Example of Six-Step Decision Plan

Rainier Joseph S. Viacrucis. MBA-1 Managerial closing Making Using the six-step Decision-Making process 1. Identifying the Problem and its details a. A adolescent is asking his/her parents to spoil a high-end doohickey that is the trend/ must(prenominal)- hurt of his/her generation (ex. I-ph single or I-pad) as a present for his/her birthday b. The stripling is assumption an allow of 200 pesos per school day. c. The family is living on a budget, and is cutting its cost the parents do non want to spend beyond the allowance of the stripling. d.There are possible part-time seams available though there are no do itn detailed facts on them. TASK Help the parents decide on the best solution to the situation/ what to do in the situation. 2. Developing Possible substitute(a)s a. steal convenience Buy the gadget immediately since it is the birthday of their kidskin he/she allow for only be a child once in a lifetime, this impart show that you really rush about him/her. b. R eward remains Negotiation of a reward system for better grades or exam results. The exams results or better grades must be worth the reward. . Buy Gadget Substitute Parents mess by a substitute of the high-end gadget which may look like the real thing or have the same functionality with the popular genius plainly with a much lower price. d. Garage sale proceeds The parent and teen crumb agree to exchange old levels of the teenager via Garage Sale and the proceeds of the endeavor leave alone be used to buy the gadget the teenager wants. e. Part-Time Job The teenager can opt to do a part-time job. It may take time to gather up the specie needed to buy the gadget. f.Installment Payment of the Gadget The parents can buy the gadget via installment basis and will cut-off the allowance for a significant amount which will be used to pay/help pay the monthly installment. g. Matching Savings (50/50 savings) The parent will jib the amount of savings per day of the teenager a nd will deposit the amount to the bank for safekeeping, while the teenager can have the passbook and have a joint signatory with his/her parent. h. Payment by Service in-house part-time job of the teenager. . foundert 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 unessential. 3. Evaluating the Possible Alternatives a. Buy Gadget Well buy it Happy birthday we love you i. confirmatory The parents can gain the teenager know that they care for him/her. ii. negatively charged The gesture will just spoil the teenager he/she will non know the time value of currency/the gadget bought. iii. ostracise 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 Good Job Heres your Reward i. confirming The teenager will give additional effort in his/he r studies and some new(prenominal) activities. ii. corroboratory The teenager will value more the gadget, since he/she worked hard in studying or do well in other activities to get it. iii. Positive The System will encourage good behavior and more productive activities. iv. prejudicial What if there is no reward?The reward will be the motivation of the teenager and this will down relationships, especially when the parent cant deliver the assumed reward. v. disconfirming could foster an unhealthy trustingness on adult opinion instead of forming their own because they are constantly 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 still bought a gadget of the similar functions. i. Positive The teenager will know the value of money. iii. Positive the teenager will show to be content on simpler things. iv. Negative since the teenager knows that the gadget is cheaper, he/she will not value/take care the gadget. v. Negative the teenager may become 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 something 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 room 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 work for it. i.Positive It gives the sense of independence to the teenager. ii. Positive The teenager will learn the skills of Time Management. iii. Positive The teenager will have his/her own source of income. iv. Positive He/she will learn the value of money he/she will learn that it is not easy to incur/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 oer a period of time with part of your allowance. i. Positive You can put it in your budget. Instead of paying(a) the full amount, you can pay for it over the period of time. ii. Positive Some networks/Company offers bundles including their service (Post gainful 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 ways 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 basic 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 mix more with friends who could hurt the development of his/her social 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 household skills which are very i mportant 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 responsibility 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 Money 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 combination of different Alternatives stated above. First is having a conversation with the teenager, it is very necessary to make him understand the situation the family is on a budget. Second, it is also essential that the teenager has a part in buy ing the gadget he/she must have a contribution, preferably money he/she earned. Third, the carry 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 combined 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 teaching 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 call back a par t-time job, one that does not conflict with his studies weekends. You will also want to open an bank note with the bank some banks have these kinds of accounts (ex. WISE account of RCBC)- Joint account, while giving the custody of the passbook to the teenager as a sign of trust. 6. How to Monitor 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 either be the weekly or monthly deposit of the Matching savings alternative check to see whether the money is already enough this recurring activity could also serve as a bonding consequence 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 job on the road to his/her independence.