Escalation Of Commitment In Decision Making Essay
In essence, various perceptions of a variety of elements in life have been described. Admittedly, such articles include the Steinkuhler et. al. (2014) study as well as its findings that explain the concepts of self-justification, selective perception, sunk cost effect, and over-optimism. Indeed, it is within this context that this paper seeks to give a summarized analysis of the phenomena of self-justification, selective perception, sunk cost effect, and over-optimism as depicted in the article by Steinkuhler et. al. (2014). Additionally, it explains the standpoint that these phenomena apply to real management decisions and how such decisions may affect the overall health of the …show more content…
In the context of the escalation of commitment, the authors confirm that one key driver of escalation relates to biased belief updates. Also, the paper supports the idea that selective perception drives escalation of commitment indirectly since, for example, initial beliefs have a strong influence on the evaluation of investment. Furthermore, the literature illustrates that the effect of selective perception in organizations demonstrate through the way in which the concept affects the different decision-making process in many institutions by their …show more content…
Inherently, escalation of commitment entails making choices to invest in some areas that show signs of failure within organizations (Razzi, 2012). Pointedly, it may be argued that the allocation of resources such as time, money, and energy to such failing sectors may be as a result of some underlying perceptions that decision makers in such organizations may have a rationalization for their actions. For instance, the leaders may opt for such investments since they may be having the self-driven need to remain consistent in the way they run their business or because of the standpoint that the continued provision of such allocations would end up making the poorly performing sections have successful outcomes. Tellingly, the decision to invest in loss making ventures may result in such institutions experiencing reduced returns and possible collapse decrease in turnovers that are vital for the accumulation and distribution of resources to run the organizations. In this view, therefore, it is clear that the phenomenon of self-justification applies to the essential element of decision making within organizations in any part of the world.
In summary, various life concepts such as self-justification, selective awareness, sunk cost effect, and over-optimism have been discussed in various articles such as that of the Steinkuhler et. al. (2014).