A problem is known as the difference between an actual state of affairs and a desired state of affairs. It is the gap between where we are and where we want to go. In the context of management, problem solving is the conscious process of bringing the actual situation closer to the desired situation. Managerial problem solving consists of four steps; identifying the problem, generating alternative solutions, selecting the best solution and implementing and evaluating the solution. Managers may face problems in course of planning, organizing, leading and controlling. Therefore, all managerial functions are problem solving processes. It needs managerial skill and efficiency.
Managers need to identify the problem by making a comprehensive study of the gap between the actual and the desired situation. For example, a production manager would be wise to concentrate on the gap between the present level of monthly production and the desired level. The focus on the gap between the actual and desired production level is more fruitful than complaining about the current low production, if any. The challenge is discovering a workable alternative for closing the gap between actual and desired production.
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