When we discuss problems, we also include opportunities, and when we discuss decision making, we are also including problem solving because they go hand-in-hand. A problem exists whenever there is a difference between what is actually happening and what the individual or group wants to be happening.

If your objective is to produce 500 units per day, but only 475 units are produced, you have a problem. We typically try to reduce the discrepancy between the actual performance and the objective. Thus, problem solving is the process of taking corrective action in order to meet objectives.

Decision making is the process of selecting an alternative course of action that will solve a problem. Decisions must be made when you are faced with a problem or opportunity. When making decisions, remember the goal of human relations is to create a win–win situation for stakeholders.