a better chance at motivating everyone and resolving problems.

If families and those in the farm business do not communicate effectively, it will be difficult for them to recognise and take best advantage of opportunities. It is also more difficult to bear the stresses of tough times and to identify what to do and how to do it.

Communication can be the first thing to suffer in the stress of poor seasons. Poor communication can make relationships feel unrewarding and frustrating.

Good communication can put life back into relationships, nurture the growth of family members, build positive feelings and increase overall family self esteem.

It is important to listen properly, taking the time to fully hear what people are saying, and exploring what they mean. Too often listening is superficial which leads to misunderstanding, frustration and anger. Letting the person know their message has been understood is a vital part of the communication process. A willingness to listen is not only an invitation to others to communicate but a message that they are important.

Sharing how you feel

People who share daily living as families do, can easily slip into the habit of assuming others know their needs, as well as what they want and how they feel, without the need to verbalise them. The result can be hurt, disappointment, frustration, resentment, alienation and loneliness. The key to avoiding the mind reading trap is to express emotions. Once people are sharing how they feel about things, they will be effectively communicating. Good communication involves good listening and expression involving both feelings and information.

All planning and problem solving relies on effective communication and gaining common understanding. Developing an effective succession plan for the business is often difficult. Not only must it ensure the seamless hand over of management and ownership, but also satisfy others who are connected with the business or family. The establishment of good listening, understanding, and sharing of feelings is crucial for a succession plan to be developed that is fair and satisfies everybody.

To express yourself well you need to state your message as clearly, honestly and constructively as possible. You should not engage in destructive or unnecessary criticism or use family members as a dumping ground for your personal frustrations.

The greater part of our message is carried through non-verbal communication however, which requires sensitivity to non-verbal, as well as the verbal messages. Often the true feelings or understanding of the other person can be ascertained through their body language.

Developing the team

Feeling valued

Working as an effective team means that everyone works together for a common and shared purpose where every team member is valued for their contribution and skills. The input and shared responsibility from a group who are acting as a well-managed team, can lighten the load and open options and ideas otherwise hidden, and improve commitment once things get tough.

In an effective team, people within the team feel a greater sense of worth and empowerment. This means they feel they are listened to, they have some influence within the business, and they and their contribution is appreciated and valued. They will feel good about participating in the business, which is the ultimate motivator and oils the creation of an effective team.

An effective team can foster a positive attitude and change an internal focus based on anger and withdrawal to a positive, external focus. The focus will move to factors that can be controlled, rather than issues over which there is little control. It becomes easier to face reality and to explore options and identify opportunities.

Skills in communication, negotiation and conflict resolution are as important today as understanding crop agronomy and animal husbandry. Unlike more technical aspects of farming, the people part cannot be out-sourced. Management is fully responsible for building and supporting effective relationships with staff, customers and suppliers.

Using the right approach

It might be difficult to change the way people are managed on the farm, especially within the complex interactions of a family farm. A high level of dependence on one person is often seen which might be replaced with more of a collaborative and team oriented approach. This new approach will lead to greater achievement by everyone with an increase in passion for the business, initiative, responsibility and the satisfaction of working together collaboratively to achieve common goals.

How well those in a business work together in a team can be assessed by looking at the following behaviours of three stages of team development.

Stage 1: A collection of individuals

• Lack common purpose
• Do not share responsibility

Stage 2: A group of people

• Recognition of common purpose
• Peoples skills are identified
• One way sharing of responsibility
• One person often dominates

Stage 3: A team

• Have a common purpose to focus energy
• Responsibility is shared by all
• Individuals become responsible for their own actions

It is important for managers and owners to encourage motivation. Generally people are motivated by factors such as appreciation, work conditions, taking on more responsibility, training and self development, or variety of work, as much as or more than just money.

Management style

How well a team is managed often depends on the style of management used within the team. The key to achieving a good team is in a management style in which:

• everyone feels they have some power within the business,
• self esteem is gained from participation in the business,
• there is interdependence between all those within the business,
• there is a common understanding of where the business is going,
• there is a shared sense of responsibility for the business.

As a society we have traditionally used a command and control management style. However, we now know through experience that a participatory style has better outcomes. A change in management style requires a major change in philosophy and ingrained habits. The basic skills needed are in the areas of communication.

Styles of management can be described as directive, authoritative, democratic or empowering. Differing styles suit differing situations, with a mix often being used. A more empowering style usually creates a more effective team, which will lead to greater growth and use of all the strengths available in people available to the business.

• A directive management style involves directions being given by the manager with workers expected to follow these instructions without discussion. Decision making draws on the experience of the manager but workers may not fully understand why they are undertaking tasks. The worker may feel no involvement in or ownership of the outcomes and feel discouraged from thinking about better ways to carry out tasks and feeling responsible.
• An authoritative management style draws on the manager’s experience and there is usually room for discussion. There is opportunity to learn why tasks are being carried out and directions are clear.
• A democratic style involves the group making decisions where every one decides and the majority rule. There is a high degree of consensus, ownership and involvement, but can take time, may be dominated by one person, and lack responsibility for the outcomes.
• The empowering style delegates tasks to people to take responsibility for particular operations. This encourages motivation and personal growth and may reduce the inefficiencies in all decisions being made by one person.

Change to more democratic and empowering styles of management can be difficult as there is a need to give away some power. The key to an effective team however is for the manager and members of the team to regularly communicate and consult with each other.

It is important to encourage discussion and constructive comment on the business. Often the best ideas come from those who are actually carrying out the tasks in question. Effective managers talk to their staff members and take a genuine interest in what they are saying. Managers can also bring the best out of employees by involving them in making decisions.

Family meetings

Sharing the load

The best way to build the team, overcome communication problems, resolve people issues and involve others more in the farm, is by holding regular meetings of all those involved. Family meetings allow communication at a deeper level, better implementation of decisions and greater understanding, greater input and use of the talent of all those in the business. Communication is able to progress from the usual ritual and small talk of day-to-day living, to more meaningful sharing of opinions.

Once feelings are shared, a closely bonded team will develop which is committed to common visions and goals for the business, as well as how things are to be done. A strong team that meets regularly together will be more positive, better able to deal with interpersonal issues, be prepared to brainstorm new ideas together and look at possibilities rather than barriers.

Family meetings may sound daunting, but can be surprisingly easy with the right approach. They do not need to be too formal, which will improve interaction and contribution from all those involved. This is an easy way to improve communication and teamwork, and to face issues that otherwise cannot be adequately confronted without conflict or ill feeling.

Keep them simple and fun

Early meetings should not try to achieve too much or be too rigorous. The aim initially is just to get the process started to everybody’s satisfaction and the ground rules established, with the prospect of dealing with harder to deal with issues as time goes on.

Family or business meetings, although not being too formal, must be taken seriously by all those attending. It is important that everyone commits themselves to the time the meeting will take.

How often meetings are held will vary with the stage of development of the group, the complexity of the business and management style. Some will meet every week, while others might make it every month. The time of the next meeting should be set at an agreed time at the previous meeting. Often the best time for many is on Monday morning, following morning or afternoon tea.

Making family meetings work

It will be important to decide on some important principals to make these meetings effective and rewarding to all.

• Make sure to involve everyone in the business.
• Decide on how often and when they are to be held.
• Arrange for children to be supervised.
• Allow realistic time and clearly identify this.
• Behave in a way appropriate for a meeting.
• Arrange to stop interruptions such as from the telephone.
• Prepare an agenda.
• Designate a chairman – this might be rotated between meetings.
• Designate someone to record and circulate all decisions made.
• Ensure everyone is able to have their say without interruption.
• Ensure propositions and decisions are clearly understood by all attending.
• Summarise discussion.

Until the team is confident in how these meetings are working, they should focus primarily on the formation of the group and in establishing the process, particularly how the interactions between those there are handled. As the group becomes better at running the meetings, greater emphasis can be placed on dealing with the issues involved in managing the business. However the maintenance of the group and how those in it are feeling in the meetings will remain of prime importance.

If someone does not wish to be involved, make sure they are sent a copy of the notes from the meeting so they can be involved if they choose at a later date. The key to the success of family and business meetings is commitment, a chairman and note taker, an agenda, and open consideration of everyone’s views.

Resolving conflict

People see things differently

Conflict between people can severely inhibit not only the progression of the business and making the best decisions, but most importantly the well being and satisfaction of all those involved. This is especially so on family farms. The family meeting can often provide the best environment for variations of opinion and outlook to be resolved. This occurs if a meeting type approach is used and other procedural ground rules have been established and agreed on.

Conflict can arise either over real and tangible issues, or over differing ways of viewing the world with people having differing values, or a mixture of both. A conflict based on varying values can be much more difficult to resolve but can be handled by translating it into tangible issues which can be negotiated.

Conflict can be a good thing, by moving a relationship out of a rut; allowing the discovery of the best response to a situation; getting hidden feelings out into the open where they can be dealt with; developing confidence in the relationship, or by promoting the opportunity for genuine meeting between people.

Facing differing points of view

Avoiding conflict however can lead to buried resentments which can flare up destructively. Until the conflict is confronted and the issues explored and resolved, it is often a barrier to moving on.

The reaction to difficult situations between people can vary from either avoidance; accommodation; competition, or compromise, all of which involve either a lose – lose, or a win – lose result. The best approach is through collaboration where both parties have concerns for one another’s needs and are prepared to work on a win – win solution acceptable to all.

Parties in conflict need to be prepared to think creatively about potential win – win solutions. Win – win solutions are more likely to be found when people have shared goals. A golden rule in resolving conflict is to separate the issue from the person. The more discussion is based on accurate information, the easier it is to judge the merits of alternative solutions.

Do not try to resolve conflicts when emotions are running high. Conflict resolution is most effective when the emphasis is switched from “me versus you” to “we versus the problem”. As in so many aspects of managing people on family farms, the key to resolving the situation is in strong relationships, good two-way communication, and in respect and good will between members.

Solving the problem

When facing and resolving conflict it is essential to state the tangible or real affects the conflict has on you. Eg. “I have a problem (or feel frustrated) because of ……., and I am unable to do the following ….”.

Do not start the sentence with “you” as the focus is then likely to be on how the other’s behaviour affects you and what you want. The person you are talking to will then feel confronted, and defensive rebuttals, a hard line approach, or explanations often follow.

It is best to hear and explore the others point of view without attempting to defend yourself, explain your position or make demands or threats. They may express defensiveness, which normally needs to be vented before willingness occurs and an attempt to meet others needs. Listen reflectively to the defensive response instead of reasserting yourself or becoming aggressive in return.

Then the real issue can be clarified, the best solutions determined, as well as how they can be implemented.

Avoiding the blame trap

When adjusting to a loss or threat of loss, most people go through several stages of the ‘loss cycle’. There is a progression from shock and denial, to anger, to depression and withdrawal, to willingness to talk and acceptance. Blaming occurs primarily at the anger and depression stages. While blame and anger are natural human emotions, they do not help in solving problems. In blaming, we focus on allotting responsibility to others, rather than focusing on the issues.

Just as willingness to talk with others is the way to move out of the loss cycle, giving and receiving support from others is also the way to get out of the blame trap.

• Let people in the family know you feel hurt or guilty.
• Tell the person you feel anger over the situation, it is not directed at them personally.
• Avoid regressing into silence which can be interpreted as blame.
• Remind yourself and others about factors beyond personal control.
• Talk to others to see they are in a similar situation that may help you stop blaming yourself, and
• Remember that the future of the farm is separate from the future of you as a person and from that of your family.

Last update: January, 2008
Agdex: 811
Author: Tom Yeatman, Consultant Rural Solutions SA. Clare

Disclaimer

Use of the information in this Fact Sheet is at your own risk.  The Department of Primary Industries and Resources and its employees do not warrant or make any representation regarding the use, or results of the use, of the information contained herein in terms of its suitability, correctness, accuracy, reliability, currency or otherwise.  The entire risk of the implementation of the information which has been provided to you is assumed by you.  All liability or responsibility to any person using the information is expressly disclaimed by the Department of Primary Industries and Resources and its employees.

Managing people in the farm business

ISSN 1323-0409