PROBLEM-SOLVING VS.

DECISION-MAKING
(Characteristics and Differences)
Jovell Gliponeo Odeña
III- Hotel

Ms. Jinky Aguilar

Instructor
What is Problem-solving and
Decision-making?
 PROBLEM-SOLVING
• the act of defining a problem; determining the cause of the problem;
identifying, prioritizing, and selecting alternatives for a solution; and
implementing a solution.
• is the process of achieving a goal by overcoming obstacles, a frequent
part of most activities. Problems in need of solutions range from simple
personal tasks to complex issues in business and technical fields.
• enables to identify and exploit opportunities in the environment and
exert (some level of) control over the future. Problem solving skills and
the problem-solving process are a critical part of daily life both as
individuals and organizations.
CHARACTERISTICS OF PROBLEM-
SOLVING
1. Define the problem
2. Generate options
3. Evaluate and choose an option
4. Implement the solution
 Define the problem
• Differentiate fact from opinion
• Specify underlying causes
• Consult each faction involved for information
• State the problem specifically
• Identify what standard or expectation is violated
• Determine in which process the problem lies
• Avoid trying to solve the problem without data
 Generate alternative solutions
• Postpone evaluating alternatives initially
• Include all involved individuals in the generating of
alternatives
• Specify alternatives consistent with organizational goals
• Specify short- and long-term alternatives
• Brainstorm on others' ideas
• Seek alternatives that may solve the problem
 Evaluate and select an alternative
• Evaluate alternatives relative to a target standard
• Evaluate all alternatives without bias
• Evaluate alternatives relative to established goals
• Evaluate both proven and possible outcomes
• State the selected alternative explicitly
 Implement and follow up on the solution
• Plan and implement a pilot test of the chosen
alternative
• Gather feedback from all affected parties
• Seek acceptance or consensus by all those affected
• Establish ongoing measures and monitoring
• Evaluate long-term results based on final solution
 DECISION-MAKING
• is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions.
• is a process of choosing between possibilities. It is often part of
problem solving. The more complex the decision, the more factors
you'll need to consider before deciding on a course of action.
• defined as a course of action purposely chosen from a set of
alternatives to achieve organizational or managerial objectives or
goals.
• the rational process in which managers choose the right option out of
many which is supportive of organizational goals achievement.
CHARACTERISTICS OF DECISION-
MAKING
• Goal Oriented
• Continuous Process
• Selective Process
• Dynamic Process
• Rational Process
• Pervasive in Nature
• Negative or Positive Impact
• Solves Specific Problems
• End Product
 Goal Oriented
• Decision-making is a goal-oriented component
of management. During the course of the organization,
managers have to make decisions considering the
achievement of organizational goals and objectives.
• All the decisions made in the organization by the top or lower
managers are directed toward the overall goals of the
organization. For this, managers are responsible for making
the right as well as an effective decision that ensures better
goal achievement.
 Continuous Process
• Decision-making is a continuous process that remains
in the organization till it is left. Managers as well as
other employees need to make several decisions every
day.
• From entering the organization (office) to managing
different activities and employees, to leaving the office
managers have to make many decisions based on time,
requirements, and situations.
 Selective Process

Decision-making is also selective in nature. It

is a process of selecting the best option from
the pool of available options. Managers have
to select the best alternative that has greater
potential to ensure goal achievement after
careful evaluation of all alternatives.
 Dynamic Process
• It is obvious that today’s business environment is dynamic in
nature. It is necessary that managers should consider the
dynamic and changeable environmental factors while making
any decisions.
• For the effectiveness of decisions, managers have to make
decisions on time. In addition, they should consider the future
impact of the decision and how the decision will be affected
in the future by possible conditions.
 Rational Process
• Because all decisions are founded on logical considerations to make
them more rational, making decisions is an intellectual and rational
process. Before making a choice, managers must use their capacity for
rational thought to comprehend the potential effects of
possible options.
• They require a certain amount of mental capacity, intelligence,
knowledge, experience, and personal abilities. Similar to this, in
addition to intellectual logic, the voice of inner consciousness is also
significant while making decisions.
 Pervasive in Nature
• Decision-making is also characterized as being pervasive in nature.
Decision-making is needed at all management levels, in all
organizations, and in all functional areas of the workplace.
• Top managers, lower managers, employees, workers, etc. all make
some decisions at their end in the workplace. Top managers’ decisions
affect the performance of lower-level employees while their decisions
affect the completion of given tasks.
• Decision-making is common everywhere whether in personal life or
professional life.
 Negative or Positive Impact
• Managers make different decisions assuming the decision
will support the goal accomplishment. But the fact is, the
alternative will have both negative and positive impacts on
organizational goal achievement or performance.
• However, managers should carefully analyze the available
alternatives and select the one that has a positive impact on
organizational performance. In addition, if he has to choose
from two negative ones he must choose one that has a less
negative impact.
 Solves Specific Problems

As the decision-making is directed toward the

achievement of organizational goals
achievement is also directed toward resolving
specific problems. The decision-making
process starts with the identification of
problems, finding their solutions, and ends
with possible solutions.
 End Product
• From the list of 9 characteristics of decision-making, the end
product is the last characteristic. Decision-making is the end
product in the sense that a decision is made only after a series
of experiments, analyses, and discussions.
• Because the decision is the main conclusion after the
discussions it is considered the end product. In addition,
whenever we discuss something at the end we come to a
conclusion which is a decision.
 Differences of Problem-solving and
Decision-making
To make the conclusion short, 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.
Additionally, Problem-solving is all about using logic, as well
as imagination, to make sense of a situation and come up with
an intelligent solution wherein, Decision-making is a series of
steps taken by an individual to determine the best option or
course of action to meet their needs.