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.

AttributeDecision MakingProblem Solving
DefinitionThe process of selecting the best course of action among available alternatives.The process of finding solutions to complex or difficult issues or challenges.
GoalTo make a choice that leads to a desired outcome or solution.To find a solution or resolution to a specific problem or challenge.
ApproachBased on evaluating options and making a rational decision.Based on analyzing the problem, identifying possible solutions, and selecting the most appropriate one.
ProcessIncludes gathering information, evaluating alternatives, and making a decision.Includes problem identification, analysis, generating solutions, and implementing the chosen solution.
FocusPrimarily on making choices among available alternatives.Primarily on finding solutions to specific problems or challenges.
TimeframeCan be short-term or long-term decision making.Can be short-term or long-term problem solving.
ComplexityCan involve complex decision-making models and frameworks.Can involve complex problem-solving techniques and methodologies.
OutcomeResults in a decision or choice being made.Results in a solution or resolution to the problem.

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.

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Problem Solving vs Decision Making: Difference and Comparison

Key Takeaways Problem-solving involves identifying and resolving issues or obstacles, while decision-making involves choosing different options or courses of action. Problem-solving is used to address a specific issue or challenge, while decision-making can be used in various contexts, such as business, personal life, or government. Problem-solving involves a step-by-step process of analysis and evaluation. At the same time, decision-making can be influenced by various factors such as personal values, emotions, or external pressures.

Problem Solving vs Decision Making

Comparison table.

ConsiderationMethodProcess
InterconnectionRight decisions are taken to reach out a certain conclusion.May or may not include solving the problems.
Type and involvesA complex, deep analysis required.Final opinion, course of action.
IdentificationIdentification of a challenge.Identification of opportunities.
MotiveCreating the right solution.Avoiding potential problems.
Associated withClear objectiveDifferent types of options are considered.
OutcomesSolution-driven.It varies
Paths/ waysThe ways to resolution are not known.The paths taken are structured.
GoalCorrect the issue or problem.Unrelated to the solving of an issue.

What is Problem Solving?

What is decision making, main differences between problem solving and decision making.

Last Updated : 11 July, 2023

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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:

Steps of Decision Making

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.   

Problem Solving Course

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:  

Steps to be efficient in problem Solving

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:

 

 

 

 

Selecting from available alternatives to achieve a specific goal or outcome. 

Identifying and resolving an issue or challenge to reach a desired state. 

 

Making a choice among options. 

Finding a solution to a problem

  

Choosing the best course of action. 

Understanding the problem and generating potential solutions

 

Evaluating alternatives, considering risks and rewards. 

Identifying the problem, gathering data, analysing, and implementing solutions. 

 

Often involves a logical and systematic approach. 

Requires critical thinking and creativity. 

 

It involves available information and past experiences. 

Data and insights related to the problem at hand. 

 

Leads to a final decision. 

Results in a resolved problem or improved situation. 

 

Often applied to challenges or obstacles in various domains. 

Troubleshooting technical issues and finding solutions to production problems. 

  Decision Making may follow effective Problem Solving.  Effective Problem Solving often leads to better Decision-making. 
  Applicable to a wide range of situations.  Often applied to challenges or obstacles in various domains. 

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.

Crack Your Interview with Management Interview Questions and Answers .

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. 

Gain a deeper understanding of yourself to take more effective Decision-mking with our Personal & Organisational Development Training . 

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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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.

analytical hierarchy process

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.

decision chart example

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.

problem solving vs decision making

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.

prioritization example

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.

Elizabeth Harrin wearing a pink scarf

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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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.

The Skills You Need Guide to Interpersonal Skills

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

See also: Improving Communication Interpersonal Communication Skills Building Confidence

Life Alofa

Problem Solving Vs Decision Making: An In-depth Comparison

problem solving vs decision making

Problem-solving and decision making are two of the most essential aspect of any work or job. In a corporate field, you often have to face problems. Hence, you have to be smart enough to analyze data, find adequate problems, and do something about the situation.

Also, decision-making is part and parcel of our life. It can be personal or professional. But taking essential decisions based on logic and thoughts can be challenging.

However, there are really some differences between problem-solving and decision making. And knowing these differences will let you differentiate them in an easy way.

So, let’s start exploring this side-by-side comparison of Problem-solving and decision making.

Table of Contents

What is a problem-solving skill?

Problem-solving means identifying a problem, examining it, taking valuable inputs, and trying to reach a solution based on data and logic. A problem solver brainstorms the problem and then tries to reach a solution. There are some steps of problem-solving.

Acknowledging the problem

The first step is to acknowledge the problem and collect valuable data related to the problem.

The most important part of problem-solving is to analyze the problem based on the data and find questions on that problem.

Finding multiple solutions

Any problem can be solved in different ways. But to get to the best result, you have to choose the most effective one.

Evaluation and decision making

After evaluating all the solutions, you can choose the best solution for you. Again the solution should be based on facts and logic so that the chances of getting it right will be high.

What is decision-making skill?

Decision-making is the last step of problem-solving. Decision-making is more of a process. It is the process to choose a solution based on your knowledge, analyzing the data, gathering facts, developing logic, and finally with a touch of wisdom.

The decision-making process may vary from Organization to Organization. A decision can be taken in different methods. Some of them are discussed below:

Discussion based decision

In this method, a group or team discusses possible solutions and then agrees on one particular decision. This type of decision-making can take time and can result in disputes of opinions.

Voting based decision

This method also considers multiple decisions, but it is different from discussion-based decisions. In a voting-based decision, there won’t be any discussion. Instead, the solution with more votes is taken as a final decision. Individual decision without any argument

In this method, the decision taker takes decisions only based on his knowledge and wisdom. It is the fastest way to take a decision. Though, it won’t always be preferable as it doesn’t consider others’ opinions.

Difference between problem-solving and decision making

There are some differences between problem-solving and decision-making. Decision-making is the process that leads to the best possible outcome. On the other hand, problem-solving finds a problem, and searches for the reasons behind it. After searching for the reasons, you as a problem solver find the way out of it.

Sometimes, you’ll get confused whether these two are different or the same. But, they’re not. Problem-solving is a lengthy process with different segments like analyzing data, evaluating the problems, looking for alternate solutions, etc. But, in decision making, you have to take a call on the alternative solutions and find the best result.

Experience, knowledge, and wisdom are important in making a decision. Decision-taking doesn’t always have to be about problem-solving, instead, it is the process to make a call among different options.

problem-solving and decision-making: which one is the better skill?

In plain sight, decision-making is an easy call. But so many things are dependent on decision-making. Choosing an option between alternative options can be tricky at times.

On the other hand, problem-solving is a more slow and steady process. To solve a problem, you should identify the problem first. Then consider the contexts. After analyzing the data, you can expect to find some solutions. The skill of problem-solving asks a lot from an individual. So, from the perspective of hard work and dedication, problem-solving is the better skill.

Are problem-solving and decision-making the same thing?

No, it’s not the same. Decision-taking is a process to choose the better outcome from some possible alternatives. But, in problem solving, a lot of research work has to be done. Without making enough effort, problem-solving is not possible.

Decision-making determines the journey of a project or work. So, the importance of wise decision-making is very much.

Problem-solving and decision taking may not be the same. They both are important in shaping a person’s skill set. You need to have both to excel in life. Problem-solving needs decision making and decision-making needs problem-solving.

Problem-solving and decision making is a skill that is developed day by day. You need to practice regularly to develop it as a skill. However, problem-solving and decision making is very important in corporate life. Problem-solving is a process to fix something that isn’t working correctly. To find a proper solution and to identify whether the solution is sustainable is problem-solving.

Decision-making is the process to determine the best outcome from a thing. It is very important to have the capability and wisdom to take a decision confidently. Decision-taking ability will always help you in every aspect of your life.

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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
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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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The Differences Between Problem Solving and Decision Making

By: linda henman.

From the time you started work, and actually from the time of birth, you have been solving problems. By definition, problem solving involves the process of finding a solution to something that needs to change or a deviation from what you expected to happen. It involves a multistage process for moving an issue or situation from an undesirable to a more advantageous condition and typically involves your answering the following questions:

• What changed, when, and why?

• What is the tangible evidence that you have a problem?

• How can you measure the magnitude of the problem?

• What caused the change?

• Is this change or deviation consequential enough to spend time resolving it?

Once you have the answers to these questions, problem solving requires a series of decisions as people choose from and evaluate alternatives to overcome the obstacle that stand between them and a satisfactory resolution. Numerous methods exist, but these are among the most effective.

The Steps of Reflective Thinking

In 1910 John Dewey introduced the “Steps of Reflective Thinking,” a systematic approach to problem solving and a solid foundation for decision making. This sequence creates a kind of “map” of the problem and involves these steps:

• Define or identify the problem

• What is wrong? • What are the symptoms? • When did this happen? • How big is it? • Whom does it affect? • What have we already tried? •What will happen if we do nothing?

Sakichi Toyoda developed a technique that Toyota Motor Corporation later used during the evolution of their manufacturing methodologies that can help most groups begin the analysis process. The architect of the Toyota Production System, Taiichi Ohno, described the 5 whys method as “… the basis of Toyota’s scientific approach… by repeating why five times, the nature of the problem as well as its solution becomes clear.”

Companies and industries beyond Toyota adopted the technique, which and is now used within Kaizen, lean manufacturing, and Six Sigma. The five “why’s” have become almost catechistical for many organizations, especially those in manufacturing. When someone presents a problem, the “whys?” begin. Why can’t we fulfill that order? Why are we out of stock? Why did we let the inventory get too low? As the questions continue, the group moves close to the core issue, which is “How do we balance the need to respond quickly to customer requests with a need to keep inventory low?” The group’s goal, then, is to find a definitive answer but setting the specific criteria the solution will offer.

• Analyze the problem and set criteria for possible solutions

• What conditions led to the present problem? •What criteria mush a satisfactory solution offer?

• Brainstorm possible solutions

• Evaluate potential solutions

• What do the experts say? • What risks and rewards does each possible solution offer? • How well do solutions meet the established criteria? • How practical is the solution?

• Select the best solution

• How we execute this decision? • What timeframe makes sense for solving this problem?

The individual decision maker or group can then plan implementation of the best solution. This approach has been modified and questioned through the years, but one principle remains clear: a structured approach to problem solving increases the chances that you and your team will arrive at a workable resolution. Surviving decades of scrutiny, Dewey’s approach has stood the test of time because it offers a reasonable start to almost any problem solving sequence. However, it is not without its restrictions. When groups use this technique singly, they too often show a tendency to stop at symptoms rather than digging deeper to root causes. Further, the members’ current knowledge and inability to ask the right “why” questions can limit their analysis. Other methods, however, like the 2 X 2 Matrix can challenge the group to go beyond obvious answers and simple solutions.

The Magic of the 2 x 2 Matrix

The 2 x 2 matrix represents, perhaps, the most notable analytical tool ever to emerge in business. It has been much-maligned, mistrusted, and misunderstood, however, chiefly because the people using it didn’t understand it. Like any other tool, it can only be as good as its least able workman. When tactical thinkers use the 2 x 2 matrix, they find themselves frustrated because once again, they can merely generate a colossal list of stuff that lacks perspective on the underlying factors that contribute to the problem, or they miss links that connect various principles or phenomena. So, the first step in capturing the magic of the matrix is to include strong, strategic, and analytical thinkers in the exercise.

The purpose of the 2x 2 matrix is to look at two variables influencing something that matters to the organization, like profitability and time. Placing these two on a standard x-y grid gives you the power to organize and marshal problem solving efforts as you analyze the tension between opposing forces. The horizontal axis represents a This / Not This (low/high, past/ present, etc) issue that stands in tension with the vertical axis that characterizes another This / Not This situation. For example, you might want to analyze cost versus benefit, product versus market, or change versus stability. 2 x 2 thinking recognizes the power of exploring competing forces as we challenge ourselves to think at a higher logical level.

Drawing from the work of Kepner Tregoe, I developed the following 2 X 2 matrix to help decision makers better understand how to explore and unearth the inherent tensions between strategy and tactics. The act of focusing on these variables does not simplify the analysis. On the contrary, decision makers can gain deeper understanding of their issues and learn more about their challenges when they break business down to manageable components and discuss competing priorities, in this case of tactics and strategy.

The Differences Between Problem Solving and Decision Making

When faced with a problem, using tools like the 2 x 2 matrix will help you and your team restore things to what they were before the problem arose. However, reinstating the status quo won’t take your organization forward; it will just keep you from slipping backwards. Too often, senior leaders allow themselves and their team to focus on the past. Share on X In futile attempts to rewrite history, they concentrate on corrective or adaptive actions— activities that will keep you all busy but won’t really move the organization forward. A future orientation that gives attention to preventing problems before they arise or planning for contingencies if they do would be time better spent, but too frequently reinstating or maintaining the status quo sets the agenda, as decision makers overlook ways to move toward renewed success. Therefore, the next step addresses learning to use the 2 x 2 matrix as an instrument for making better decisions.

Decision making, as opposed to problem solving, involves the process of choosing from among several alternatives to move the company up and forward, to change what you’ve been doing to support a strategy that promises innovation and growth. Managers fill their days with problem solving, but successful executives know they have to do more. Even though decision making usually only takes a small fraction of the executive’s time, it defines a specific executive task. As Peter Drucker stated, “Only executives make decisions. Indeed, to be expected—by virtue of position or knowledge—to make decisions that have significant impact on the entire organization, its performance, and results defines the executive.” Effective executives do not make a great many decisions; instead, they concentrate on the important ones. They focus on the highest level of conceptual understanding to think through what is strategic and generic, rather than tactical and problematic. However, the action to carry out the strategic decision should be as simple as possible, otherwise the decision will degenerate into a good intention.

Dr. Linda Henman helps CEOs and Boards of Directors set strategies, mergers and acquisitions, plan succession, and develop talent. She can be reached at  [email protected]  or 636-537-3774.

Helping organizations and individuals achieve a more powerful success mindset.

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Problem-Solving and Decision-Making

  • First Online: 17 October 2019

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difference between problem solving and decision making in the workplace

  • Jonathan S. Vordermark II 2  

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There are major differences between decision-making and problem-solving. The two entities differ in discrete and subtle ways and should be resolved at different levels within teams or organizations. Decision-making usually involves more experienced higher-order, process-dependent, and non-linear skills. The impact of decisions is usually more global, long-term, and less quantifiable and qualifiable.

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Bibliography

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Vordermark II, J.S. (2019). Problem-Solving and Decision-Making. In: An Introduction to Medical Decision-Making. Springer, Cham. https://doi.org/10.1007/978-3-030-23147-7_3

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The Difference Between Problem Solving and Decision Making

Business leaders discuss 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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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.

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

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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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4 Decision-Making and Problem Solving Examples in the Workplace

difference between problem solving and decision making in the workplace

Every day, you and your coworkers make countless decisions and tackle numerous problems. We know that many of these decisions or problems are so tacit that we don’t even consider them such—things like whether or not to show up for work, clock in, eat lunch, etc. However, there are some decisions and problems that are much more difficult and complex to deal with—such as setting quarterly strategies, business goals, streamlining operations, and more. The more effectively and efficiently these issues can be handled, the better. Yet, while many organizations desire a more effective decision-making process, few achieve one that works consistently. To help your organization find an ideal way to handle these challenges, here are a few decision-making and problem solving examples in the workplace that have worked for other organizations:

Whole Foods and Collaborative Decision Making

In an interview with Big Think , Whole Foods CEO John Mackey talked about how he made major decisions at Whole Foods—decisions that helped grow the company into a $13.7 billion organization that attracted the attention of Amazon. During the interview, Mackey said that he “tries to make major decisions at Whole Foods by trying to come to a consensus among the top minds in the company. When disagreements get expressed through the decision-making process,” he says, “you generally end up making better decisions.” Mackey also noted that “while it takes longer to make the decision, once you begin [to] implement it, it goes a lot faster because there isn’t sort of resistance and sabotage that works its way through the organization.” In other words, by bringing others into the decision-making process and encouraging them to share their dissenting opinions, he could find and address the flaws in a particular solution or decision more easily. This let Mackey address these issues and get buy-in from the rest of the leadership at Whole Foods at the same time—minimizing delays from internecine quibbles after the decision was made and the solution implemented. So, your own organization might benefit from using a collaborative process on major internal decisions—one where participants are actively encouraged (and expected) to share their comments and concerns so that the final decision will have the best possible impact.

difference between problem solving and decision making in the workplace

Clearing Out Time to Make Creative Decisions

Tim Ferriss, author of the book Tools of Titans , has interviewed many entrepreneurs and established business owners for his podcast and for his writing research. In one Big Think article , Ferriss talks about some of the important insights he’s gleaned from these business owners over the years. As it turns out, to make the best and most creative decisions, people sometimes need to create what Ferriss calls “empty space.” As Ferriss notes in the video interview:

“Three to five hour uninterrupted blocks of time are extremely critical if you want to connect the dots, if you want to have the space to allow yourself to have original ideas or at least original combinations of ideas you really need to block out that time and protect it at least once a week. So, in Tools of Titans, there are many people who do this, Remet Set, for instance, who has a very, very successful multi, multimillion-dollar business that he built out of a blog he started long ago in college, which was very, very niche in its focus, he blocks out I believe it’s every Wednesday for three to five hours of time he’ll block it out for learning. Noah Kagan, another entrepreneur, does the same thing… Because as soon as you go into bullet dodging or, like Wonder Woman, bullet blocking mode with everyone else’s agenda for your time, which is very often the inbox or text messages, you’re DOA, you’re done.”

This frees time to think, learn, and concentrate without having to worry about emails, phone calls, texts, and other interruptions gives these business leaders the ability to focus and think more creatively about their businesses. This has helped them make more successful enterprises that grow and enable others to excel. Having to split focus among the concerns of every other member of the team can be detrimental to decision-making and problem solving. So, for some, creating an empty block of space in the schedule to learn or think about specific issues without interruption can be an effective tool.

Decision-Making After a Break

Even just taking a break from a task to do something else can help improve decision-making and creativity, as highlighted in a Big Think article about how unconscious thinking can help with problem solving tasks . One of the studies discussed in the article, “gave 112 university students two minutes to generate creative solutions that could improve the experience of waiting in line at a cash register. Ritter created two groups: half tackled the problem right away, while the others played a video game for two minutes.” The groups were later asked to pick which of their ideas were the most creative. Surprisingly, the videogame group seemed to have better ideas, and to be better at identifying the best ideas. As the article noted:

“while those in the conscious condition only picked their most innovative concepts about 20 percent of the time – they confused their genius with their mediocrity – those who had been distracted located their best ideas about 55 percent of the time. In other words, they were twice as good at figuring out which concepts deserved more attention.”

Although not an example of decision-making in the workplace, this study does highlight an interesting concept—giving people the time away from a problem can help them be better at solving it when they come back to it. So, giving employees a little leeway to back away from a difficult task and come back to it later can help them be more insightful and creative—leading to better decisions.

Asking for Advice: Robert S. Kaplan

Robert S. Kaplan, the President and Chief Executive of the Federal Reserve Bank of Dallas, has a significant piece of advice for business owners who want to improve the way they make decisions: “ Burst your own bubble and ask for advice .” In his article, Kaplan describes a common problem that gets in the way of leaders finding ways to improve: the power imbalance between leaders/managers and their teams. This imbalance of power, as Kaplan puts it, is that “you control their lives, you set their compensation. If they have future aspirations in their career you’re the person they’re relying on. You have all the power.” And, this power can make employees fearful of giving feedback. So, as a leader, Kaplan says that “you’ve got to ask them for advice.” Kaplan personally recommends using one-on-one sessions to help make employees just a little more comfortable sharing their advice because “no one wants to criticize you in front of others. They’re not going to do that unless they’re suicidal, but most people are not.” Creating one-on-one sessions with employees to evaluate your areas for improvement as a leader can be difficult. However, it’s vital to get an outside perspective if you’re going to correct blind spots in your decision-making processes and see things from a different angle.

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difference between problem solving and decision making in the workplace

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Turn your team into skilled problem solvers with these problem-solving strategies

Sarah Laoyan contributor headshot

Picture this, you're handling your daily tasks at work and your boss calls you in and says, "We have a problem." 

Unfortunately, we don't live in a world in which problems are instantly resolved with the snap of our fingers. Knowing how to effectively solve problems is an important professional skill to hone. If you have a problem that needs to be solved, what is the right process to use to ensure you get the most effective solution?

In this article we'll break down the problem-solving process and how you can find the most effective solutions for complex problems.

What is problem solving? 

Problem solving is the process of finding a resolution for a specific issue or conflict. There are many possible solutions for solving a problem, which is why it's important to go through a problem-solving process to find the best solution. You could use a flathead screwdriver to unscrew a Phillips head screw, but there is a better tool for the situation. Utilizing common problem-solving techniques helps you find the best solution to fit the needs of the specific situation, much like using the right tools.

Decision-making tools for agile businesses

In this ebook, learn how to equip employees to make better decisions—so your business can pivot, adapt, and tackle challenges more effectively than your competition.

Make good choices, fast: How decision-making processes can help businesses stay agile ebook banner image

4 steps to better problem solving

While it might be tempting to dive into a problem head first, take the time to move step by step. Here’s how you can effectively break down the problem-solving process with your team:

1. Identify the problem that needs to be solved

One of the easiest ways to identify a problem is to ask questions. A good place to start is to ask journalistic questions, like:

Who : Who is involved with this problem? Who caused the problem? Who is most affected by this issue?

What: What is happening? What is the extent of the issue? What does this problem prevent from moving forward?

Where: Where did this problem take place? Does this problem affect anything else in the immediate area? 

When: When did this problem happen? When does this problem take effect? Is this an urgent issue that needs to be solved within a certain timeframe?

Why: Why is it happening? Why does it impact workflows?

How: How did this problem occur? How is it affecting workflows and team members from being productive?

Asking journalistic questions can help you define a strong problem statement so you can highlight the current situation objectively, and create a plan around that situation.

Here’s an example of how a design team uses journalistic questions to identify their problem:

Overarching problem: Design requests are being missed

Who: Design team, digital marketing team, web development team

What: Design requests are forgotten, lost, or being created ad hoc.

Where: Email requests, design request spreadsheet

When: Missed requests on January 20th, January 31st, February 4th, February 6th

How : Email request was lost in inbox and the intake spreadsheet was not updated correctly. The digital marketing team had to delay launching ads for a few days while design requests were bottlenecked. Designers had to work extra hours to ensure all requests were completed.

In this example, there are many different aspects of this problem that can be solved. Using journalistic questions can help you identify different issues and who you should involve in the process.

2. Brainstorm multiple solutions

If at all possible, bring in a facilitator who doesn't have a major stake in the solution. Bringing an individual who has little-to-no stake in the matter can help keep your team on track and encourage good problem-solving skills.

Here are a few brainstorming techniques to encourage creative thinking:

Brainstorm alone before hand: Before you come together as a group, provide some context to your team on what exactly the issue is that you're brainstorming. This will give time for you and your teammates to have some ideas ready by the time you meet.

Say yes to everything (at first): When you first start brainstorming, don't say no to any ideas just yet—try to get as many ideas down as possible. Having as many ideas as possible ensures that you’ll get a variety of solutions. Save the trimming for the next step of the strategy. 

Talk to team members one-on-one: Some people may be less comfortable sharing their ideas in a group setting. Discuss the issue with team members individually and encourage them to share their opinions without restrictions—you might find some more detailed insights than originally anticipated.

Break out of your routine: If you're used to brainstorming in a conference room or over Zoom calls, do something a little different! Take your brainstorming meeting to a coffee shop or have your Zoom call while you're taking a walk. Getting out of your routine can force your brain out of its usual rut and increase critical thinking.

3. Define the solution

After you brainstorm with team members to get their unique perspectives on a scenario, it's time to look at the different strategies and decide which option is the best solution for the problem at hand. When defining the solution, consider these main two questions: What is the desired outcome of this solution and who stands to benefit from this solution? 

Set a deadline for when this decision needs to be made and update stakeholders accordingly. Sometimes there's too many people who need to make a decision. Use your best judgement based on the limitations provided to do great things fast.

4. Implement the solution

To implement your solution, start by working with the individuals who are as closest to the problem. This can help those most affected by the problem get unblocked. Then move farther out to those who are less affected, and so on and so forth. Some solutions are simple enough that you don’t need to work through multiple teams.

After you prioritize implementation with the right teams, assign out the ongoing work that needs to be completed by the rest of the team. This can prevent people from becoming overburdened during the implementation plan . Once your solution is in place, schedule check-ins to see how the solution is working and course-correct if necessary.

Implement common problem-solving strategies

There are a few ways to go about identifying problems (and solutions). Here are some strategies you can try, as well as common ways to apply them:

Trial and error

Trial and error problem solving doesn't usually require a whole team of people to solve. To use trial and error problem solving, identify the cause of the problem, and then rapidly test possible solutions to see if anything changes. 

This problem-solving method is often used in tech support teams through troubleshooting.

The 5 whys problem-solving method helps get to the root cause of an issue. You start by asking once, “Why did this issue happen?” After answering the first why, ask again, “Why did that happen?” You'll do this five times until you can attribute the problem to a root cause. 

This technique can help you dig in and find the human error that caused something to go wrong. More importantly, it also helps you and your team develop an actionable plan so that you can prevent the issue from happening again.

Here’s an example:

Problem: The email marketing campaign was accidentally sent to the wrong audience.

“Why did this happen?” Because the audience name was not updated in our email platform.

“Why were the audience names not changed?” Because the audience segment was not renamed after editing. 

“Why was the audience segment not renamed?” Because everybody has an individual way of creating an audience segment.

“Why does everybody have an individual way of creating an audience segment?” Because there is no standardized process for creating audience segments. 

“Why is there no standardized process for creating audience segments?” Because the team hasn't decided on a way to standardize the process as the team introduced new members. 

In this example, we can see a few areas that could be optimized to prevent this mistake from happening again. When working through these questions, make sure that everyone who was involved in the situation is present so that you can co-create next steps to avoid the same problem. 

A SWOT analysis

A SWOT analysis can help you highlight the strengths and weaknesses of a specific solution. SWOT stands for:

Strength: Why is this specific solution a good fit for this problem? 

Weaknesses: What are the weak points of this solution? Is there anything that you can do to strengthen those weaknesses?

Opportunities: What other benefits could arise from implementing this solution?

Threats: Is there anything about this decision that can detrimentally impact your team?

As you identify specific solutions, you can highlight the different strengths, weaknesses, opportunities, and threats of each solution. 

This particular problem-solving strategy is good to use when you're narrowing down the answers and need to compare and contrast the differences between different solutions. 

Even more successful problem solving

After you’ve worked through a tough problem, don't forget to celebrate how far you've come. Not only is this important for your team of problem solvers to see their work in action, but this can also help you become a more efficient, effective , and flexible team. The more problems you tackle together, the more you’ll achieve. 

Looking for a tool to help solve problems on your team? Track project implementation with a work management tool like Asana .

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More From Forbes

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.

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Best covid-19 travel insurance plans, 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?

Forbes Coaches Council is an invitation-only community for leading business and career coaches. Do I qualify?

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Difference Between Problem Solving and Decision Making

• Categorized under Language | Difference Between Problem Solving and Decision Making

difference between problem solving and decision making in the workplace

Problem Solving vs Decision Making

Life is filled with complexities, and one of them is to know the difference between problem solving and decision making. People tend to use ‘problem solving’ and ‘decision making’ interchangeably. Although they are somewhat related, these two phrases are not synonymous and are completely different. The major difference between the two is; problem solving is a method while decision making is a process.

Problem solving, as the name implies, is solving a problem. Meaning, it is a method wherein a group or an individual makes something positive out of a problem. Decision making, on the other hand, is a process that is done many times during problem solving. Decision making is the key that will help in reaching the right conclusion in problem solving. Problem solving is more an analytical aspect of thinking. It also uses intuition in gathering facts. Decision making, on the other hand, is more of a judgment where, after thinking, one will take a course of action. However, these two need a certain set of skills for each to be more effective.

To understand the differences between the two a little better, it is best to define each of them. With the definition of each term, it will be easier for you to distinguish one from the other.

Problem solving is more of a mental process. It is included in the larger problem process, namely, problem finding and problem shaping. Problem solving is the most complex process among all the intellectual functions of a human being. It is very complex. It is considered a higher order of the cognitive process. It is very complex in that it needs regulation and modulation of the basic skills of a human being. When an organism or artificial intelligence system is undergoing a problem and needs to be transferred into a better state to achieve a certain goal, then this needs problem solving.

Decision making is concerned on what action should be made. It is still a process of cognitive function, but it focuses on what action to take and what alternatives are available. Decision processes will always end up with a final choice; this choice may be an action or an opinion about a certain issue. When looking at decision making in a psychological aspect, the decision of an individual is based on his or her needs and the values that a person is looking for. When looking at decision making in a cognitive aspect, it is a continuous process related to the interaction of the person and his or her environment. In the normative aspect of decision making, on the other hand, it is focused more on the logical and rational way of making decisions until a choice is made.

Problem solving is a method; decision making is a process.

Decision making is needed during problem solving to reach the conclusion.

Decision making will lead to a course of action or final opinion; problem solving is more analytical and complex

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Cite APA 7 Magno, E. (2015, January 13). Difference Between Problem Solving and Decision Making. Difference Between Similar Terms and Objects. http://www.differencebetween.net/language/difference-between-problem-solving-and-decision-making%e2%80%a8/. MLA 8 Magno, Eva. "Difference Between Problem Solving and Decision Making." Difference Between Similar Terms and Objects, 13 January, 2015, http://www.differencebetween.net/language/difference-between-problem-solving-and-decision-making%e2%80%a8/.

You say “Problem solving is a method; decision making is a process.”

Yet in the 4th paragraph discussing problem solving you use the word “process” repeatedly without explaining with examples how it is a method.

So shd I say that choice making is the same as decision making?

Good but not illustrated

Pls Explain in table

Decision making typically involves the selection between of some collection of options from within a larger set which includes those options as well as a number of additional options. The larger the total set of options within which the subset is being selected, the more criteria are needed to give you a basis for the decision.

People tend to think of a decision as being “difficult” when in respect of the options being selected from, none of them look like they have obviously better outcomes … or sometimes even “none of the choices are good ones”.

Problem solving whereas has a wider remit. Effective problem solving typically involves the process of iterative re-specification of what the problem actually is, in a cycle with low-cost experiments to determine whether that way of defining the problem tends to give rise to more of what we want or less or what we want.

Thank you so much

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Provide further explanations regarding the two aspects of problem solving and decision making. Thank you.

If one is a method and the other is a process, what is the difference between a method and process?

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Written by : eva. and updated on 2015, January 13 Articles on DifferenceBetween.net are general information, and are not intended to substitute for professional advice. The information is "AS IS", "WITH ALL FAULTS". User assumes all risk of use, damage, or injury. You agree that we have no liability for any damages.

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Analytical Thinking vs Problem Solving: A Comprehensive Comparison

Analytical Thinking vs Problem Solving

Analytical thinking and problem solving are crucial skills in various aspects of life, including personal and professional situations. While they may seem interchangeable, there are distinct differences between the two. Analytical thinking focuses on breaking down complex information into smaller, manageable components to understand a situation and evaluate alternatives effectively. On the other hand, problem solving involves devising practical solutions to overcome challenges or resolve issues that arise in daily life or the workplace.

difference between problem solving and decision making in the workplace

Key Takeaways

Understanding analytical thinking.

difference between problem solving and decision making in the workplace

Nature of Analytical Thinking

Key components of analytical thinking include reasoning, fact-checking, and questioning assumptions. This skill set allows individuals to approach problems with an open mind, meticulously gather and analyze data, and make well-informed decisions. Ultimately, analytical thinking leads to more informed and strategic decision-making, increasing the likelihood of success in professional and personal endeavors.

How Analytical Thinking Works

It is important to note that analytical thinking is not solely reserved for mathematicians or scientists but is a valuable skill applicable to a wide range of disciplines and professions. From business analysts, who require analytical thinking and problem-solving skills to identify and implement changes, to daily decision-making in personal lives, analytical reasoning plays a vital role in successfully navigating through various complexities.

Significance of Problem Solving

Features of problem solving, process of problem solving, comparing analytical thinking and problem solving, similarities.

Moreover, practicing both analytical thinking and problem-solving techniques can lead to improved decision-making abilities. This development, in turn, translates into greater efficiency and effectiveness in personal and professional contexts.

Differences

In conclusion, analytical thinking and problem-solving, while both essential skills, have distinct applications and methods, and their effective use can be instrumental in achieving success in various aspects of life.

Ways to Improve Both Techniques

Developing analytical thinking.

Collaborating with others can also help individuals enhance their analytical thinking skills. By working together, people can build on each other’s strengths and overcome challenges. Additionally, they can exchange ideas and learn from different viewpoints, which may lead to innovative solutions.

Enhancing Problem Solving Skills

Utilizing a methodical approach to problem-solving can also yield positive results. Techniques like breaking down complex issues into manageable steps or generating multiple possible solutions can enable a more comprehensive analysis, increasing the likelihood of success in overcoming challenges.

Importance in Workplace and Career Success

Relevance in the workplace.

Effective communication is an important aspect of analytical thinking and problem solving. In a professional setting, employees must often convey their findings and ideas to stakeholders, ensuring that solutions are implemented appropriately and any concerns are addressed. This communication can lead to improved collaboration, clearer goals, and faster resolution of issues 3 .

Implication for Career Success

Role in decision making and risk management, influence on decision making.

Analytical thinking plays a crucial role in decision making, as it involves breaking things down into their component parts and using deductive reasoning to draw conclusions from given evidence and assumptions source . This allows individuals and organizations to carefully consider the pros and cons of each option, determine the feasibility of implementing potential solutions, and weigh the costs and benefits associated with each decision.

Contribution to Risk Management

Similarly, problem-solving assists in risk management by addressing potential challenges that may arise during the implementation of solutions, such as examining potential obstacles, resource constraints, and other factors that may impact the success of an initiative source . By combining the strengths of both analytical thinking and problem-solving, decision-makers can enhance their risk management strategies and ensure a higher probability of success in their respective decisions.

Utilization in Business Analysis

Application in business analysis.

When approaching a problem, business analysts consider several key factors, such as people, processes, and technology. They employ systems thinking to understand the enterprise holistically and how all these elements interact. This mindset helps them to not only identify the root cause of a problem, but also to develop solutions that address the underlying issues effectively [2] .

Understanding Financial Data

Real life examples.

Analytical thinking and problem solving are essential skills in both personal and professional life. They allow individuals to tackle complex issues, identify the root causes, and develop effective solutions. Let’s examine some real-life examples that emphasize the differences between these two thought processes.

Another example can be found in the realm of personal finance. Analytical thinking would be employed to evaluate one’s financial situation and understand patterns in spending habits. This analysis could reveal areas where money may be saved or better utilized. For instance, it may uncover excessive spending on dining out or ineffective monthly budgeting practices.

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Critical thinking questions for team building, core critical thinking skills, solving life’s different challenges with the 9 mental models, how to overcome critical thinking barriers, download this free ebook.

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  1. Defining the Problem

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  6. Strategic Planning vs Problem Solving

COMMENTS

  1. Decision-Making and Problem-Solving: What's the Difference?

    Decision-making is the process of choosing a solution based on your judgment, situation, facts, knowledge or a combination of available data. The goal is to avoid potential difficulties. Identifying opportunity is an important part of the decision-making process. Making decisions is often a part of problem-solving.

  2. Decision Making vs. Problem Solving

    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 ...

  3. Problem Solving vs Decision Making: Difference and Comparison

    Problem-solving is the process of identifying and resolving a problem or challenge that is preventing an individual or organization from achieving its goal. Decision-making involves choosing a course of action or solution. This process can be complex and involve a variety of factors. Problem-solving is a complex process that entails in-depth ...

  4. Problem Solving and Decision Making: Differences & Applications

    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.

  5. Making the Difference: Problem Solving vs Decision Making

    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.

  6. Decision-Making and Problem-Solving

    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 ...

  7. Problem Solving Vs Decision Making: An In-depth Comparison

    There are some differences between problem-solving and decision-making. Decision-making is the process that leads to the best possible outcome. On the other hand, problem-solving finds a problem, and searches for the reasons behind it. After searching for the reasons, you as a problem solver find the way out of it.

  8. Problem Solving and Decision Making

    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 ...

  9. The Differences Between Problem Solving and Decision Making

    Conclusion. Decision making, as opposed to problem solving, involves the process of choosing from among several alternatives to move the company up and forward, to change what you've been doing to support a strategy that promises innovation and growth. Managers fill their days with problem solving, but successful executives know they have to ...

  10. Problem-Solving and Decision-Making

    Problem-solving is a more analytical process than decision-making. Problem-solving is more process-related, while decision-making is more contextual. Problem-solving is directed at a specific goal or discrete answer. Problem-solving and decision-making may have consequences that are not always predictable or sequential.

  11. How to Make Great Decisions, Quickly

    Great decisions are shaped by consideration of many different viewpoints. This doesn't mean you should seek out everyone's opinion. The right people with the relevant expertise need to clearly ...

  12. Problem Solving & Decision Making

    Problem solving and decision making are important attributes for any business leader. Though some personalities are more attuned to these skills, they can be learned and mastered by any individual. Think of the differences between the nerdier Bill Gates and the more playful Richard Branson - both are considered great business leaders though ...

  13. Problem Solving vs. Decision Making

    Having good problem-solving and decision-making skills is essential for three reasons. First, an organization operates smoothly and maximizes its resources. Second, the organization can achieve ...

  14. The Difference Between Problem Solving and Decision Making

    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 ...

  15. Decision-making and Problem-solving

    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.

  16. Decision making and problem solving

    The Economy Hasn't Changed Innovation. Decision making and problem solving Digital Article. Scott D. Anthony. Over the last couple of weeks in Singapore I've wandered the halls of the regional ...

  17. 4 Decision-Making and Problem Solving Examples in the Workplace

    Decision-Making After a Break. Even just taking a break from a task to do something else can help improve decision-making and creativity, as highlighted in a Big Think article about how ...

  18. Problem Solving Strategies for the Workplace [2024] • Asana

    4 steps to better problem solving. While it might be tempting to dive into a problem head first, take the time to move step by step. Here's how you can effectively break down the problem-solving process with your team: 1. Identify the problem that needs to be solved. One of the easiest ways to identify a problem is to ask questions.

  19. The Difference Between Problem Solving & Decision Making

    The Difference Between Problem Solving & Decision Making. Lesson Transcript. Instructor Yuanxin (Amy) Yang Alcocer. Amy has a master's degree in secondary education and has been teaching math for ...

  20. Tips And Techniques For Problem-Solving And Decision-Making

    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 ...

  21. Critical Thinking vs. Problem-Solving: What's the Difference?

    Critical thinking vs. problem-solving Critical thinking and problem-solving can both help you resolve challenges, but the two practices have distinct purposes and strategies. Here are some differences between the two skills: Critical thinking This is a mode of thinking, compared to problem-solving, which is a set of solution-oriented strategies.

  22. Difference Between Problem Solving and Decision Making

    The major difference between the two is; problem solving is a method while decision making is a process. Problem solving, as the name implies, is solving a problem. Meaning, it is a method wherein a group or an individual makes something positive out of a problem. Decision making, on the other hand, is a process that is done many times during ...

  23. Analytical Thinking vs Problem Solving: A Comprehensive Comparison

    Key Takeaways. Analytical thinking is about understanding complex situations, while problem-solving focuses on finding practical solutions. Mastery of both skills leads to informed decision-making and improved risk management. These abilities are essential for workplace success and overall personal growth.