How does escalation of commitment affect decision making Gi

. How does escalation of commitment affect decision making? Give an example.

Solution

In business management, an individual employee or manger might put more efforts in terms of money, time and other possible course of action when he will be in the stage of a failure or performance gap. Even, people ignore those decisions which repeatedly results in negative outcomes or reduced outcomes. People become more cautious in decision making due to escalation of commitment so that no error or loopholes can be again detected.

Example: If, a project manager fails to schedule exactly the project progress plan in a road construction project work then in his next project work, he will sure with a better plan and ready schedule.