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Problem solving vs decision making – what is the difference?
Written by Changeboard team
Published 30 Jul 2019
30 Jul 2019 • by Changeboard team

The key difference between problem solving and decision making is that solving problems is a process, whereas making decisions is an action based on insights derived during the problem-solving process. Many people use the terms problem solving and decision making interchangeably, but they are not the same.
Problem solving vs decision making
Problem solving is an analytical process used to identify the possible solutions to the situation at hand. Making decisions is a part of problem solving. Problem solving is a complex process, and judgement calls – or decisions – will have to be made on the way.
Decision making is a choice made by using one’s judgement. The art of making sound decisions is a particularly important skill for leaders and managers. You may need to make numerous decisions as part of the problem-solving process. And, of course, leaders and managers will need to use their decision-making skills to determine which solution to pursue. They will also typically need to confirm and set into motion next steps to fix the problem.
Problem solving or decision making – which is most important?
Both problem solving and decision making go hand in hand, but success in one doesn’t automatically lead to the other. Those in leadership and management roles need to understand the difference between the two and aim to make lifelong improvements in both skillsets.
Decisions are made when multiple opportunities for action present themselves. You can make decisions, yet never solve the problem.
You can be adept at problem solving, or finding the root of an issue, and still lack the decision making skills to choose and action viable next steps to bring about a successful outcome.
Quick decisions don’t always lead to best-case solutions. A purist approach to problem solving doesn’t take into account that sometimes a business needs to make the best decision under the existing circumstances (where budget, time and resource constraints might play a factor).
How does problem solving involve decision making?
Decision-making is part of the problem-solving process. A business may have multiple problems that all demand time and resource. A key role in management and leadership positions is deciding which problem to treat as a priority.
Decision making in 3 steps:
- Use problem solving to identify potential solutions – this may involve decision making, such as deciding to hold meetings with stakeholders or assigning team members to tackle particular areas of the problem
- Determine which solution is the best fit for the problem at hand
- Make a decision on next steps to action the chosen solution
The similarities between problem solving and decision making
Problem solving and decision making are not synonymous with each other, but they are both important skills for leaders to have. People often use the terms problem solving and decision making interchangeably specifically because they have elements in common.
Both problem solving and decision making involve critical thinking.
Critical thinking is a process by which you question your own assumptions – as well as those of others - in order to decide on next steps to solve a problem. Critical thinking often results in using a mix of research, analysis, questioning and exploration of new ideas in order to gain rich insight into a situation, becoming informed in a way that isn’t restricted by the subjective perspectives of peers or the status quo.
See our critical thinking tips for HR managers and leaders for a deep dive into critical thinking, or take an eagle’s eye view with our 3 golden tips on how to improve your critical thinking .
How to use decision making in solving problems
It all boils down to one thing: When faced with a challenge, break the problem down into manageable components that require decisions to be made.
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By Changeboard team Published: 30 Jul 2019
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In This Article Expand or collapse the "in this article" section Problem Solving and Decision Making
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- General Approaches to Problem Solving
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- Working Memory and Problem Solving
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Problem Solving and Decision Making by Emily G. Nielsen , John Paul Minda 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 SkillsYouNeed Guide to Interpersonal Skills

Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.
Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.
Small and Large Decisions
In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:
Tea or coffee?
What shall I have in my sandwich? Or should I have a salad instead today?
What shall I wear today?
Larger decisions may occur less frequently but may include:
Should we repaint the kitchen? If so, what colour?
Should we relocate?
Should I propose to my partner? Do I really want to spend the rest of my life with him/her?
These decisions, and others like them, may take considerable time and effort to make.
The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.
Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.
Decision Making
Effective Decision-Making
This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.
A Decision-Making Framework
This page sets out one possible framework for decision-making.
The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.
Problem Solving
Introduction to Problem-Solving
This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.
The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.
Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.
Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.
‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.
This page provides more information about the key skills needed for practical problem-solving in real life.
Further Reading from Skills You Need
The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.
Guiding you through the key skills needed in life
As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.
Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.
Start with: Decision Making Problem Solving
See also: Improving Communication Interpersonal Communication Skills Building Confidence
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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What did you eat for breakfast this morning? Did you choose cereal or a bagel? Why? Or what if you missed the bus? How did you solve this problem? Problem-solving and decision-making are skills we use all day, every day. But what is actually involved in these processes? Let's read on and find out.
In this article, we will begin by discussing the similarities and differences between problem-solving and decision-making.
Then, we'll lay out the problem-solving and decision-making steps.
As we continue, we'll look at the criteria for decision-making and problem-solving.
We will then list the types of problems in decision-making.
Finally, we'll take a look at a few examples of decision-making problems.
Problem-Solving and Decision-Making: Similarities and Differences
Both problem-solving and decision-making are mental processes that involve the use of information to determine an action. Both require identification and evaluation. Decision-making may be part of problem-solving and problem-solving may be part of decision-making.
However problem-solving and decision-making have noticeable differences.
Problem-solving means that a person is trying to find a solution to a problem, whether it's ongoing, intermittent, or a one-time failure.
Decision-making, on the other hand, requires a person to make choices or to choose between options (or not).
Decision-making is also usually clearer at the start than problem-solving. When making a decision the choices are often quite clear and clearly presented. But with problem-solving, the biggest part of the battle might be identifying what the problem itself is.
A detective must solve the problem by solving a case. A judge must make decisions such as determining bail, sentencing, and other trial procedures.
Also, the process of problem-solving and decision-making can look different in the brain. The point at which you find a solution to a problem can often feel like a lightbulb going off in your head. In some ways, that is similar to what occurs in the brain.
Research shows that the frontal lobe (responsible for focusing attention) is most active while a person is trying to solve a problem. But once they have found the solution, suddenly, there is a burst of activity in the right temporal lobe (Myers, 2014). Making a decision, however, is usually a much more gradual process.

Problem-Solving and Decision-Making Steps
Problem-solving and decision-making steps can look very similar. However, to go about them the same exact way would be an incorrect approach. Let's take a look at the specific steps in problem-solving and decision-making.
Problem-Solving Steps
The steps are: specify the problem, analyze the problem, formulate solutions, evaluate solutions, choose a solution, and evaluate the outcome.
1. Specify the Problem
As mentioned earlier, one of the most challenging steps in problem-solving is identifying what the problem is in the first place. A good way to start is to determine what the goal state is and how it differs from the present state.
2. Analyze the Problem
What are the potential causes of the problem? What does the presentation of this problem mean for the situation? Try to research the problem as much as possible and collect as much information as you can.
3. Formulate Solutions
Begin formulating solutions. but don't feel pressured to know exactly what to do at this stage – simply brainstorm as many solutions as possible and be creative. Consider other problems or situations you've faced in the past and if you can apply what you learned to this problem.
4. Evaluate Solutions
Consider the advantages and disadvantages of each solution and how well it will actually solve the problem. Try to imagine the possible outcomes of each solution. Consider whether the solution solves all of the problem or only parts of it.
5. Choose a Solution
This is the "aha" moment in problem-solving. We often arrive at a solution through insight. Insight is the sudden realization of the solution to a problem. You have considered several possibilities and finally, the right one has finally clicked.
6. Evaluate the outcome
None of us are capable of finding the perfect solution to our problems 100% of the time. Sometimes you have to go back to the drawing board. Don't be discouraged! The last step to problem-solving is to evaluate the outcome of the solution. Even if it is not the outcome you expected, you have the opportunity to learn from it.
Decision-Making Steps
Decision-making may involve problem-solving – but not always. The six steps to problem-solving are as follows: specify the problem, analyze the problem, formulate solutions, evaluate possible solutions, choose a solution, and evaluate the outcome.
1. Identify the Decision or Goal
First, identify what your goal is and why you need to make a decision. Knowing why you're making a decision makes it more likely you'll stick with it and defend it.
2. Gather Information
What information do you need to understand the situation and the decision you have to make? Reach out to people you trust and those who have a better understanding than you.
3. Identify Alternatives
Next, identify what your options are. It is important to note that when making a decision, you are not required to make a choice between the alternatives. But even not making a choice is a decision that you consciously make.

4. Weigh the Evidence
This is a great time to use a pros and cons list. Consider the impact each alternative may have and potential outcomes.
5. Choose Among Alternatives
Finally, you are ready to choose an alternative. This step may be intimidating, but considering the following questions may help you decide the best path forward:
Is this solution compatible with my priorities?
Is there any risk involved in this solution and is it worth the risk?
Is this a practical solution or would it be far too difficult or even impossible?
6. Take Action
While not always required after solving a problem, making a decision almost always requires you to take action.
You've chosen what college to go to, now you must respond to your acceptance letters and notify the schools you don't want to go to that you will not be attending.
7. Evaluate the outcome
Similar to problem-solving, it would be unrealistic for any of us to know all the information or see every perspective while making a decision. Evaluate the consequences – good or bad – of your decision and then adjust future decisions accordingly.
Criteria for Decision-Making and Problem-Solving
The criteria for decision-making and problem-solving include abstract thinking and reasoning and the ability to use decision-making and problem-solving methods.
Abstract Thinking and Reasoning
To make decisions, a person should at least have the capacity to weigh various options . Young children might not be able to grasp abstract thinking and reasoning, as this skill doesn't develop until adolescence .
If you ask a toddler what they want for lunch, it's best to give them only a couple of options, like chicken nuggets or Mac-n-cheese.
Leaving their options wide open or giving them too many options will probably lead to them saying no or choosing something they don't actually want and guaranteeing a tantrum later.
The same could be said for problem-solving: a person must have the capacity to think of as many solutions as possible which requires abstract thinking and reasoning. One should be able to recognize a problem and determine its significance.
Decision-Making and Problem-Solving Methods
Many times when solving a problem, our strategy is to just do trial and error. Try one solution, if it doesn't work, try another, and another, and another until the problem is solved. Or we may use other techniques to solve a problem. For example, we may try to solve a problem using whatever method we know will guarantee the correct solution or algorithm .
Algorithms are logical rules or procedures that are guaranteed to generate the correct solution to a problem.
Algorithms are most often used in mathematics or chemistry because if you know how to use a formula correctly, you will always get the correct answer. This may be an effective way to solve some problems, but it can be time-consuming.
You are asked to figure out what word can be formed using the following letters: YSCPOGLHOY. You could use an algorithm by finding all the thousands of possible combinations until you land on the correct word. However, this would take far too long.
An alternative method to solve the problem is to use the same methods or information we used to solve similar problems. This is called heuristics .
Heuristics are shortcuts we use that allow us to solve problems and make judgments efficiently.
Types of Problems in Decision-Making
Most of the decisions we make day-to-day require very little time and effort. We follow our intuition to decide which way to take home based on traffic or make snap judgments when deciding which candy to take from the candy jar. Using shortcuts such as heuristics saves us time but without much conscious awareness. This will inevitably lead to errors. Let's take a look at the problems in decision-making including confirmation bias , representative heuristic, availability heuristic , and overconfidence.
Problems in Decision-making
Confirmation bias.
Throughout life, we all begin to form concrete ideas and beliefs. When we are more eager to seek evidence in favor of our ideas or beliefs than against them, this is called confirmation bias. This is a consequence of fixation (inability to see other perspectives) and mental set (solving problems the way we've solved similar ones before).

Representativeness Heuristic
We all build prototypes (mental image) of people, places, and things in our world. Our brains form prototypes to understand and categorize our world, but we get into trouble when we believe our prototypes are always true. The representativeness heuristic is when we estimate the likelihood of an event based on whether or not it fits the prototypes we have formed of people, places, things, or events.
A person walks into the store with leather pants, a leather jacket, and tattoos all over. Are they more likely to be a biker or a school teacher? If you answered a biker, then you are using your prototype of what a biker looks like to make your decision, rather than using the base rate. It's more likely that person is a teacher because there are far more teachers in the world than bikers.
Availability Heuristic
We may also fall victim to the availability heuristic while making decisions. The availability heuristic is when we estimate the likelihood of events based on how available they are in our memory or how vivid similar events occurred previously. The availability heuristic can lead to us placing our fear in the wrong places. It is far more likely for a person to die from heart disease than a shark attack but we are much more afraid of sharks than we are of unhealthy foods like donuts.
Overconfidence
Confidence is not a bad thing. People who have a lot of self-confidence usually live happily, make tough decisions easily, and seem competent. But when we are too confident in the accuracy of our beliefs and judgments, it may lead to errors. In fact, people who are overconfident are usually more likely to be wrong. Stockbrokers often fall victim to this when they are sure they can outsmart the stock market, and go all-in on a stock only to lose everything. However, if we get clear feedback and actually receive it, we may be able to avoid the pitfalls of overconfidence.
Decision-Making Problems: Examples
The representativeness heuristic can easily lead to stereotypes and discrimination . Following 9/11, Arab Americans often faced discrimination because people began to form a prototype (really a stereotype) of what terrorists looked like. For example, Arab Americans might have experienced more strenuous security checks at the airport.
Even though almost all Arab-Americans are peace-loving people, many began to assume if they looked the part they were "more likely" to be terrorists. This still continues today. White supremacy groups have been responsible for more terrorist attacks in America than any other organization according to the New York Times (2020) , yet many people still feel more threatened by a man in a turban than a white man.
Problem Solving and Decision Making - Key takeaways
- Problem-solving means that a person is trying to find a solution to a problem, whether it's ongoing, intermittent, or a one-time failure. Decision-making, on the other hand, requires a person to make choices or to choose between options (or not).
- The six steps to problem-solving are as follows: specify the problem, analyze the problem, formulate solutions, evaluate possible solutions, choose a solution, and evaluate the outcome.
- To make decisions and problem-solve, a person should at least have the capacity to weigh various options . Young children might not be able to grasp abstract thinking and reasoning as this skill doesn't develop until adolescence .
- Let's take a look at the problems in decision-making including confirmation bias , representative heuristic, availability heuristic , and overconfidence.
- The representativeness heuristic can easily lead to stereotypes and discrimination . Following 9/11, Arab-Americans often faced discrimination because people began to form a prototype (really a stereotype) of what terrorists looked like.
- Myers, D. G. Myers' Psychology for AP. Worth Publishers. 2014.
Frequently Asked Questions about Problem Solving and Decision Making
--> what is problem solving and decision making.
Problem-solving means that a person is trying to find a solution to a problem, whether it's ongoing, intermittent, or a one-time failure.
--> What is the difference between problem-solving and decision-making?
Problem-solving might not require action while decision-making almost always requires an action to follow.
--> What process involves influencing group problem solving and decision making?
The process of group problem-solving and decision-making should involve defining the problem, determining the cause, developing alternatives, assessing the consequences, and developing an action plan.
--> Why are decision making and problem-solving important?
Decision-making and problem-solving are important skills that can be used in all aspects of life including work, family, friends, relationships, and learning.
--> What are the steps in problem-solving and decision-making?
Problem-solving and decision-making involves the following:
1. Identify the decision or problem
2. Gathering information or analyzing the problem
3. Finding solutions or considering alternatives,
4. Choose a solution or choice
5. Evaluate the outcome
Final Problem Solving and Decision Making Quiz
True or False? Decision-making is also usually clearer at the start than problem-solving.
Show answer
Show question
How does problem-solving resemble a light bulb going off in the brain?
Research shows that the frontal lobe (responsible for focusing attention) is most active while a person is trying to solve a problem. But once they have found the solution, suddenly, there is a burst of activity in the right temporal lobe (Myers, 2014.).
What is the first step of problem-solving?
Specify the problem
__________ are logical rules or procedures that are guaranteed to generate the correct solution to a problem.
What are heuristics?
Heuristics are shortcuts we use that allow us to solve problems and make judgments efficiently.
Consider the following letters: YSCPOGLHOY. What problem-solving method should you use to figure out what word the letters form?
When we are more eager to seek evidence in favor of our ideas or beliefs than against them, this is called _____________.
confirmation bias
The ______________ is when we estimate the likelihood of an event based on whether or not it fits the prototypes we have formed of people, places, things, or events.
representativeness heuristic
_______________ is when we estimate the likelihood of events based on how available they are in our memory or how vivid similar events occurred previously.
Availability heuristic
A person walks into the store with leather pants, a leather jacket, and tattoos all over. Are they more likely to be a biker or a school teacher? If a person assumed the person that walked in is a biker, they are using what type of decision-making problem?
Representativeness heuristic
True or False? When we are too confident in the accuracy of our beliefs and judgments, it may lead to errors.
True or False? The representativeness heuristic rarely leads to stereotypes and discrimination.
True or False? We usually develop strong problem-solving and decision-making skills during early childhood.
Why is it best to give a toddler only a couple of options for lunch rather than broadly asking them to decide what they want to eat?
Young children might not be able to grasp abstract thinking and reasoning as this skill doesn't develop until adolescence.
What are three questions you could ask yourself while choosing among the alternatives in decision-making?
Is this a practical solution or would it be far too difficult and even impossible?
When does problem-solving happen?
When a person is trying to find a solution to a problem, whether it's ongoing, intermittent, or a one-time failure
When does decision-making happen?
When a person has to choose between options (or not)
What similarities do problem-solving and decision-making share?
Identification and evaluation
Which has a more gradual increase of brain activity?
Decision-making
What is the correct order of steps when problem-solving?
Specify the problem, analyze the problem, formulate solutions, evaluate solutions, choose a solution, evaluate the outcome
Why is evaluating the outcome an important step in problem-solving?
It allows you to go back and make sure you found the right answer. If not, this gives you an opportunity to try to find another answer.
Why is identifying alternatives an important step in decision-making?
You fully understand all the options you are choosing between
Why is gathering information an important step in the decision-making process?
You need to get more information in order to be knowledgable when making your decision
Can a child make decisions?
Yes, but not well-thought out ones. Abstract thinking and reasoning are important steps in decision-making which are qualities that children are still developing.
What is a beneficial attribute about an algorithm?
It will get you the right answer, guaranteed
What is something bad about the use of an algorithm?
It can be very time-consuming
What is a beneficial attribute of heuristics?
It can help you use mental shortcuts to get to the answer quicker
What is a negative attribute of heuristics?
You won't always get the right answer
Why is confirmation bias a problem in decision-making?
It causes us to see things a certain way (the way we want them to) and will find people or sources that will agree with what we believe, swaying our decision
Why is overconfidence a problem when it comes to decision-making?
Someone who is overconfident is more likely to make the wrong decision
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Difference Between Problem Solving and Decision Making
Every person is, without a doubt, influenced by the worst-case situation for a significant period. Another difficult issue is not understanding the distinction between problem-solving and decision-making.
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Working capital means _________.
A partner in a firm _____.
Who is the servant of the firm with a share in the profits?
Non-economic activities aim at __________.
Office is a place where ___________.
A valid definition of a business purpose is to ______.
When at least 51% shares are in the hands of government, it is called as __________.
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Decision-making and problem-solving are both psychological words that are frequently used interchangeably. Furthermore, it should be emphasised that these two terms are not interchangeable and are not synonymous.
Problem Solving vs Decision Making
The difference between problem-solving and decision making is that Problem-solving can be thought of as a technique. When it comes to problem-solving, making the appropriate decisions is critical to arriving at a specific result. However, on the contrary decision,-making is regarded as a procedure. Sometimes the problem-solving process is included in the decision-making process, and sometimes it is not.

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Problem-solving is a complex process that entails in-depth analysis. The identification of an issue is usually the first step in the problem-solving process. The main goal of problem-solving is to find the best solution .
Problem-solving is usually coupled with a specific goal. The results of problem-solving should be solution-oriented. The techniques and roads to resolution remain unknown when it comes to problem-solving. The purpose of problem-solving is to fix the problem or issue.
The process of decision-making leads to a final opinion and a course of action. The identification of opportunities is part of the decision-making process. The goal of the decision-making process is to avoid potential difficulties.
When making decisions, a variety of options are explored. The decision-making process can have a variety of results. The paths adopted in the event of decision-making are structured. The objectives of decision-making are unrelated to the resolution of a problem or issue.
Comparison Table
What is problem solving.
Problem-solving is a technique that can be used to solve a problem. When it comes to problem-solving, making the appropriate judgments is critical to reaching a specific outcome.
Problem-solving is a difficult process that entails extensive research . Identifying a difficulty is a common step in the problem-solving process.
In simple words or layman terms, problem-solving is simply solving problems, as the name suggests. Here, either an individual or a group tries to solve a problem in this process.
This involves high analytical skills for reaching better and faster solutions. This process also includes gathering information, facts and following or working parallel with human intuition.
The primary goal of problem-solving is to find the best solution possible. In general, problem-solving is linked to a specific goal. Problem-solving results must be solution-oriented.
The techniques and roads to resolution are unknown in the case of problem-solving. The purpose of problem-solving is to resolve the problem or issue.

What is Decision Making?
Making a decision is seen to be a procedure. Depending on the situation, the decision-making process may or may not entail problem-solving.
The decision-making process culminates in the formulation of a conclusion and a plan of action. Identifying opportunities is an important part of the decision-making process.
Decision making generally focuses on the actions, ways and alternatives that are used to solve a particular problem. This is also a result of cognitive function.
Sometimes a psychological aspect of an individual is taken into consideration while stressing about making decisions. The needs and wants are taken care of. This process can also be considered as continuous interaction with the surrounding environment.
The goal of the decision-making process is to avoid any potential issues. While making decisions, various types of options are explored. Decision-making can have a variety of results.
The paths that are taken in decision-making are structured. The decision-making goals have nothing to do with resolving a problem or issue.

Main Differences Between Problem Solving and Decision Making
- Problem-solving can be considered a method. On the other hand, decision making is considered a process.
- At the time of problem-solving, taking the right decisions is important to reach out a certain conclusion. On the other hand, the decision-making process sometimes includes solving the problems and sometimes does not.
- The method of problem-solving is complex and includes deep analysis. On the other hand, the decision-making process leads to taking a final opinion and a course of action.
- The method of problem-solving usually involves the identification of a challenge. On the other hand, the process of decision making involves the identification of opportunities.
- Creating the right solution is the important motive of problem-solving. On the other hand, avoiding potential problems is the motive of the decision-making process.
- Problem-solving is generally associated with a clear objective. On the other hand, different types of options are considered while taking decisions.
- The outcomes coming from problem-solving should be solution-driven. On the other hand, the outcomes of the decision making can vary.
- In the case of problem-solving, the ways and paths to resolution are not known. On the other hand, in the case of decision making, the paths taken are structured.
- The goal of problem-solving is to correct the issue or problem. On the other hand, the goals associated with the decision making is not related to the solving of an issue or problem.

- https://scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/22321/slovic_189.pdf?sequence=1
- http://www.sci.brooklyn.cuny.edu/~kopec/cis718/fall_2005/2/Rafique_2_humanthinking.doc
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Feb 8, 2020
Problem solving vs decision making – what is the difference?
The key difference between problem solving and decision making is that solving problems is a process, whereas making decisions is an action based on insights derived during the problem-solving process. Many people use the terms problem solving and decision making interchangeably, but they are not the same.
Problem solving vs decision making
Problem solving is an analytical process used to identify the possible solutions to the situation at hand. Making decisions is a part of problem solving. Problem solving is a complex process, and judgement calls – or decisions – will have to be made on the way.
Decision making is a choice made by using one’s judgement. The art of making sound decisions is a particularly important skill for leaders and managers. You may need to make numerous decisions as part of the problem-solving process. And, of course, leaders and managers will need to use their decision-making skills to determine which solution to pursue. They will also typically need to confirm and set into motion next steps to fix the problem.
Problem solving or decision making – which is most important?
Both problem solving and decision making go hand in hand, but success in one doesn’t automatically lead to the other. Those in leadership and management roles need to understand the difference between the two and aim to make lifelong improvements in both skillsets.
Decisions are made when multiple opportunities for action present themselves. You can make decisions, yet never solve the problem.
You can be adept at problem solving, or finding the root of an issue, and still lack the decision making skills to choose and action viable next steps to bring about a successful outcome.
Quick decisions don’t always lead to best-case solutions. A purist approach to problem solving doesn’t take into account that sometimes a business needs to make the best decision under the existing circumstances (where budget, time and resource constraints might play a factor).
Decision making in 3 steps:
Use problem solving to identify potential solutions – this may involve decision making, such as deciding to hold meetings with stakeholders or assigning team members to tackle particular areas of the problem
Determine which solution is the best fit for the problem at hand
Make a decision on next steps to action the chosen solution
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Difference Between Decision Making and Problem Solving
January 24, 2011 Posted by Olivia
Decision Making vs Problem Solving
Decision Making and Problem Solving are two key management functions. It is customary to see the managers of companies to get involved in decision making and problem solving. Problem solving involves defining the problem. The problem is defined by asking a few questions such as ‘what causes you to think there is a problem?’ and ‘how is it happening?’
Consideration of the situation characterized by the absence of the problem is the crux of decision making. In other words if you begin to think about what will the situation look like when the problem is solved then you are into decision making. Hence decision making and problem solving are almost integrated.
Problem solving consists in looking at the potential causes of the problem. On the other hand decision making consists in the method of approaching to resolve the problem. You will have to involve in brainstorm to find out solutions to the problem in decision making. Lateral and creative thinking is important in good decision making.
Decision making in short can be called as the process of action plan. Action plan includes the calculation of the time needed to solve the problem. It also looks at the time needed for the implementation of the solution. It deals finally with the communication of the plan to all those involved in the implementation of the solution.
Problem solving consists in jotting down the description of the various causes of the problem in terms of question such as where, how, with whom and why. Decision making is all about finding solutions to all these questions such as how, where, with whom and why through the forming a plan that has to be implemented.
Problem solving itself is an experience to be undergone in every corporate establishment. Decision making on the other hand is the consideration of what have you learned from problem solving. Hence problem solving and decision making are integrated to a great extent.
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Critical Thinking and Decision-Making - What is Critical Thinking?
Critical thinking and decision-making -, what is critical thinking, critical thinking and decision-making what is critical thinking.

Critical Thinking and Decision-Making: What is Critical Thinking?
Lesson 1: what is critical thinking, what is critical thinking.
Critical thinking is a term that gets thrown around a lot. You've probably heard it used often throughout the years whether it was in school, at work, or in everyday conversation. But when you stop to think about it, what exactly is critical thinking and how do you do it ?
Watch the video below to learn more about critical thinking.
Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions . It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better.

This may sound like a pretty broad definition, and that's because critical thinking is a broad skill that can be applied to so many different situations. You can use it to prepare for a job interview, manage your time better, make decisions about purchasing things, and so much more.
The process

As humans, we are constantly thinking . It's something we can't turn off. But not all of it is critical thinking. No one thinks critically 100% of the time... that would be pretty exhausting! Instead, it's an intentional process , something that we consciously use when we're presented with difficult problems or important decisions.
Improving your critical thinking

In order to become a better critical thinker, it's important to ask questions when you're presented with a problem or decision, before jumping to any conclusions. You can start with simple ones like What do I currently know? and How do I know this? These can help to give you a better idea of what you're working with and, in some cases, simplify more complex issues.
Real-world applications

Let's take a look at how we can use critical thinking to evaluate online information . Say a friend of yours posts a news article on social media and you're drawn to its headline. If you were to use your everyday automatic thinking, you might accept it as fact and move on. But if you were thinking critically, you would first analyze the available information and ask some questions :
- What's the source of this article?
- Is the headline potentially misleading?
- What are my friend's general beliefs?
- Do their beliefs inform why they might have shared this?

After analyzing all of this information, you can draw a conclusion about whether or not you think the article is trustworthy.
Critical thinking has a wide range of real-world applications . It can help you to make better decisions, become more hireable, and generally better understand the world around you.

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7 important steps in the decision making process

The decision making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process on how to make a good decision and explain different decision making methodologies.
We make decisions every day. Take the bus to work or call a car? Chocolate or vanilla ice cream? Whole milk or two percent?
There's an entire process that goes into making those tiny decisions, and while these are simple, easy choices, how do we end up making more challenging decisions?
At work, decisions aren't as simple as choosing what kind of milk you want in your latte in the morning. That’s why understanding the decision making process is so important.
What is the decision making process?
The decision making process is the method of gathering information, assessing alternatives, and, ultimately, making a final choice.
Decision-making tools for agile businesses
In this free ebook, learn how to equip employees to make better decisions—so your business can pivot, adapt, and tackle challenges more effectively than your competition.
The 7 steps of the decision making process
Step 1: identify the decision that needs to be made.
When you're identifying the decision, ask yourself a few questions:
What is the problem that needs to be solved?
What is the goal you plan to achieve by implementing this decision?
How will you measure success?
These questions are all common goal setting techniques that will ultimately help you come up with possible solutions. When the problem is clearly defined, you then have more information to come up with the best decision to solve the problem.
Step 2: Gather relevant information
Gathering information related to the decision being made is an important step to making an informed decision. Does your team have any historical data as it relates to this issue? Has anybody attempted to solve this problem before?
It's also important to look for information outside of your team or company. Effective decision making requires information from many different sources. Find external resources, whether it’s doing market research, working with a consultant, or talking with colleagues at a different company who have relevant experience. Gathering information helps your team identify different solutions to your problem.
Step 3: Identify alternative solutions
This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for a work management tool, the design team may have different needs than a development team. Choosing only one solution right off the bat might not be the right course of action.
Step 4: Weigh the evidence
This is when you take all of the different solutions you’ve come up with and analyze how they would address your initial problem. Your team begins identifying the pros and cons of each option, and eliminating alternatives from those choices.
There are a few common ways your team can analyze and weigh the evidence of options:
Pros and cons list
SWOT analysis
Decision matrix
Step 5: Choose among the alternatives
The next step is to make your final decision. Consider all of the information you've collected and how this decision may affect each stakeholder.
Sometimes the right decision is not one of the alternatives, but a blend of a few different alternatives. Effective decision-making involves creative problem solving and thinking out of the box, so don't limit you or your teams to clear-cut options.
One of the key values at Asana is to reject false tradeoffs. Choosing just one decision can mean losing benefits in others. If you can, try and find options that go beyond just the alternatives presented.
Step 6: Take action
Once the final decision maker gives the green light, it's time to put the solution into action. Take the time to create an implementation plan so that your team is on the same page for next steps. Then it’s time to put your plan into action and monitor progress to determine whether or not this decision was a good one.
Step 7: Review your decision and its impact (both good and bad)
Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is how you determine whether or not this solution meets your team's criteria of success.
Here are a few questions to consider when reviewing your decision:
Did it solve the problem your team identified in step 1?
Did this decision impact your team in a positive or negative way?
Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?
If this solution was not the best alternative, your team might benefit from using an iterative form of project management. This enables your team to quickly adapt to changes, and make the best decisions with the resources they have.
Types of decision making models
While most decision making models revolve around the same seven steps, here are a few different methodologies to help you make a good decision.
Rational decision making models
This type of decision making model is the most common type that you'll see. It's logical and sequential. The seven steps listed above are an example of the rational decision making model.
When your decision has a big impact on your team and you need to maximize outcomes, this is the type of decision making process you should use. It requires you to consider a wide range of viewpoints with little bias so you can make the best decision possible.
Intuitive decision making models
This type of decision making model is dictated not by information or data, but by gut instincts. This form of decision making requires previous experience and pattern recognition to form strong instincts.
This type of decision making is often made by decision makers who have a lot of experience with similar kinds of problems. They have already had proven success with the solution they're looking to implement.
Creative decision making model
The creative decision making model involves collecting information and insights about a problem and coming up with potential ideas for a solution, similar to the rational decision making model.
The difference here is that instead of identifying the pros and cons of each alternative, the decision maker enters a period in which they try not to actively think about the solution at all. The goal is to have their subconscious take over and lead them to the right decision, similar to the intuitive decision making model.
This situation is best used in an iterative process so that teams can test their solutions and adapt as things change.
Track key decisions with a work management tool
Tracking key decisions can be challenging when not documented correctly. Learn more about how a work management tool like Asana can help your team track key decisions, collaborate with teammates, and stay on top of progress all in one place.
Related resources
How decision-making processes can help businesses stay agile
How to think more like a futurist
Exit interview: 7 questions to gain valuable insights (with template)
The ladder of inference: How to make better decisions

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No. 95; September 2017
Many parents do not understand why their teenagers occasionally behave in an impulsive, irrational, or dangerous way. At times, it seems like teens don't think things through or fully consider the consequences of their actions. Adolescents differ from adults in the way they behave, solve problems, and make decisions. There is a biological explanation for this difference. Studies have shown that brains continue to mature and develop throughout childhood and adolescence and well into early adulthood.
Scientists have identified a specific region of the brain called the amygdala that is responsible for immediate reactions including fear and aggressive behavior. This region develops early. However, the frontal cortex , the area of the brain that controls reasoning and helps us think before we act, develops later. This part of the brain is still changing and maturing well into adulthood.
Other changes in the brain during adolescence include a rapid increase in the connections between the brain cells and making the brain pathways more effective. Nerve cells develop myelin, an insulating layer that helps cells communicate. All these changes are essential for the development of coordinated thought, action, and behavior.
Changing Brains Mean that Adolescents Act Differently From Adults
Pictures of the brain in action show that adolescents' brains work differently than adults when they make decisions or solve problems. Their actions are guided more by the emotional and reactive amygdala and less by the thoughtful, logical frontal cortex. Research has also shown that exposure to drugs and alcohol during the teen years can change or delay these developments.
Based on the stage of their brain development, adolescents are more likely to:
- act on impulse
- misread or misinterpret social cues and emotions
- get into accidents of all kinds
- get involved in fights
- engage in dangerous or risky behavior
Adolescents are less likely to:
- think before they act
- pause to consider the consequences of their actions
- change their dangerous or inappropriate behaviors
These brain differences don't mean that young people can't make good decisions or tell the difference between right and wrong. It also doesn't mean that they shouldn't be held responsible for their actions. However, an awareness of these differences can help parents, teachers, advocates, and policy makers understand, anticipate, and manage the behavior of adolescents.
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3.4 Problem Solving and Decision Making
Learning objectives.
- Learn to understand the problem.
- Learn to combine creative thinking and critical thinking to solve problems.
- Practice problem solving in a group.
Much of your college and professional life will be spent solving problems; some will be complex, such as deciding on a career, and require time and effort to come up with a solution. Others will be small, such as deciding what to eat for lunch, and will allow you to make a quick decision based entirely on your own experience. But, in either case, when coming up with the solution and deciding what to do, follow the same basic steps.
- Define the problem. Use your analytical skills. What is the real issue? Why is it a problem? What are the root causes? What kinds of outcomes or actions do you expect to generate to solve the problem? What are some of the key characteristics that will make a good choice: Timing? Resources? Availability of tools and materials? For more complex problems, it helps to actually write out the problem and the answers to these questions. Can you clarify your understanding of the problem by using metaphors to illustrate the issue?
- Narrow the problem. Many problems are made up of a series of smaller problems, each requiring its own solution. Can you break the problem into different facets? What aspects of the current issue are “noise” that should not be considered in the problem solution? (Use critical thinking to separate facts from opinion in this step.)
- Generate possible solutions. List all your options. Use your creative thinking skills in this phase. Did you come up with the second “right” answer, and the third or the fourth? Can any of these answers be combined into a stronger solution? What past or existing solutions can be adapted or combined to solve this problem?
Group Think: Effective Brainstorming
Brainstorming is a process of generating ideas for solutions in a group. This method is very effective because ideas from one person will trigger additional ideas from another. The following guidelines make for an effective brainstorming session:
- Decide who should moderate the session. That person may participate, but his main role is to keep the discussion flowing.
- Define the problem to be discussed and the time you will allow to consider it.
- Write all ideas down on a board or flip chart for all participants to see.
- Encourage everyone to speak.
- Do not allow criticism of ideas. All ideas are good during a brainstorm. Suspend disbelief until after the session. Remember a wildly impossible idea may trigger a creative and feasible solution to a problem.
- Choose the best solution. Use your critical thinking skills to select the most likely choices. List the pros and cons for each of your selections. How do these lists compare with the requirements you identified when you defined the problem? If you still can’t decide between options, you may want to seek further input from your brainstorming team.
Decisions, Decisions
You will be called on to make many decisions in your life. Some will be personal, like what to major in, or whether or not to get married. Other times you will be making decisions on behalf of others at work or for a volunteer organization. Occasionally you will be asked for your opinion or experience for decisions others are making. To be effective in all of these circumstances, it is helpful to understand some principles about decision making.
First, define who is responsible for solving the problem or making the decision. In an organization, this may be someone above or below you on the organization chart but is usually the person who will be responsible for implementing the solution. Deciding on an academic major should be your decision, because you will have to follow the course of study. Deciding on the boundaries of a sales territory would most likely be the sales manager who supervises the territories, because he or she will be responsible for producing the results with the combined territories. Once you define who is responsible for making the decision, everyone else will fall into one of two roles: giving input, or in rare cases, approving the decision.
Understanding the role of input is very important for good decisions. Input is sought or given due to experience or expertise, but it is up to the decision maker to weigh the input and decide whether and how to use it. Input should be fact based, or if offering an opinion, it should be clearly stated as such. Finally, once input is given, the person giving the input must support the other’s decision, whether or not the input is actually used.
Consider a team working on a project for a science course. The team assigns you the responsibility of analyzing and presenting a large set of complex data. Others on the team will set up the experiment to demonstrate the hypothesis, prepare the class presentation, and write the paper summarizing the results. As you face the data, you go to the team to seek input about the level of detail on the data you should consider for your analysis. The person doing the experiment setup thinks you should be very detailed, because then it will be easy to compare experiment results with the data. However, the person preparing the class presentation wants only high-level data to be considered because that will make for a clearer presentation. If there is not a clear understanding of the decision-making process, each of you may think the decision is yours to make because it influences the output of your work; there will be conflict and frustration on the team. If the decision maker is clearly defined upfront, however, and the input is thoughtfully given and considered, a good decision can be made (perhaps a creative compromise?) and the team can get behind the decision and work together to complete the project.
Finally, there is the approval role in decisions. This is very common in business decisions but often occurs in college work as well (the professor needs to approve the theme of the team project, for example). Approval decisions are usually based on availability of resources, legality, history, or policy.
Key Takeaways
- Effective problem solving involves critical and creative thinking.
The four steps to effective problem solving are the following:
- Define the problem
- Narrow the problem
- Generate solutions
- Choose the solution
- Brainstorming is a good method for generating creative solutions.
- Understanding the difference between the roles of deciding and providing input makes for better decisions.
Checkpoint Exercises
Gather a group of three or four friends and conduct three short brainstorming sessions (ten minutes each) to generate ideas for alternate uses for peanut butter, paper clips, and pen caps. Compare the results of the group with your own ideas. Be sure to follow the brainstorming guidelines. Did you generate more ideas in the group? Did the quality of the ideas improve? Were the group ideas more innovative? Which was more fun? Write your conclusions here.
__________________________________________________________________
Using the steps outlined earlier for problem solving, write a plan for the following problem: You are in your second year of studies in computer animation at Jefferson Community College. You and your wife both work, and you would like to start a family in the next year or two. You want to become a video game designer and can benefit from more advanced work in programming. Should you go on to complete a four-year degree?
Define the problem: What is the core issue? What are the related issues? Are there any requirements to a successful solution? Can you come up with a metaphor to describe the issue?
Narrow the problem: Can you break down the problem into smaller manageable pieces? What would they be?
Generate solutions: What are at least two “right” answers to each of the problem pieces?
Choose the right approach: What do you already know about each solution? What do you still need to know? How can you get the information you need? Make a list of pros and cons for each solution.
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Problem-Solving Strategies and Obstacles
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From deciding what to eat for dinner to considering whether it's the right time to buy a house, problem-solving is a large part of our daily lives. Learn some of the problem-solving strategies that exist and how to use them in real life, along with ways to overcome obstacles that are making it harder to resolve the issues you face.
What Is Problem-Solving?
In cognitive psychology , the term 'problem-solving' refers to the mental process that people go through to discover, analyze, and solve problems.
A problem exists when there is a goal that we want to achieve but the process by which we will achieve it is not obvious to us. Put another way, there is something that we want to occur in our life, yet we are not immediately certain how to make it happen.
Maybe you want a better relationship with your spouse or another family member but you're not sure how to improve it. Or you want to start a business but are unsure what steps to take. Problem-solving helps you figure out how to achieve these desires.
The problem-solving process involves:
- Discovery of the problem
- Deciding to tackle the issue
- Seeking to understand the problem more fully
- Researching available options or solutions
- Taking action to resolve the issue
Before problem-solving can occur, it is important to first understand the exact nature of the problem itself. If your understanding of the issue is faulty, your attempts to resolve it will also be incorrect or flawed.
Problem-Solving Mental Processes
Several mental processes are at work during problem-solving. Among them are:
- Perceptually recognizing the problem
- Representing the problem in memory
- Considering relevant information that applies to the problem
- Identifying different aspects of the problem
- Labeling and describing the problem
Problem-Solving Strategies
There are many ways to go about solving a problem. Some of these strategies might be used on their own, or you may decide to employ multiple approaches when working to figure out and fix a problem.
An algorithm is a step-by-step procedure that, by following certain "rules" produces a solution. Algorithms are commonly used in mathematics to solve division or multiplication problems. But they can be used in other fields as well.
In psychology, algorithms can be used to help identify individuals with a greater risk of mental health issues. For instance, research suggests that certain algorithms might help us recognize children with an elevated risk of suicide or self-harm.
One benefit of algorithms is that they guarantee an accurate answer. However, they aren't always the best approach to problem-solving, in part because detecting patterns can be incredibly time-consuming.
There are also concerns when machine learning is involved—also known as artificial intelligence (AI)—such as whether they can accurately predict human behaviors.
Heuristics are shortcut strategies that people can use to solve a problem at hand. These "rule of thumb" approaches allow you to simplify complex problems, reducing the total number of possible solutions to a more manageable set.
If you find yourself sitting in a traffic jam, for example, you may quickly consider other routes, taking one to get moving once again. When shopping for a new car, you might think back to a prior experience when negotiating got you a lower price, then employ the same tactics.
While heuristics may be helpful when facing smaller issues, major decisions shouldn't necessarily be made using a shortcut approach. Heuristics also don't guarantee an effective solution, such as when trying to drive around a traffic jam only to find yourself on an equally crowded route.
Trial and Error
A trial-and-error approach to problem-solving involves trying a number of potential solutions to a particular issue, then ruling out those that do not work. If you're not sure whether to buy a shirt in blue or green, for instance, you may try on each before deciding which one to purchase.
This can be a good strategy to use if you have a limited number of solutions available. But if there are many different choices available, narrowing down the possible options using another problem-solving technique can be helpful before attempting trial and error.
In some cases, the solution to a problem can appear as a sudden insight. You are facing an issue in a relationship or your career when, out of nowhere, the solution appears in your mind and you know exactly what to do.
Insight can occur when the problem in front of you is similar to an issue that you've dealt with in the past. Although, you may not recognize what is occurring since the underlying mental processes that lead to insight often happen outside of conscious awareness .
Research indicates that insight is most likely to occur during times when you are alone—such as when going on a walk by yourself, when you're in the shower, or when lying in bed after waking up.
How to Apply Problem-Solving Strategies in Real Life
If you're facing a problem, you can implement one or more of these strategies to find a potential solution. Here's how to use them in real life:
- Create a flow chart . If you have time, you can take advantage of the algorithm approach to problem-solving by sitting down and making a flow chart of each potential solution, its consequences, and what happens next.
- Recall your past experiences . When a problem needs to be solved fairly quickly, heuristics may be a better approach. Think back to when you faced a similar issue, then use your knowledge and experience to choose the best option possible.
- Start trying potential solutions . If your options are limited, start trying them one by one to see which solution is best for achieving your desired goal. If a particular solution doesn't work, move on to the next.
- Take some time alone . Since insight is often achieved when you're alone, carve out time to be by yourself for a while. The answer to your problem may come to you, seemingly out of the blue, if you spend some time away from others.
Obstacles to Problem-Solving
Problem-solving is not a flawless process as there are a number of obstacles that can interfere with our ability to solve a problem quickly and efficiently. These obstacles include:
- Assumptions: When dealing with a problem, people can make assumptions about the constraints and obstacles that prevent certain solutions. Thus, they may not even try some potential options.
- Functional fixedness : This term refers to the tendency to view problems only in their customary manner. Functional fixedness prevents people from fully seeing all of the different options that might be available to find a solution.
- Irrelevant or misleading information: When trying to solve a problem, it's important to distinguish between information that is relevant to the issue and irrelevant data that can lead to faulty solutions. The more complex the problem, the easier it is to focus on misleading or irrelevant information.
- Mental set: A mental set is a tendency to only use solutions that have worked in the past rather than looking for alternative ideas. A mental set can work as a heuristic, making it a useful problem-solving tool. However, mental sets can also lead to inflexibility, making it more difficult to find effective solutions.
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How to Improve Your Problem-Solving Skills
In the end, if your goal is to become a better problem-solver, it's helpful to remember that this is a process. Thus, if you want to improve your problem-solving skills, following these steps can help lead you to your solution:
- Recognize that a problem exists . If you are facing a problem, there are generally signs. For instance, if you have a mental illness , you may experience excessive fear or sadness, mood changes, and changes in sleeping or eating habits. Recognizing these signs can help you realize that an issue exists.
- Decide to solve the problem . Make a conscious decision to solve the issue at hand. Commit to yourself that you will go through the steps necessary to find a solution.
- Seek to fully understand the issue . Analyze the problem you face, looking at it from all sides. If your problem is relationship-related, for instance, ask yourself how the other person may be interpreting the issue. You might also consider how your actions might be contributing to the situation.
- Research potential options . Using the problem-solving strategies mentioned, research potential solutions. Make a list of options, then consider each one individually. What are some pros and cons of taking the available routes? What would you need to do to make them happen?
- Take action . Select the best solution possible and take action. Action is one of the steps required for change . So, go through the motions needed to resolve the issue.
- Try another option, if needed . If the solution you chose didn't work, don't give up. Either go through the problem-solving process again or simply try another option.
You can find a way to solve your problems as long as you keep working toward this goal—even if the best solution is simply to let go because no other good solution exists.
Sarathy V. Real world problem-solving . Front Hum Neurosci . 2018;12:261. doi:10.3389/fnhum.2018.00261
Dunbar K. Problem solving . A Companion to Cognitive Science . 2017. doi:10.1002/9781405164535.ch20
Stewart SL, Celebre A, Hirdes JP, Poss JW. Risk of suicide and self-harm in kids: The development of an algorithm to identify high-risk individuals within the children's mental health system . Child Psychiat Human Develop . 2020;51:913-924. doi:10.1007/s10578-020-00968-9
Rosenbusch H, Soldner F, Evans AM, Zeelenberg M. Supervised machine learning methods in psychology: A practical introduction with annotated R code . Soc Personal Psychol Compass . 2021;15(2):e12579. doi:10.1111/spc3.12579
Mishra S. Decision-making under risk: Integrating perspectives from biology, economics, and psychology . Personal Soc Psychol Rev . 2014;18(3):280-307. doi:10.1177/1088868314530517
Csikszentmihalyi M, Sawyer K. Creative insight: The social dimension of a solitary moment . In: The Systems Model of Creativity . 2015:73-98. doi:10.1007/978-94-017-9085-7_7
Chrysikou EG, Motyka K, Nigro C, Yang SI, Thompson-Schill SL. Functional fixedness in creative thinking tasks depends on stimulus modality . Psychol Aesthet Creat Arts . 2016;10(4):425‐435. doi:10.1037/aca0000050
Huang F, Tang S, Hu Z. Unconditional perseveration of the short-term mental set in chunk decomposition . Front Psychol . 2018;9:2568. doi:10.3389/fpsyg.2018.02568
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By Kendra Cherry Kendra Cherry, MS, is an author and educational consultant focused on helping students learn about psychology.
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PDF DECIDE AND SOLVE: Decision-making and Problem-solving Life Skills for Teens
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Description : Are you overwhelmed with a never-ending parade of choices? Still can 8217 t catch the moment when it is time to decide, and what to decide? Still waiting for the problem to be solved itself 8221 or disappear? Still, feeling unconfident approaching your life and ready to give up with every new difficulty? Then keep reading...Decision-making is one of the most important executive functioning skills directly connected to self-confidence, motivation, leadership, happiness and success. Independent and responsible decision-making is what differentiates a child from an adult. That 8217 s why this skill is so crucial to gain early on.The choices you make between your 13 and 23 years are the building blocks on your path to maturity. It is when your brain adapts to act independently, creating unique mechanisms that will serve you throughout your life.In adulthood, each day brings new challenges, problems that need to be solved, and decisions that need to be made. So how can you ensure now that you 8217 re making the right steps to prepare yourself for the future?No one is born with the ability to make awesome decisions all the time or with amazing problem-solving abilities. They 8217 re skills not natural talents. The good news is that skills can be learned and adopted.Decide and Solve will help you face your choices head-on, and make decisions confidently. Inside, you will discover:The difference between decision-making and problem-solving and the psychology behind them.The process of decision-making and problem-solving and how to put it to use.How to take responsibility for
your decisions and accountability for your mistakes.How to keep an open mind and be bold when it 8217 s needed.You will understand why the adolescent brain approaches decisions differently from adults.You will be empowered to deal with outside pressure to ensure your decisions are your own.You will know what to do when others don 8217 t support your choices.You will learn to deal with quick-fix problems and properly ask for support when it gets tough.Are you ready to make the best decision of your life? Scroll up and Buy this book!The information in the book is well-adapted for young people. Bigger font size, useful tips, witty examples and breathing stops make reading easy and fun. The paperback and hardcover versions of the book contain sketches by a talented Ukrainian artist Jaro Jakovlev.Note for adults:If you are looking for advice to help your fast-growing kid become more confident and independent, this easy-to-read and down-to-earth guide for teens and young adults contains many ideas. It is a life instruction manual for making rational choices. As a parent, you will also find this an absorbing read, helping you grasp decision-making for teenagers and assist in your own problem-solving.

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7. Thinking and Intelligence
Judgment and Decision-Making
Learning outcomes.
By the end of this topic you will be able to:
- Describe problem solving strategies
- Define algorithm and heuristic
- Explain some common roadblocks to effective problem solving
- Understand the systematic biases that affect our judgment and decision making
- Develop strategies for making better decisions
- Experience some of the biases through sample decisions
PROBLEM SOLVING
People face problems every day—usually, multiple problems throughout the day. Sometimes these problems are straightforward: To double a recipe for pizza dough, for example, all that is required is that each ingredient in the recipe be doubled. Sometimes, however, the problems we encounter are more complex. For example, say you have a work deadline, and you must mail a printed copy of a report to your supervisor by the end of the business day. The report is time-sensitive and must be sent overnight. You finished the report last night, but your printer will not work today. What should you do? First, you need to identify the type of problem and then apply a strategy for solving the problem.
Types of Problems
A problem that has clear starting point and a correct solution is referred to as well-defined problem . On the other hand, a problem that does not have have a single, correct answer is referred to as ill-defined problem . Consider the difference between these two examples:
A. The day after the day after tomorrow is four days before Tuesday. What day is it today?
B. Avi had his heart set on becoming an architect but he failed the entrance exam. What should he do?
Even well-defined problems can be distinguished between those might be solved by methodically working through a series of steps (as with example A above) and those that require a realization or insight before they can be solved. Consider the following two examples:
C. Amy is standing behind Tina, and Tina is standing behind Amy. How is this possible?
D. A murderer is condemned to death. He has to choose between three rooms. The first is full of raging fires, the second is full of assassins with loaded guns, and the third is full of lions that haven’t eaten in 3 years. Which room is safest for him?
Other types of well-defined problems include problems of inducing structure, problems of arrangement, and problems of transformation. With a problem of inducing structure the solution lies with recognizing the relationship between the parts of the problem:
E. Begin is to End as Born is to: …birth …die …enough …complete
F. In the following sequence, what is X? 9, 12, 18, X, 43
With a problem of arrangement the task is to rearrange the components of the problem:
G. Which one of the five choices makes the best comparison? ANIMAL is to LAMINA as 46251 is to: 25641 – 26451 – 12654 – 51462 – 15264
H. If the words in the following questions were arranged in alphabetical order, then which word would come third: Jargon – Jaguar – Jacuzzi – Jail – Jazz
Finally, a problem of transformation requires performing a series of steps that allow one to move from an initial state to a final goal state. However, the specific transformations and their order need to be determined:
I. Imagine that you have been given a 5 gallon jug and a 3 gallon jug and have been instructed to obtain precisely 4 gallons. You have an unlimited supply of water and you may pour water into or out of either jug. How should you proceed?
J. A famous example of a problem of transformation involves the well-known Tower of Hanoi problem. Click on the following link to attempt to solve this problem using just 3 discs. If you increase the number of discs to 4 or 5 you will notice that the problem becomes significantly more challenging (and requires significantly more moves to solve).
Tower of Hanoi: https://www.mathsisfun.com/games/towerofhanoi.html
Note: Once you have attempted all 10 sample problems, scroll to the bottom of this page to check the solutions.
Problem-solving Strategies
When you are presented with a problem—whether it is a complex mathematical problem or a broken printer, how do you solve it? Before finding a solution to the problem, the problem must first be clearly identified. After that, one of many problem solving strategies can be applied, hopefully resulting in a solution.
A problem-solving strategy is a plan of action used to find a solution. Different strategies have different action plans associated with them (see Table 1). For example, a well-known strategy is trial and error . The old adage, “If at first you don’t succeed, try, try again” describes trial and error. In terms of your broken printer, you could try checking the ink levels, and if that doesn’t work, you could check to make sure the paper tray isn’t jammed. Or maybe the printer isn’t actually connected to your laptop. When using trial and error, you would continue to try different solutions until you solved your problem. Although trial and error is not typically one of the most time-efficient strategies, it is a commonly used one.
Table 1: Problem solving strategies
- When one is faced with too much information
- When the time to make a decision is limited
- When the decision to be made is unimportant
- When there is access to very little information to use in making the decision
- When an appropriate heuristic happens to come to mind in the same moment
Working backwards is a useful heuristic in which you begin solving the problem by focusing on the end result. Consider this example: You live in Vancouver and have been invited to a wedding at 5 PM on Friday in Abbotsford. Knowing that Highway 1 tends to back up during rush hour, you need to plan your route and time your departure accordingly. If you want to be at the wedding service by 4:45 PM, and it takes 1 hour to get to Abbotsford without traffic, what time should you leave your house? You use the working backwards heuristic to plan the events of your day on a regular basis, probably without even thinking about it.
Another useful heuristic is the practice of accomplishing a large goal or task by breaking it into a series of smaller steps. Students often use this common method to complete a large research project or long essay for school. For example, students typically brainstorm, develop a thesis or main topic, research the chosen topic, organize their information into an outline, write a rough draft, revise and edit the rough draft, develop a final draft, organize the references list, and proofread their work before turning in the project. The large task becomes less overwhelming when it is broken down into a series of small steps.
Additional Problem-solving Strategies
- Abstraction: solving the problem in a model of the system before applying it to the real system.
- Analogy: using a solution for a similar problem.
- Brainstorming: suggesting a large number of solutions and developing them until the best is found.
- Divide and conquer: breaking down a large, complex problem into smaller, solvable problems.
- Hypothesis testing: assuming a possible explanation to the problem and trying to prove (or, in some contexts, disprove) the assumption.
- Means-ends analysis: choosing an action at each step to move closer to the goal.
- Proof: try to prove that the problem cannot be solved. The point where the proof fails will be the starting point for solving it.
- Reduction: transforming the problem into another problem for which solutions exist.
- Root-cause analysis: identifying the cause of a problem.
Pitfalls to Problem Solving
Not all problems are successfully solved, however. What challenges stop us from successfully solving a problem? Albert Einstein once said, “Insanity is doing the same thing over and over again and expecting a different result.” Imagine a person in a room that has four doorways. One doorway that has always been open in the past is now locked. The person, accustomed to exiting the room by that particular doorway, keeps trying to get out through the same doorway even though the other three doorways are open. The person is stuck—but she just needs to go to another doorway, instead of trying to get out through the locked doorway. A mental set is where you persist in approaching a problem in a way that has worked in the past but is clearly not working now.
Functional fixedness is a type of mental set where you cannot perceive an object being used for something other than what it was designed for.
During the Apollo 13 mission to the moon, NASA engineers at Mission Control had to overcome functional fixedness to save the lives of the astronauts aboard the spacecraft. An explosion in a module of the spacecraft damaged multiple systems. The astronauts were in danger of being poisoned by rising levels of carbon dioxide because of problems with the carbon dioxide filters. The engineers found a way for the astronauts to use spare plastic bags, tape, and air hoses to create a makeshift air filter, which saved the lives of the astronauts.
Researchers have investigated whether functional fixedness is affected by culture. In one experiment, individuals from the Shuar group in Ecuador were asked to use an object for a purpose other than that for which the object was originally intended. For example, the participants were told a story about a bear and a rabbit that were separated by a river and asked to select among various objects, including a spoon, a cup, erasers, and so on, to help the animals. The spoon was the only object long enough to span the imaginary river, but if the spoon was presented in a way that reflected its normal usage, it took participants longer to choose the spoon to solve the problem. (German & Barrett, 2005). The researchers wanted to know if exposure to highly specialized tools, as occurs with individuals in industrialized nations, affects their ability to transcend functional fixedness. It was determined that functional fixedness is experienced in both industrialized and non-industrialized cultures (German & Barrett, 2005).
DECISION MAKING
Every day you have the opportunity to make countless decisions: should you eat dessert, cheat on a test, or attend a sports event with your friends. If you reflect on your own history of choices you will realize that they vary in quality; some are rational and some are not.
In his Nobel Prize–winning work, psychologist Herbert Simon (1957; March & Simon, 1958) argued that our decisions are bounded in their rationality. According to the bounded rationality framework, human beings try to make rational decisions (such as weighing the costs and benefits of a choice) but our cognitive limitations prevent us from being fully rational. Time and cost constraints limit the quantity and quality of the information that is available to us. Moreover, we only retain a relatively small amount of information in our usable memory. And limitations on intelligence and perceptions constrain the ability of even very bright decision makers to accurately make the best choice based on the information that is available.
About 15 years after the publication of Simon’s seminal work, Tversky and Kahneman (1973, 1974; Kahneman & Tversky, 1979) produced their own Nobel Prize–winning research, which provided critical information about specific systematic and predictable biases , or mistakes, that influence judgment (Kahneman received the prize after Tversky’s death). The work of Simon, Tversky, and Kahneman paved the way to our modern understanding of judgment and decision making. And their two Nobel prizes signaled the broad acceptance of the field of behavioural decision research as a mature area of intellectual study.
Rational Decision Making
Imagine that during your final year at university, you apply to a number of doctoral programs, law schools, or business schools (or another set of programs in whatever field most interests you). The good news is that you receive many acceptance letters. So, how should you decide where to go? Bazerman and Moore (2013) outline the following six steps that you should take to make a rational decision:
- Define the problem (i.e., selecting the right graduate program)
- Identify the criteria necessary to judge the multiple options (location, prestige, faculty, etc.)
- Weight the criteria (rank them in terms of importance to you)
- Generate alternatives (the schools that admitted you
- Rate each alternative on each criterion (rate each school on each criteria that you identified, and
- Compute the optimal decision
Acting rationally would require that you follow these six steps in a fully rational manner. Unfortunately, we often don’t do so, even for important decisions. Many of us rely on our intuitions far more than we should. And when we do try to think systematically, the way we enter data into such formal decision-making processes is often biased.
Fortunately, psychologists have learned a great deal about the biases that affect our thinking. This knowledge about the systematic and predictable mistakes that even the best and the brightest make can help you identify flaws in your thought processes and reach better decisions.
Biases in our Decision Process
Simon’s concept of bounded rationality taught us that judgment deviates from rationality, but it did not tell us how judgment is biased. Tversky and Kahneman’s (1974) research helped to diagnose the specific systematic, directional biases that affect human judgment. These biases are created by the tendency to short-circuit a rational decision process by relying on a number of simplifying strategies, or rules of thumb, known as heuristics . Heuristics allow us to cope with the complex environment surrounding our decisions. Unfortunately, they also lead to systematic and predictable biases.
To highlight some of these biases please answer the following three quiz items:
Problem 1 (adapted from Alpert & Raiffa, 1969):
Listed below are 10 uncertain quantities. Do not look up any information on these items. For each, write down your best estimate of the quantity. Next, put a lower and upper bound around your estimate, such that you are 98 percent confident that your range surrounds the actual quantity. Respond to each of these items even if you admit to knowing very little about these quantities.
- The first year the Nobel Peace Prize was awarded
- The date the French celebrate “Bastille Day”
- The distance from the Earth to the Moon
- The height of the Leaning Tower of Pisa
- Number of students attending Oxford University (as of 2014)
- Number of people who have traveled to space (as of 2013)
- 2012-2013 annual budget for the University of Pennsylvania
- Average life expectancy in Bangladesh (as of 2012)
- World record for pull-ups in a 24-hour period
- Number of colleges and universities in the Boston metropolitan area
Problem 2 (adapted from Joyce & Biddle, 1981):
We know that executive fraud occurs and that it has been associated with many recent financial scandals. And, we know that many cases of management fraud go undetected even when annual audits are performed. Do you think that the incidence of significant executive-level management fraud is more than 10 in 1,000 firms (that is, 1 percent) audited by major accounting firms?
- Yes, more than 10 in 1,000 major accounting clients have significant executive-level management fraud.
- No, fewer than 10 in 1,000 major accounting clients have significant executive-level management fraud.
What is your estimate of the number of major accounting clients per 1,000 that have significant executive-level management fraud? (Write down your best estimate)
Problem 3 (adapted from Tversky & Kahneman, 1981):
Imagine that Canada is preparing for the outbreak of an unusual avian disease that is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Assume that the exact scientific estimates of the consequences of the programs are as follows.
- Program A: If Program A is adopted, 200 people will be saved.
- Program B: If Program B is adopted, there is a one-third probability that 600 people will be saved and a two-thirds probability that no people will be saved.
Which of the two programs would you favour?
Overconfidence
On the first problem, if you set your ranges so that you were justifiably 98 percent confident, you should expect that approximately 9.8, or nine to 10, of your ranges would include the actual value. So, let’s look at the correct answers:
- 14th of July
- 384,403 km (238,857 mi)
- 56.67 m (183 ft)
- 22,384 (as of 2014)
- 536 people (as of 2013)
- $6.007 billion
- 70.3 years (as of 2012)
Count the number of your 98% ranges that actually surrounded the true quantities. If you surrounded nine to 10, you were appropriately confident in your judgments. But most readers surround only between three (30%) and seven (70%) of the correct answers, despite claiming 98% confidence that each range would surround the true value. As this problem shows, humans tend to be overconfident in their judgments.
Regarding the second problem, people vary a great deal in their final assessment of the level of executive-level management fraud, but most think that 10 out of 1,000 is too low. When I run this exercise in class, half of the students respond to the question that I asked you to answer. The other half receive a similar problem, but instead are asked whether the correct answer is higher or lower than 200 rather than 10. Most people think that 200 is high. But, again, most people claim that this “ anchor ” does not affect their final estimate. Yet, on average, people who are presented with the question that focuses on the number 10 (out of 1,000) give answers that are about one-half the size of the estimates of those facing questions that use an anchor of 200. When we are making decisions, any initial anchor that we face is likely to influence our judgments, even if the anchor is arbitrary. That is, we insufficiently adjust our judgments away from the anchor.
Turning to Problem 3, most people choose Program A, which saves 200 lives for sure, over Program B. But, again, if I was in front of a classroom, only half of my students would receive this problem. The other half would have received the same set-up, but with the following two options:
- Program C: If Program C is adopted, 400 people will die.
- Program D: If Program D is adopted, there is a one-third probability that no one will die and a two-thirds probability that 600 people will die.
Careful review of the two versions of this problem clarifies that they are objectively the same. Saving 200 people (Program A) means losing 400 people (Program C), and Programs B and D are also objectively identical. Yet, in one of the most famous problems in judgment and decision making, most individuals choose Program A in the first set and Program D in the second set (Tversky & Kahneman, 1981). People respond very differently to saving versus losing lives—even when the difference is based just on the “ framing ” of the choices.
The problem that I asked you to respond to was framed in terms of saving lives, and the implied reference point was the worst outcome of 600 deaths. Most of us, when we make decisions that concern gains, are risk averse; as a consequence, we lock in the possibility of saving 200 lives for sure. In the alternative version, the problem is framed in terms of losses. Now the implicit reference point is the best outcome of no deaths due to the avian disease. And in this case, most people are risk seeking when making decisions regarding losses.
These are just three of the many biases that affect even the smartest among us. Other research shows that we are biased in favour of information that is easy for our minds to retrieve, are insensitive to the importance of base rates and sample sizes when we are making inferences, assume that random events will always look random, search for information that confirms our expectations even when disconfirming information would be more informative, claim a priori knowledge that didn’t exist due to the hindsight bias, and are subject to a host of other effects that continue to be developed in the literature (Bazerman & Moore, 2013).
Take a look at these two video clips, which provide an overview of two other common heuristics, the availability heuristic and the representativeness heuristic:
Contemporary Developments
Bounded rationality served as the integrating concept of the field of behavioural decision research for 40 years. Then, in 2000, Thaler (2000) suggested that decision making is bounded in two ways not precisely captured by the concept of bounded rationality. First, he argued that our willpower is bounded and that, as a consequence, we give greater weight to present concerns than to future concerns. Our immediate motivations are often inconsistent with our long-term interests in a variety of ways, such as the common failure to save adequately for retirement or the difficulty many people have staying on a diet. Second, Thaler suggested that our self-interest is bounded such that we care about the outcomes of others. Sometimes we positively value the outcomes of others—giving them more of a commodity than is necessary out of a desire to be fair, for example. And, in unfortunate contexts, we sometimes are willing to forgo our own benefits out of a desire to harm others.
My colleagues and I have recently added two other important bounds to the list. Chugh, Banaji, and Bazerman (2005) and Banaji and Bhaskar (2000) introduced the concept of bounded ethicality , which refers to the notion that our ethics are limited in ways we are not even aware of ourselves. Second, Chugh and Bazerman (2007) developed the concept of bounded awareness to refer to the broad array of focusing failures that affect our judgment, specifically the many ways in which we fail to notice obvious and important information that is available to us.
A final development is the application of judgment and decision-making research to the areas of behavioural economics, behavioural finance, and behavioural marketing, among others. In each case, these fields have been transformed by applying and extending research from the judgment and decision-making literature.
Fixing Our Decisions
Ample evidence documents that even smart people are routinely impaired by biases. Early research demonstrated, unfortunately, that awareness of these problems does little to reduce bias (Fischhoff, 1982). The good news is that more recent research documents interventions that do help us overcome our faulty thinking (Bazerman & Moore, 2013).
One critical path to fixing our biases is provided in Stanovich and West’s (2000) distinction between System 1 and System 2 decision making. System 1 processing is our intuitive system, which is typically fast, automatic, effortless, implicit, and emotional. System 2 refers to decision making that is slower, conscious, effortful, explicit, and logical. The six logical steps of decision making outlined earlier describe a System 2 process.
Clearly, a complete System 2 process is not required for every decision we make. In most situations, our System 1 thinking is quite sufficient; it would be impractical, for example, to logically reason through every choice we make while shopping for groceries. But, preferably, System 2 logic should influence our most important decisions. Nonetheless, we use our System 1 processes for most decisions in life, relying on it even when making important decisions.
The key to reducing the effects of bias and improving our decisions is to transition from trusting our intuitive System 1 thinking toward engaging more in deliberative System 2 thought. Unfortunately, the busier and more rushed people are, the more they have on their minds, and the more likely they are to rely on System 1 thinking (Chugh, 2004). The frantic pace of professional life suggests that executives often rely on System 1 thinking (Chugh, 2004).
Take a look at this two-part interview with Daniel Kahneman, who sheds more light on the distinction between System 1 and System 2:
Fortunately, it is possible to identify conditions where we rely on intuition at our peril and substitute more deliberative thought. One fascinating example of this substitution comes from journalist Michael Lewis’ (2003) account of how Billy Beane, the general manager of the Oakland Athletics, improved the outcomes of the failing baseball team after recognizing that the intuition of baseball executives was limited and systematically biased and that their intuitions had been incorporated into important decisions in ways that created enormous mistakes. Lewis (2003) documents that baseball professionals tend to overgeneralize from their personal experiences, be overly influenced by players’ very recent performances, and overweigh what they see with their own eyes, despite the fact that players’ multiyear records provide far better data. By substituting valid predictors of future performance (System 2 thinking), the Athletics were able to outperform expectations given their very limited payroll.
Another important direction for improving decisions comes from Thaler and Sunstein’s (2008) book Nudge: Improving Decisions about Health, Wealth, and Happiness. Rather than setting out to de-bias human judgment, Thaler and Sunstein outline a strategy for how “decision architects” can change environments in ways that account for human bias and trigger better decisions as a result. For example, Beshears, Choi, Laibson, and Madrian (2008) have shown that simple changes to defaults can dramatically improve people’s decisions. They tackle the failure of many people to save for retirement and show that a simple change can significantly influence enrollment in retirement savings programs. In many companies, when you start your job, you need to proactively sign up to join the company’s retirement savings plan. Many people take years before getting around to doing so. When, instead, companies automatically enroll their employees in savings programs and give them the opportunity to “opt out,” the net enrollment rate rises significantly. By changing defaults, we can counteract the human tendency to live with the status quo.
Similarly, Johnson and Goldstein’s (2003) cross-European organ donation study reveals that countries that have opt-in organ donation policies, where the default is not to harvest people’s organs without their prior consent, sacrifice thousands of lives in comparison to opt-out policies, where the default is to harvest organs. Canada and too many other countries require that citizens opt in to organ donation through a proactive effort; as a consequence, consent rates range between 4.25%–44% across these countries. In contrast, changing the decision architecture to an opt-out policy improves consent rates to 85.9% to 99.98%. Designing the donation system with knowledge of the power of defaults can dramatically change donation rates without changing the options available to citizens. In contrast, a more intuitive strategy, such as the one in place in Canada, inspires defaults that result in many unnecessary deaths.
Concluding Thoughts
Our days are filled with decisions ranging from the small (what should I wear today?) to the important (should we get married?). Many have real world consequences on our health, finances and relationships. Simon, Kahneman, and Tversky created a field that highlights the surprising and predictable deficiencies of the human mind when making decisions. As we understand more about our own biases and thinking shortcomings we can begin to take them into account or to avoid them. Only now have we reached the frontier of using this knowledge to help people make better decisions.
Solutions to Sample Problems
B. By definition, there is no single answer to an ill-defined problem.
C. Amy and Tina and standing back to back.
D. The room with lions is the safest (if the lions haven’t eaten in three years they will be dead).
8+1 = 9 9+1+2 = 12 12+1+2+3 = 18 18+1+2+3+4 = X=28 28+1+2+3+4+5 = 43
G. Lamina is Animal backwards. Hence, the correct answer for 46251, is 15264.
I. Follow these steps:
- Fill the five gallon jug. Three gallon jug is empty.
- Empty three gallons from the five gallon jug into the three gallon jug.
- There remains two gallons in the five gallon jug. Empty the three gallon jug.
- Pour the two gallons into the three gallon jug.
- Fill the five gallon jug and pour one gallon from it into the three gallon jug – filling the three gallon jug.
- Four gallons remain in the five gallon jug.
J. There are several ways to solve this problem; however, a perfect solution involves just 7 moves.
Bazerman, M. H. (2017). Judgment and Decision Making. NOBA Psychology. Retrieved from http://noba.to/9xjyvc3a
Note: This module is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License .
Introduction to Psychology I by Rajiv Jhangiani, Ph.D. is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.
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Video Transcript
Problem-solving and effective decision-making are essential skills in today’s fast-paced and ever-changing workplace. Both require a systematic yet creative approach to address today’s business concerns. This course will teach an overarching process of how to identify problems to generate potential solutions and how to apply decision-making styles in order to implement and assess those solutions. Through this process, you will gain confidence in assessing problems accurately, selecting the appropriate decision-making approaches for the situation at hand, making team decisions, and measuring the success of the solution’s implementation. Using case studies and situations encountered by class members, you will explore proven, successful problem-solving and decision-making models and methods that can be readily transferred to workplace projects. Upon completing this course, you will be able to: 1. Identify key terms, styles, and approaches to effective problem-solving and decision-making 2. Explain both the affordances and limitations associated with problem-solving and decision-making 3. Reflect on how mindset and personal bias influence your ability to solve problems and make decisions 4. Explain and discuss how organizational decisions or non-decisions impact personal development, team dynamics, and company-wide performance 5. Articulate how both good and bad team decisions can benefit your professional growth
Skills You'll Learn
Decision Theory, analysis, Decision-Making, Problem Solving, Critical Thinking
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Jun 24, 2020
The Training course was very attractive and valuable for implementation of the knowledge gain for solving of different problem faced in official works as well as personal responsibilities.
Apr 8, 2020
An amazing course to look at the problem and making decisions. A must for all managers and above. Gave a deep insight into how to look at issues and approaches to resolve them. Thanks
From the lesson
In the previous module, we learned how to generate a variety of creative solutions. Now we need to decide which solution is the best option. We will explore which decision-making styles lend themselves to best solve the problem given its affordances and limitations. Tips for making better decisions are outlined as well as hazards to avoid.

Diane Spiegel
Executive Coach
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IMAGES
VIDEO
COMMENTS
Problem-solving involves identifying an issue, finding causes, asking questions and brainstorming solutions. Gathering facts helps make the solution more obvious. 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.
Problem solving vs decision making Problem solving is an analytical process used to identify the possible solutions to the situation at hand. Making decisions is a part of problem solving. Problem solving is a complex process, and judgement calls - or decisions - will have to be made on the way.
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 ...
Decision making has several steps to it, which actually include the problem-solving process. First, you problem solve to find possible solutions. Next, you determine which possible solution...
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.
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.
However problem-solving and decision-making have noticeable differences. Problem-solving means that a person is trying to find a solution to a problem, whether it's ongoing, intermittent, or a one-time failure. Decision-making, on the other hand, requires a person to make choices or to choose between options (or not).
The difference between problem-solving and decision making is that Problem-solving can be thought of as a technique. When it comes to problem-solving, making the appropriate decisions is critical to arriving at a specific result. However, on the contrary decision,-making is regarded as a procedure.
The key difference between problem solving and decision making is that solving problems is a process, whereas making decisions is an action based on insights derived during the problem-solving ...
read it as well). With the group, walk through a basic process for ethical decision-making. Four-Step Process for Making Ethical Decisions at Work: 1. Define the problem (or ethical situation). 2. List the facts that appear to be most significant to the decision (and consider who is affected). 3.
The Effective Decision Decision making and problem solving Magazine Article Peter F. Drucker Effective executives do not make a great many decisions. They concentrate on what is...
Difference Between Problem Solving and Decision Making 1,667 views Feb 23, 2021 17 Dislike Share Save Prof . M.THANGA DARWIN what is Problem Solving ?, what is Decision Making?, what are...
Problem Solving Difference between Problem solving and Decision Making Contexts Authors: Mustafa Fazli Lund University Content uploaded by Mustafa Fazli Author content Content may be subject...
Problem solving consists in looking at the potential causes of the problem. On the other hand decision making consists in the method of approaching to resolve the problem. You will have to involve in brainstorm to find out solutions to the problem in decision making. Lateral and creative thinking is important in good decision making.
Critical thinking. This is a mode of thinking, compared to problem-solving, which is a set of solution-oriented strategies. Since critical thinking strengthens your reasoning, it makes it easier to learn new skills, including problem-solving. Working on your critical thinking can also help you understand yourself better, including your value ...
Decision Making and Problem Solving Page 1.1 Introduction emergency managers, planners, first responders, voluntary agency Decision making and problem solving are critically important skill areas for coordinators, and other professionals in emergency management. As an emergency management professional, your ability to identify current and
Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions. It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better. This may sound like a pretty broad definition, and that's because critical thinking is a ...
Step 3: Identify alternative solutions. This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for ...
AddThis Utility Frame. Teen Brain: Behavior, Problem Solving, and Decision Making. No. 95; September 2017. Many parents do not understand why their teenagers occasionally behave in an impulsive, irrational, or dangerous way. At times, it seems like teens don't think things through or fully consider the consequences of their actions.
Effective problem solving involves critical and creative thinking. The four steps to effective problem solving are the following: Brainstorming is a good method for generating creative solutions. Understanding the difference between the roles of deciding and providing input makes for better decisions.
Heuristics are mental shortcuts that allow people to solve problems and make judgments quickly and efficiently. These rule-of-thumb strategies shorten decision-making time and allow people to function without constantly stopping to think about their next course of action. However, there are both benefits and drawbacks of heuristics.
A mental set can work as a heuristic, making it a useful problem-solving tool. However, mental sets can also lead to inflexibility, making it more difficult to find effective solutions. ... Mishra S. Decision-making under risk: Integrating perspectives from biology, economics, and psychology. Personal Soc Psychol Rev. 2014;18(3):280-307. doi:10 ...
Inside, you will discover:The difference between decision-making and problem-solving and the psychology behind them.The process of decision-making and problem-solving and how to put it to use.How to take responsibility for
Describe problem solving strategies; Define algorithm and heuristic ... People respond very differently to saving versus losing lives—even when the difference is based just on the ... System 2 refers to decision making that is slower, conscious, effortful, explicit, and logical. The six logical steps of decision making outlined earlier ...
BSBCRT611 - Apply Critical Thinking for Complex Problem Solving - Learner Guide Page 74 of 135 Problem solving vs decision making 29 The key difference between problem solving and decision making is that solving problems is a process, whereas making decisions is an action based on insights derived during the problem-solving process. Many people use the terms problem solving and decision making ...
Effective Problem-Solving and Decision-Making. Course 5 of 5 in the Project Management & Other Tools for Career Development Specialization. Problem-solving and effective decision-making are essential skills in today's fast-paced and ever-changing workplace. Both require a systematic yet creative approach to address today's business concerns.
17.Explain the difference between extended problem solving and habitual problem solving; Question: 16.What is the name given to people involved in making a buying decision in a company? 17.Explain the difference between extended problem solving and habitual problem solving