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Escalation Of Commitment Informative Essay

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“Escalation of Commitment.” Write a two page informative essay that describes escalation of commitment and the impact that it has within an organization. Use an example to illustrate escalation of commitment. You may use an example from your own personal experience or you may write about an example of escalation of commitment that you have learned about by reading a case study, magazine, or newspaper article. Escalation of commitment is the tendency to keep dedicating resources such as time, money and labor to an idea which resulted in damaging results. This situation can happen at the individual level or corporate level. Examples of escalation of commitment: · A company decides to invest more money in a failing store; instead of closing …show more content…

· When a person decides to not have a healthy eating habits because it is expensive, and continue paying for medication while buying junk food which causes even more health problems. Explanations for escalation of commitment: Self-justification theory: Self-justification theory validates a natural desire of be successful and competent. Confirmation bias: Tendency to only remember and validate evidence that supports one’s ideas and beliefs, whilst ignoring or invalidating evidence that is contrary to one’s ideals Loss aversion: To want to avoid a loss, rather than acquire an equal gain Impression Management: To maintain an image of success and to afraid of the scrutiny of failures of decisions. How to prevent escalation of commitment. · Prevent confirmation bias. · Prevent loss aversion. · Accept that management decisions can be assertive or not. Avoid punishment for bad decisions. · Considering how much resources have already been invested. · Keep in mind that all decisions will affect the main

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