Decision Making Process

Decision-Making Process

The first step of the process when I purchased my first home was identifying that the opportunity to purchase a home existed. The time was right, interest rates were low, and we were ready to settle down in the location in which we were looking. According to our textbook the next step, which is generating alternative solutions, includes choosing alternatives based on ready-made or custom-made solutions (Bateman & Snell, 2011). Because this was our first home we chose the path of a ready-made solution and took the advice of our realtor. We went above what we were looking to pay because it was determined we would be able to afford it. Then we move onto evaluating alternative where we decided that our house payment would be higher than our current rent but that we were at least paying towards an asset, not throwing money away. After evaluating our choices we went ahead a start the process of making the choice to purchase our first home. We were so eager to buy our first home we did not look around very long so we took the satisficing approach. In our textbook this is defined as "choosing an option that is acceptable, although not necessarily the best or perfect" (Bateman & Snell, 2011, p. 93). The last two steps were implementing the decision and evaluating the decision. Once we signed the paperwork we implemented our choice and evaluated the decision for many years after the purchase. My decision-making process was similar to what the text offer and in my opinion I followed the same steps as the book. If I had actually chosen a custom-made solution, I could have chosen a house payment that I was more comfortable in and prevented the foreclosure that occurred when economic times were not good. I would have definitely chosen a smaller house with a smaller payment so I could upgrade the house to my custom choices.

Reference

Bateman, T. S., & Snell, S. A. (2011). Management: Leading & collaborating in a competitive (9th ed.). New York, NY: McGraw-Hill Irwin.