Maharashtra Board Class 11 Home Management Chapter 4 Decision Making PDF Download

Decision Making

Meaning and definition

Steps in decision making

Types of decisions

Importance of decision making

Do You Know?

From the morning individual faces various problems.

In home management decision making is a very important part of our day to day life. Every day a person faces various situations and problems. To solve these problems a person has to take various decisions. Some of the problems are simple and short term - they can be solved easily. Some decisions are long term which turns the life. For example, marriage, career, buying a house etc. All these decisions are important and can have a great effect on a person's life. Management process revolves around decision making.

Meaning And Definition

Decision making is the crux of management. Whether it is management of a business, an institute, an event or that of a house, decision making is must. The decisions are always taken keeping in mind the goal to be achieved and the resources available to a person or a family.

Decision making is a mental process which requires knowledge of certain information and imagination to see whether the information will be useful or applicable to solve that particular problem.

Definition

Nickell and Dorsey stated that: "Decision making is the process of selecting one course of action from a number of possible alternatives in solving a problem or in meeting a situation."

Limaye defines decision making as "For solving a problem or for achieving a goal different alternative ways and actions are considered. Decision making is to select one out of those alternatives and actions or to choose none of them."

Whether decisions are less important or more important, they have a definite role to play in a person's life. Decisions are based on the values held by a person. They help the person to achieve the goals and in the process they set their standards in life too. Thus, the quality of life depends upon the types of decisions a person takes and how correct they turn out to be.

Teacher's Note

Decision making is how we choose between good and bad choices every day. Just like your mother decides what to cook for lunch, you decide what clothes to wear to school.

Exam Trick

Remember: Decision = choosing one thing from many choices. Like choosing one subject from many subjects in school.

Points to Remember

Decision making is choosing the best answer from many choices.
Every person faces many problems every day.
Good decisions make life better and easier.
Decisions are based on what we think is important in life.
Management always needs decisions at every step.

Steps In Decision Making

Let's Discuss

Process of decision making involves certain steps. Decision making is required in running organisations, institutes, clubs, businesses, states, countries etc. People on high designations in all such organisations need to be superior decision maker otherwise things may not work smoothly. There are certain specific activities involved in decision making. These are called as the steps in decision making which are as follows:

1) Identify / Define the problem

2) List down the alternatives

3) Analyse the alternatives

4) Select one suitable alternative

5) Accept the consequences

1) Identify / define the problem: Decision making process begins with identification of a problem. When a person realises that there is a problem he/she starts thinking about it, in order to find suitable solutions. Thus, the process of decision making begins with a problem. It is necessary to identify the problems clearly and to understand them perfectly. Unless there is clarity about the problem, effective decision making can not take place.

The home maker, being the manager of the home, needs to discuss with the family members and analyze the problem with all its relevant information so that it is accurately understood. It is necessary to think about the root cause of the problem i.e. to realise why the problem has arisen and what management components are involved. If the solution is chosen in a hurry without giving much thought, afterwards homemaker may realise that choice regarding the solution was incorrect. This may lead to frustration and loss of important human and non human resources like time, money, energy and other material goods.

To avoid this, it is necessary to identify the problem clearly and to analyse it with all its relevant information. The relevant information includes identifying the restrictions and opportunities imposed by the situation. For example, the common problem faced by a student may be that of selection of a course of study after passing the SSC exam. This step is very important as it lays the foundation of one's decision.

2) List down the alternatives: It means to find out various alternatives. Once the problem is identified, a person begins to find possible solutions or alternatives. Effective decision making can take place only if a person can identify all the possible alternatives. This would enable a person to select the best alternative. One cannot make a wise decision unless all possible alternatives are found out. Although it is important to find all alternatives, there should not be any confusion due to a variety of choices.

For the previous example, if a student has to find out how many colleges or courses are there in his/her area, what is the percentage required by each college or courses for admission and prepare a list of such colleges/courses. After listing out such colleges, student has to find out other details like which subject combinations are offered by these colleges, what is the fee structure, what are the timings, how to travel to the college and time required for it and so on.

3) Analyse the alternatives: In simple words, it means comparing the various alternatives found out in earlier step. Analysis is carried out after collecting all details about all the alternatives. A person starts thinking about each one of them to find out its merits and demerits. The success of decision making depends on how carefully this step is carried out. This step helps the person to select the most suitable alternative from the list. In the above example, once the student has collected all details about the colleges and courses, he/ she can discuss them with friends or family members and compare them with each other.

4) Select one suitable alternative: This is the most crucial step, as this is where a person actually makes a decision and the decision can be correct only if a person has chosen correct alternative. The selection of an alternative should not be done under any kind of pressure. It should be the most suitable and satisfactory one amongst all the alternatives. Like in the above example, after considering merits and demerits of all colleges and courses, the student may finally decide one college or course which he/she feels appropriate.

5) Accept the consequences: This is an important step in decision making process which is often ignored by many people. Once a decision is made and action is taken according to it, the person making the decision should be able to accept the responsibility of its outcome, whether it is positive or negative. The biggest advantage is that the success of decision helps to develop self-confidence for making effective decisions in future and the failure helps an individual to develop more evaluating factors or system for future.

In the above example, as stated in the previous step, the choice regarding course of study or college has been indicated i.e. decision has been taken. Student joins the college as per his/her decision. After joining the course, even if the student finds that the course is tough, student has to accept the fact and has to continue studying and putting in more efforts to be successful.

Teacher's Note

Decision making has five steps like climbing stairs. You go step by step to reach the top. First you see the problem, then find choices, check each choice, pick the best one, and finally accept what happens.

Exam Trick

Remember: Five steps = Identify, List, Analyse, Select, Accept. Like ILASA - just remember this word to recall all five steps in exam.

Points to Remember

First step is to clearly understand what the problem is.
Second step is to find all possible choices or answers.
Third step is to compare all the choices and see which is good and which is bad.
Fourth step is to pick the best choice from all.
Fifth step is to accept what happens after your choice.

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