Grade 12 Business Studies
Luthando Zulu – Teach Me 2
Problem Solving vs Decision Making:
Problem Decision
Solving 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.
Luthando Zulu – TM2: Grade 12 Business Studies
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The Problem-Solving Cycle:
1 Identify the problem
2 Explore possible strategies
3 Set goals/objectives
4 Identify alternatives
5 Select a possible solution
6 Implement a possible solution
7 Evaluate the result
Step Explanation
1 What is the problem? The first step consists in recognizing the existence of a problem that needs to be solved. In order to find an
appropriate solution, you need to identify and name the problem. Finding the source of a problem is often the most challenging
part of the process. You may not be clear of what the problem is or feel anxious and confused about what is getting in the way of
your goals. Ask questions on the following to identify the problem:
What is the nature of this special problem?
Is it temporary or longer-term?
Does the problem affect other persons or only you? Will others need to be consulted?
What do they know about it?
What is hindering you from completing this task? Do you need more time, information or experience?
2 The next stage is to research the problem as fully as possible and to explore possible problem-solving strategies. Ask questions
Luthando Zulu – TM2: Grade 12 Business Studies