I don't really get the question so I hope this is what you wanted. If you include a full document (such that we copy paste and see the problem on our systems) things are much more easier.
Here, you can change the default setting within a scope but your block
style had a node distance
which was resetting every time it is issued. I've made it 2mm such that we can see the difference easier.
\documentclass[tikz]{standalone}
\usetikzlibrary{arrows,shapes.geometric,positioning}
\begin{document}
\begin{tikzpicture}[decision/.style={diamond, draw, text width=4.5em, text badly centered, node distance=3.5cm, inner sep=0pt},
block/.style ={rectangle, draw, text width=6em, text centered, rounded corners, minimum height=4em, minimum height=2em},
cloud/.style ={draw, ellipse, minimum height=2em},
line/.style ={draw,-latex'},
node distance = 1cm,
auto]
\node [block] (1st) {1st};
\node [block, right= of 1st] (2nd1) {2nd1};
\begin{scope}[node distance=2mm and 10mm]%Here we change it for everything inside this scope
\node [block, above= of 2nd1] (2nd2) {2nd2};
\node [block, below= of 2nd1] (2nd3) {2nd3};
\node [block, right= of 2nd1] (3rd1) {3rd1};
\node [block, above= of 3rd1] (3rd2) {3rd2};
\node [block, above= of 3rd2] (3rd3) {3rd3};
\end{scope}
\node [block, below= of 3rd1] (3rd4) {3rd4};
\node [block, below= of 3rd4] (3rd5) {3rd5};
\path [line] (1st) -- (2nd1);
\path [line] (2nd1) -- (2nd2);
\path [line] (2nd1) -- (2nd3);
\path [line] (2nd2) -- (3rd3);
\path [line] (2nd1) -- (3rd1);
\path [line] (1st) -- (2nd1);
\end{tikzpicture}
\end{document}

\draw (20,12) -- ++(2,0) -- ++(0,2) -- ++(-3,0) -- ++(45:3);
Use ++
before each new incremental coordinate to make it relative to the last one and put the pencil there.
Here's a complete example:
\documentclass{article}
\usepackage{tikz}
\begin{document}
\tikz\draw (20,12) -- ++(2,0) -- ++(0,2) -- ++(-3,0) -- ++(30:3) {[rounded corners=10pt]-- ++(5,0) -- ++(0,-6)} -- ++(-7,0) -- cycle;
\end{document}

Of course, combining this with the -| or |- path operators can simplify the code even further; the following two pieces of code produce the same result:
\tikz\draw (20,12) -- ++(2,0) -- ++(0,2) -- ++(3,0) -- ++(0,1) -- ++(1,0) -- ++(0,-3) -- ++(2,0);\par\bigskip
and
\tikz\draw (20,12) -| ++(2,2) -| ++(3,1) -- ++(1,0) |- ++(2,-3);
I don't think that defining commands in this case adds anything; in fact, I think it reduces the functionality of the existing syntax (which is already simple). The example demonstrates that you can use, for example, polar coordinates and modify (up to TikZ limitations) the path attributes midways; even if the current question doesn't require this, it's a good thing to have the possibility to do those kind of modification if they are required.
Best Answer
Just include your code in a
figure
environment. In that way you'll be able to add a caption to it as a normal figure: