what is decision making and problem solving

Decision Making vs. Problem Solving

What's the difference.

Decision making and problem solving are two closely related concepts that are essential in both personal and professional settings. While decision making refers to the process of selecting the best course of action among various alternatives, problem solving involves identifying and resolving issues or obstacles that hinder progress towards a desired outcome. Decision making often involves evaluating different options based on their potential outcomes and consequences, while problem solving requires analyzing the root causes of a problem and developing effective strategies to overcome it. Both skills require critical thinking, creativity, and the ability to weigh pros and cons. Ultimately, decision making and problem solving are interconnected and complementary processes that enable individuals to navigate complex situations and achieve desired goals.

Further Detail

Introduction.

Decision making and problem solving are two essential cognitive processes that individuals and organizations engage in to navigate through various challenges and achieve desired outcomes. While they are distinct processes, decision making and problem solving share several attributes and are often interconnected. In this article, we will explore the similarities and differences between decision making and problem solving, highlighting their key attributes and how they contribute to effective problem-solving and decision-making processes.

Definition and Purpose

Decision making involves selecting a course of action from multiple alternatives based on available information, preferences, and goals. It is a cognitive process that individuals use to make choices and reach conclusions. On the other hand, problem solving refers to the process of finding solutions to specific issues or challenges. It involves identifying, analyzing, and resolving problems to achieve desired outcomes.

Both decision making and problem solving share the purpose of achieving a desired outcome or resolving a particular situation. They require individuals to think critically, evaluate options, and consider potential consequences. While decision making focuses on choosing the best course of action, problem solving emphasizes finding effective solutions to specific problems or challenges.

Attributes of Decision Making

Decision making involves several key attributes that contribute to its effectiveness:

• Rationality: Decision making is often based on rational thinking, where individuals evaluate available information, weigh pros and cons, and make logical choices.
• Subjectivity: Decision making is influenced by personal preferences, values, and biases. Individuals may prioritize certain factors or options based on their subjective judgment.
• Uncertainty: Many decisions are made under conditions of uncertainty, where individuals lack complete information or face unpredictable outcomes. Decision makers must assess risks and make informed judgments.
• Time Constraints: Decision making often occurs within time constraints, requiring individuals to make choices efficiently and effectively.
• Trade-offs: Decision making involves considering trade-offs between different options, as individuals must prioritize certain factors or outcomes over others.

Attributes of Problem Solving

Problem solving also encompasses several key attributes that contribute to its effectiveness:

• Analytical Thinking: Problem solving requires individuals to analyze and break down complex problems into smaller components, facilitating a deeper understanding of the issue at hand.
• Creativity: Effective problem solving often involves thinking outside the box and generating innovative solutions. It requires individuals to explore alternative perspectives and consider unconventional approaches.
• Collaboration: Problem solving can benefit from collaboration and teamwork, as diverse perspectives and expertise can contribute to more comprehensive and effective solutions.
• Iterative Process: Problem solving is often an iterative process, where individuals continuously evaluate and refine their solutions based on feedback and new information.
• Implementation: Problem solving is not complete without implementing the chosen solution. Individuals must take action and monitor the outcomes to ensure the problem is effectively resolved.

Interconnection and Overlap

While decision making and problem solving are distinct processes, they are interconnected and often overlap. Decision making is frequently a part of the problem-solving process, as individuals must make choices and select the most appropriate solution to address a specific problem. Similarly, problem solving is inherent in decision making, as individuals must identify and analyze problems or challenges before making informed choices.

Moreover, both decision making and problem solving require critical thinking skills, the ability to evaluate information, and the consideration of potential consequences. They both involve a systematic approach to gather and analyze relevant data, explore alternatives, and assess the potential risks and benefits of different options.

Decision making and problem solving are fundamental cognitive processes that individuals and organizations engage in to navigate through challenges and achieve desired outcomes. While decision making focuses on selecting the best course of action, problem solving emphasizes finding effective solutions to specific problems or challenges. Both processes share attributes such as rationality, subjectivity, uncertainty, time constraints, and trade-offs (in decision making), as well as analytical thinking, creativity, collaboration, iterative process, and implementation (in problem solving).

Understanding the similarities and differences between decision making and problem solving can enhance our ability to approach complex situations effectively. By leveraging the attributes of both processes, individuals and organizations can make informed choices, address challenges, and achieve desired outcomes.

Comparisons may contain inaccurate information about people, places, or facts. Please report any issues.

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Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

Start with: Decision Making Problem Solving

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Making the Difference: Problem Solving vs Decision Making

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Do you ever find yourself stuck between a rock and hard place, unable to decide what the best course of action is?

I have. Whether it’s what desk to put in our new conservatory space (and I’ll tell you what we ended up deciding later), or who to invite to meetings, or managing to order everyone else’s food and then getting so overwhelmed with having made decisions all day for all the people that I couldn’t choose anything for myself.

I left the café with nothing for me and ended up with a couple of slices of peanut butter toast at home.

Making decisions can be difficult for even the most experienced project managers. But before making any decision, it’s important to understand the difference between problem solving and decision making.

Ready to get into it?

Problem solving involves diagnosing issues that arise during projects while decision making requires taking appropriate steps based on those diagnoses. While they may appear similar at first glance, there are key differences in how each process should be approached – understanding these differences will help you make more informed decisions!

Let’s explore both processes as well as their similarities and differences.

What is problem solving?

You’ve been solving problems since you were a baby: how to stand up, how to get your socks off, how to get your parents to bring you your favorite sippy cup.

As an adult, we solve problems every day at work and at home.

So it probably sounds a bit odd to want to define problem solving before we go any further. Surely we all know what we are talking about as we do it all the time?

Humor me. Problem solving is the process of identifying and analyzing a problem, generating potential solutions, and selecting the best solution to address the issue. It involves breaking down complex problems into smaller components and then finding ways to solve them.

The problem solving process

If you think that description sounds linear, then you’d be right. Problem solving fits neatly into a process, one that we don’t even know we’re following most of the time.

The problem solving process typically consists of four steps:

• Identify the problem
• Generate possible solutions
• Evaluate each option
• Select an appropriate course of action.

That does make it sound easy. Wicked problems need a slightly different approach (PMI has a problem solving training course that is brilliant and will help with that).

But for now, let’s stick with a high-level approach that works for most problems.

1. Identify the problem

First, it’s important to understand what caused the issue in order to determine how best to resolve it.

You’d be surprised at how many managers don’t bother to find the root cause of the problem to truly understand it. Use techniques like the 5 Whys or an Ishikawa diagram to dig down into what the problem actually is.

2. Generate possible solutions

Brainstorming is one way to come up with different ideas for potential solutions. You could also interview experts, review lessons learned or innovative solutions from previous projects, research what the rest of your industry is doing or consult customers on what they’d like to see. There are no silly ideas at this point!

Choose the creative approach that gets you a range of options to review.

Read next: How to improve problem solving with lessons learned.

3. Evaluate each option

Once you have several options to consider, you can evaluate each one based on its effectiveness and cost before deciding which one is most suitable for your situation.

Use pairwise prioritisation, multi-criteria decision making or analytical hierarchy process (AHP) to help with the evaluation.

4. Select an appropriate course of action

Now you’ve got all the options for solving your problem, you can actually solve it by choosing a course of action that will sort it out. This is where decision making comes in. in this step you make the decision.

Finally, implement your chosen solution and monitor its progress over time so that any necessary adjustments can be made as needed.

Benefits of problem solving skills

There are many benefits associated with having effective problem solving skills.

These include improved decision making abilities (more on that in a minute), increased creativity, better communication skills, greater confidence when faced with challenging situations, enhanced ability to think critically, more efficient use of resources, improved relationships between colleagues or team members due to shared understanding of goals and increased productivity levels due to fewer mistakes being made during projects or tasks.

(Breathe. That was a long sentence, sorry.)

All these advantages make problem solving an invaluable skill in both personal life and professional life scenarios.

What is decision making?

Basically, decision making is the process of selecting a course of action from a number of alternatives. It involves gathering information, weighing options, and choosing the best option for achieving a desired outcome.

But how is that different to problem solving?

Decision making is the process of doing Step 4 of the problem solving process. It’s the choice making, option selection, conclusion of the analysis and thinking.

It’s decisive (duh), purposeful, specific. It removes the ambiguity of the ‘what do we do?’ and helps the team move towards the ‘OK, how do we do that?’

It brings action to a situation.

The decision making process

There is a simple method for decision making too, although the actual decision itself might be tough to make.

• Identify that a decision is required
• Ensure you have the data to make the decision
• Make the decision
• Tell whoever needs to implement the decision

1. Identify that a decision is required

The decision-making process typically begins with identifying what decision needs to be made. Are you making the right decision, or is there something else, deeper, different that is really what’s required?

In this step you also want to identify who is making the decision. That could be your project sponsor, a panel, you by yourself, a committee or whoever. Getting this step clear saves headaches later.

2. Ensure you have the data to make the decision

Do you have all the info you need to make the decision? If not, get it.

When decisions are made quickly but thoughtfully, they can save time and resources while still producing quality results.

Major decisions need more time spent on this step to make sure you understand all the variables.

3. Make the decision

After considering all potential solutions, it’s time to make a choice based on what will yield the best results for everyone involved.

This is the hard part: make the decision! The person or people responsible for this should weigh up the data and use their professional judgement to choose the right course of action. Decision trees can be useful here to avoid unconscious bias (or conscious bias!).

Obviously this is harder for complex decisions. What vendor to choose for a 3-year outsourcing arrangement is harder to decide than what venue to book for a team away day.

4. Tell whoever needs to implement the decision

Great – you’ve made the call and know what to do, but does the rest of the team? Don’t keep the decision to yourself!

Make sure whoever needs to know the next steps is aware that the decision has been made so they can implement it and take the right action.

Having confidence in decisions leads to greater trust between team members and better collaboration overall, which can lead to improved project outcomes over time. Well-made decisions often create opportunities for growth within teams by allowing them to learn from their mistakes as well as their successes along the way.

Similarities between problem solving and decision making

Problem solving and decision making sound very similar, right?

Well, that is true. Both processes involve gathering information, analyzing it, and coming up with solutions or courses of action. They both require critical thinking skills to identify potential solutions or options that are most likely to be successful.

The processes use a similar flow

Both processes involve identifying a problem or issue, researching possible solutions, evaluating those solutions based on criteria such as cost-effectiveness or feasibility, selecting an option from among the available choices, implementing the chosen solution, and you’d also want to monitor its effectiveness over time.

The process can be iterative if necessary; if one solution does not work out as expected then another may need to be tried until a satisfactory outcome is achieved.

They both produce a satisfactory solution

Problem solving and decision making usually lead to some kind of action being taken in order to address a given issue or situation. Problem solving often involves finding creative solutions for complex problems, while decision making typically entails selecting a course of action from several possibilities after carefully evaluating each option’s advantages and disadvantages.

But ultimately, the goal is for something positive (or at least neutral) to come out of the helpful process so that whatever challenge was initially presented can be effectively addressed.

Despite being so similar you could pretty much interchange them in some circumstances, there are some differences.

Differences between problem solving and decision making

Although they have similarities in terms of the process used to come up with a solution, their goals differ significantly.

Process goals are different

The goal of problem solving is to find a solution to an existing issue. It involves identifying the cause of a problem and then finding ways to address it. Problem solving often requires input from multiple stakeholders who can provide different perspectives on how best to solve the issue at hand.

On the other hand, decision making focuses on choosing the best option from multiple alternatives. This could include selecting between competing products or services or deciding which strategy will be most effective for achieving certain objectives.

In other words: decision making doesn’t necessarily mean there is a problem. We make decisions every day about small things and big things, but they aren’t all problems that need the creative step of solutioning.

Sometimes a decision just needs to be taken and the options are clearly known.

They require different stakeholders

Another key difference between problem solving and decision making is that while problem solving typically requires input from multiple stakeholders, decision making is usually done by one individual or group who has access to all relevant information needed for the decision-making process.

To give you an example. Let’s say on a technical project the development team hit a problem. They have to bring in various subject matter experts to research and identify the parameters involved. They consult, brainstorm and debate. It’s a group effort, and it’s likely to end in a solution.

However, if I need my project sponsor to choose between two risk treatments, I’ll take him my recommendation and a summary of options and he’ll simply choose. Done.

Decisions are made based on what is known about a situation rather than relying on external opinions or advice when trying to make an informed choice about what course of action should be taken next.

They produce different results

The nature of both processes also differs in terms of the types of solutions they produce. Problem solving typically results in creative solutions that can be implemented over time, while decision making produces immediate choices from among existing alternatives without necessarily creating something new or unique.

Both processes involve the identification of a problem or issue, the collection of information to evaluate possible solutions, and an analysis of potential outcomes. The main difference between them is in their goals: problem solving seeks to identify the root cause of an issue and develop a solution that will address it; decision making focuses on selecting from among available options.

Both processes require careful consideration of facts and opinions before any action is taken. Problem solving often involves more people than decision making as it requires collaboration to identify underlying causes and brainstorm potential solutions. Decision makers may consult with others for input but ultimately make decisions independently based on their own judgment.

Still got a question?

What is the difference between decision and decision making.

A decision is the act of making a choice between two or more alternatives. Decision making is the process by which decisions are made. It involves gathering information, analyzing data, evaluating alternatives and choosing a course of action based on this analysis. The outcome of the process is the decision. The decision-making process also includes monitoring progress to ensure that goals are being met and taking corrective action if needed.

What is the importance of problem-solving and decision making?

Problem-solving and decision making are essential skills for project managers and managers in general. The processes keep work moving by making sure problems get solved and decisions get made so team members are not blocked from finishing their tasks.

What are the steps in problem-solving and decision making?

Problem-solving and decision making involve a series of steps that can help ensure the best possible outcome. The first step is to identify the problem or opportunity, then analyze it by gathering relevant information and evaluating potential solutions. After considering all options, select an appropriate solution and develop an action plan for implementation. Finally, monitor progress to ensure success and make necessary adjustments along the way. By following these steps, project managers can effectively manage projects while minimizing risks and maximizing results.

Before you go…

Sometimes there isn’t a right decision – it’s simply important to make a decision. As for the desk, in the end, we used a piece of furniture we already had upstairs and didn’t buy one at all.

I spent a morning measuring and researching options, and I’ll never get that time back, but that’s OK.

As a leader, you should be skilled at solving problems and making decisions, and the processes that support them. However, you don’t have to be doing all the solving and making all the calls yourself. As long as you facilitate the process and get the right people in the room, you can step back and let the experts do their thing.

Let the right people do the work and create an environment where your projects move forward because everyone’s got what they need to keep things moving.

Project manager, author, mentor

Elizabeth Harrin is a Fellow of the Association for Project Management in the UK. She holds degrees from the University of York and Roehampton University, and several project management certifications including APM PMQ. She first took her PRINCE2 Practitioner exam in 2004 and has worked extensively in project delivery for over 20 years. Elizabeth is also the founder of the Project Management Rebels community, a mentoring group for professionals. She's written several books for project managers including Managing Multiple Projects .

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Problem Solving and Decision Making: Key Differences & Applications

Explore the nuances of solving complex problems and making intricate decisions in this insightful blog. Gain a deeper understanding of the key distinctions between them. In this blog, explore Problem Solving and Decision Making, their key differences and how to apply these abilities in the workplace. Let's dive in!

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Have you ever faced the trouble of deciding what is right or wrong? In our daily lives, we often come across situations that require us to confront challenges and make choices. This is why two critical cognitive processes are involved in addressing these situations: Problem Solving and Decision Making. While the terms are frequently used interchangeably, they represent distinct mental activities with specific objectives. Problem Solving involves identifying and resolving issues using critical thinking and creativity. On the other hand, Decision Making entails choosing the best course of action among alternatives and considering risks and rewards. In this blog, we will Learn the differences between Problem Solving and Decision Making, how to apply these abilities at work, and some advice on how to improve them.

Table of Contents 

1) What do you understand by Decision Making? 

2) Understanding Problem Solving 

3) What are the differences between Problem Solving and Decision Making?

4) Tips on how to improve Problem-solving and Decision-making skills

5) How can you integrate Decision Making and Problem Solving? 

6) Conclusion 

What do you understand by Decision Making? 

It is a hard choice when we are faced with the question to make important decisions, in organisational setting and personal life as well. Nevertheless, it is not a reason to be afraid, but rather, to master these tasks through comprehensive knowledge of their consequences. First, we should define Decision Making before going on to the difference between Decision Making and Problem Solving.

It is an intellectual process that has a direct impact on our everyday and work-life matters. It is the process of analysing different options to find the best one in line with various factors and the one that is going to meet the objectives.

Effective Decision Making combines Critical Thinking, analysis, and judgment, and it can be the determinant of outcome and consequences. Let's uncover the important steps to Decision -making and some real-life examples:

1) Evaluation of alternatives: The first step in Decision Making requires the identification of problems and conceptualisation of possible alternatives that can help to deal with the given situation or problem.

2) Rationality and objectivity: The correct Decision Making process consists of a detailed analysis of all the data that is accessible, assessing the pros and cons of each scenario, and selecting a logical and beneficial option. 

3) Heuristics and biases: Sometimes, it is possible that you may have mental heuristics to be quick in the decision process. However, biases may be introduced by shortcuts and suboptimal choices could become inevitable for you.

4) Decision Making under uncertainty: Some times, you have to make important decisions based on the information that is not complete or with determined assumptions. The risk is directly connected and making risk assessment is considered to be the answer to this question. You must enhance on your flexibility to address the unpredictable.

5) Group Decision Making: In collaborative contexts, people may arrive at a decision together having discussed, brainstormed and found a common consensus with one another. Such a method taps into the different perceptions and skills.

6) Strategic Decision Making: In organisations, Strategic Decision Making requires being concerned with the possible long-term implications, aligning decisions with organisational goals, and trying to anticipate potential impacts on stakeholders.  

7) Ethical considerations:  This involves assessing the moral implications of choices, decisions, and actions. It revolves around making the right and just choices, guided by one's ethical values and principles.

8) Learning from outcomes: As an effective decision-maker, one should have the audacity to learn from both successful and unsuccessful outcomes because learning from these will only enhance future Decision Making processes. 

Here are some real-life examples that may require you to make some justified decisions: 

a) Choosing between two job offers based on salary, benefits, and career prospects. 

b) Deciding which college or university to attend, considering factors like location, courses offered, and campus culture. 

c) Selecting an investment option after analysing risk, return potential, and financial goals. 

d) Determining the best marketing strategy for a new product launch, considering target audience, budget, and competition. 

e) Making a medical treatment choice for a patient after weighing the benefits, risks, and patient preferences.   

Understanding Problem Solving  

You're now aware of how you can make effective Decision Making. Let us now learn how to effectively carry out Problem Solving tasks in our daily life. Problem Solving is a fundamental cognitive process that entails identifying challenges, finding solutions, and accompliching the set goals. 

It is a logical process aimed at knowing the problem, looking for possible solutions, and choosing the most efficient solution. This helps you to navigate complexities and arrive at successful conclusions. Let us now look at some tips that can help you in Problem Solving effectively:  

1) Problem identification: As a first step towards Problem Solving, effectively carry out tasks. Also, recognise and define the issue or challenge that needs to be addressed.  

2) Data gathering: Gathering relevant information and data related to the problem is essential for understanding its root causes and implications. This helps you become a good problem solver. 

3) Analysis and diagnosis: Analyse the gathered information to identify the underlying causes of the problem. This helps you in devising targeted solutions. 

4) Solution generation: Brainstorming and generating multiple potential solutions is crucial for you when you are exploring diverse approaches to resolve the problem. 

5) Evaluation of alternatives: Carefully evaluate the pros and cons of each solution. This helps you in selecting the most feasible and effective one. 

6) Implementation: After choosing a solution, you have to put the chosen solution into action. This requires planning, coordination, and effective execution. 

7) Creative thinking: Sometimes adopting an open-minded view towards finding a solution to the challenging situations will encourage you to be creative.

8) Root cause analysis: Finding and tackling the cause behind the problem in itself can make a change that lasts and you will get a much better, sustainable solution to your problem.

Let us now see some real-life examples where you need to apply your Problem Solving skills: 

a) Resolving a technical issue with a computer by identifying and troubleshooting the actual cause of the problem. 

b) Finding an alternative transportation route when faced with unexpected road closures. 

c) Addressing a communication breakdown within a team by facilitating open discussions and conflict resolution. 

d) Solving a math problem by applying various Problem Solving Techniques and mathematical principles. 

e)  Fixing a malfunctioning appliance by diagnosing the issue and performing necessary repairs. 

Learn to be more Mindful when you are applying your Problem Solving skills with our Conflict Management Training .  

What are the differences between Problem Solving and Decision Making?

Let us now have a look how Problem Solving and Decision Making skills are different from each other:

1) Definition  

Problem Solving is a step-by-step approach that one uses to identify, analyse, and finally come up with the solution to the issues or challenges they face. It seeks to find the origin of a problem, generate possible ideas or solutions, and choose the best alternative to be implemented. In most researches and practices, the primary aim of Problem Solving is reducing or overcoming the negative impacts of the problem.

On the other hand, the Decision Making process gives the choice, which can be taken from different alternatives. Every process of Decision Making produces a choice like taking action, a strategy, or making a resolution. There is not necessarily a problem but it is applicable in any situation which requires making a choice.

2) Objective 

Problem Solving is an effort to overcome a given obstacle or challenge. Its basic aim is to produce a solution that would change the current situation from less desirable to more desirable. On the other hand, Decision Making aims at selecting the best possible choice from among several alternatives. It could be proactive, such as deciding on an expansion strategy for the market, or it could be reactive, such as deciding on a course of action in response to the moves of a competitor.

3) Nature 

In the Problem Solving process, a problem often arises as a response to a discrepancy between what was expected and what is actually experienced, necessitating a solution. This process is typically reactive. On the other hand, Decision Making can be both proactive and reactive. Proactive Decision Making involves making choices based on anticipation of future events, while reactive Decision Making involves selecting courses of action in response to an immediate situation or problem.

4) Process 

The process of Problem Solving usually starts with understanding and diagnosing the problem. This is followed by brainstorming various solutions and analysing the suitability of each before finally implementing the most fitting one.

On the other hand, the Decision Making process typically begins with identifying a need, often through gathering information. This leads to the search for alternatives and compiling a list of these options. The alternatives are then weighed against criteria such as risks, benefits, and implications before making a choice.

5) Tools and techniques 

In Problem Solving, commonly used tools include root cause analysis, brainstorming, SWOT analysis, and fishbone diagrams (Ishikawa). These tools help in pinpointing the origin of a problem and exploring all possible solutions.

On the other hand, Decision Making often utilises techniques such as decision trees, cost-benefit analysis, pros and cons lists, and grid analysis. These methods assist in evaluating the implications of each available choice.

6) Skills required 

The major skills required in Problem Solving include critical thinking, analytical skills, creativity, and resilience. It is crucial to have the ability to persevere and not be overwhelmed by challenges.

However, Decision Making requires analytical skills, risk assessment, intuition, and foresight. The essential capability here is to be accountable for decisions, which involves predicting the outcomes of every choice

7) Duration and finality  

Problem Solving is time-consuming. It requires a deep dive into understanding the problem before moving on to solutions. The process concludes once a solution is implemented, and the problem is resolved. 

On the other hand, Decision Making can be swift (like everyday decisions) or prolonged (strategic decisions) depending on the complexity of the problems. Once a decision is made, the next step is to implement it, but decisions can sometimes be revisited based on outcomes or changing scenarios. 

Gain a deeper understanding of yourself to take more effective Decision Making with our Decision Making Course .

Tips on how to improve Problem Solving and Decision Making skills

Decision Making and Problem Solving are two most important skills that every individual must possess to excel in their career and in their personal life. There are multiple ways which can be used to improve these skills. Let’s have a look at some of these tips to improve these skills:

Developing skills related to Decision Making and Problem Solving

You can improve your Decision-making and Problem-solving skills by developing other skills such as analytical thinking, creativity and critical thinking. These allied skills will help you boost your analytical thinking skills, will help you think creatively and outside the box. Moreover, honing these skills will help you understand the problems deeply and analyse them without getting partial with your decisions.

Effective communication

Communication is the one of the major keys to success. Effective communication helps in solving problems, miscommunications and helps you understand different perspectives to the same problem. By practicing effective communication, you can convey an information or tasks seamlessly to you team members or colleagues. It helps you understand the root cause of any problem and helps you take an informed decision.

Think about past decisions

It may seem unrelated to you in this context, however, thinking back on your decisions that you made previously can help you not repeat the mistakes, or save you the time that you previously took to make a small decision. Reflecting on past decisions helpin analysing the current problems impartially and help you learn more about your own methods to decide or solve a problem.

Research your industry

Before you make any important decision, or solve out a problem, you need to know about your industry in detail. Since not all situations are same, neither are the industries. Every industry, company or business have their own set of goals, requirements, ideologies, and policies. Whenever you are a part of that specific industry, you should keep in mind, their framework. If you are going beyond their framework or their principles, while solving a problem, there may not be any significant impact taken by your decisions.

Keep yourself updated

It is necessary that you keep yourself updated. As you know that our world is going through many technological advancements. Hence you need to know and update yourself so that you can incorporate all these inventions and discoveries in your industry.

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How can you integrate Decision Making and Problem Solving? 

Even though Decision Making and Problem-solving have their differences, there are still instances where you need to integrate these two special skills so that you can carry out any challenging tasks or situations, whether it be in the workplace or in your personal life. The following tips will help you show how you can take effective decisions and simultaneously solve problems: 

1) Foster a systematic approach: You can start by adopting a systematic approach to Problem Solving. It involves defining the issue, gathering relevant information, analysing data, generating potential solutions, and evaluating alternatives. Then, you can implement your structured Problem Solving process, which provides a solid foundation for your informed Decision Making. 

2) Identify decision points: You can recognise the key decision points within the Problem-solving process. Then you have to determine which factors require choices and weigh the consequences of each decision on the overall Problem Solving outcome.  

3) Incorporate critical thinking: You can emphasise your critical thinking throughout both Problem Solving and Decision Making. Engage in objective analysis so that you can consider multiple perspectives and challenge assumptions to arrive at well-rounded solutions and decisions.  

4) Utilise data-driven decisions: Ensure that the decisions made during the Problem Solving process are backed by relevant data and evidence. Your data-driven Decision-making minimises biases and increases the chances of arriving at the most suitable solutions. 

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Conclusion 

If you integrate both Problem Solving and Decision Making, you can have a more potent approach toward various challenges or tasks. This will help you in making well-informed choices in those circumstances. Moreover, this synergy will empower you to have a Problem -solving mindset to navigate complexities with clarity and achieve effective outcomes. 

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Frequently Asked Questions

Problem Solving is both a skill and a competency. It involves the ability to analyse situations, identify issues, generate solutions, and implement them effectively. Developing this capability enhances decision-making, creativity, and adaptability in various personal and professional contexts.

The five steps for Problem Solving and decision-making are: 

1) Define the problem

2) Identify possible solutions 

3) Evaluate alternatives

4) Make a decision 

5) Implement and monitor the chosen solution.

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In This Article Expand or collapse the "in this article" section Problem Solving and Decision Making

Introduction.

• General Approaches to Problem Solving
• Representational Accounts
• Problem Space and Search
• Working Memory and Problem Solving
• Domain-Specific Problem Solving
• The Rational Approach
• Prospect Theory
• Dual-Process Theory
• Cognitive Heuristics and Biases

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Problem Solving and Decision Making by Emily G. Nielsen , John Paul Minda LAST REVIEWED: 26 June 2019 LAST MODIFIED: 26 June 2019 DOI: 10.1093/obo/9780199828340-0246

Problem solving and decision making are both examples of complex, higher-order thinking. Both involve the assessment of the environment, the involvement of working memory or short-term memory, reliance on long term memory, effects of knowledge, and the application of heuristics to complete a behavior. A problem can be defined as an impasse or gap between a current state and a desired goal state. Problem solving is the set of cognitive operations that a person engages in to change the current state, to go beyond the impasse, and achieve a desired outcome. Problem solving involves the mental representation of the problem state and the manipulation of this representation in order to move closer to the goal. Problems can vary in complexity, abstraction, and how well defined (or not) the initial state and the goal state are. Research has generally approached problem solving by examining the behaviors and cognitive processes involved, and some work has examined problem solving using computational processes as well. Decision making is the process of selecting and choosing one action or behavior out of several alternatives. Like problem solving, decision making involves the coordination of memories and executive resources. Research on decision making has paid particular attention to the cognitive biases that account for suboptimal decisions and decisions that deviate from rationality. The current bibliography first outlines some general resources on the psychology of problem solving and decision making before examining each of these topics in detail. Specifically, this review covers cognitive, neuroscientific, and computational approaches to problem solving, as well as decision making models and cognitive heuristics and biases.

General Overviews

Current research in the area of problem solving and decision making is published in both general and specialized scientific journals. Theoretical and scholarly work is often summarized and developed in full-length books and chapter. These may focus on the subfields of problem solving and decision making or the larger field of thinking and higher-order cognition.

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• Introduction

Rational decision making

Satisficing and bounded rationality, intra-organizational political decision making.

• Incremental decision making and routines
• Appropriate decision making
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decision making

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• Table Of Contents

decision making , process and logic through which individuals arrive at a decision. Different models of decision making lead to dramatically different analyses and predictions. Decision-making theories range from objective rational decision making, which assumes that individuals will make the same decisions given the same information and preferences, to the more subjective logic of appropriateness , which assumes that specific institutional and organizational contexts matter in the decisions that individuals make.

(Read Steven Pinker’s Britannica entry on rationality.)

In modern Western societies the most common understanding of decision making is that it is rational—self-interested, purposeful, and efficient. During rational decision making, individuals will survey alternatives , evaluate consequences from each alternative , and finally do what they believe has the best consequences for themselves. The keys to a decision are the quality of information about alternatives and individual preferences. Modern economics is built on this understanding of how individuals make decisions.

Rational decision making becomes efficient when information is maximized and preferences are satisfied using the minimum of resources. In modern societies, rational decision making can occur in markets or firms. Both assume that individuals will act rationally, maximizing self-interest, but each works most efficiently under different conditions. Markets are most efficient when both buyers and sellers exist, when products or services are discrete so that the exchange can be one-time, when information about a product or service (such as its technology or means of evaluation) is broadly understood, and when there are enforced penalties for cheating.

Lacking these conditions, consensual exchange cannot occur, and rational individuals will try to cheat others to maximize their gain. In these cases a hierarchical organization is more efficient. The German sociologist Max Weber described how factories and bureaucracies became dramatically more efficient through growing technical expertise and, more importantly, a new division of labour , which divided work, specialized expertise, and coordinated individuals in a rule-based hierarchy . Bureaucracies decomposed complex technologies into manageable pieces, then allowed individuals to specialize and master a defined skill set. Using a clear hierarchy in which each position is controlled and supervised according to a stable and nonarbitrary system of rules, each individual’s work and expertise could be coordinated to achieve organizational goals, ranging from winning wars to making dresses.

In the 1940s, organization theorists began to challenge two assumptions necessary for rational decision making to occur, both of which were made obvious in cases where markets failed and hierarchies were necessary. First, information is never perfect, and individuals always make decisions based on imperfect information. Second, individuals do not evaluate all possible alternatives before making a choice. This behaviour is directly related to the costs of gathering information, because information becomes progressively more difficult and costly to gather. Instead of choosing the best alternative possible, individuals actually choose the first satisfactory alternative they find. The American social scientist Herbert Simon labeled this process “ satisficing” and concluded that human decision making could at best exhibit bounded rationality. Although objective rationality leads to only one possible rational conclusion, satisficing can lead to many rational conclusions, depending upon the information available and the imagination of the decision maker.

Simon argued that otherwise irrational individuals can behave rationally in the right context , particularly within a formal organization . Organizations can structure, or bound, individuals’ decisions by manipulating the premises on which decisions are made. Organizations can filter or emphasize information, bringing facts to an individual’s attention and identifying certain facts as important and legitimate . Individuals in hierarchies can take most of what happens around them for granted, concentrating only on a few key decisions. Hierarchies are efficient because they ensure that the correct information gets to the correct decision makers and that the correct person is making the decisions. At the same time, hierarchical organizations can socialize individuals to refrain from cheating by creating value decision premises that underlie decision makers’ judgments on what is right or good to do. These values, beliefs, or norms can come from family, from school, or from within the organization, but the organization can structure environments so that the most desirable value will be most salient at the time of decision.

Hierarchical organizations can structure factual and value decision premises so that the range of action becomes so narrow that only one alternative remains: the rational choice. Structuring decision premises can be done by directly managing information, selectively recruiting members, training members, and creating closed promotion patterns.

Organizations become rational in pursuing their missions through what Simon called ends-means chains. Leaders set the organizational mission, find a set of means for achieving the mission, take each of those means as a subgoal, and then find means for the subgoals and so on, until goals exist for every member of the organization. Leaders thus create a hierarchy of goals, in which each organizational level’s goals are an end relative to the levels below it and a means relative to the levels above it. Each individual’s work thus becomes a small part of accomplishing the organization’s mission.

Turning Simon’s bounded rationality on its head, other theorists argued that organizations are not purposeful cohesive actors but rather groups of competing coalitions made up of individuals with disparate interests. Individuals do not represent organizational interests; organizations represent individuals’ interests. Seen from this perspective, it is erroneous to ascribe a mission to an organization. Instead, organizations have goals set by a temporarily dominant coalition, which itself has no permanent goals and whose membership is subject to change. Members of the dominant coalition make decisions by bargaining, negotiating, and making side payments. Organizational decision making is the product of the game rather than a rational, goal-oriented process. Individual decision making is rational in the narrow sense that individuals pursue individual, self-interested goals, though this cannot always be accomplished directly. Individuals must pick their fights and use their influence carefully.

To understand and possibly predict what organizations will do, it is necessary to uncover and analyze the membership of the dominant coalition . The formal organizational chart is not a reliable map of organizational power. Instead, analysts must discover authority. Individuals gain authority by being able to resolve uncertainty. Individuals that can unravel technical problems, attract resources, or manage internal conflict demonstrate their usefulness to the rest of the organization and gain power. Working in concert with others who can perform similarly valuable functions, they become part of the dominant coalition. The size and composition of the dominant coalition depend on the types of environmental, technical, or coordinating uncertainty that must be resolved for the organization to survive. More technically complex, larger organizations in rapidly changing environments will tend to have larger dominant coalitions.

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• Critical Thinking

Decision-making and Problem-solving

Appreciate the complexities involved in decision-making & problem solving.

Develop evidence to support views

Analyze situations carefully

Discuss subjects in an organized way

Predict the consequences of actions

Weigh alternatives

Generate and organize ideas

Form and apply concepts

Design systematic plans of action

A 5-Step Problem-Solving Strategy

Specify the problem – a first step to solving a problem is to identify it as specifically as possible.  It involves evaluating the present state and determining how it differs from the goal state.

Analyze the problem – analyzing the problem involves learning as much as you can about it.  It may be necessary to look beyond the obvious, surface situation, to stretch your imagination and reach for more creative options.

seek other perspectives

be flexible in your analysis

consider various strands of impact

brainstorm about all possibilities and implications

research problems for which you lack complete information. Get help.

Formulate possible solutions – identify a wide range of possible solutions.

try to think of all possible solutions

be creative

consider similar problems and how you have solved them

Evaluate possible solutions – weigh the advantages and disadvantages of each solution.  Think through each solution and consider how, when, and where you could accomplish each.  Consider both immediate and long-term results.  Mapping your solutions can be helpful at this stage.

Choose a solution – consider 3 factors:

compatibility with your priorities

amount of risk

practicality

Keys to Problem Solving

Think aloud – problem solving is a cognitive, mental process.  Thinking aloud or talking yourself through the steps of problem solving is useful.  Hearing yourself think can facilitate the process.

Allow time for ideas to "gel" or consolidate.  If time permits, give yourself time for solutions to develop.  Distance from a problem can allow you to clear your mind and get a new perspective.

Talk about the problem – describing the problem to someone else and talking about it can often make a problem become more clear and defined so that a new solution will surface.

Decision Making Strategies

Decision making is a process of identifying and evaluating choices.  We make numerous decisions every day and our decisions may range from routine, every-day types of decisions to those decisions which will have far reaching impacts.  The types of decisions we make are routine, impulsive, and reasoned.  Deciding what to eat for breakfast is a routine decision; deciding to do or buy something at the last minute is considered an impulsive decision; and choosing your college major is, hopefully, a reasoned decision.  College coursework often requires you to make the latter, or reasoned decisions.

Decision making has much in common with problem solving.  In problem solving you identify and evaluate solution paths; in decision making you make a similar discovery and evaluation of alternatives.  The crux of decision making, then, is the careful identification and evaluation of alternatives.  As you weigh alternatives, use the following suggestions:

Consider the outcome each is likely to produce, in both the short term and the long term.

Compare alternatives based on how easily you can accomplish each.

Evaluate possible negative side effects each may produce.

Consider the risk involved in each.

Be creative, original; don't eliminate alternatives because you have not heard or used them before.

An important part of decision making is to predict both short-term and long-term outcomes for each alternative.  You may find that while an alternative seems most desirable at the present, it may pose problems or complications over a longer time period.

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What is Problem Solving? (Steps, Techniques, Examples)

By Status.net Editorial Team on May 7, 2023 — 5 minutes to read

What Is Problem Solving?

Definition and importance.

Problem solving is the process of finding solutions to obstacles or challenges you encounter in your life or work. It is a crucial skill that allows you to tackle complex situations, adapt to changes, and overcome difficulties with ease. Mastering this ability will contribute to both your personal and professional growth, leading to more successful outcomes and better decision-making.

Problem-Solving Steps

The problem-solving process typically includes the following steps:

• Identify the issue : Recognize the problem that needs to be solved.
• Analyze the situation : Examine the issue in depth, gather all relevant information, and consider any limitations or constraints that may be present.
• Generate potential solutions : Brainstorm a list of possible solutions to the issue, without immediately judging or evaluating them.
• Evaluate options : Weigh the pros and cons of each potential solution, considering factors such as feasibility, effectiveness, and potential risks.
• Select the best solution : Choose the option that best addresses the problem and aligns with your objectives.
• Implement the solution : Put the selected solution into action and monitor the results to ensure it resolves the issue.
• Review and learn : Reflect on the problem-solving process, identify any improvements or adjustments that can be made, and apply these learnings to future situations.

Defining the Problem

To start tackling a problem, first, identify and understand it. Analyzing the issue thoroughly helps to clarify its scope and nature. Ask questions to gather information and consider the problem from various angles. Some strategies to define the problem include:

• Brainstorming with others
• Asking the 5 Ws and 1 H (Who, What, When, Where, Why, and How)
• Analyzing cause and effect
• Creating a problem statement

Generating Solutions

Once the problem is clearly understood, brainstorm possible solutions. Think creatively and keep an open mind, as well as considering lessons from past experiences. Consider:

• Creating a list of potential ideas to solve the problem
• Grouping and categorizing similar solutions
• Prioritizing potential solutions based on feasibility, cost, and resources required
• Involving others to share diverse opinions and inputs

Evaluating and Selecting Solutions

Evaluate each potential solution, weighing its pros and cons. To facilitate decision-making, use techniques such as:

• SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
• Decision-making matrices
• Pros and cons lists
• Risk assessments

After evaluating, choose the most suitable solution based on effectiveness, cost, and time constraints.

Implementing and Monitoring the Solution

Implement the chosen solution and monitor its progress. Key actions include:

• Communicating the solution to relevant parties
• Setting timelines and milestones
• Assigning tasks and responsibilities
• Monitoring the solution and making adjustments as necessary
• Evaluating the effectiveness of the solution after implementation

Utilize feedback from stakeholders and consider potential improvements. Remember that problem-solving is an ongoing process that can always be refined and enhanced.

Problem-Solving Techniques

During each step, you may find it helpful to utilize various problem-solving techniques, such as:

• Brainstorming : A free-flowing, open-minded session where ideas are generated and listed without judgment, to encourage creativity and innovative thinking.
• Root cause analysis : A method that explores the underlying causes of a problem to find the most effective solution rather than addressing superficial symptoms.
• SWOT analysis : A tool used to evaluate the strengths, weaknesses, opportunities, and threats related to a problem or decision, providing a comprehensive view of the situation.
• Mind mapping : A visual technique that uses diagrams to organize and connect ideas, helping to identify patterns, relationships, and possible solutions.

Brainstorming

When facing a problem, start by conducting a brainstorming session. Gather your team and encourage an open discussion where everyone contributes ideas, no matter how outlandish they may seem. This helps you:

• Generate a diverse range of solutions
• Encourage all team members to participate
• Foster creative thinking

When brainstorming, remember to:

• Reserve judgment until the session is over
• Encourage wild ideas
• Combine and improve upon ideas

Root Cause Analysis

For effective problem-solving, identifying the root cause of the issue at hand is crucial. Try these methods:

• 5 Whys : Ask “why” five times to get to the underlying cause.
• Fishbone Diagram : Create a diagram representing the problem and break it down into categories of potential causes.
• Pareto Analysis : Determine the few most significant causes underlying the majority of problems.

SWOT Analysis

SWOT analysis helps you examine the Strengths, Weaknesses, Opportunities, and Threats related to your problem. To perform a SWOT analysis:

• List your problem’s strengths, such as relevant resources or strong partnerships.
• Identify its weaknesses, such as knowledge gaps or limited resources.
• Explore opportunities, like trends or new technologies, that could help solve the problem.
• Recognize potential threats, like competition or regulatory barriers.

SWOT analysis aids in understanding the internal and external factors affecting the problem, which can help guide your solution.

Mind Mapping

A mind map is a visual representation of your problem and potential solutions. It enables you to organize information in a structured and intuitive manner. To create a mind map:

• Write the problem in the center of a blank page.
• Draw branches from the central problem to related sub-problems or contributing factors.
• Add more branches to represent potential solutions or further ideas.

Mind mapping allows you to visually see connections between ideas and promotes creativity in problem-solving.

Examples of Problem Solving in Various Contexts

In the business world, you might encounter problems related to finances, operations, or communication. Applying problem-solving skills in these situations could look like:

• Identifying areas of improvement in your company’s financial performance and implementing cost-saving measures
• Resolving internal conflicts among team members by listening and understanding different perspectives, then proposing and negotiating solutions
• Streamlining a process for better productivity by removing redundancies, automating tasks, or re-allocating resources

In educational contexts, problem-solving can be seen in various aspects, such as:

• Addressing a gap in students’ understanding by employing diverse teaching methods to cater to different learning styles
• Developing a strategy for successful time management to balance academic responsibilities and extracurricular activities
• Seeking resources and support to provide equal opportunities for learners with special needs or disabilities

Everyday life is full of challenges that require problem-solving skills. Some examples include:

• Overcoming a personal obstacle, such as improving your fitness level, by establishing achievable goals, measuring progress, and adjusting your approach accordingly
• Navigating a new environment or city by researching your surroundings, asking for directions, or using technology like GPS to guide you
• Dealing with a sudden change, like a change in your work schedule, by assessing the situation, identifying potential impacts, and adapting your plans to accommodate the change.
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Problem-Solving Strategies and Obstacles

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From deciding what to eat for dinner to considering whether it's the right time to buy a house, problem-solving is a large part of our daily lives. Learn some of the problem-solving strategies that exist and how to use them in real life, along with ways to overcome obstacles that are making it harder to resolve the issues you face.

What Is Problem-Solving?

In cognitive psychology , the term 'problem-solving' refers to the mental process that people go through to discover, analyze, and solve problems.

A problem exists when there is a goal that we want to achieve but the process by which we will achieve it is not obvious to us. Put another way, there is something that we want to occur in our life, yet we are not immediately certain how to make it happen.

Maybe you want a better relationship with your spouse or another family member but you're not sure how to improve it. Or you want to start a business but are unsure what steps to take. Problem-solving helps you figure out how to achieve these desires.

The problem-solving process involves:

• Discovery of the problem
• Deciding to tackle the issue
• Seeking to understand the problem more fully
• Researching available options or solutions
• Taking action to resolve the issue

Before problem-solving can occur, it is important to first understand the exact nature of the problem itself. If your understanding of the issue is faulty, your attempts to resolve it will also be incorrect or flawed.

Problem-Solving Mental Processes

Several mental processes are at work during problem-solving. Among them are:

• Perceptually recognizing the problem
• Representing the problem in memory
• Considering relevant information that applies to the problem
• Identifying different aspects of the problem
• Labeling and describing the problem

Problem-Solving Strategies

There are many ways to go about solving a problem. Some of these strategies might be used on their own, or you may decide to employ multiple approaches when working to figure out and fix a problem.

An algorithm is a step-by-step procedure that, by following certain "rules" produces a solution. Algorithms are commonly used in mathematics to solve division or multiplication problems. But they can be used in other fields as well.

In psychology, algorithms can be used to help identify individuals with a greater risk of mental health issues. For instance, research suggests that certain algorithms might help us recognize children with an elevated risk of suicide or self-harm.

One benefit of algorithms is that they guarantee an accurate answer. However, they aren't always the best approach to problem-solving, in part because detecting patterns can be incredibly time-consuming.

There are also concerns when machine learning is involved—also known as artificial intelligence (AI)—such as whether they can accurately predict human behaviors.

Heuristics are shortcut strategies that people can use to solve a problem at hand. These "rule of thumb" approaches allow you to simplify complex problems, reducing the total number of possible solutions to a more manageable set.

If you find yourself sitting in a traffic jam, for example, you may quickly consider other routes, taking one to get moving once again. When shopping for a new car, you might think back to a prior experience when negotiating got you a lower price, then employ the same tactics.

While heuristics may be helpful when facing smaller issues, major decisions shouldn't necessarily be made using a shortcut approach. Heuristics also don't guarantee an effective solution, such as when trying to drive around a traffic jam only to find yourself on an equally crowded route.

Trial and Error

A trial-and-error approach to problem-solving involves trying a number of potential solutions to a particular issue, then ruling out those that do not work. If you're not sure whether to buy a shirt in blue or green, for instance, you may try on each before deciding which one to purchase.

This can be a good strategy to use if you have a limited number of solutions available. But if there are many different choices available, narrowing down the possible options using another problem-solving technique can be helpful before attempting trial and error.

In some cases, the solution to a problem can appear as a sudden insight. You are facing an issue in a relationship or your career when, out of nowhere, the solution appears in your mind and you know exactly what to do.

Insight can occur when the problem in front of you is similar to an issue that you've dealt with in the past. Although, you may not recognize what is occurring since the underlying mental processes that lead to insight often happen outside of conscious awareness .

Research indicates that insight is most likely to occur during times when you are alone—such as when going on a walk by yourself, when you're in the shower, or when lying in bed after waking up.

How to Apply Problem-Solving Strategies in Real Life

If you're facing a problem, you can implement one or more of these strategies to find a potential solution. Here's how to use them in real life:

• Create a flow chart . If you have time, you can take advantage of the algorithm approach to problem-solving by sitting down and making a flow chart of each potential solution, its consequences, and what happens next.
• Recall your past experiences . When a problem needs to be solved fairly quickly, heuristics may be a better approach. Think back to when you faced a similar issue, then use your knowledge and experience to choose the best option possible.
• Start trying potential solutions . If your options are limited, start trying them one by one to see which solution is best for achieving your desired goal. If a particular solution doesn't work, move on to the next.
• Take some time alone . Since insight is often achieved when you're alone, carve out time to be by yourself for a while. The answer to your problem may come to you, seemingly out of the blue, if you spend some time away from others.

Obstacles to Problem-Solving

Problem-solving is not a flawless process as there are a number of obstacles that can interfere with our ability to solve a problem quickly and efficiently. These obstacles include:

• Assumptions: When dealing with a problem, people can make assumptions about the constraints and obstacles that prevent certain solutions. Thus, they may not even try some potential options.
• Functional fixedness : This term refers to the tendency to view problems only in their customary manner. Functional fixedness prevents people from fully seeing all of the different options that might be available to find a solution.
• Irrelevant or misleading information: When trying to solve a problem, it's important to distinguish between information that is relevant to the issue and irrelevant data that can lead to faulty solutions. The more complex the problem, the easier it is to focus on misleading or irrelevant information.
• Mental set: A mental set is a tendency to only use solutions that have worked in the past rather than looking for alternative ideas. A mental set can work as a heuristic, making it a useful problem-solving tool. However, mental sets can also lead to inflexibility, making it more difficult to find effective solutions.

How to Improve Your Problem-Solving Skills

In the end, if your goal is to become a better problem-solver, it's helpful to remember that this is a process. Thus, if you want to improve your problem-solving skills, following these steps can help lead you to your solution:

• Recognize that a problem exists . If you are facing a problem, there are generally signs. For instance, if you have a mental illness , you may experience excessive fear or sadness, mood changes, and changes in sleeping or eating habits. Recognizing these signs can help you realize that an issue exists.
• Decide to solve the problem . Make a conscious decision to solve the issue at hand. Commit to yourself that you will go through the steps necessary to find a solution.
• Seek to fully understand the issue . Analyze the problem you face, looking at it from all sides. If your problem is relationship-related, for instance, ask yourself how the other person may be interpreting the issue. You might also consider how your actions might be contributing to the situation.
• Research potential options . Using the problem-solving strategies mentioned, research potential solutions. Make a list of options, then consider each one individually. What are some pros and cons of taking the available routes? What would you need to do to make them happen?
• Take action . Select the best solution possible and take action. Action is one of the steps required for change . So, go through the motions needed to resolve the issue.
• Try another option, if needed . If the solution you chose didn't work, don't give up. Either go through the problem-solving process again or simply try another option.

You can find a way to solve your problems as long as you keep working toward this goal—even if the best solution is simply to let go because no other good solution exists.

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By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

The Difference Between Problem Solving and Decision Making

Decision making and problem solving are two related but different skill sets that apply to distinct business challenges. Sometimes leaders use decision-making techniques when they should be using a problem-solving approach, and vice versa. Knowing the difference between problem solving and decision making and understanding which skill to utilize in a particular situation will help you overcome challenges more quickly.

Seeking a Solution, or Choosing Between Options?

Both decision making and problem solving use information to inform a certain action, but that’s where the similarities end. Problem solving is the process of finding a solution to an ongoing, intermittent, or one-time failure of a process or system to perform at an acceptable level — or perform at all. It consists of identifying the causes through asking basic questions like “where,” “how,” “who,” and “why” to find the solution. Decision making involves choosing between different courses of action by evaluating each based on a set of criteria. It requires implementing an action plan based on what you have learned from problem solving.

A helpful way to illustrate the difference between problem solving and decision making is to consider the difference between a detective and a judge. As anyone who has seen an episode of Law & Order knows, a detective is a problem-solver. Their role is to determine who committed the crime based on evidence. A judge is a decision-maker. They weigh evidence, circumstances, and precedent to arrive at a judgment.

Understanding Differences in Processes and Outcomes

The process of decision making is clear: each option is evaluated based on a set of parameters or criteria. But the outcome is uncertain until a specific decision is made and time tells how well it worked — or didn’t work.

The process of problem solving is not immediately clear. Initially you might not understand the root of the problem, which makes it difficult to know where to start. For example, you can see that the conveyor belt in your warehouse isn’t working, but what made the motor controlling it stop working remains a mystery until you diagnose the problem, system by system. Once the problem is determined and addressed, the outcome is clear: the conveyor belt is again working.

In business, typical problems could be:

• Customer churn is increasing. Solution: expand product offering.
• The organization’s carbon footprint is too big and costly. Solution: implement green initiatives.
• A team is struggling to keep up with leads and organize customer data. Solution: implement a customer relationship management [CRM] system.

The associated complex decisions would be:

• Determining what new product to launch
• Selecting the green strategies that best balance cost and effectiveness
• Identifying which CRM solution is right for your organization

Problem solving and Decision Making: Best Practices

Whether problem solving or decision making, there are some factors you should consider to make the process as successful and efficient as possible. When problem solving, make sure to gather as many facts as you can, which will help make the solution more obvious. For example, app development companies will often take a “ test and learn ” approach to determine what customers want and need in an app. They’ll create a beta version, provide it free-of-charge to customers, and then analyze that data to develop a paid app that meets customer needs.

 When making decisions, be action-oriented. This means that you should be able to act on your decisions. Many of your decisions, especially those concerning complex issues, should involve other key employees and subject matter experts for the best results. Gather a team with diverse backgrounds, experiences and perspectives to help you consider a wide range of options.  Be open to feedback; even the most carefully made decision may not work out as expected when implemented. And lastly, you should adopt a decision-making framework that enables you to make the best decisions possible on a consistent basis, in a variety of scenarios.

• Ken Thompson

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5 thoughts on “the difference between problem solving and decision making”.

Hi Ken. Problem solving is a skill based on creativity and the ability to see things from many points of view. Decision making in particular requires the ability to manage emotions and a strong sense of responsibility. These are two very important skills in every area and in great demand at work. In the business environment, every good leader should be provided with them to perform at his best in his role.

Thank you for the insight. Agreed – creativity is key for problem solving. Thank you again for visiting the blog, and if you’re interested in learning more on the topic, you might find our Complex Decision Making for Leaders guide helpful. https://alignorg.com/guide/complex-decision-making-for-leaders/

I need help about the similarities of problem solving and decision making

We have an Executive Guide that might help you. You can find it here: https://alignorg.com/guide/complex-decision-making-for-leaders/ .

Every problem solving procedure is made of at least one process of divergent and convergent thinking. In the first part after determining the problem we should look for many many possible solutions in hand (which is one of the many many definitions of creativity). This is the divergent part of thinking (one to many). After having the options in hand, we encounter the second obstacle, i.e. looking for the best option from the many. This second part needs some convergent thinking and decision making skills (many to one). Then, I think the decision making in many cases is a part of problem solving procedure.

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Tips and techniques for problem-solving and decision-making.

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Divya Parekh , of The DP Group, covers business growth, storytelling, high-impact performance and authority building.

Are you struggling to find effective solutions to problems you face in your professional or entrepreneurial ventures? Are you often indecisive when faced with complex decisions?

The ability to solve problems and make decisions quickly and effectively can mean the difference between success and failure. There are two main approaches to problem-solving and decision-making: vertical thinking and horizontal thinking. Both approaches have strengths and weaknesses, so understanding the differences between them can help you apply the right method at the right time.

Let's look at a few case studies to understand the very different benefits of these two approaches.

Vertical Thinking For Decision-Making

First, let's take Jane, the CFO of a financial services company. She needs to decide whether to invest in a new company software system.

Jane gathers all the relevant data about the software system and analyzes it thoroughly. She compares the cost of the system to the potential benefits, evaluates the risks involved and consults with subject matter experts. After careful consideration, she decides the benefits outweigh the costs and risks, and the company should invest in the software system.

This is vertical thinking: making a well-informed decision based on a thorough analysis of the data. Vertical thinking is especially useful in situations where there is a clear goal and a need for a precise, data-driven approach. Experts often use it in fields like finance, where decisions depend heavily on facts and figures.

Horizontal Thinking For Problem-Solving

Let's move on to Sophie, the head of marketing for a fashion company. The company has been struggling to attract new customers.

Sophie sets up a brainstorming meeting with different department heads. They come up with a variety of creative solutions based on their diverse perspectives. One idea that stands out is to partner with a popular social media influencer to promote the company's products. The team works together to develop a plan to reach out to the influencer and negotiate a partnership.

This is horizontal thinking: working with a team to generate a variety of ideas and consider different perspectives to find an innovative solution. Horizontal thinking is a great approach for problem-solving when the problem is complex and there may be multiple solutions or approaches. Creative professionals, especially in marketing, advertising and designing, highly value this approach.

How Emotions Affect These Approaches

Over several years of coaching, I've noticed that emotions can play a significant role in problem-solving and decision-making, regardless of the thinking style used.

For instance, when using vertical thinking, emotions such as frustration and impatience can arise when a person or team has been working on a problem for an extended period with no clear solution. Conversely, when a team lands on a solution, there can be a sense of relief and accomplishment.

Similarly, when using horizontal thinking, emotions such as excitement and optimism can arise during a brainstorming session when new and creative ideas are being generated. However, disappointment or frustration can also arise when an idea fails to work.

It's important to recognize and acknowledge these emotions as they can affect team dynamics and ultimately, the success of the problem-solving process. I encourage leaders to create a safe and supportive environment where team members feel comfortable expressing their emotions and concerns.

Make These Thinking Styles Work For You

In my experience, a personalized approach that balances both vertical and horizontal thinking can help manage emotions and any other issues that arise effectively. By using vertical thinking to identify specific problems and solutions, and horizontal thinking to generate creative ideas, you can create a problem-solving process that encourages collaboration, creativity and innovation while minimizing negative emotions.

Are you ready to take your problem-solving and decision-making skills to the next level?

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To Solve a Tough Problem, Reframe It

Five steps to ensure that you don’t jump to solutions by Julia Binder and Michael D. Watkins

Summary .   

Research shows that companies devote too little effort to examining problems before trying to solve them. By jumping immediately into problem-solving, teams limit their ability to design innovative solutions.

The authors recommend that companies spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring different frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens gives you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives helps you uncover new insights and generate fresh ideas.

This article introduces a five-phase approach to problem-framing: In the expand phase, the team identifies all aspects of a problem; in examine, it dives into root causes; in empathize, it considers key stakeholders’ perspectives; in elevate, it puts the problem into a broader context; and in envision, it creates a road map toward the desired outcome.

When business leaders confront complex problems, there’s a powerful impulse to dive right into “solving” mode: You gather a team and then identify potential solutions. That’s fine for challenges you’ve faced before or when proven methods yield good results. But what happens when a new type of problem arises or aspects of a familiar one shift substantially? Or if you’re not exactly sure what the problem is?

Research conducted by us and others shows that leaders and their teams devote too little effort to examining and defining problems before trying to solve them. A study by Paul Nutt of Ohio State University, for example, looked at 350 decision-making processes at medium to large companies and found that more than half failed to achieve desired results, often because perceived time pressure caused people to pay insufficient attention to examining problems from all angles and exploring their complexities. By jumping immediately into problem-solving, teams limit their ability to design innovative and durable solutions.

When we work with organizations and teams, we encourage them to spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens will give you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives lets you uncover new insights and generate fresh ideas.

As with all essential processes, it helps to have a methodology and a road map. This article introduces the E5 approach to problem-framing—expand, examine, empathize, elevate, and envision—and offers tools that enable leaders to fully explore the problem space.

Phase 1: Expand

In the first phase, set aside preconceptions and open your mind. We recommend using a tool called frame-storming, which encourages a comprehensive exploration of an issue and its nuances. It is a neglected precursor to brainstorming, which typically focuses on generating many different answers for an already framed challenge. Frame-storming helps teams identify assumptions and blind spots, mitigating the risk of pursuing inadequate or biased solutions. The goal is to spark innovation and creativity as people dig into—or as Tina Seelig from Stanford puts it, “fall in love with”—the problem.

Begin by assembling a diverse team, encompassing a variety of types of expertise and perspectives. Involving outsiders can be helpful, since they’re often coming to the issue cold. A good way to prompt the team to consider alternative scenarios is by asking “What if…?” and “How might we…?” questions. For example, ask your team, “What if we had access to unlimited resources to tackle this issue?” or “How might better collaboration between departments or teams help us tackle this issue?” The primary objective is to generate many alternative problem frames, allowing for a more holistic understanding of the issue. Within an open, nonjudgmental atmosphere, you deliberately challenge established thinking—what we call “breaking” the frame.

It may be easy to eliminate some possibilities, and that’s exactly what you should do. Rather than make assumptions, generate alternative hypotheses and then test them.

Consider the problem-framing process at a company we’ll call Omega Soundscapes, a midsize producer of high-end headphones. (Omega is a composite of several firms we’ve worked with.) Omega’s sales had declined substantially over the past two quarters, and the leadership team’s initial diagnosis, or reference frame, was that recent price hikes to its flagship product made it too expensive for its target market. Before acting on this assumption, the team convened knowledgeable representatives from sales, marketing, R&D, customer service, and external consultants to do some frame-storming. Team members were asked:

• What if we lowered the price of our flagship product? How would that impact sales and profitability?
• How might we identify customers in new target markets who could afford our headphones at the current price?
• What if we offered financing or a subscription-based model for our headphones? How would that change perceptions of affordability?
• How might we optimize our supply chain and production processes to reduce manufacturing costs without compromising quality?

In playing out each of those scenarios, the Omega team generated several problem frames:

• The target market’s preferences have evolved.
• New competitors have entered the market.
• Product quality has decreased.
• Something has damaged perceptions of the brand.
• Something has changed in the priorities of our key distributors.

Each of the frames presented a unique angle from which to approach the problem of declining sales, setting the stage for the development of diverse potential solutions. At this stage, it may be relatively easy to eliminate some possibilities, and that’s exactly what you should do. Rather than make assumptions, generate alternative hypotheses and then test them.

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Phase 2: Examine

If the expand phase is about identifying all the facets of a problem, this one is about diving deep to identify root causes. The team investigates the issue thoroughly, peeling back the layers to understand underlying drivers and systemic contributors.

A useful tool for doing this is the iceberg model, which guides the team through layers of causation: surface-level events, the behavioral patterns that drive them, underlying systematic structures, and established mental models. As you probe ever deeper and document your findings, you begin to home in on the problem’s root causes. As is the case in the expand phase, open discussions and collaborative research are crucial for achieving a comprehensive analysis.

Let’s return to our Omega Soundscapes example and use the iceberg model to delve into the issues surrounding the two quarters of declining sales. Starting with the first layer beneath the surface, the behavioral pattern, the team diligently analyzed customer feedback. It discovered a significant drop in brand loyalty. This finding validated the problem frame of a “shifting brand perception,” prompting further investigation into what might have been causing it.

Phase 3: Empathize

In this phase, the focus is on the stakeholders—employees, customers, clients, investors, supply chain partners, and other parties—who are most central to and affected by the problem under investigation. The core objective is to understand how they perceive the issue: what they think and feel, how they’re acting, and what they want.

First list all the people who are directly or indirectly relevant to the problem. It may be helpful to create a visual representation of the network of relationships in the ecosystem. Prioritize the stakeholders according to their level of influence on and interest in the problem, and focus on understanding the roles, demographics, behavior patterns, motivations, and goals of the most important ones.

Now create empathy maps for those critical stakeholders. Make a template divided into four sections: Say, Think, Feel, and Do. Conduct interviews or surveys to gather authentic data. How do various users explain the problem? How do they think about the issue, and how do their beliefs inform that thinking? What emotions are they feeling and expressing? How are they behaving? Populate each section of the map with notes based on your observations and interactions. Finally, analyze the completed empathy maps. Look for pain points, inconsistencies, and patterns in stakeholder perspectives.

Returning to the Omega case study, the team identified its ecosystem of stakeholders: customers (both current and potential); retail partners and distributors; the R&D, marketing, and sales teams; suppliers of headphone components; investors and shareholders; and new and existing competitors. They narrowed the list to a few key stakeholders related to the declining-sales problem: customers, retail partners, and investors/shareholders; Omega created empathy maps for representatives from each.

Here’s what the empathy maps showed about what the stakeholders were saying, thinking, feeling, and doing:

Sarah, the customer, complained on social media about the high price of her favorite headphones. Dave, the retailer, expressed concerns about unsold inventory and the challenge of convincing customers to buy the expensive headphones. Alex, the shareholder, brought up Omega’s declining financial performance during its annual investor day.

Sarah thought that Omega was losing touch with its loyal customer base. Dave was considering whether to continue carrying Omega’s products in his store or explore other brands. Alex was contemplating diversifying his portfolio into other consumer-tech companies.

As a longtime supporter of the brand, Sarah felt frustrated and slightly betrayed. Dave was feeling anxious about the drop in sales and the impact on his store’s profitability. Alex was unhappy with the declining stock value.

Sarah was looking for alternatives to the headphones, even though she loves the product’s quality. Dave was scheduling a call with Omega to negotiate pricing and terms. Alex was planning to attend Omega’s next shareholder meeting to find out more information from the leadership team.

When Omega leaders analyzed the data in the maps, they realized that pricing wasn’t the only reason for declining sales. A more profound issue was customers’ dissatisfaction with the perceived price-to-quality ratio, especially when compared with competitors’ offerings. That insight prompted the team to consider enhancing the headphones with additional features, offering more-affordable alternatives, and possibly switching to a service model.

Phase 4: Elevate

This phase involves exploring how the problem connects to broader organizational issues. It’s like zooming out on a map to understand where a city lies in relation to the whole country or continent. This bird’s-eye view reveals interconnected issues and their implications.

For this analysis, we recommend the four-frame model developed by Lee Bolman and Terrence Deal, which offers distinct lenses through which to view the problem at a higher level. The structural frame helps you explore formal structures (such as hierarchy and reporting relationships); processes (such as workflow); and systems, rules, and policies. This frame examines efficiency, coordination, and alignment of activities.

The human resources frame focuses on people, relationships, and social dynamics. This includes teamwork, leadership, employee motivation, engagement, professional development, and personal growth. In this frame, the organization is seen as a community or a family that recognizes that talent is its most valuable asset. The political frame delves into power dynamics, competing interests, conflicts, coalitions, and negotiations. From this perspective, organizations are arenas where various stakeholders vie for resources and engage in political struggles to influence decisions. It helps you see how power is distributed, used, and contested.

The symbolic frame highlights the importance of symbols, rituals, stories, and shared values in shaping group identity and culture. In it, organizations are depicted as theaters through which its members make meaning.

Using this model, the Omega team generated the following insights in the four frames:

Structural.

A deeper look into the company’s structure revealed siloing and a lack of coordination between the R&D and marketing departments, which had led to misaligned messaging to customers. It also highlighted a lack of collaboration between the two functions and pointed to the need to communicate with the target market about the product’s features and benefits in a coherent and compelling way.

Human resources.

This frame revealed that the declining sales and price hikes had ramped up pressure on the sales team, damaging morale. The demotivated team was struggling to effectively promote the product, making it harder to recover from declining sales. Omega realized it was lacking adequate support, training, and incentives for the team.

The key insight from this frame was that the finance team’s reluctance to approve promotions in the sales group to maintain margins was exacerbating the morale problem. Omega understood that investing in sales leadership development while still generating profits was crucial for long-term success and that frank discussions about the issue were needed.

This frame highlighted an important misalignment in perception: The company believed that its headphones were of “top quality,” while customers reported in surveys that they were “overpriced.” This divergence raised alarm that branding, marketing, and pricing strategies, which were all predicated on the central corporate value of superior quality, were no longer resonating with customers. Omega realized that it had been paying too little attention to quality assurance and functionality.

Phase 5: Envision

In this phase, you transition from framing the problem to actively imagining and designing solutions. This involves synthesizing the insights gained from earlier phases and crafting a shared vision of the desired future state.

Here we recommend using a technique known as backcasting. First, clearly define your desired goal. For example, a team struggling with missed deadlines and declining productivity might aim to achieve on-time completion rates of 98% for its projects and increase its volume of projects by 5% over the next year. Next, reverse engineer the path to achieving your goal. Outline key milestones required over both the short term and the long term. For each one, pinpoint specific interventions, strategies, and initiatives that will propel you closer to your goal. These may encompass changes in processes, policies, technologies, and behaviors. Synthesize the activities into a sequenced, chronological, prioritized road map or action plan, and allocate the resources, including time, budget, and personnel, necessary to implement your plan. Finally, monitor progress toward your goal and be prepared to adjust the plan in response to outcomes, feedback, or changing circumstances. This approach ensures that the team’s efforts in implementing the insights from the previous phases are strategically and purposefully directed toward a concrete destination.

Applying the Approach

Albert Einstein once said, “If I had one hour to solve a problem, I would spend 55 minutes thinking about the problem and five minutes thinking about the solution.” That philosophy underpins our E5 framework, which provides a structured approach for conscientiously engaging with complex problems before leaping to solutions.

As teams use the methodology, they must understand that problem-framing in today’s intricate business landscape is rarely a linear process. While we’re attempting to provide a structured path, we also recognize the dynamic nature of problems and the need for adaptability. Invariably, as teams begin to implement solutions, new facets of a problem may come to light, unforeseen challenges may arise, or external circumstances may evolve. Your team should be ready to loop back to previous phases—for instance, revisiting the expand phase to reassess the problem’s frame, delving deeper into an overlooked root cause in another examine phase, or gathering fresh insights from stakeholders in a new empathize phase. Ultimately, the E5 framework is intended to foster a culture of continuous improvement and innovation.

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