Problem solving and decision making are interrelated. When you do not meet your objectives, you have a problem. The better you can develop plans that prevent problems before they occur, the fewer problems you will have. A problem exists whenever objectives are not being met. In other words, you have a problem whenever there is a difference between what is actually happening and what you want to happen.

Decision making is the process of selecting a course of action that will solve a problem. Decisions must be made when you are faced with a problem. When something isn’t working, fix it. The first decision you face when confronted with a problem is whether to take corrective action. Some problems cannot be solved, and others do not deserve the time and effort it would take to solve them. However, your job requires you to achieve organizational objectives. Therefore, you will have to attempt to solve most problems—this is what managers and employees get paid to do.

All managers perform the same four functions of management. While performing these functions, you must make decisions and solve problems. When planning, you make decisions about objectives. When organizing, you must make decisions about what to delegate and how to coordinate the department’s resources. When staffing, you must decide whom to hire and how to train and evaluate employees. To lead, you must decide how to influence employees. To control, you must monitor progress and select methods to ensure that objectives are met.