A manager continues funding a failing project because substantial resources have already been invested in it. This decision illustrates:
Correct answer: A. Escalation of commitment
- A. Escalation of commitment
- B. Availability heuristic
- C. Risk compensation
- D. Production blocking
Explanation
Escalation of commitment occurs when decision makers continue supporting a failing course of action because of previous investments. The past investment is treated as a reason to continue, even when current evidence suggests withdrawal.
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About Organizational Behaviour
Organizational behaviour examines how individuals and groups act within workplaces and how organisational structures influence that behaviour. It covers personality, perception, motivation, learning, leadership, communication, teamwork, conflict, power, organisational culture and change. It differs from human resource management, which focuses more directly on managing employment processes and policies.
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