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Escalation in organizational decision making a case of recruiting an incompetent employee
Author(s) -
Drummond Helga
Publication year - 1994
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.3960070104
Subject(s) - escalation of commitment , persistence (discontinuity) , politics , explanatory power , psychology , power (physics) , visibility , social psychology , microeconomics , economics , political science , epistemology , law , engineering , philosophy , physics , geotechnical engineering , optics , quantum mechanics
This paper analyses a case of hiring a manager who subsequently proves to be incompetent. Analysis reveals the importance of structural factors in escalation, especially politics. When these are considered, persistence emerges as both escalatory and rational. Likewise, behaviours manifest of information bias are actually logical managerial strategies and may mask political calculation. New potential escalation variables are identified including power, visibility, and organization culture. Withdrawal reflects an intricate balancing of factors including risk and opportunity. The theoretical implications of the findings are discussed.