Escalation Of Commitment Analysis

757 Words2 Pages

Escalation of commitment is defined as “…when individuals continue on a failing course of action after information reveals it may be a poor path to follow. …” (Bauer & Erdogan, 2010,p. 251). In the case of its impact within an organization, it can range from almost non-incidental (the choice of bringing in a particular brand of cups for the community coffee pot) to extremely damaging (choosing to continue staying with a health insurance provider that does not cover medical expenses and has a high deductible).
Escalation of commitment has at least two factors which propel its continued existence when the decision to abandon a poor choice should be made (instead of continuing with the detrimental idea). These factors are human pride and overinvestment. …show more content…

The illusion is that the amount of effort already invested should not be wasted, and that if more time and money are put in, then what was already put into it can eventually be recouped. In other words, though it may be highly consuming both in finances and time, not many people are willing to admit their efforts were for nothing. To protect this, people will continue supporting a bad idea so as to justify the decision’s worth through perseverance (since perseverance does not have an actual measurement but the longevity of a project does). For example, if the new hose for a car washing station is not long enough and constantly leaks but took three months to convince the owner to purchase, the attendants of the car wash may not readily complain about the larger amount of effort for washing cars it causes if they were successful in convincing the owner to spend money on equipment. As they continue to use the hose their productivity goes down because they have fewer cars they can wash due to the hose length limiting the area where they can be washed. At this point sales begin to drop and the owner begins to ask questions. The attendants, who can never get the owner to buy new equipment, may blame the reduction in sales on the economy or

Open Document