Developing the Problem Statement:

Examining the situation, determining if the problem requires an analysis or a reporting of information, answering a set of questions, and writing the problem statement, identifies the problem.

In order to develop the problem statement the following questions are answered:
1. What must I accomplish with this message?
2. Why is this message important or imperative?
3. Who is the subject of the message?

The answers to these questions are combined into a statement called the problem statement or the statement of the problem.

Consider the Situation
The personnel director of the Watson Supply Company, Terre Haute, Indiana, wants to know if the company should keep the current indemnity employee health benefit plan or change the HMO option to reduce premiums and retain current benefits.

Answer the Questions
1. What: analyze HMO and current health benefits
2. Who: Watson Supply Company
3. Why: Determine whether the company should change to an HMO or keep the
current health benefit plan to reduce costs and retain benefits.

Now you are ready to write the problem statement – There are three ways to write the problem statement, and you may use any one of these ways.

1. Question: Should the Watson Supply Company, Terre Haute, Indiana, keep the current conventional indemnity employee health plan ot change to an HMO option to reduce costs and retain health benefits?
2. Infinitive: The problem of this study is to analyze employee health benefits and to determine if the Watson Supply Company, Terre Haute, Indiana, should change from the current plan to an HMO option to reduce costs and retain health benefits?
3. Declarative: The results of this study will determine whether the Watson Supply Company, Terre Haute, Indiana, should keep the current employee health benefit plan or change to an HMO option to reduce costs and retain benefits.