Define the Problem
The first step in decision making is identifying and defining the problem. A problem exists when there is a gap between a desired state .
The presence of a gap between an existing state and a desired state (such as selling clothes that should fit,but don’t) is no guarantee that manager will make decisions to solve problems. Three things must occur for this to happen. First, managers have to be aware of the gap. They have to know there is a problem before they can begin solving it.