By the end of this chapter, the student should be able to:
· Explain the term decision and decision making.
· Make decision using the decision-making process.
· Analyze the different types of decisions families make.
DECISION-MAKING
Decision is the making up of one's mind to take an
action or to do something. It is therefore a choice whereby individuals form
judgment about a situation or a circumstance. It is an attitude about what
should or should not be done.
Decision making
is the course of action taken to select from a number of alternatives. Decision
making is a regular activity in everyday life. It is an activity, which
pertains to all human and business activities.
Decisions are part of every area of life e.g.,
decisions about family life. Decisions are related to all areas of daily
living. Decision making is a mental process which occurs in all the four steps
of the home management process.
Steps in Decision - Making
There are four main steps in decision making:
i. Identifying the problem: At this point, the
individual recognizes that there is a problem and that the need to make a
decision exists. For instance, the rate at which food is wasted in the home
through poor preservation and storage could alert the homemaker to the need to
decide on buying a refrigerator and deep freezer.
ii. Obtaining information and searching for possible
alternatives or courses of action: As soon as the
problem has been identified, the decision — maker seek information on the
various types of refrigerators and deep freezers available on the market, their
prices, sizes and durability. She also considers the money available to her.
The alternatives could be the "thermocool" freezer, Philips freezer,
etc.
iii. Considering the consequences of each
alternative or course of action: Each alternative will have some advantages
and disadvantages. The decision-maker has to consider all these at this stage
of the decision — making process.
iv. Selecting an alternative or a course of action:
After due consideration in step three, the decision maker finally makes a
decision, that is, she selects the alternative considered best. As soon as the
choice is made, she should accept responsibility for the decision made.
Types Of Decisions Families Make
Major Decisions
Major decisions are big decisions that individuals
make in life. They are about long-term goals. e.g., building a house or
obtaining a degree, starting a farm or starting a business. If the major
decision is to start a business, it will involve how much to invest, where to
obtain the capital, what business to invest in etc.
Minor Decisions (Satellite Decisions)
These are small decisions that result from the major
decision. They are the less important decisions that have to be made as a
result of the central decision.
Examination Questions and Suggested Solutions
1.a. What is decision-making? (1999)
Decision making is the course of action taken to
select from a number of alternatives. Or it is
the process of selecting an alternative or course of
action from several alternatives.
(b) Outline the steps in the decision-making process.
(i) Identifying the problem.
(ii) Analyzing the problem.
(iii) Identifying alternative solutions to the problem.
(iv) Seeking information about alternatives.
(v) Selecting the best alternative to solve the
problem.
(c) Use the outlined steps in 2(b) above to show how
you selected the secondary school you are attending.
(i) Identify the problem: Identify or choose
the secondary school you wish/want to attend.
(ii) Analysis of problem: How will the programme
enhance your future career aspiration e.g., lawyer, doctor, business executive,
etc.
(iii) Course of study in relation to doctor (science),
lawyer (Arts) and business executive (business).
(iv) Student capability: Whether the student
has what it takes to read the chosen course
(v) Type of school — Is the school chosen a science,
business or arts bias school?
(vi) Other alternatives: Think about the class of the
school you have chosen
Alternatives
include:
(a) Single sex school (that is either male or
female only school).
(b) Co-educational (mixed school).
(c) Day or boarding schools.
(d) Private or public schools.
(vii) Course to pursue in the school.
(viii) Cost of education (fees, books, etc.).
(ix) District, region or town in which school is
located.
Seeking information
Gather or get all the necessary information about the
various schools and their courses and compare them.
Making a
decision
Make a choice of one of the schools giving reasons.
2.a. Explain why decision making is a process (2005)
It is a process because different activities or
actions are carried out or undertaken at each stage or step
(i) That is, it involves moving from one stage or step
to another — identifying the problem
(ii) Analysis of the problem
(iii) Considering the consequences of each alternative
course of action OR selecting an alternative or a cause of action
(b) State two situations which would create the need
for an individual to make a decision
(i) When the individual wants to start a business or
start a farm. This involves making decisions as to how much to invest, where to
obtain capital etc.
(ii) When the individual has limited resources or
there is great demand
(iii) When the individual has many alternatives from
which to choose or make a choice.
(c) Your major decision is to go for further studies
(i) State two minor decisions that will help you
achieve the major decision
(i) The choice of institution or school
(ii) The choice of course
(iii) Residential status - resident on campus or
outside campus
(ii) State four sources from which information can be
obtained for the major decision
(i) From friends or former students of some of the
schools.
(ii) From the media (newspapers, magazine etc.) or
internet
(iii) From school brochures
(iv) By individual visiting the schools to access
information
(d) List the steps in the management process
(i) Planning
(ii) Implementation
(iii) Evaluation
Examination Questions
1. Distinguish between major decisions and minor
decisions.
2. a. What is decision making?
b. Outline the steps to follow in the decision-making
process.
3. Why is decision making important in management.
4. What are some of the series of decisions that occur
at the planning stage of the management process?
5.a. Why is it important to follow carefully the
decision-making process when taking a major decision?
b. Afi wants to attend a university in Ghana. Show how
she would use the decision-making process to choose the university.
c. State and explain any three non-human resources
that can help Afi in her studies. (2002)
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