The managerial problem is a state of disequilibrium indicating a performance gap between the planned performance and the actual performance.

The characteristic of problems:

The problem should be felt and recognized by management.

There’s a gap between what’s and what should be.

This gap should be measurable.

Problem solving model: Common sense – Try and error – Personal experience – Discretion – Simulation.

Decision making and taking: decision making is a bigger process consists of a number of integrated steps to solve a problem. While decision taking is only one step of the decision making process which means the selection of an alternative among others.

Problem definition: try to diagnose the real problem and not to be deceived by the symptoms.

Problem analysis: to analyze potential reasons.

Selecting an alternative: when selecting from among alternatives, managers can use three basics (experience – experimentation – research and analysis).