Server Administration :: Contention On Data Blocks?

We are suffering from very bad application response for last few days, when i try to check and drill down, where the actual contention is? I came to know that there may be contention on data blocks, which may be a prime reason for degraded performance. Herewith i'm pasting my actual stats of gathered from v$waitstat. I gone through some of asktom docs and find that there may be a problem with freelist or segment space management. My data tablespace is segment space management = Manual.

My main question is

1) Should i need to increase freelist value (Right now my value is 1)

2) Or i have to move on segment space management = auto

SQL> select * from v$waitstat;

CLASS COUNT TIME
------------------ ---------- ----------
data block 2022 4052
sort block 0 0
save undo block 0 0
segment header 1 1
save undo header 0 0
free list 0 0
extent map 0 0
1st level bmb 0 0
2nd level bmb 0 0
3rd level bmb 0 0
bitmap block 0 0
bitmap index block 0 0
file header block 0 0
unused 0 0
system undo header 0 0
system undo block 0 0
undo header 6 0
undo block 0 0
18 rows selected.