Problem solving and decision making are fundamental to all managerial activities. Although these defining characteristics of management can be used interchangeably, current literature draws a clear delineation between the two. Problem solving can be defined as a mental process and is part of a broader process that begins with the identification of the problem and ends with the evaluation of the effectiveness of the solution. Decision making is also considered a mental process and identifies several alternative scenarios before making a final selection. For the purposes of this analysis, I will discuss the similarities and differences in problem solving and decision making. I will also explain the stages of the decision-making process and discuss different decision-making approaches. Decision-making and problem-solving processes are commonly used in management across all business models. Both processes share a similar uniqueness by combining analysis and perception along with systems and outcomes. Just like the stages of decision making, problem solving also follows a similar sequence of steps. Despite the fact that problem solving and decision making are somewhat related, they are completely different. The main difference between the two is that problem solving is considered a method while decision making is more of a process. Management uses problem solving to reach a solution with the hope of achieving a positive outcome. Decision making is often used during problem solving to help reach a solution. The decision-making process generates problem-solving criteria and develops alternative solutions. It also evaluates possible solutions and chooses between solutions (Huitt, 1992). Since the problem... half of the paper... we proceed to make judgments and choices. Both theories play an intrinsic role in behavioral decision making and have proven to be successful approaches for management (Shanteau, 2001). Management will continue to encounter new challenges that require problem solving and decision-making strategies. Some problems can be easily resolved while others may take much longer depending on the complexity of the problem. For management to make effective decisions and achieve success for their business, decision makers must have adequate situational awareness, critical thinking, and excellent communication skills and a sophisticated approach to addressing problems. Every business should have a systematic approach to solving problems and making decisions. Without it, decision making would be insufficient and businesses would be unproductive.