Decision making

and home
management
 Group 2
Aira Jane M. Ancheta
Darlene Avie Y. Arellano

BTLED HE2
Objectives
At the end of the lesson, the students should be able to:

01 Understand what is decision making.

Apply consumer decision making skills in

02 management of personal, family and household
resources for everyday living.

03 Identify the steps and styles of decision making.

Introduction
Home management is a dynamic process involves
decision making. Decision making is the heart of
Home management. It requires knowledge of
essential information, application of knowledge in
life situation and the willingness to know and to
apply. So the role of decision making in
management involves knowing and actually
applying essential information in problem
situations of day to day life.
What is
decision
making?
Decision making
• A decision can be defined as a course of action
purposely chosen from a set of alternatives to
achieve organizational or managerial objectives or
goals.

• “Decision-making involves the selection of a

course of action from among two or more possible
alternatives in order to arrive at a solution for a
given problem”.
What is home
management?
Home management
• Home management is the natural outcome of
human relationship in the home environment.
When the family is established, management
becomes one of the major responsibilities of
the family living.
5 Roles of decision making
by individuals and households
The decision
1 The Initiator 3 maker (Decider)

2 The Influencer 4 The purchasing

agent (Buyer)

The final
5 consumer
(User)
In the process of family decision-making,
several family members are involved. They
play a variety of roles in decision process;
each member may take more than one role
or no role at all. A family decision is
composed of a sequence of decisions;
different family members may play
different roles at different stages.
 1. The Initiator
The initiator is the family
member who proposes a
suggestion or an idea related to
purchases for the family.
2. The Influencer
The Influencer establishes the
decision criteria by making
comparison and tries to persuade
other family members during the
process of decision-making. The
influencer might or might not be
the same person as the initiator.
 3. The decision
maker (decider)
This refers to the family member
with the power to unilaterally or
jointly determine whether to
purchase a specific brand, product
or service or not.
4. The purchasing
agent (buyer)
He/she carries out the decision by
purchasing the product for the
family. The purchasing agent
might or might not be the same
person as the decision maker.
 5. The final
consumer (user)
He/she is the one who uses the
product and evaluates it, giving
some feedback to other family
members regarding the
satisfaction with the chosen brand
and desirability to purchase the
same brand or product again.
Scope
Most decisions can be demarcated in many different ways. When
deciding where to go for a bicycle vacation you can either make a
detailed itinerary beforehand, or just decide where to start, and
then decide the rest as you go on. In this and other examples the
detailed and the less detailed alternative can be described as
decisions with different scopes, but they can also be described as
decisions with the same scope that can either be subdivided or
made on a single occasion. The individuation of a “decision” is
unclear, i.e. there is often no definite answer to whether a decisional
process should be described as a single decision or as a collection of
several connected decisions.
Purpose and factors motivating
for decision-making
When defining the content and main of work in management, the
most striking part of this activity is a decision-making. It is one of the
most challenging and also the most important management functions.
Very important role have just people who are decision-makers. Result
of decision-making process depends primarily on their knowledge,
experience, skills, subjective attitudes, values and etc. Quality of
management is largely reflected by the quality of implementation of
decision-making activities.
7 steps in decision making
Defining the
problem
1 4 Select an
alternative

Identifying the
alternative 2 5 Action in carrying
out the plan and
solution
bearing
Analysing the
alternatives
3 responsibility for
the consequences
Step 1: Defining the problem
• It involves the recognition of the problem. It needs
relevant information to identify and define it first.
Unless the problem is clearly defined and analysed
the ultimate decision would not be effective. For
planning household activities, purchasing labour
saving devices, selecting clothing for the family.
Step 2: Identifying the
alternative solution
• Decision making will be effective only when one
identifies possible alternatives. The choice of best
selection of alternatives requires thorough
knowledge about the availability of resources and
their limitations.
Step 3: Analysing the
alternatives
• After identifying the alternatives, one should think of
the consequences of each alternative systematically
to find out the relevant one, considering the goals,
values and standards
Step 4: Select an alternative

• After analysing the problem one should carefully

select from the possible alternatives. Evaluation
plays a very important role in this selection.
Choosing the best from the several possible
alternatives will be helpful in solving the problem.
Step 5: Action in carrying out
the plan and bearing responsibility
for the consequences
• This is the ability to assess and accept the
consequences of the decision for making future
decision. It is the evaluational process. This
experience would indicate the final outcome of the
decision making. It creates self confidence in people
to make effective decisions in the future.
6 Types of Decisions

Group Technical
decisions Habitual
Individual Economic decisions
decisions Central
decisions
2
decisions

3
decisions
5 6
1 4
Individuals decisions

It is the decision pertaining to an individual e.g.

education. Individual decisions are more quickly
made. The decision making of an individual revolves
around the values, goals, standards and roles the
individual assures in the relevant set of frame work.
Groups decisions
It is made from the collective action of several
individuals each of whom has distinct values, goals,
standards and role perception. It is a difficult
process and a slow process. Role conflicts would
emerge in this situation.
Habituals decisions
It is the lowest level of decision. Once an individual
is trained to do systematic work, he will follow that
throughout his life. They are routine, repetitive
actions related to daily activities. Once it becomes a
habitual choice, the resultant action is quick and
spontaneous.
Central decisions
Central decision has many supporting decisions to
complete the whole task e.g. purchasing a house is a
central decision. This leads to look out for other
supporting decisions like transportation facilities,
community facilities, savings etc.
Economic decisions
It is based on allocation and exchange process
relating to resource use. This decision needs the
allocation of human and non human resources to
attain a goal. It reveals the allocation of resources
among the combination of goals that will bring
about the greatest degree of satisfaction.
Technical decisions
This decision involves a decision, which will enable
the best combination of resources to achieve the
stated goal.
Factors that affect family decision

Human Other
Finance Technology
resources factors
Finance
There may not be finance available to the
business to make the decisions they would like
to.

For example, a business may wish to invest in

new machinery to increase production but they
do not have enough capital to allow them to do
this.
Human resources
The quality of decisions made by managers can be affected by:
• their skills and expertise
• the amount and quality of information they have available

The staff involved in implementing the decision need to be willing

to cooperate and work with the decision for it to be successful.
Technologies
Lack of the correct equipment or
technology may restrict the decision-
making process.
Other factors
The decision-making process may also be affected by:

• amount of time available to make the decision

• external pressures such as exchange rates and
economic stability
4 types Decision-making styles

Directive 01

Analytical 02

Conceptual 03

Behavioral 04
Directive
• The directive decision-making style uses
quick, decisive thinking to come to a solution.
A directive decision-maker has a low
tolerance for unclear or ambiguous ideas.
They're focused on the task and will use their
own knowledge and judgment to come to a
conclusion with selective input from other
individuals.
Analytical
• Analytical decision-makers carefully analyze
data to come up with a solution. They're
careful and adaptable thinkers. They will
invest time to glean information to form a
conclusion. These decision-makers are task-
oriented but have a high tolerance for
ambiguity.
Conceptual
• Those who make decisions with a conceptual
style are big picture thinkers who are willing
to take risks. They evaluate different options
and possibilities with a high tolerance to
ambiguity. They're social-oriented and take
the time to consider big ideas and creative
solutions.
Behavioural
• A behavioural style of decision-making
focuses on relationships more than the task.
It evaluates the feelings of others as part of
their decision-making process. Behaviour
decision-makers have a low tolerance for
ambiguity and a social focus as they evaluate
solutions.
 Summary
A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve
organizational or managerial objectives or goals. In the process of family decision-making, several family
members are involved. They play a variety of roles in decision process; each member may take more than
one role or no role at all. A family decision is composed of a sequence of decisions; different family
members may play different roles at different stages. And these are the Initiator, Influencer, the decision
maker (decider), the purchasing agent (buyer), and the final consumer (user). When defining the content
and main of work in management, the most striking part of this activity is a decision-making. It is one of the
most challenging and also the most important management functions. So here's the steps of decision
making; Step 1: Defining the problem, Step 2: Identifying the alternative solution, Step 3: Analyzing the
alternatives, Step 4: Select an alternative, Step 5: Action in carrying out the plan and bearing responsibility
for the consequences. If we have a step in decision making we have also a 6 types of decision making and
these are; Individuals decisions, Groups decisions, Habitual decisions, Central decisions, Economic decisions,
and Technical decisions. Also, Factors that affect family decision; Finance, Human resources, Technologies,
and other factors. Decision-making styles also vary in a social- or task-driven focus. Social-driven decisions
consider the behavior of others involved in the outcome. Those who are task-driven make decisions based
on how to best achieve a goal. These are the 4 types in Decision-making styles; Directive, Analytical,
Conceptual, and Behavioral.
REFERENCES
https://www.managementstudyguide.com/what-is-decision-making.htm
https://www.thebookstall.com/book/9798606648818#:~:text=Home%20managemen
t%20is%20the%20natural,of%20management%20to%20the%20home.
https://link.springer.com/article/10.1007/s10677-018-9877-7
https://frcatel.fri.uniza.sk/hrme/files/2010/2010_ 2_ 10.pdf
https://www.yourarticlelibrary.com/home-management/home-management-and-
decision-making-process/47771
https://www.bbc.co.uk/bitesize/guides/zkdc7nb/revision/4
https://www.brainkart.com/article/Home-management---Decision-making_ 2143/
https://www.indeed.com/career-advice/career-development/decision-making-style
 THANK
YOU FOR
LISTENING!
Assessment

What are the 6 types of

decision-making?
Assessment

How important decision-

making for your own
growth?