Example of Six-Step Decision Plan

Rainier Joseph S. Viacrucis. MBA-1 Managerial Decision Making Using the six-step Decision-Making process 1. Identifying the Problem and its expatiate a. A adolescent is asking his/her nurtures to buy a high-end gimmick that is the slew/moldiness- produce of his/her generation (ex. I-ph peerless or I-pad) as a present for his/her birthday b. The adolescent is given an allowance of 200 pesos per school day. c. The family is living on a reckon, and is discountting its cost the parents do non want to spend beyond the allowance of the adolescent. d.There are possible part- clip mull overs available though there are no comen detailed facts on them. caper Help the parents decide on the best solution to the lieu/ what to do in the situation. 2. Developing Possible Alternatives a. misdirect Gadget taint the doohickey immediately since it is the birthday of their child he/she get out only be a child once in a life cartridge holder, this bequeath rede that you really care ab out him/her. b. Reward System Negotiation of a reward system for mitigate grades or exam results. The exams results or better grades must(prenominal) be worth the reward. . Buy Gadget Substitute Parents atomic number 50 by a substitute of the high-end devisal which may look resembling the real thing or have the same functionality with the popular unitary but with a much lower price. d. Garage sale payoff The parent and adolescent tramp agree to exchange old items of the adolescent via Garage Sale and the proceeds of the endeavor ordain be apply to buy the gadget the teen wants. e. Part-Time Job The teen thunder mug opt to do a part-time job. It may take time to gather up the money needed to buy the gadget. f. instalment retribution of the Gadget The parents potty buy the gadget via installment basis and go out cut-off the allowance for a signifi sightt amount which bequeath be apply to pay/help pay the monthly installment. g. Matching Savings (50/50 nest e gg) The parent will match the amount of savings per day of the teenager and will deposit the amount to the depone for safekeeping, fleck the teenager cannister have the passbook and have a joint signatory with his/her parent. h. recompense by Service in-house part-time job of the teenager. . adoptt Buy The Gadget Let the teenager understand that you are living on a budget, and he/she must do his/her part. Make him/her see that the gadget he/she wants to buy is unnecessary. 3. Evaluating the Possible Alternatives a. Buy Gadget Well buy it sum birthday we love you i. dictatorial The parents can make the teenager eff that they care for him/her. ii. damaging The gesture will just spoil the teenager he/she will non know the tax of money/the gadget bought. iii.Negative The Family is on a budget expenses should only be on very necessary items the gadget is more than of a luxury the family cant afford in this day and age. b. Reward System mature Job Heres your Reward i . Positive The teenager will give additional effort in his/her studies and opposite activities. ii. Positive The teenager will value more the gadget, since he/she worked unenviable in studying or do intumesce in other activities to get it. iii. Positive The System will encourage good behavior and more fat activities. iv. Negative What if there is no reward?The reward will be the motivation of the teenager and this will complicate relationships, especially when the parent cant deliver the assumed reward. v. Negative could foster an unhealthy credence on adult opinion instead of forming their own because they are everlastingly looking for reaffirmation or approval via an adult mandated award system. c. Buy Gadget Substitute Here It has the same features, but its more practical i. Positive If the Teenager can well understand the situation of the family-being on budget he/she will appreciate that he/she was button up bought a gadget of the similar functions. i. Positive The teen ager will know the value of money. iii. Positive the teenager will drive to be content on simpler things. iv. Negative since the teenager knows that the gadget is cheaper, he/she will non value/take care the gadget. v. Negative the teenager may find disappointed that he/she is only given a substitute of the one he/she wants. d. Garage Sale Proceeds To buy what you want, you must sell what you dont need. i. Positive The teenager will value the object, since he lost whateverthing he had in order to get it. i. Positive The teenagers skill in selling items will be exercised he is practicing to be a new entrepreneur. iii. Positive The teenagers manner will be more in order. iv. Negative What if the teenagers want is not moral/not good? He/she will sell what he/she has just to get it. Even worse, he/she may sell all the items in your house. v. Negative Sense of Sentimental value for things will not be recognized by the teenager. e. Part-time job If you really want it, you must w ork for it. i.Positive It gives the sense of independency to the teenager. ii. Positive The teenager will charter the skills of Time Management. iii. Positive The teenager will have his/her own source of income. iv. Positive He/she will aim the value of money he/she will learn that it is not easy to obtain/earn it. v. Negative It will be hard for the teenager to focus on his/her studies. vi. Negative he/she will be tempted to drop out of school, since he/she has already started to earn money. vii. Negative He/she will be stressed in handling both schools and work. . Installment payment of Gadget Youll pay for it over a period of time with part of your allowance. i. Positive You can put it in your budget. Instead of nonrecreational the full amount, you can pay for it over the period of time. ii. Positive several(prenominal) networks/Company offers bundles including their service (Post Paid plans of Networks) iii. Positive The teenager will learn how to budget his finances. iv . Negative The interest is high when you pay for an item in an installment basis. v.Negative The teenager may learn of other ship canal to earn money (which may not be good) to compensate for the cut in allowance. g. Matching savings Ill match what you save, so we can buy it. i. Positive It gives a sense of partnership between the teenager and the parents. ii. Positive It teaches the teenager the value of savings. iii. Negative He/she will be more eager to save he/she may sacrifice his/her radical needs just to buy the item. iv. Negative He/she may not exert more effort to extra-curricular activities which could enhance his skills and knowledge. . Negative Since the teenager is saving, He/she may not mingle more with friends who could hurt the development of his/her brotherly skills. h. Payment by service Ill buy it, but youll have to do this. i. Positive The teenager will learn that you need to do something before you can have something. ii. Positive The teenager will learn how to be patient. iii. Positive Teenager will learn the basic base skills which are very burning(prenominal) in the future. iv. Negative The teenager will not do anything inside the house if not paid/rewarded of some kind. . Negative There will be no sense of right for the child since he/she will do the household chores for a price. i. Dont Buy The Gadget We dont need it, we must buy only necessary things i. Positive If the teenager will understand that they are in a budget he/she will learn the value of thriftiness and buying only the necessary things. ii. Positive The funds will be used to buy more necessary items. iii. Negative If the teenager will not understand the teenager may be disappointed and could ruin their relationship 4.Recommendation of An alternative (or Make the Decision) My recommendation is more of a confederacy of different Alternatives stated above. First is having a conversation with the teenager, it is very necessary to make him understand the situa tion the family is on a budget. Second, it is also essential that the teenager has a part in buying the gadget he/she must have a contribution, instead money he/she earned. Third, the deal must be designed in a way that establishes more trust between the parents and the teenager, as well as prepare for his/her future.My recommendation is the Matching Savings Alternative feature with Part-time alternative this motivates the teenager, as well as teaches him to save and to budget his finances. Having the Matching savings alternative minimizes the pressure to the teenager in his work, while the Part-time alternative minimizes the pressure of saving and sacrificing the school day allowance. This combination establishes a partnership between them, as well as educational activity the teenager the important mindset and skills he will need in the future. Also this kind of joint venture could work for any other project and/or for his future needs. . What is required for the Alternative (Implementation of the Decision) To implement the combination, you must help the teenager find a part-time job, one that does not conflict with his studies weekends. You will also want to open an account with the bank some banks have these kinds of accounts (ex. WISE account of RCBC)- Joint account, while large the custody of the passbook to the teenager as a sign of trust. 6. How to admonisher Solution/What are the possible effects of the Alternative (Monitor you solution)It is very important to monitor/tract the progress of the solution, especially for this combination. The monitoring control could any be the weekly or monthly deposit of the Matching savings alternative check to see whether the money is already enough this hap activity could also serve as a bonding hour between the parents and the teenager which could deepen the relationship. It is also very essential that the parent will motivate the teenager from time to time especially with him/her having a part-time jo b on the road to his/her independence.