In Chapter 11, Datar & Rajan (2017) outline a 5-step model for
decision making that involves both quantitative and qualitative
analyses.
1. Identify the problem and uncertainties
2. Obtain information
3. Make Predictions about the future
4. Make decisions by choosing among alternatives
5. Implement the decision, evaluate performance, and learn
In my teaching career, I taught a class in metacognitive strategies
where we emphasized a 7-step planning approach. After many years,
that approach became an automatic process I use when decision
making. c It has some similarities to the approach in the book.
1. What is your objective? What is the problem you are trying to
solve? (Similar to book step 1)
2. List your givens (facts about your problem) (similar to book step
2)
3. What rules or constraints exist that you must follow in solving
your problem?
4. Pick a starting point and give a reason for that to be your
starting point (contains components of 3 & 4)
5. List the steps required to solve your problem (implementation
part of 5)
6. How will you check your work? How will you know that you
have successfully solved your problem? (Evaluate part of 5)
7. What have you learned from your process? How can you use it
in the future or to help with other problems? (Learn part of 5)
A relatively recent decision that I spent a great deal of thought on
was whether I should continue teaching or should I change careers. I
articulated my problem and gathered information, both qualitative
and quantitative, about my current employment. Initial quantitative
information included my current salary, current expenses, cost of
benefits, number of years until I would be eligible for retirement, and
number of hours worked per week. Qualitative information included
aspects of the job I enjoyed, aspects of the job that were emotionally
draining, and reflection on my mental health. Then I looked at the
skills that I possessed that were transferable to other careers and
researched possibilities. Quantitative information researched
included average entry level salaries for careers I investigated as well
as the cost and time required for additional training or schooling
required to acquire positions. Qualitative information gathered
included my personal interest and excitement about the type of roles.
Basic constraints of my problem included that I needed to be
employed at a wage that would support my family and I needed to be
able to obtain employment either with driving distance or that I could
work remotely. With that information, I chose the starting point of
beginning a program in accounting at SNHU in accounting. While I
outlined a series of steps to follow, after making the decision to start
a path to leave teaching, it became clearer to me that it would be the
right choice. I ended up leaving my teaching position ahead of the
timeline I had planned and started the job hunt before completing my
program. I fortunately found a position that will use what I am
learning in my program. I’m currently in the checking and reflective
portions of the plan, but so far, I have successfully initiated a
transition to a new career.
Datar, Srikant M., Rajan, Madhav V. (2017). Horngren's Cost
Accounting: A Managerial Emphasis, Global Edition (16th). Harlow,
England: Pearson Education Limited.
