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I am a beginner crocheter. I am having difficulty grasping the concept
of increasing and decreasing in a round. I am making a rasta tam.
Any suggestions would be appreciated.

NexStitch has some great videos on crochet stitches, including how to decrease.

To increase, after making a stitch (call it stitch A) in the top of another stitch (call it stitch B), make the next stitch in top of the same stitch (stitch B).

It's also helpful to use a marker to help remember the start of a round. I hope this helps.
-- Carol

Increasing in crochet ususally means more than a single stitch in one stitch. For a basic hat pattern you'll have something that looks like a 'V' and the work will slant to the left slightly, (I'm assuming here you are a right handed crocheter). As you're working your fabric and you notice it is pulling slightly to the right then you'll need to add more stitches or increases. If you notice the fabric starting to pucker with a lot of left slant then a decrease would be called for.
With regard to decreasing you begin to pull a single loop into the next 2 or (number of stitches called in a pattern) but leave them on your hook. Then you pull through all the loops if SC or work the stitch as normal for the taller stitches. Stitch-n-Bitch Happy Hooker has a fabulous section with great pictures demostrating these techniques.
Good luck-I'd love to help you out. I'm still stuck in class for 5 more weeks!