Chapter 5Decision Making & Problem Solving

1

Note to Students: V► Please read chapter five carefully before

working your way through this PowerPoint.

► After reading the chapter and working through this power point, you will be ready to complete the Decision Making Assignment.

► Remember many of the slides have additional lecture notes below the slides. Pay particular attention to these notes.

I have added notes to many of the slides to add to the clarification and includeadditional references and resources. Note: these power points do not replace thetext...they attempt to clarify important or possibly confusing topics in the text and addadditional items not included in the text.

2

Two resources on campus can help students do better on exams: the AcademicResource Center [(ARC) see chapter 3 for details] and the Counseling and Psychological Services (CAPS) which offers a wide variety of services including dealing with stress and anxiety.CAPS Services at:http://www.usu.edu/counseling/services/index.cfmWorkshops at:http://www.usu.edu/counseling/services/index.cfm#workshopsSelf-help at:http://www.usu.edu/counseling/resources/self_help.cfmEmergency ServicesCAPS offers after-hours on-campus emergency coverage for trauma and life-threatening situations such as suicide and sexual assault. To activate the system, call the Campus Police at 435-797-1939

3

This chapter is the core of this class!

Family resource management is all about

making decisions; the bestpossible decisions.

Life is full of decisions. Decisions vary in intensity and importance - obviously not every decision will change the course of a life.Some require little effort (Example: chocolate or vanilla?); and some should requireenormous effort (Example: get married, have a baby, get a college degree, buy a house, save for retirement).

4

Decisions are conclusions or judgments about

some issue or matter.

“Problems may be best defined as questions” .

-David Nylen

Decisions are our attempt to "bridge the gap" between where we are, and where wewant or need to be. They are essential to maintaining and improving the conditions of our lives, and are guided by our values and our goals. Most decisions have positive or negative consequences.Dissatisfaction with the current state of things leads to problem awareness.

Note: Routine decisions are rarely problems.

5

“90% of solving a problem is realizing there is one.”

-Dave Ramsey, authorThe Total Money Makeover

6

Problem Solving Steps

► Definition► Problem Analysis► Timing► Plan of Action► Search for information

° Internal° External

If you don't know where you are, a map won't help. -Watts HumphreysKnow where you are starting; Define the problem!Problem Analysis - problems can be seen as experiences requiring logical responding,maybe with decision models.Timing -O n e of the most difficult aspects, Flexibility is important. “Keep your options open, many fish in the sea, watch for the right opportunity”Plan of Action -planning involves putting together activities/steps to follow to provide satisfaction to problem solvers. This depends on motivation, which in turn, depends on the discrepancy between the desired and actual state and the importance of the problem.Search for information -internal search involves looking within oneself, while external search involves gathering information from family, friends, media and other resources.

7

Problems contain Uncertainty and Risk

► Uncertainty is the feeling ofbeing in doubt

► Risk is the actual probabilityof harm/loss/pain.

- Rational people attempt to reduce or avoid risk through analysis & study

Problems are questions or situations that present uncertainty, risk, perplexity ordifficulty. Problem solving is an ongoing process (that should ideally be linked to goals) and involves multiple decision making that leads to the resolution of a problem.

8

Decision Making is the process of making a choice between two or more alternatives.

Decision making is an integral part of the overall management process. It is theconcluding or making a judgment about some issue or matter - or part of the transformation process of inputs to outputs (in systems theory terms). Throughchoices, individuals and families define their lives and influence the lives of those around them.

9

Good decisions meet several criteria

►acceptance► quality► flexibility► clarity

-Acceptance means that the decisions have to be personally acceptable.-Quality means that the decision meets some standard, objective, or goal.Decisions that are co-created have a better chance of succeeding (higher quality).-Flexibility means that the decision should be appropriate and adjustable to thesituation.-Clarity refers to how clear the decision is. Vague decisions do not work well because they lack definition and commitment.A family's decisions tend to work if they are supported by the family members and are linked to a common objective/goal.

10

Decision makers try to:

► minimize the costs of a decision°time, energy, money

► maximize thebenefits of a decision.

11

“This desire to maximize positive outcomes and to minimize mistakes motivates individuals to make the best decisions that they can.”

-Goldsmith

The study of family resource management focuses on order, choices, and control; it also focuses on how people use time, energy, money, physical space, and information as to make the best decisions possible.

12

Ultimately, individuals are responsible for their own decisions

► Decision making can be inhibited by:

• Indecisiveness• Avoidance• Decidophobia

13

Indecision may be caused by:► procrastination► fear of the unknown► fear of responsibility► fear of making a mistake► fear of acting on one's own► lack of (or inexperience with) good judgment

► feeling overwhelmed by situations► being overly dependent on others’ opinion

(More about Procrastination in Chapter 10.)Stress, ill health, and depression can also lead to indecision.

14

15

Reducing Indecisiveness:

► Increased confidence/self-esteem► Improved decision making► Experience & Education

► The Peter Principle° Fitting the right person to the right job ° Clear performance expectations

Realistic performance expectations

The Peter Principle (page 142) comes from business observations where employeestend to be promoted until they reach a level beyond their competence. When peopledo not feel competent, they lean towards indecisiveness. This also applies to members of a family system. Experience with small and simple decisions leads to more confidence in making larger decisions. Parents can help young children gain confidence and experience by allowing them to make small decisions such as the choice between two outfits or two pairs of pajamas, milk or water, chocolate or vanilla, etc. Positive reinforcement of the choice as a “good choice” establishes confidence and encourages the child to make additional decisions.Competence can be fostered through experience and education at any age.

16

Avoiding Decisions

► Avoiding a decision is preceded bv the choice between:° Making the decision or ° not making the decision (possibly passing it to someone else...)

► Either way IT IS A CHOICE!

We know what happens to people who stay in the middle of the road. They get run over. -Anthony Bierce

17

Avoidance can be avoided if people are committed to an idea or action, rather than just compliant, wherein people just ‘go along’ for a while, without believina in it.

Commitment vs. Compliance!

Commitment indicates belief in an decision, idea, or action. Families with high commitment are more productive and tend to be more comfortable places to be (Goldsmith, 2005).Unless commitment is made, there are only promises and hopes... but no plans. -PeterF. Drucker

18

Decidophobia

This is the fear of making decisions, specifically,

the fear of failure.

Decidophobia is a form of perfectionism, and it is a learned behavior. The USUCounseling and Psychological Services offers an excellent workshop and self-helpguidance on perfectionism & procrastination as well as test anxiety and math anxiety. Fear of not making the right decision, of not being perfect, the fear of failure can be immobilizing.

19

20

Reducing Decidophobia:► develop the practice of decision

making at an early age in children, in simple ways

► break big decisions into components (baby steps)o http://www.voutube.com/watch?v=p3jPa2mvSQ4° http://www.youtube.com/watch7v-ncFCdCiBqcE

► moderate expectations► use decision making models

and DECIDE

Once again Decidophobia can be overcome through experience and education; through gaining the confidence from making small and simple decisions with realistic expectations.I discovered I always have choices and sometimes it's only a choice of attitude. -Judith M. Knowlton

21

Decision Making Models:

► are useful because they provide a way to visualize how the elements of a decision interact

► can build decision making skills► can assist with complicated decisions► Not always necessary

° Simple, repetitive choices

The more people involved with a decision (in the decision making process or affected by the decision), the more complex the decision making process may be. A decision making model is a rational process.

22

Intuition vs. Models

► Intuition is the sense of knowing what to do without going through rational processes.

► Can indicate a decision “feels” right.

► Should never be the sole factor in making choices!!!

23

Decision Making Models:

► Chain Model► T-Crid (Force Field Analysis)► Prioritization (Needs vs. Wants)► Central Satellite► DECIDE

Decision making models assume that 1) the decision makers are rational, 2) they will evaluate all alternatives rationally, and 3) they will make the best choice possible.

24

Chain Model

► each decision builds on previous ones, forming a sequence of steps (B. Paolucci, et al., 1 977)

► Is lineal.

► useful for small systematic decisions.

See a diagram of the Chain Model on page 139 of the text.The Chain Model doesn't work well for complicated situations because of its linear nature and inability to consider more than a narrow focus of events.A decision of what clothes (from your closet) to wear or what to make for lunch are examples of simple decisions that work in the Chain Model. It would not be appropriate for more complicated decisions such as a decision of what to wear to a dance (something owned, new purchase, borrowed, etc.), but works well for simple decisions like which pants in my closet should I wear today or what should I fix for dinner or what fun activity should I do this weekend.Think of an example to use for the Decision making assignment...

25

T-Grid (Force Field Analysis)► List the pros/cons of a decision on opposite

side of a capitol “T”.

► Useful for two (or three) sided decisionsOne option or Another

° Yes or No ° Pros or Cons

> By carrying out the analysis, one can plan to strengthen the forces supporting a decision, and reduce the impact of opposition to it.

This model for decisions with two (or three options) such as yes, do it, or no, don't doit; which candidate to vote for, increase income or decrease expenses, this one or that one, etc.How to use it:On a piece of paper and draw a capitol T.For the example “Should I go back to school?On one side of the vertical line, list all the positive (yes) reasons you should go back toschool; on the other side of the vertical line, list all the reasons you should not (no) goback to school. This helps a decision maker to analyze the sides of the decision.We use it at the Family Life Center to evaluate ways to “live within your means”. Wedraw a capital T with two vertical lines TT. This provides three areas to write things in.One is for ways to increase income, one for decreasing expenses, and the third forother ideas. We brainstorm all the ideas we can think of, and then go back andevaluate (decide) which ideas are realistic options. These are just two examples of how to use a T-grid model for decision making. Think of one of your own for use in the decision making assignment.

26

Prioritization of Needs & Wants Model:

► Useful for ° purchases ° choosing between 2

or more options

► Not for yes/no or pro/con

► By carrying out the analysis you can increase the possibility of purchasing the best option for your needs.

27

1. Prioritizing Wants & Needs:

► Car ► A/C 5► 4+ seats ► Stereo 4► Runs well k 4 WD 2► Good gas mileage * * d° ors J

a « A . ► Red 1► Affordable ____

Prior to shopping and purchase, list needs and list wants. Prioritize wants highest to lowest and assign rank (all options should include all needs).

28

2. Compare options that meet needs:

Car choice A Car choice B

► A/C 5► Stereo 4► 4 doors 3

► Total 1 2

► A/C 5► 4 WD 2► Red 1

► Total 8

Remember: all options should include all needs. For each option, identify and add up values for wants. The option with the highest score should be the best option.

29

Central Satellite

► a central decision is surrounded by satellite decisions that are off shoots of the main decision.

► useful for large and complicated situations.

See a diagram of the Central Satellite Model on pages 138-139 of the text.The example of what to wear to a dance would work with this model. The decision isplaced in the middle (the central decision) with each option or decision (decisions thatare offshoots of the central decision such as...wear something already owned, buysomething new, or borrow something from a friend, get hair professionally done, by afriend, or by self, earn extra money to buy shoes and jewelry, etc.) surrounding it.A decision to go back to college might require many offshoot decisions involving childcare, alternative delivery of affection, a need for extra money for tuition and books,time off work to attend classes, replacing daily activities with study time, new ordifferent transportation and nutrition needs.Think of your own example for the decision making assignment.

30

DECIDE

► Define the Decision► Estimate the Resources Needed

time, energy, money, information► Consider Alternative Courses of Action► Imagine the Consequences of

° 1) Decision and° 2) Alternative Courses of Action

► Develop an Action Plan and Implement It► Evaluation Along the Way

I really like this model (hunt, hint: know this one inside out). It is mentioned on page143 of the text, but the details are on this slide. I like how it includes resources,alternates, and consequences plus evaluation! The DECIDE Acronym Model isextremely useful because it reminds a person to consider the resources needed (thereality of what is needed verses what is available), encourages consideration of multiple courses of action (if one course does not work; there are others to fall back on), and puts into action the concept of “Opportunity Costs” when a person evaluates theconsequences of each alternative. When choosing one alternative over another, thedecision maker considers what they did not get in order to pick the course ofaction...they understand what they gave up.Note: No one model will be best for all decisions. It is helpful to be familiar withseveral models! See the text for the details of additional models.

31

32

Individual & Family Decision making style includes:

► values► knowledge► ability► motivation► speed► evaluation

Decision making is highly personal and value based; decision making styles can vary.Personal styles can be problematic and opportunistic, and they tend to follow a pattern.

33

Family Decision making Styles

► Accommodation (power)

► Consensual (mutual agreement)

► De Factohttp://www.youtube.com/watch7v-MG7WmrnPdgk

Accommodation - where the family reaches agreement by accepting the point of view of the dominant person, making power an important feature. Remember the Foa &Foa Model of Resource Exchange from chapter 4.)Consensual agreements are made after debate and compromise between everyone inthe family - mutual agreement. The goal of Consensual agreements is arriving at a win- win solution where no one loses.De Facto decision making occurs when no one really cares enough to make their wishesknown about an issue (‘lack of dissent, rather than active assent'). No one really caresabout what or where they want to eat or which TV or movie they want to watch. See: http://www.youtube.com/watch?v=MGTWmrnPdgk

34

Roles in the fam ily decisionmaking process:

► influencers► gatekeepers► deciders► buyers► preparers

► users► maintainers► disposers

influencers - who provide information to other members about a product or servicegatekeepers - who control the flow of informationdeciders - who have the power to determine whether or not to purchasebuyers - who makes actual purchasespreparers - who transforms the product into a form suitable for consumptionusers - who uses or consumesmaintainers - who services or repairs productsdisposers - who initiates the disposal or discontinuation of a product.

35

Who makes decisions may depend on many things:

► Who commands more material resources► Emotional interdependence► Ability to control each other and affect

ultimate consensus► Closeness of partners► Dearee of coooeration and communication► Level of Education► Level of Children’s

influence

Who commands more material resources and power play major roles in who makes decisions and who does what in the house.Household labor (Housework) most often refers to unpaid work done to maintainfamily members and/or a home.

36

Division of Household Labor

► Relative Resource► Traditional: Gender ideology► Time Availability► Specialization

Who does what in your house? Who did what in the home you grew up in? Who cleanedinside the house? Outside the house? Mowed the lawn? Changed the babies? Washed thedishes? Washed the cars? Maintained the cars? Why do you think the labor was divided as itis (or was)? How can understanding (awareness of) the powers behind the division ofhousehold labor help with decision making?The following as some of the theories:Relative resources: the individual with the most resources (education, earnings, occupationalprestige) uses those resources to negotiate his/her way out of housework (Brines 1993). Thisapproach assumes that housework is viewed negatively by both women and men and that they are therefore motivated to reduce their share of it. The smaller the gap between husbands' and wives' earnings the more equal the division of household labor. The higher the man'seducation levels the more participation.Traditional: men with more traditional gender role attitudes tend to spend less time onhousework than those with less traditional attitudes (Huber & Spitze 1983), while the reverse is expected for women (More traditional spend more time.).Time availability: This explanation suggests that men and women participate in housework and childcare to the extent that there are demands on them to do so and they have available time. The most commonly used indicators of time constraints are employment and/or hours worked, presence or number of children in the household, and work schedule. The higher women'spaid work hours the lower their housework time. The division of household labor is moreequal when wives are employed (Maret & Finlay 1984, Newell 1993, Shamir 1986, Spitze 1986).Nevertheless, no matter what women's paid work time, they continue to do the majority ofhousework (Kamo 1991, Newell 1993, Rexroat & Shehan 1987, Shelton & John 1993a).Specialization: This theory assumes the most qualified (skilled or trained) person completesthe chore regardless of their gender or time availability.

37

require good

Consumer Decision Making► Consumer spending amounts to billions

► Good consumer decisions information

► Children have significant influence over parent’s spending

► Conflict can arise over family consumer decisions

Listed here are some important concerns surrounding consumer decision making.Family spending amounts to billions of dollars, and this makes it big business, asmanufacturers and advertisers have realized.Families need to decide what to buy (most important), where and when to shop, how much to pay, and who should pay.Joint decision-making is more common among the middle class, while autonomousdecision-making is more common among upper and lower classes (Loudon and Della Bitta, 1988).

38

Household Production:

► Cost to produce vs. purchase

► Waqes vs. production► Production satisfaction vs. purchase

► Purchase vs. availability

Many components play into household production...If an item costs more to producethat it does to purchase, the consumer will purchase the item.If a consumer is earning wages and the cost to produce an item (including his or herwage per hour for the production time) is greater than the cost to purchase the item,the consumer will purchase the item.Note: The above statements tend to be true unless the consumer gains utility(satisfaction) in the production of the item.Bread and clothing are two good examples of these concepts. Both are very timeconsuming productions. With clothing, it can be more expensive (with the cost ofpatterns and fabric) to produce an item of clothing (without adding in the time it takes to sew the item); most people choose to purchase most all of their clothing. On the other hand, the ingredients of a loaf of bread are fairly inexpensive, but the time ittakes to make, allow to rise, and bake can be extensive; most people choose topurchase bread at the store. The exceptions to these general rules are whensatisfaction is derived from the production or when the desired item is not available for purchase; then consumers often choose to produce their desired items.

39

Decision Making Assignment

► Details for the assignment can be found under assignments on Canvas.

► 4 decision making models: use a different decisionfor each model.

Remember: one model will not work for all decisions. When completing theassignment, please select a decision for each model that fits that particular models(four different models and four different decisions). The decisions can be a decision currently being made, one that needs to be made, or even one that has already been made.

40

41