Management: management decision-making
Introduction
Escalation of commitment is a behavioral pattern whereby individuals or a group rationalize their actions, decision and investments, particularly when they are faced with outcomes that are negative then choose to change their directions. In most of these cases, an individual is required to make a decision based on the previous decision. Investment of time, effort and resources are crucial to determining your next course of action. The important questions to ask oneself is when is the right time to quit, how much have you invested to quit or at what point does employing the same course of action become irrational. This article is going to look a case study of one Casey, a student at Sunny, who is made up and is unhappy and what factors should make it stick out or transfer.
Accountants and economists state that there is a need to consider expenses and time invested in non-irrational escalation. They refer to time and expenditure factors as ‘sunk’ costs. They indicate that these costs should not be involved in making any decisions or actions in the future since these costs are historical and irrecoverable. For example, in the case of Casey, she spent time and money from the first to the final semester together with other valuable investments spent on her other circumstances that are relevant to her stay at Sunny.
Quitting at the first sign of failure is sometimes not the wisest of choices. The most important thing to do in a situation of failure is to try to determine the course of action that is most rational. When choosing to stay in an irrational escalation of commitment, the best course of action is to make a second decision from the failures of the first while not considering that you made the initial monetary commitment. The one thing to avoid in an irrational escalation of commitment is not to be a person who makes an initial commitment from an eventual decision.
Conclusion
