Management Of Family Resources

Lesson 23 : Decision Making Process

Introduction

Decision making is a process consisting of the activities which result in the choice of an alternative or a course of action. This process is some times long or short.

In decision making process, there never is an absolutely correct solution to any problem. There is always more than one way of solving a problem. The solution which gives the greatest satisfaction or yields maximum returns to the individuals concerned for the particular situation is the most desirable one. This process of decision making by any family will depended on its values, and goals. Effective decision making occurs when the choice among alternatives is arrived at through a logical thoughtful process.

It should be remembered that the process itself is only one element in a model for decision making. The decision maker, the state of nature, and the kind of decision must also be considered simultaneously. There are five important steps involved in Decision Making process as given by Varghese et. al.(1985).

• Defining the problem.
• Identifying the alternative solutions.
• Analyzing the alternatives.
• Selecting one alternative.
• Carrying out the action plan and bearing responsibility for the consequences.